I've been dealing with this exact same issue! The IRS W4 calculator has been giving me inconsistent results too. What I found helpful was to run through the calculator multiple times with the same information to see if the Step 3 amount keeps changing - if it does, that's a clear sign the calculator has a bug. From what I've learned here and through my own research, the safest approach is to manually fill out your W4 rather than relying on the pre-filled version from the calculator. For your $9,500 Traditional IRA contribution, put it ONLY in Step 4(b) as a deduction. Since your income is $65,000, you definitely don't qualify for the Saver's Credit (which phases out completely around $36,500 for single filers), so Step 3 should remain blank unless you have other legitimate tax credits. The calculator seems to have known issues with how it handles retirement contributions, especially when combining them with other tax situations. Better to be conservative and follow the actual W4 instructions rather than trust the automated tool.

As someone who's been through this exact same confusion, I want to reinforce what others have said about manually completing your W4 instead of relying on the calculator's pre-filled form. The IRS calculator definitely has bugs when it comes to retirement contributions. Here's my simplified approach that worked for me: Enter your $9,500 Traditional IRA contribution ONLY in Step 4(b) under "Other adjustments to reduce your withholding." Leave Step 3 completely blank since you don't qualify for the Saver's Credit at your income level. The random amounts appearing in Step 3 each time you generate the form are a clear red flag that the calculator isn't working properly. I experienced this too and it turned out the calculator was incorrectly combining different tax scenarios. One tip: After you submit your updated W4, check your next paycheck to make sure the withholding adjustment looks reasonable. You should see slightly less tax withheld per paycheck since your taxable income is effectively reduced by the IRA contribution. This will help you avoid overpaying like you did last year while still ensuring you don't owe a large amount at filing time.

This is exactly the kind of complex situation where getting expert guidance upfront can save you major headaches later. Based on your wife's visa history - 6 years total with tourist visa initially, then F1 student visa that expired in January 2024 - you're dealing with multiple moving pieces that affect her tax status. A few key points to consider: 1. Since her F1 expired in January 2024 and you're going through the marriage-based green card process, her current status likely affects how the substantial presence test applies for 2024. 2. The fact that she's had no taxable income simplifies things somewhat, but you still need to determine her correct status to choose the right filing approach. 3. Be very careful about the worldwide income reporting requirement if you make any election to treat her as a resident - this catches a lot of people off guard. Given the complexity with mixed visa types, the 5-year F1 exemption period, and the transition to marriage-based status, I'd strongly recommend getting a definitive determination of her tax status before making any elections. The consequences of filing incorrectly with international situations can be significant, and the rules around these elections have specific timing requirements and documentation needs. Have you been able to get copies of all her I-94 entry/exit records? That's usually the starting point for any accurate substantial presence test calculation.

As someone who went through a very similar situation with my spouse from Mexico, I want to emphasize how important it is to get this right from the start. The substantial presence test calculation with mixed visa types is genuinely complex, and the stakes are high. One thing I learned the hard way - even though your wife has no income, you still need to be absolutely certain about her tax status before making any elections. We initially thought the 6013(g) election was a no-brainer since my husband had no income either, but it turns out there can be unexpected consequences down the road. For example, once you make the 6013(g) election, it continues for all subsequent years until you revoke it or certain events terminate it. This means if her status changes again during the green card process, you're still locked into treating her as a resident for tax purposes until you formally revoke the election. Also, don't underestimate the importance of proper documentation. The IRS requires specific statements attached to your return explaining why you're making the election and confirming you understand the obligations. Missing these requirements can invalidate the election. Given that her F1 expired in January 2024 and she's been here 6+ years, definitely focus on getting an accurate substantial presence test calculation first. That will tell you whether you even need to make an election or if she already qualifies as a resident alien naturally. The calculation might be simpler than you think once you properly account for the F1 exemption period rules.

