This thread has been super informative! I'm dealing with a similar situation where I received my final paycheck of 2023 on December 31st via direct deposit, but my pay stub shows January 1st, 2024 as the "pay period end date." My employer's HR department is insisting this makes it 2024 income, but based on everything I'm reading here about constructive receipt, it sounds like they're incorrect since I had the money in my account on December 31st, 2023. Has anyone successfully convinced their employer to correct this kind of mistake? I'm worried about getting into a back-and-forth argument with payroll when tax season is already here. Should I just accept their decision and file Form 4852 like someone mentioned, or is it worth fighting this?

I'm a tax preparer and see this confusion every year. The key thing to remember is that the IRS follows the "constructive receipt" rule - you're taxed on income when you have the right to receive it, not when it's officially "earned" or when the pay period ends. Since your money was deposited December 30, 2023, that's when you constructively received it, so it belongs on your 2023 W2. Your employer should include this in your 2023 W2, giving you 13 paychecks for that year. This is completely normal and happens whenever year-end pay dates fall this way. Don't let them tell you otherwise - the deposit date is what matters for tax purposes, not the pay stub date or pay period. If your employer insists on putting it on your 2024 W2, they're making an error that you'll need to address before filing your taxes.

@297b08930051 Hey Connor! I totally feel your pain on this - the whole Pathward situation is one of the most confusing parts of using H&R Block. I went through the exact same thing last year and it drove me absolutely crazy! Here's the deal: Pathward is essentially just H&R Block's payment processor - think of it like the cashier at a store who takes your money and gives you change, except you never actually interact with them directly. When you chose to have your fees deducted from your refund, your money goes IRS → Pathward (they take the fees) → your bank account. The key thing is you CAN'T access a Pathward account because one doesn't exist for you. Instead, track your refund through: • Your H&R Block online account (shows basic processing status) • IRS "Where's My Refund" tool (most accurate and up-to-date) Don't worry about losing your sanity over this - the system is intentionally confusing and H&R Block doesn't explain it well. Once your refund goes through (usually takes about 21 days total), you'll understand the process much better for next year. You're doing everything right by trying to stay on top of it! Hang in there! 🙂

@297b08930051 As someone who's helped family members navigate this exact confusion, I can totally relate to your frustration! The Pathward/H&R Block setup is genuinely one of the most poorly explained processes in tax filing. Here's what's actually happening: When you selected the option to pay H&R Block's fees from your refund (instead of upfront), you essentially created a temporary "pit stop" for your money. The IRS sends your full refund to Pathward, they extract H&R Block's fees, then forward the remainder to your actual bank account. The reason you can't find a Pathward login is because you're not actually their customer - H&R Block is. You're just the beneficiary of a temporary transaction. For tracking, stick to these two reliable sources: • **H&R Block online account** - Shows if your return was accepted and when they expect to receive your refund • **IRS Where's My Refund tool** - Shows the real-time status from the government's perspective Pro tip: The IRS tool is usually 1-2 days ahead of what H&R Block shows you. Once the IRS says "sent," expect 2-4 additional business days for the Pathward processing and transfer to your bank. You're not overthinking this - the system really is unnecessarily convoluted! But you're on the right track asking these questions. 👍

I totally get how stressful this is - the unknown is always the worst part! I went through something very similar last year and it turned out to be much less scary than I initially thought. Based on what you're describing and the codes others mentioned (570 and 971), this is most likely a routine verification request. Since you mentioned claiming education credits, that's probably what triggered it. The IRS has been doing a lot more verification on education-related credits lately. Here's what I'd suggest while you wait for the letter: - Gather your 1098-T forms and any receipts/bank statements showing tuition payments - If you claimed the American Opportunity Credit, have documentation that shows you were enrolled at least half-time - Keep copies of everything organized and ready to send When the letter comes (and it will - don't worry about it getting lost), respond exactly as they request. If they want documents faxed, fax them. If they want them mailed, use certified mail with return receipt. The whole process from response to refund release took about 7 weeks for me, but I did get my full refund with no adjustments. It's frustrating to wait, but this really is routine verification, not an audit or anything punitive. Hang in there - you'll get through this and get your refund!

