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I've seen this many times over the years. Probably legitimate if your income falls in the EITC sweet spot. The system is designed to benefit working families with children. Your military status might also qualify you for additional benefits. Just be prepared for potential delays. The IRS often reviews returns with large refunds and minimal withholding.
I was completely blindsided by the Form 8862 requirement after claiming EITC last year! Apparently if the IRS determines you claimed EITC in error previously, you need to file this additional form to claim it again. Took me hours to figure out why my return was rejected.
6d
So if this return gets flagged for review, what's the typical timeline we should expect? My sister is in a similar situation and we're trying to plan accordingly.
5d
Have you considered having a tax professional review your return before submitting? For something that seems unusual to you, wouldn't it be worth the peace of mind to have someone verify everything is correct? Many military bases offer free tax preparation services through VITA programs. They could confirm if this refund amount is accurate for your specific situation and explain exactly which credits are generating this refund.
Have you checked your tax transcript online? That's the most reliable way to know where your federal return stands. If you see code 570 (refund hold) followed by 571 (hold released), you're in good shape. If you have 846 with a date, that's your direct deposit date. What codes do you see on yours? Also, did you file early or right around the opening of tax season?
Success story here! Got my state refund on February 2nd and my federal PATH Act refund hit exactly on February 27th. Isn't it weird how they make us wait even when they've clearly already processed everything? But yes, getting your state refund is usually a good sign that your information matches up correctly. Just keep checking your transcript every Wednesday and Friday morning - that's when they typically update.
Have you considered these important factors for gig workers?: ā¢ Self-employment tax (15.3% on net earnings) ā¢ Quarterly estimated tax payments ā¢ Business expense deductions ā¢ Potential home office deduction Also, how much have you already had withheld or paid in estimated taxes this year? That's the critical piece to determine if you'll owe more.
Def agree w/ this list! Also don't forget abt retirement options like SEP IRA or Solo 401k that can reduce ur taxable income. I'm a gig worker too and these saved me big $$ last yr. For the 16yo, u should get CTC which helps a ton. The 18yo might still qualify as dependent but not for CTC unless they're a full-time student. Tracking expenses is super important - I use an app that auto-categorizes everything which makes tax time way easier!
5d
I'm a bit confused about your question - are you asking if you'll owe taxes when you file your 2023 return now, or are you planning ahead for 2024? And when you say "pay back" - are you concerned about having to repay tax credits you've already received, or just whether you'll owe additional tax when you file?
These are excellent clarifying questions. The timing and nature of the concern would significantly impact the advice. If this is about 2023 taxes due by April 15th, that's one scenario. If it's about planning for 2024 or concerns about tax credit repayment, those are entirely different situations requiring different approaches.
5d
I was just as methodical as you last year, trying to figure out the perfect time to check. I had my calendar marked with the PATH Act date and everything! Then I discovered that the IRS2Go app sends notifications when your return status changes. Saved me from constantly checking the website. I was surprised by how much more complex the whole process is than it needs to be - the app doesn't tell you about transcript updates specifically, but at least it alerts you when your refund status changes.
I think, maybe, you should be somewhat cautious about checking too early. Last year, I filed with EITC on January 25th, and my transcript didn't appear until around February 22nd or so, which was kind of frustrating. The PATH Act seems to create sort of a backlog that might take a while to clear, from what I've observed. The IRS probably, in my opinion, processes these returns in batches rather than immediately after the 15th, though I could be wrong about that.
I went through this exact situation. The IRS website (irs.gov/businesses/small-businesses-self-employed) has a whole section on self-employment tax obligations. According to TurboTax's estimator, with $18k and two dependents, you're looking at a decent refund if those are your only income sources. But don't count on others' situations - tax circumstances vary wildly. I've seen people with identical incomes get completely different refunds based on their specific deductions and credits.
It's like comparing apples and oranges when people talk about tax refunds! Think of it this way: your tax situation is like a unique fingerprint - the same basic pattern as everyone else, but with details that are yours alone. I'm amazed at how many factors go into the final calculation.
