Something missing from this discussion - the tiebreaker rules when both parents live together! When parents who aren't married live together with their children, the IRS has specific tiebreaker rules: 1. First, the parent who provides more than 50% support 2. If that's unclear, then the parent with the higher AGI gets to claim Since you mentioned having the higher AGI and paying "just about everything," you clearly qualify under both criteria. Your ex definitely incorrectly claimed them.

I'm dealing with a very similar situation right now and want to share what I've learned from my tax attorney. The penalties your ex could face depend largely on whether the IRS determines it was an honest mistake or intentional fraud. For what sounds like your situation (unmarried parents living together), the IRS will look at who provided more than 50% of the children's support during the year. Since you mentioned paying for "practically everything" and having the higher AGI, you clearly meet the requirements to claim them. When you file your corrected return, your ex will likely receive a CP87A notice requiring her to either amend her return or provide documentation supporting her claim. If she can't substantiate it, she'll have to pay back the child tax credit, earned income credit, and any other dependent-related benefits - which could easily be $4,000+ per child. The accuracy-related penalty is typically 20% of the additional tax owed, but this can sometimes be waived for first-time offenders or if there's reasonable cause. The key is having solid documentation of your support payments ready - keep those utility bills, rent receipts, grocery receipts, medical bills, etc. One thing I learned - file your return as soon as possible. The IRS processes these disputes in the order they're received, and having your documentation ready from the start can significantly speed up the resolution.

I had a Maryland refund delay last year with Chime too. Even though the state says 48 hours, sometimes the banks themselves can add extra processing time, especially when there's been an adjustment like in your case. Chime is usually super fast but they might hold it for additional verification when the amount differs from what was expected. I'd definitely call that Maryland number tomorrow morning right when they open (8:30am) - you'll have better luck getting through early before the call volume picks up. In my experience, once you actually get someone on the phone they can tell you exactly what's causing the delay and give you a realistic timeline.

I've been through this exact situation with Maryland and Chime before. The "adjustment" is definitely the key factor here - when they modify your refund amount, it triggers additional verification steps that can extend the timeline beyond the standard 48 hours. Since you haven't received the adjustment letter yet, they're probably still finalizing everything on their end. Chime typically processes deposits instantly, but when there's a discrepancy between the expected amount and what the state is actually sending, they may hold it for verification. I'd recommend calling Maryland at 8:30am sharp tomorrow (410-260-7980) - early morning calls have way better success rates. In the meantime, keep checking your Chime account throughout the day since deposits can hit at random times, especially on weekends. The fact that others are reporting their refunds hitting after 3+ days gives me confidence yours will show up soon. The adjustment process just takes longer than regular approvals.

Has anyone dealt with a state tax levy in Arizona specifically? My boyfriend is going through almost the identical situation with unreported DoorDash income. The levy just started and they're taking like 25% of his check.

I'm so sorry you're going through this - the stress of having your paycheck garnished is absolutely overwhelming, especially when you had no idea it was coming. I went through something very similar about 3 years ago with unreported Uber income. The good news is that state tax levies are usually more negotiable than people think, and there are several immediate steps you can take to reduce the financial impact: 1. **Contact your state tax agency TODAY** - Call first thing Monday morning and ask specifically for the "Collections" or "Levy" department. Explain that this is causing financial hardship and you need to discuss payment plan options. 2. **Request a "Collection Due Process Hearing"** - Most states are required to offer this, and it can temporarily suspend or reduce the levy while they review your case. 3. **Gather your gig work records** - Even if you didn't keep great records, try to reconstruct what you can. Your delivery app might still have your earnings history, and you can estimate mileage deductions which are usually substantial for delivery drivers. 4. **Document your essential living expenses** - Prepare a detailed budget showing rent, utilities, food, etc. Most states have guidelines that protect a minimum amount for basic living expenses. The 40% levy rate suggests they're treating this as a high-priority collection, but that can often be reduced significantly once you engage with them proactively. Don't wait - the sooner you contact them, the more options you'll typically have available. You're not going to lose your apartment over this if you act quickly. Many people have been in your exact situation and worked it out successfully.

One warning about the S Corp mileage situation - if you don't do this correctly, it can be a huge audit flag! My brother-in-law got audited specifically because he was deducting mileage directly on his S Corp return without an accountable plan. The IRS disallowed all his mileage deductions for 3 years and hit him with penalties. Make sure whatever approach you take is properly documented. If you're using the accountable plan method, you need contemporaneous mileage logs (not created after the fact) and regular reimbursement payments that are clearly identified in your books.

This is exactly the situation I found myself in last year! The S Corp election creates this weird dynamic where you're simultaneously the owner and an employee, which definitely complicates vehicle deductions. Your accountant is 100% correct about needing the accountable plan. I learned this the hard way when I tried to just deduct mileage directly on my S Corp return and my CPA had to amend it. The key thing to understand is that once you elect S Corp status, the IRS treats you as an employee for certain purposes, and employees can't deduct unreimbursed business expenses on their personal returns anymore (thanks to the 2017 tax law changes). Here's what I did to set up my accountable plan: I created a simple written policy stating that my S Corp would reimburse me at the IRS standard mileage rate for documented business travel. I keep a detailed mileage log with date, destination, business purpose, and miles driven. Then I submit monthly reimbursement requests to my S Corp with supporting documentation. The reimbursements aren't taxable income to me, and my S Corp gets the full deduction. It's actually more tax-efficient than trying to deduct it personally would have been. The paperwork is a bit annoying, but it's worth it to stay compliant and maximize the tax benefits.

Quick question - does anyone know if tax software like TurboTax handles this kind of cash income reporting well? Or is it better to use a specialized self-employment tool?

Just wanted to share my experience since I was in almost the exact same situation last year! I was doing landscaping and pet sitting for neighbors, all cash payments, and made about $3,800. You definitely need to report it all on Schedule C - there's no minimum threshold for reporting income, even if it's just $50. What really helped me was setting up a simple notebook where I wrote down every payment as soon as I got it. Date, amount, what the work was for. Super basic but it saved me when tax time came. One thing that caught me off guard was the self-employment tax. Since you made over $400, you'll owe about 15.3% of your net earnings for Social Security and Medicare on top of regular income tax. It's calculated on Schedule SE. But remember you can deduct business expenses - gas for driving to jobs, tools you bought specifically for the work, even supplies for dog sitting like leashes or treats if you provided them. The whole thing seemed overwhelming at first but once I got through it the first time, it wasn't nearly as bad as I expected. Just keep good records and you'll be fine!