The 570 code after ID verification is super common - don't stress! It's basically the IRS putting a temporary hold while they finalize everything on their end. Even though your verification was successful, they still need time to update their systems and remove any flags. Most people see it lift within 2-3 weeks, though some have reported up to 4 weeks. Keep monitoring your transcripts weekly rather than daily (trust me, it'll save your sanity lol). The good news is that once the 570 lifts, your refund usually processes pretty quickly after that!

Same exact situation here! Got my 570 code about 10 days after successful ID verification and I've been checking my transcript obsessively 😭 It's reassuring to see so many people saying this is normal but the wait is absolutely killing me. I keep wondering if I did something wrong during the verification process even though it said "successful." Has anyone tried calling the IRS to ask about timeline or do they just tell you to wait it out?

Just wanted to add another perspective here - I'm a financial aid counselor at a state university and see this confusion ALL the time. The key thing to remember is that the IRS doesn't care what you actually spend your financial aid on - they only care about the SOURCE of the funds and whether they exceed your qualified educational expenses. So if you received $15,000 in grants/scholarships and only had $4,000 in qualified expenses (tuition, fees, required books), then $11,000 is taxable regardless of whether you spent it on rent, food, a car, or stuffed it under your mattress. One tip: if you haven't purchased your textbooks yet, consider buying them before the end of the tax year. Required course materials ARE qualified expenses and can reduce your taxable amount. Also, lab fees, graduation fees, and other required fees count as qualified expenses too. Your financial aid office should be able to provide you with a detailed breakdown of your aid and qualified expenses if your 1098-T isn't clear enough.

Just wanted to share my experience since I went through something similar last year. I had about $8,500 in excess financial aid and was dreading having to report all of it as income. After doing some research and talking to my school's financial aid office, I discovered that several expenses I hadn't considered actually qualified as educational expenses: my laptop (which was required for my major), specific software licenses my professors required, and even some lab equipment I had to purchase for my chemistry courses. The key is getting proper documentation from your school. My financial aid counselor helped me create a detailed breakdown showing exactly how much of my aid went to qualified vs. non-qualified expenses. This reduced my taxable portion from $8,500 down to about $4,200. Also, don't forget that if you're claimed as a dependent on your parents' taxes, the standard deduction for dependents is different - it's the greater of $1,150 or your earned income plus $400 (up to the standard deduction amount). So even with some taxable scholarship income, you might not owe as much as you think. Definitely talk to your financial aid office first - they deal with this question constantly and can usually provide you with the exact numbers you need for your tax return.

I work for a tax resolution firm and see this "erroneous death marker" issue several times a year. Here's what I tell my clients: The fastest resolution path is actually through the IRS Taxpayer Advocate Service (TAS) that Sean mentioned, especially since you have a time-sensitive mortgage closing. Call 1-877-777-4778 and explain that the incorrect death status is creating financial hardship. They can issue a Taxpayer Assistance Order which essentially forces the IRS to prioritize your case. While waiting for TAS to act, simultaneously visit Social Security in person with multiple forms of ID - driver's license, passport, birth certificate if you have it. The SSA death file is often the original source of these errors. For your immediate tax filing needs, you'll have to paper file with a cover letter explaining the situation. Include copies (not originals) of your ID and any correspondence you've received about this issue. Pro tip: When dealing with the mortgage company, get a letter from your tax preparer or CPA confirming that you've filed returns in recent years. This can help demonstrate to underwriters that the death record is clearly erroneous while you're waiting for the government to fix their mistake. Good luck with your closing!