9d
Let me share my *totally hypothetical* š experience from last year with similar numbers. Made about $19.5k in self-employment income, have two kids, and got back around $4,800. The key is keeping good records of all business expenses - mileage, home office (if applicable), supplies, insurance, phone bills, etc. I was worried about an audit too, but my accountant explained that the IRS is mostly looking for major discrepancies, not small businesses reporting reasonable income and deductions. Just don't claim your trip to Hawaii as a "business expense" and you should be fine!
Wait, you're suggesting paying a third party just to talk to the IRS? That seems unnecessary. Can't you just call the IRS directly? I'm surprised there's actually a service for this.
The IRS call centers are notoriously understaffed during tax season. According to official IRS statistics, only about 13% of callers get through on typical days. Many taxpayers report spending 2-3 hours on hold only to be disconnected. Services like Claimyr utilize automated technology to navigate the IRS phone tree and secure your place in line. Is this an ideal solution? Perhaps not, but is it effective for those who need immediate assistance with time-sensitive tax matters? The data suggests it is.
I work in tax preparation, and I can confirm that reaching the IRS by phone can be extremely challenging, particularly during peak filing season. While I generally recommend trying the direct approach first, services that help navigate the system may be worth considering in certain situations, especially if you have a pressing issue that requires immediate attention. Just be aware that even with agent contact, some matters still require processing time.
6d
God I HATE how hard it is to reach the IRS!! I spent THREE DAYS trying to get through last month when my transcript showed a weird code. Finally got through and the agent fixed it in literally 5 minutes. So frustrating that they make it so difficult to talk to someone when most issues can be resolved quickly. I wish they'd just hire more people instead of forcing us to find workarounds!
5d
Has anyone noticed if this happens more with certain tax software? My TaxAct return last year showed up in transcripts right away, but my brother used FreeTaxUSA and had a similar delay to what you're describing. I'm wondering if some preparation software transmits differently compared to others?
Could it be that the IRS systems are just overwhelmed right now? I was worried about the same thing last month, but my transcript finally updated after about 18 days. What if the acceptance is just the first step in a much longer queue? My return was pretty simple too - just W2 income and standard deduction. Anyway, my transcript eventually showed up and my refund followed about a week later. Hang in there!
Watch out for the "kiddie tax"! My daughter didn't file when she made about $3000, but she had a small investment account I set up that earned $200 in dividends. The IRS sent us a notice a year later saying she should have filed and owed taxes on the unearned income! Had to pay the tax plus a small penalty. So frustrating because no one told us about this weird rule for dependents with investment income. š”
I've been a volunteer tax preparer for years, and here's what I tell parents of first-time workers: While filing isn't required below $12,950 for 2023, it's still a good educational opportunity. I had my kids file their first returns regardless of the amount. Helps them understand withholding, tax brackets, and the whole process. Plus, if she plans to work more next year, she'll already be familiar with the process. Many free filing options available that make it pretty painless.
I faced this same issue and resolved it by following these steps: 1. Confirmed TurboTax acceptance email had the correct confirmation number 2. Waited until February 15th (PATH Act release date) 3. Checked transcript daily for 7 days after PATH release 4. Saw transcript update on day 8 with all codes at once 5. Received refund 6 days later Does this timeline sound reasonable to others who've been through this?
I tracked this exact scenario meticulously last year. TurboTax showed accepted on January 24th. Transcript showed absolutely nothing for exactly 26 days. Then suddenly my transcript updated with 16 different codes all at once. Refund deposited 8 days later. The systems are completely disconnected - I was shocked how the transcript went from empty to fully processed overnight with no intermediate steps!
Val Rossi
The community wisdom on this is pretty consistent: filed returns with dependents that were accepted in January 2024 are taking exactly 21-35 days to process for most people. I've tracked 42 different posts about this issue since January 15th, and 38 of them reported their transcripts updated suddenly after showing nothing for weeks. Only 4 had actual issues requiring further action. The statistics strongly suggest you're in the normal processing group.
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Eve Freeman
Last week my client was in identical situation. Filed January 19. One dependent. Blank transcript until February 13. Refund deposited February 16. No issues. No explanation for delay. Just normal processing time. Don't worry yet.
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