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My accountant told me that another option with old Coverdell ESAs is rolling them into a 529 plan. Has anyone done this? Wondering if this avoids the age 30 issue entirely since 529s don't have age restrictions?
Yes! I did exactly this with my old Coverdell. You can roll it into a 529 plan and it's considered a qualified education expense, so no penalties. The key is that you have to do a trustee-to-trustee transfer (don't take possession of the funds yourself). Also, you need to complete the rollover before turning 30, so this wouldn't work for OP who's already 32, unless they change the beneficiary first.
This is a really tricky situation, but you actually have several good options! Since you're already 32, the most straightforward approach would be to change the beneficiary to your 4-year-old daughter. This essentially resets the clock and avoids any penalties entirely. Here's what I'd recommend doing immediately: 1. Contact the financial institution holding the account and ask about their beneficiary change process. You'll likely need to fill out a form and provide documentation showing your daughter is a qualified family member. 2. Keep detailed records of everything - the original account statements, any correspondence about the beneficiary change, and proof of the family relationship. 3. Consider whether you want to make additional contributions once your daughter is the beneficiary. You can contribute up to $2,000 per year until she turns 18, assuming you meet the income requirements. The beauty of this approach is that it preserves the full $12,500 for your daughter's education and gives you 14+ years for it to potentially grow tax-free. Plus, if she doesn't use it all, you could potentially change the beneficiary again to another family member. I'd definitely act quickly though - the longer you wait, the more complicated it might become if the IRS or the financial institution starts asking questions about why distributions weren't taken after age 30.
Tbh the cycle codes DO still matter, but the IRS systems are more flexible now. Weekly cycles (03/07) still mostly update Thurs night/Fri morning, but sometimes there are exceptions. Daily cycles can update any day. The key diff is that weekly filers usually get their $$ exactly 1 week after transcript updates, while daily can be 3-5 days. Don't stress too much - once ur transcripts update, you'll know for sure. Most ppl stay on same cycle yr to yr unless something major changes in their tax situation.
I've been tracking this exact issue for the past few years and wanted to share what I've learned. If your transcript hasn't updated yet, there are a couple other ways to get clues about your cycle: 1. Check your previous year's Account Transcript - look for the 150 code and the cycle number (like 20231103). The last two digits usually stay consistent. 2. If you used direct deposit last year, check what day of the week your refund hit your account. Weekly cycles typically get refunds on Wednesdays, while daily cycles can be any day. 3. Call the automated refund hotline at 1-800-829-1954 - sometimes it gives processing info even when transcripts are blank. Since you mentioned you're post-divorce and this affects your financial planning, I'd also suggest setting up IRS account alerts if you haven't already. They'll email you when your transcript updates, so you don't have to keep checking manually every day. The uncertainty is stressful enough without the constant refreshing!
Ugggh this is the WORST. I went through this last year and wasted so much time. My advice? Skip the phone tag completely and use taxr.ai - it analyzes your transcript and tells you what's actually happening with your return. Saved me hours of stress and confusion trying to decipher what was going on. https://taxr.ai
I'm dealing with this exact same situation right now! Filed in early March, got the verification notice about 2 weeks later, and it's been radio silence ever since. The waiting is absolutely killing me because I really need that refund money. From reading all these comments, it sounds like calling the verification line (800-830-5084) early in the morning is probably my best bet. I'm going to try that tomorrow right at 7am. If that doesn't work, I might have to bite the bullet and try one of these callback services people are mentioning, even though I hate the idea of paying extra just to talk to a government agency. Has anyone had success with just showing up at a local IRS office? There's one about an hour from me and I'm wondering if that might be faster than waiting on hold for hours.
As someone who went through a messy custody tax situation, I want to emphasize what others have touched on - you are NOT required to sign retroactive Form 8332s for years where you filed correctly. Your ex is being unreasonable demanding 7 years of retroactive forms. The IRS only cares about correcting actual errors, which in your case appears to be just 2021. For that specific year, you could consider signing a Form 8332 just for 2021 to help expedite resolution, but absolutely do not sign anything for the other 6 years where you followed your agreement correctly. Document everything - keep copies of your divorce decree, your tax returns for all years in question, and any correspondence with your ex about this issue. If he continues to be unreasonable or threatens legal action, this documentation will show you've been compliant with both your agreement and IRS rules. Your amended return for 2021 should eventually be processed (though yes, the delays are frustrating). Stay firm on your position - you're doing the right thing by only correcting the actual error year.
I went through something very similar with my ex a few years ago, and you're absolutely right to be cautious about signing retroactive forms. Here's what I learned from my experience: First, keep detailed records of EVERYTHING - every Form 8332 you've signed, when you signed them, and how you delivered them to your ex. I scan and email them so I have delivery confirmations. Also keep copies of all your tax returns showing you only claimed your designated children each year. For communication with your ex about refusing the retroactive forms, I'd recommend putting everything in writing (email or text) and keeping it factual and brief. Something like: "I've reviewed our tax filings for [years]. Since I correctly followed our agreement and only claimed my designated children during those years, I don't see a need for retroactive Form 8332s. I'm happy to sign a form specifically for 2021 to resolve the CPA error once my amended return is processed." The key is staying calm and fact-based. Don't get drawn into arguments about who's right or wrong - just stick to what the actual filings show. Your ex being "litigious" is likely just intimidation tactics. You've followed the agreement correctly for 6 out of 7 years, so you're in a strong position. One more tip: if this does escalate, having an IRS representative confirm in writing that only 2021 needs correction could be valuable documentation for any potential legal proceedings.
This is excellent advice, especially about keeping delivery confirmations for the Form 8332s! I never thought about that but it makes total sense given how disputes can escalate. One thing I'd add - when communicating with your ex about this, avoid using emotional language like "unreasonable demands" even if that's how you feel. Stick to phrases like "reviewing the actual tax filings" and "following IRS requirements." It keeps everything professional and harder for them to twist your words if things do go legal. Also, that suggestion about getting IRS confirmation in writing is gold. Even if you use a service like Claimyr to get through to them, make sure to ask the agent to document their guidance about which years actually need correction. Having an official IRS position on record could shut down any future arguments from your ex about those other 6 years.
Anderson Prospero
Curious - has anyone here actually received a 1099-K from Ticketmaster for reselling tickets? I've sold through them a few times and provided my SSN but never got any tax form.
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Tyrone Hill
β’I did last year. Sold about $1,200 worth of tickets across multiple events and got a 1099-K in early February. The form just showed the gross payment amount - it didn't account for what I originally paid for the tickets. My tax preparer had me bring in my original purchase receipts to properly report everything.
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Liam Sullivan
Just to add some reassurance - I went through this exact same situation about 6 months ago. Ticketmaster's request for your SSN is completely legitimate and required by law. I was hesitant at first too, but it's the same information you'd provide to any employer or bank. The process was actually pretty straightforward once I provided my SSN. My payment was released within 2-3 business days after verification. And like others mentioned, since you sold at a loss, you won't owe any additional taxes on this transaction. One tip: when you provide your SSN, make sure all your account information matches exactly what's on file with your bank/payment method. Any discrepancies can cause additional delays. But once everything is verified, you should get your money without any further issues.
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