I went through something very similar about 8 months ago! The IRS had me marked as deceased due to what they called a "database synchronization error" with Social Security. Here's what worked for me: First, don't panic about your mortgage closing - I was in the exact same boat and it worked out fine. Contact your loan officer immediately and explain the situation. Most lenders have dealt with this before and can usually work with you as long as you show you're actively resolving it. The absolute fastest route is calling the Taxpayer Advocate Service at 1-877-777-4778 first thing in the morning. Tell them about your home closing timeline - they prioritize cases with financial hardship. I got a callback within 48 hours and they issued an expedited correction order. While waiting for TAS, visit Social Security in person (not online, not by phone - IN PERSON). Bring your driver's license, passport if you have one, and a recent bank statement. They can often update their records same-day, which then flows to the IRS within a few days. For your taxes, you'll need to paper file this year with a cover letter. I included copies of my ID, a letter from my employer, and even a utility bill to prove I was obviously alive and active. The whole mess took about 3 weeks to fully resolve, but the mortgage company was understanding once I showed them the documentation that I was actively fixing it. Hang in there!

Great question about the Child and Dependent Care Credit! You're right to bring this up, but there are some important limitations to be aware of. Generally, if you're receiving payment for caring for someone, you can't also claim the Child and Dependent Care Credit for expenses related to that same person's care - it would be like getting a double benefit. However, there might be some gray areas depending on your specific situation. For example, if the government program only covers certain hours or types of care, and you're paying out-of-pocket for additional care services (like respite care, medical transportation, or specialized equipment), those separate expenses might still qualify for the credit. The key is that the credit is meant for expenses you pay to enable you to work or look for work. Since your husband is the caregiver being paid in this situation, it would be tricky to claim he needs to pay for care to enable him to work as a caregiver - if that makes sense! I'd definitely recommend consulting with a tax professional or using one of the tax analysis tools mentioned earlier to get clarity on your specific circumstances. The rules around caregiver income and related credits can get pretty complex.

This thread has been incredibly helpful! As someone who just started caring for my elderly mother through a state waiver program, I was completely confused about the tax implications. The agency told us something similar about being "tax exempt" as a family member, but reading through all these responses, it's clear that was misleading information. I'm particularly concerned because my mother's care coordinator specifically told us we wouldn't need to report the income at all, which now sounds completely wrong based on what everyone is saying here. We haven't received any tax documents yet since I just started last month, but I want to make sure we handle this correctly from the beginning. Does anyone know if I should proactively contact the agency to clarify what kind of tax documents they'll be sending me? I'd rather get ahead of this than be surprised like some of you were with unexpected W-2s or 1099s. Also, should I start setting aside money for taxes now, even if they're not withholding anything currently? Thanks to everyone who shared their experiences - this is exactly the kind of real-world advice that's impossible to find anywhere else!

I've been through this exact same situation with my small consulting business! The good news is that you're absolutely allowed to use the same depreciation method for both your books and taxes - there's no legal requirement to keep them separate. Here's what I learned: if you're a small business without outside investors or complex financing arrangements, using tax depreciation (like MACRS) for your books actually makes a lot of sense. It simplifies your record-keeping, reduces accounting costs, and eliminates the risk of making mistakes by tracking two different schedules. The main downside is that accelerated tax depreciation can make your profits look lower on paper in the early years, but for most small businesses, this isn't a real problem. Your bank cares more about cash flow than depreciation methods anyway. My advice: start simple by using the same method for both. You can always change to separate schedules later if your business grows and circumstances change. Don't overthink it - keeping things simple when you're starting out is usually the right approach!

This is such a common concern for small business owners! I went through the same confusion when I started my landscaping business. The key thing to understand is that using the same depreciation method for both books and taxes is perfectly acceptable and often the smartest choice for small businesses. I've been using MACRS for both my financial records and tax returns for three years now, and it's worked out great. My CPA actually recommended this approach because it keeps things simple and reduces the chance of errors. The only time you really need to consider separate schedules is if you have investors who need to see financials that reflect economic reality rather than tax-optimized numbers. For your situation, I'd say stick with the simple approach - use your tax depreciation schedule for your books too. You can always adjust later if your business grows and you need more sophisticated financial reporting. The time and money you'll save on accounting fees will be worth it!