Has anyone considered the "relation-back doctrine" in this situation? According to my accountant, this is what applies to check payments rather than just constructive receipt. I was told that a check payment is considered made when the check is delivered as long as: - It's dated the day of delivery or earlier - It's delivered before year-end - There's no restriction on cashing it - It's cashed within a reasonable time (usually considered to be within 30 days) This is different from constructive receipt which is more about when the recipient should recognize income.

I went through something very similar with a year-end payment to a subcontractor. The IRS Publication 538 actually addresses this specific scenario under "Payment by Check" rules for cash basis taxpayers. The bottom line is that your deduction belongs in 2023 because that's when you delivered the check, regardless of the ACH processing delays between your accounts. The key factors that support this are: 1) You delivered the check on December 30, 2023 2) The contractor could have deposited it immediately (no restrictions) 3) You had initiated the transfer to ensure funds would be available The fact that ACH rules created a delay in your account doesn't matter for tax purposes - what matters is that you made the payment in good faith with reasonable expectation it would clear. Since it did clear without bouncing, you're golden for the 2023 deduction. For the contractor, they report it as 2023 income since that's when they received the check. The deposit timing is irrelevant under constructive receipt doctrine. Just make sure you keep documentation of the transfer initiation date and the check delivery date in case you ever need to support the timing during an audit.

Has anyone here filed an amended return to claim a refund for something they missed? I forgot to claim the Child Tax Credit last year and trying to figure out if I should even bother with an amendment or if it's too much hassle.

I just went through this exact situation a few months ago! Here's what I learned that might help: First, yes you can e-file your 1040X through TurboTax for recent tax years - this is much faster than mailing. When you e-file, you'll get immediate confirmation that the IRS received it. For your missing 1099 income, make sure you: 1. Include the corrected forms that show the additional income 2. Fill out Part III of Form 1040X with a clear explanation like "Adding unreported 1099-MISC income from [company name]" 3. Calculate any additional tax owed and pay it ASAP to avoid penalties The key thing that tripped me up initially was not realizing I needed to explain WHY I was amending in Part III - the IRS requires this even if it seems obvious. Keep it simple but specific. Don't stress too much about "getting in trouble" - the IRS actually appreciates when taxpayers voluntarily correct their returns. As long as you file the amendment and pay any additional tax owed promptly, you're doing exactly what you're supposed to do. The process took about 16 weeks for mine to be fully processed, but I got confirmation it was received within a few days of e-filing.

I just completed my ID.me verification this morning after getting the letter about 10 days ago, and finding this thread feels like striking gold! Reading through everyone's experiences has been incredibly reassuring, especially since the IRS website is pretty vague about what happens after verification. Like so many others here, I had to deal with the photo upload timing out multiple times and the facial recognition failing repeatedly - it's almost comical how consistently problematic that system seems to be. Finally got the confirmation screen though, so now I'm prepared for the waiting game ahead. Based on all the timelines shared here, it sounds like I should expect somewhere in that 3-9 week range, with most people seeing results around 4-6 weeks. I'll definitely start doing the Friday morning transcript checks that everyone swears by. I'm also dealing with some urgent medical expenses, so I totally understand the stress that comes with needing this refund sooner rather than later. Thanks to everyone who has shared their experiences and updates - it makes this whole process feel so much more manageable when you know what to realistically expect and that others have successfully made it through!

I just completed my ID.me verification yesterday after receiving the letter two weeks ago, and I'm so grateful to have found this thread! Like everyone else, I dealt with the frustrating photo upload timeouts and facial recognition failures - it took me four attempts before everything finally went through. Reading all of your experiences and timelines has been incredibly helpful in setting realistic expectations for what comes next. Based on what I'm seeing here, it looks like I should prepare for somewhere in that 3-9 week range, with most people experiencing results around 4-6 weeks. I'll definitely start checking my transcript on Friday mornings like so many of you have recommended. I'm also in a situation where I really need this refund for some unexpected car repair bills, so the waiting is particularly stressful. But it's reassuring to know that weeks of no movement doesn't mean something's wrong - just that the IRS is working through their massive backlog. Thanks to everyone who has shared their timelines and updates - it really helps make this whole process feel more manageable when you can see that others have successfully made it through!

Has anyone dealt with social security after a parent passes? My dad was getting monthly checks and one came after he died. Not sure if I need to return it or report it somewhere on taxes??

Sorry for your loss. Yes, you can absolutely still claim your mom as a dependent for 2024 even though she passed away in April. The IRS allows you to claim someone as a dependent for the entire tax year if they met the dependency requirements during the time they were alive. Since you were supporting her, she lived with you, and her income was minimal (just Social Security), she would qualify as your dependent. Make sure to keep good records of the support you provided - housing, food, medical expenses, etc. You'll also want to have her death certificate on hand in case the IRS ever asks for documentation. One thing to also consider - any medical expenses you paid for her care can potentially be included in your medical expense deductions if you itemize. Those final months often involve significant medical costs that you might be able to deduct.

Has anyone used a Backdoor Roth IRA in this situation? My income is too high for regular Roth contributions, but my financial advisor mentioned this strategy with my severance.

Another option to consider is opening a Solo 401(k) if you do any freelance or consulting work while receiving severance. Even small amounts of self-employment income can qualify you, and the contribution limits are much higher than IRAs - up to $70,000 for 2025 if you're under 50. I was in a similar situation and started doing some freelance work on the side. The Solo 401(k) allowed me to shelter a significant portion of both my freelance income AND make additional contributions beyond what I could with just an IRA. You can contribute both as the employee (up to $23,500) and as the employer (up to 25% of net self-employment income). Just make sure to set it up before December 31st if you want to make contributions for this tax year. The paperwork is pretty straightforward and many brokerages offer them with minimal fees.