I completely understand your anxiety about this! I went through the exact same situation about 8 months ago and it was definitely stressful waiting for that letter to arrive. In my case, it ended up being verification for education credits too - they sent me a CP05 letter asking for my 1098-T form and proof that I actually paid the tuition expenses I claimed. The whole thing was resolved pretty smoothly once I sent in the documentation. A couple of things that might help ease your mind: - The fact that you can see the 570 and 971 codes on your transcript is actually a good sign - it means they're just requesting information, not that they've already made any adjustments to your return - Since it's been about a week since the codes appeared, your letter should arrive within the next 1-2 weeks - Having your education documents ready (1098-T, tuition receipts, enrollment verification) will save you time once the letter arrives The waiting is definitely the hardest part, but this really is routine verification. I ended up getting my full refund about 5 weeks after I responded to their letter. Just make sure to respond promptly and send exactly what they ask for using their preferred method (fax vs. mail). You've got this - it's way more common than you think and definitely not something to panic about!

This entire discussion has been incredibly enlightening! As someone who's been preparing my own taxes for years but just hit the NIIT threshold for the first time, Form 8960 has been completely overwhelming. What really stands out to me is how this community came together to solve what initially seemed like a simple software discrepancy but turned out to be a genuinely complex tax interpretation issue. The fact that multiple people independently verified the same approach through different channels (IRS calls, CPA consultations, AI tools, etc.) really builds confidence in the methodology. I'm particularly grateful for the step-by-step example with actual numbers - seeing the $50K investment income divided by $200K total income to get the 25% ratio, then multiplying by the full $15K state tax amount to get $3,750 for Line 9b makes it crystal clear. That concrete illustration was worth more than reading the IRS instructions multiple times. The legislative context about preventing double taxation rather than creating additional deduction benefits also helps explain why the SALT cap doesn't apply here. It's one of those situations where understanding the "why" behind the rule makes the calculation method make much more sense. Thanks to everyone who shared their research and experiences - this is exactly the kind of practical tax guidance that makes navigating these complex forms possible for regular taxpayers like me!

As someone who just discovered this community while struggling with the exact same Form 8960 issue, this thread has been a lifesaver! I was getting completely different NIIT calculations between TaxAct and H&R Block software and couldn't figure out why. The detailed explanation about using the full state tax amount (without the SALT cap) in the ratio calculation finally makes sense. I've been going in circles trying to understand why the $10,000 limitation wouldn't apply, but the clarification that NIIT operates as a separate tax system designed to prevent double taxation really clicked for me. What I find most reassuring is how multiple people independently verified this approach through different channels - IRS calls, CPA consultations, and even AI tax tools all pointing to the same methodology. That kind of consensus gives me confidence to proceed with the calculation. The step-by-step example was incredibly helpful too. I worked through it with my own numbers: $75,000 investment income ÷ $300,000 total income = 25%, then 25% × $18,000 state taxes = $4,500 for Line 9b. This should reduce my NIIT by about $171, which definitely makes the effort worthwhile. I'm keeping detailed documentation of this calculation method along with references to Treasury Regulation 1.1411-4(f)(3) that was mentioned. Thanks to everyone who shared their research and experiences - this community collaboration is exactly what I needed to navigate this confusing tax situation!

I've been following this thread closely as someone in a similar situation, and I wanted to add some practical context about planning with these future changes. Even though the age 75 requirement won't kick in until 2033, it's worth considering how this affects your overall retirement withdrawal strategy now. One thing I learned from my financial planner is that the delayed RMD age might actually create some tax planning challenges. If you're waiting until 75 to start required withdrawals, you could end up with larger account balances that force bigger RMDs when they do start. This could potentially push you into higher tax brackets in your later 70s and 80s. The key is thinking about voluntary distributions in your early 70s to manage your tax bracket, especially if you have other income sources like Social Security or pensions that will increase your taxable income over time. The flexibility to choose when to start taking money out (versus being forced to) is actually a valuable planning tool. Has anyone else considered how these changes might affect their overall tax strategy, not just the technical compliance with RMD rules?

Great question about voluntary distributions! Once you're over 59.5, there are generally no restrictions on how much you can withdraw from your traditional IRA or 401(k) - you just pay ordinary income tax on the distributions. The main thing to watch out for is managing your tax bracket. One strategy I've seen work well is what's called "bracket filling" - taking enough distributions each year to fill up your current tax bracket without pushing into the next one. For example, if you're in the 12% bracket, you might take distributions up to the top of that bracket, then stop to avoid jumping to 22%. Another consideration is the timing of Social Security benefits. Since those become taxable at certain income levels, coordinating your voluntary IRA distributions with when you start claiming Social Security can be really important for managing your overall tax burden. The flexibility that comes with the delayed RMD age is actually one of the best parts of SECURE 2.0, but it does require more active planning than just waiting for the government to tell you what to withdraw. Working with a tax professional who understands these new rules can really pay off in the long run.