If the direct deposit fails and you're waiting for a paper check, make sure your address is current with the IRS! I learned this the hard way last year when my check got sent to my old apartment. You can update your address by filling out Form 8822 but it might be too late if the check is already being processed.

I'm dealing with a similar situation right now - my direct deposit info got messed up and I'm stressed about waiting for a paper check. Based on what everyone's sharing here, it sounds like there are a few things you can try: 1. Call the IRS directly at 1-800-829-1040 ASAP - some people have had luck changing their info before processing is complete 2. Contact Venmo support to see if they'll still accept the deposit even with the suspension (like LilMama23 mentioned) 3. If you do end up waiting for a paper check, those tracking tools people mentioned might help reduce the anxiety of not knowing what's happening The most important thing seems to be acting fast since once the refund is fully processed, your options become pretty limited. Good luck with getting this sorted out!

My sister works for the IRS (not speaking officially ofc) and she always says they have bigger fish to fry than chasing people over a few dollars. Their computer matching system might catch it, but most likely it would fall below their internal threshold for sending notices.

I'm an EA and deal with these situations regularly. For $12 in qualified dividends, you're looking at maybe $1-3 in additional tax depending on your bracket. The practical reality is that the IRS automated matching system might flag it, but it would likely fall below their enforcement threshold. That said, if you want to be 100% compliant, you can file Form 1040X. Most tax software charges around $40-60 for amendments, so you'd be paying significantly more than the actual tax owed. My recommendation for clients in similar situations: Keep the 1099-DIV with your tax records and document your decision. If you ever get a notice (highly unlikely for this amount), you can respond showing you received the document after filing and the minimal tax impact. The IRS is much more understanding when they see you have the documentation and there's clearly no intent to evade taxes.

Does anyone know if turbotax handles the mutual fund supplemental information correctly? I input my Vanguard 1099 for VTSAX and VTI but I'm worried it might double-count some of the dividend income if I'm not careful.

Great thread everyone! As someone who was completely overwhelmed by my first Vanguard 1099 with VTSAX and VTI last year, I can definitely relate to the original confusion. One thing I'd add is that if you're holding these funds in both taxable and tax-advantaged accounts, make sure you're only looking at the 1099 for your taxable account holdings. I made the mistake of trying to reconcile my entire portfolio at first, not realizing that the 1099 only covers the taxable account distributions. Also, for anyone using tax software other than TurboTax - I use FreeTaxUSA and it handles the Vanguard import correctly as well. The key is really just understanding that the supplemental section is informational only, as others have explained so well here.

One thing nobody's mentioned yet - if you're using tax software, be super careful with how you enter home improvements. I accidentally entered my bathroom remodel as a "home office improvement" in TurboTax last year, and ended up with an inflated deduction. Found the mistake during a review and had to fix it, but it was easy to mess up! For the cost basis question - yes, kitchen renovations increase your overall home's cost basis, but they're tracked separately from your business deductions. Keep excellent records of all home improvements regardless of whether they qualify for immediate business deductions. You'll need them when you sell.

Slightly off topic but if u have other big expenses coming up that would affect your office directly, maybe consider waiting til next year to switch to the simplified method. I had a similar situation where I was doing actual expenses for years, then did a renovation that had nothin to do with my office. Kept actual expenses that year, then the next year I needed new windows (including in my office) and a roof repair, so I stayed with actual expenses for one more year. THEN I switched to simplified the year after when I had no major house expenses. Timing things can make a difference!

Anyone know if Vanguard generally fixes these 1099-R issues quickly? I have a similar problem but with Fidelity and I'm getting anxious about tax deadlines approaching.

This is a really common misunderstanding with brokerages! You're absolutely correct based on the IRS rules. I work in tax compliance and see this issue frequently - the key is that recharacterizations are tied to the tax year of the original contribution, not when the transfer physically settles. Since both of your recharacterizations were for 2023 contributions and both were completed before your 2023 tax filing deadline, they should both be reported for tax year 2023. The fact that one settled in January 2024 is irrelevant. When you call Vanguard back, specifically ask for their "Retirement Services Tax Team" or "IRA Tax Specialist" rather than general customer service. Have Publication 590-A ready with the exact quotes you mentioned. Most importantly, reference the "timing" rule you cited - it's very clear that the election and transfer must both occur before the filing deadline for the contribution year. If they still push back, ask them to cite which specific IRS publication supports their position. They won't be able to because the rules are clear. Document everything in case you need to escalate to a supervisor.