I just double-checked all my banking info and everything looks correct. My boss was super careful when entering everything. Is there any way to confirm with the IRS that they have the right account number on file?

Unfortunately, you can't verify the exact account details the IRS has on file through the Where's My Refund tool. The best way to confirm would be to speak with an IRS representative directly, which goes back to the challenge of reaching someone. If your return was e-filed through H&R Block, you could also contact them to verify what banking information was submitted with your return. They should have records of exactly what was sent to the IRS.

This is so true. The IRS sent me a letter asking for proof my kid lived with me, and it got lost in a pile of junk mail. I never responded and my refund was delayed for MONTHS.

Thank you - that's helpful! It was definitely a direct rollover, so I never actually touched the money. I was mainly confused because TurboTax kept asking me about IRA contributions and I wasn't sure if the rollover counted as one. Sounds like I don't need to enter anything about the rollover when filing?

You're welcome! Since it was a direct rollover, you generally don't need to report it on your tax return at all. Most tax software will ask if you made any "contributions" to an IRA, but a rollover isn't considered a contribution in the tax sense. The only exception would be if your 1099-R (which you should have received from Principal showing the distribution) has a distribution code that doesn't clearly indicate it was a rollover. In that case, you might need to clarify in your tax software that it was indeed a qualified rollover. But in most direct rollover cases, everything is properly coded and you don't need to take any action.

This is so important! I messed this up last year and accidentally reported my rollover as income. Had to file an amended return after realizing the mistake. Check that code box on the 1099-R carefully!

Did you need to provide any financial documentation to get on a payment plan? I'm worried they'll want to see all my expenses and bank statements.

For my situation (owed about $7k), I didn't need to provide detailed financial documentation. They just asked about my general monthly income and expenses over the phone. If you request a larger monthly payment amount than they initially suggest, they're less likely to request detailed financial info. For larger tax debts (over $10k I think), they might ask for more detailed financial information using Form 433-F. But even then, it's not as invasive as people fear.

That's a great tip! Does it work for state taxes too? My levy was from the state department of revenue.

Great point! I actually did this for my daughter and they were super helpful. They printed out a detailed breakdown of all her financial aid by semester and explained exactly why they had to make the adjustment. Saved me a lot of guesswork.

That's good to hear! Financial aid offices deal with these forms all the time, so they're usually pretty good at explaining what each box means. One thing I learned is that different schools handle these adjustments differently, so it's always worth checking with your specific school. Sometimes they can even provide documentation that explains the adjustment, which is helpful if you need to file an amended return or if you get questions from the IRS later.

Thanks for mentioning this! We filed last year's return in February, so it sounds like we have plenty of time to figure this out. Would you recommend filing the amendment before working on this year's taxes, or should we finish this year's taxes first and then go back to amend last year's?

I'd generally recommend completing your current year's taxes first, then circling back to the amendment. This way you have a clear picture of your current situation before making changes to past returns. Just make sure to keep good notes about what you need to amend while it's fresh in your mind. Write down the exact adjustment needed and set a reminder to come back to it after tax season. Many people intend to file amendments but forget about it once the immediate tax deadline passes.

I did have a pretty expensive health insurance plan that was coming out pre-tax, plus I was maxing out my 401k that year. Could those really account for almost $95k difference between box 1/5 and box 3 though? That seems like a massive gap!

Health insurance premiums and 401(k) contributions typically reduce your Social Security wages, but $95k is an unusually large difference. Even if you maxed out your 401(k) at the 2018 limit ($18,500 plus any catch-up contributions if you were over 50), and had expensive health insurance (let's say $15,000-20,000 for a premium family plan), that would still only account for maybe $40,000 of the difference. If there's still a $55,000 gap unaccounted for, it's likely there was a reporting error. Another possibility is if you had some deferred compensation or special bonus arrangement that was treated differently for Social Security purposes. Either way, I would definitely contact your former employer for clarification.

Check if you contribute to a 457(b) plan. Those reduce your Social Security wages but not your Medicare wages. My wife works for the state and has this exact situation - big difference between box 3 and boxes 1/5 because of her 457(b) contributions and healthcare FSA.