I can totally understand your anxiety about seeing that message! I went through the exact same thing when I filed my taxes a couple years ago. That offset language is basically the IRS equivalent of "terms and conditions may apply" - they're legally required to show it to everyone even though it only affects a small percentage of taxpayers. The good news is that if your refund was actually going to be offset for a debt, you would have received a formal notice (called a Notice of Intent to Offset) at least 60 days before they took any action. This notice would clearly explain what agency you owe money to, how much, and give you options to dispute it if you disagree. Since you mentioned you don't think you have any government debts and you're just seeing the generic status message, you should be all set! Your refund will likely hit your account within the next few business days. The IRS just has to include that disclaimer for legal reasons, but it doesn't mean anything is actually wrong with your specific return.

I totally get why this message would cause anxiety! I had the exact same experience when I first saw it on my refund status. That offset message is just standard boilerplate language that appears for virtually everyone - it's the IRS's way of covering all their legal bases. The important thing to understand is that the Treasury Offset Program only applies to specific types of government debts, and if you actually had one of these debts that was going to affect your refund, you would have received multiple notices in the mail long before your refund was processed. They can't just surprise you by taking your money. Since your refund shows as "approved" and you don't recall having any federal student loans in default, unpaid child support, or state tax debts, you should receive your full refund amount. Most people see their money deposited within 2-5 business days after the approved status appears. The fact that you filed electronically with direct deposit will help speed things up too!

Quick piece of advice nobody mentioned yet - whoever claims the child should also be the one to claim any childcare expenses on Form 2441 for the Child and Dependent Care Credit. That credit can be worth up to $3,000 for one kid! Since you mentioned paying more for daycare, you might benefit more from claiming your daughter even beyond the dependent exemption itself. Also worth checking if either of your employers offers dependent care FSA - that's pre-tax money you can use for daycare which is basically an automatic 22-24% discount depending on your tax bracket.

Carmen, I've been in a similar situation and here's what I learned after making some mistakes early on. The key is to run the numbers both ways before deciding - don't just go with the "lower income should claim" rule of thumb. Since you make more ($62k vs $48k), the IRS tiebreaker rules technically give you the right to claim your daughter. But that doesn't mean it's always the best financial decision for your household overall. Here's what I'd suggest: Calculate your taxes both ways. Look at the total refund/tax owed for both of you combined when (1) you claim her and file Head of Household vs (2) she claims her and files Head of Household. The difference can be significant - sometimes hundreds or even over $1000. Don't forget to factor in the Child and Dependent Care Credit for those daycare expenses - that can be worth up to $3,000 and only the person claiming the child can use it. Since you're paying more for daycare and health insurance, this might tip the scales in favor of you claiming her. Also consider your girlfriend's student loan situation if she has any - sometimes the education credits and deductions can make it more beneficial for the lower-income parent to claim the child. Bottom line: The IRS doesn't care who claims her as long as you both don't try to claim her in the same year. So run the numbers and go with whatever maximizes your household's total tax benefit!

A lot of people are missing something important here. The January 1 effective date CAN be valid even for an entity formed mid-year! Under Revenue Procedure 2013-30, the IRS allows for a retroactive S election for the entire tax year if: 1. You intended to be an S-Corp from formation 2. You file Form 2553 within 3 years and 75 days of the desired effective date Your accountant probably knows this and is trying to get you S-Corp treatment for the entire 2024 tax year. This is actually pretty standard practice.

I'm going through something very similar right now! My LLC converted to an S-Corp in August 2024, and my CPA also put January 1, 2024 as the effective date on Form 2553. I was initially confused like you, but after reading through these responses and doing some research, it seems like this is actually a legitimate strategy. What I learned is that the IRS has specific relief procedures (like Rev Proc 2013-30 that others mentioned) that allow for retroactive S elections under certain circumstances. The key is that you have to demonstrate you intended S-Corp treatment from the beginning and meet the filing deadlines. I ended up calling the IRS Business line to check on my election status, and the agent confirmed they received it and said it looked fine. She mentioned that even if they can't approve the January 1st date, they'll just adjust it to the actual formation date - no penalties or major issues. My advice would be to give it a few weeks to process, then call to check the status. If there are any problems, the IRS will send you a letter explaining what needs to be corrected. Don't panic - this seems to be a pretty routine situation that accountants deal with regularly!