Has anyone notice that different tax software handles this differently? In H&R Block, it automatically combines all entries with the same payer ID. But when I tried TurboTax at my friend's house, it let me enter each fund individually.

I actually just went through this exact same situation with my Vanguard 1099-DIV! After reading through all these responses and doing some research, I ended up listing each fund separately using the same payer ID that Vanguard provided on the form. What helped me decide was realizing that the IRS computers are designed to handle this - they match the total reported dividends under Vanguard's payer ID with what Vanguard actually submitted to them. As long as those numbers align, you're good. I used TurboTax and it made it really easy to enter each fund on its own line with the same payer information. Plus, having each fund listed separately will definitely help me next year when I need to track cost basis for any sales. Much better than trying to figure out which fund was which from a combined entry. The whole process took maybe 10 extra minutes compared to combining everything, but the peace of mind was worth it. No issues with my return either - got my refund without any questions from the IRS.

I'm dealing with a similar situation and have been following this thread closely - thank you all for sharing such detailed strategies! I wanted to add one more approach that worked for me recently: if you have a specific IRS notice or letter, try calling the direct number printed on that notice instead of the general line. I had a CP2000 notice and called the number specifically listed on it, and got through in about 25 minutes on my second attempt. The agent was already familiar with that type of issue and resolved it quickly. Also, for anyone feeling anxious about these calls (like I was!), remember that the IRS agents are generally very helpful once you reach them - they deal with phone system frustrations all day too and understand what you've been through to get connected. Don't let the broken phone system discourage you from getting the help you need!

I've been following this thread as someone who recently went through the same struggle, and I wanted to share what finally worked for me after trying several of the methods mentioned here. I started with the Taxpayer Assistance Center line (1-844-545-5640) that @Grace Patel recommended, but got a busy signal twice. Then I tried the main line using @Freya Larsen's button sequence at 7 AM on a Wednesday, and after a 43-minute wait, I actually got through! The key things that helped: using a landline, having all documents ready (especially my physical Social Security card as @Tami Morgan mentioned), and staying calm during the call. The agent was incredibly patient and resolved my amended return question in about 15 minutes. For anyone still struggling - don't give up! The persistence really does pay off, and this community's advice is spot-on. Also, if you're calling about a specific notice, definitely try the direct number on that notice first as @Diego Flores suggested. Thanks everyone for sharing your experiences - it made all the difference! 🙏

This is a really helpful thread! I'm dealing with a similar situation but with a twist - I made excess contributions to both traditional AND Roth IRAs for 2023. Do I need to file separate Form 5329s for each type of account, or can I report both on the same form? Also, I'm seeing conflicting information about whether I can recharacterize the traditional IRA excess contribution to a Roth IRA to avoid the penalty, or if that would just create another excess contribution issue since my income was too high for direct Roth contributions anyway. Has anyone dealt with this double excess contribution scenario before? My tax software (H&R Block) is giving me error messages when I try to enter both types of excess contributions, so I'm wondering if I need to handle this manually or switch to different software.

This thread has been incredibly helpful! I'm dealing with a similar situation but wanted to clarify something about the timing. You mentioned withdrawing the excess contributions "as of a few days ago" - the key deadline here is the tax filing deadline for the year the contribution was made (including extensions). For 2023 contributions, that deadline was October 15, 2024 (with extension). If you withdrew after this date, you'll still owe the 6% penalty for 2023 even though you removed the excess. The penalty applies because the excess was still in the account on December 31, 2023. Regarding TaxAct showing this on your 2024 Form 5329 - that's incorrect. You need the 2023 Form 5329 to report excess contributions made for tax year 2023. Most tax software struggles with this cross-year reporting. You may need to manually prepare and mail the 2023 Form 5329 separately from your main return. And yes, you're correct about the timing for the earnings tax - you'll report that on your 2024 return next year when you receive the 1099-R from Fidelity. The 10% early withdrawal penalty will apply to just the earnings portion, not the original contribution amount.