As someone who went through this exact decision last year, I'd strongly recommend talking to a tax professional before making this choice. The LLC route seems appealing but can get you into hot water if the IRS determines the work is primarily personal rather than business-related. Here's what I learned: If you go the household employee route, make sure you're prepared for the administrative burden. You'll need to: - Get an EIN for household employment - File Schedule H with your tax return - Pay quarterly estimated taxes for the employer portion of Social Security/Medicare - Provide W-2s and handle year-end reporting - Potentially get workers' comp insurance (varies by state) The Child and Dependent Care Credit can be substantial though - up to 35% of qualifying expenses depending on your income, with a maximum of $3,000 for one child or $6,000 for two or more. One thing that helped me decide: I calculated the total cost of each option including all taxes, insurance, and administrative costs. The household employee route ended up being more expensive upfront but provided better long-term tax benefits and fewer audit risks. Whatever you choose, keep meticulous records. The IRS scrutinizes both household employment and business expense deductions involving childcare very carefully.

Great question about the EIN! Yes, you'll need a separate EIN specifically for household employment - it's different from your business EIN. You can apply for it online at the IRS website and it's free (don't pay third-party services for this). For payroll services, there are several that specialize in household employees and can handle all the administrative headaches: - HomePay by Care.com - probably the most well-known, handles everything from payroll to tax filings - Poppins Payroll - focuses specifically on nannies and household staff - Breedlove & Associates - been around forever, very thorough - SurePayroll - has a specific household employee service These services typically cost $200-500 per year but can save you tons of time and stress with quarterly filings, W-2s, and making sure you're compliant with all the employment tax requirements. They'll also calculate exactly what you need to pay in estimated taxes each quarter. The peace of mind is worth it IMO - one mistake on Schedule H or missing a quarterly payment can result in penalties that quickly exceed what you'd pay for a service. Plus they stay updated on changing regulations so you don't have to.

I'm dealing with this exact same issue right now! My DDD was 2/21 and it's now March 9th with no deposit from First Horizon. I've called three times and gotten completely different stories each time - first they said no deposit was pending, then they said it was "processing," and yesterday they claimed the IRS hadn't sent it yet. But when I called the IRS, they confirmed the funds were sent on 2/21 as scheduled. This is my first year banking with First Horizon and I'm already regretting the switch. The fact that multiple people here are reporting the same 3-5 day hold pattern makes it clear this is their standard practice, not an exception. I'm going to try calling their ACH department tomorrow and if that doesn't work, I'll definitely look into filing a CFPB complaint. It's ridiculous that we have to jump through all these hoops just to access our own money! 😤

I've been following this thread closely as I'm experiencing the EXACT same issue with First Horizon. My DDD was 2/20 and still nothing as of today (3/9). What's particularly frustrating is the inconsistent information from their customer service - I've been told everything from "we don't see any pending deposits" to "it's being processed" to "the IRS hasn't sent it yet." After reading everyone's experiences here, it's clear First Horizon has a deliberate policy of holding tax refunds for 3-5 business days beyond the DDD, despite their marketing about "fast access to funds." This seems like a classic case of banks using our money as a short-term interest-free loan. I'm planning to take action on multiple fronts based on the advice shared here: 1. Call their ACH department directly (does anyone have that number?) 2. Request written documentation of their hold policy 3. File a CFPB complaint citing the specific Treasury regulations mentioned 4. Get IRS documentation of the exact send date to counter their "we haven't received it" claims Has anyone successfully gotten First Horizon to admit to this hold policy in writing? That would be incredibly valuable for a CFPB complaint. Also, for those who switched banks after this experience - which institution did you move to that actually processes tax refunds promptly? This thread has been more helpful than hours of calling their customer service. Thank you all for sharing your experiences! 🙏