Just wanted to jump in here as someone who's been through this exact scenario! I switched to Varo specifically because of their early deposit feature, but learned the hard way that tax refunds don't always follow the same pattern as regular payroll deposits. Here's what I've observed from my own experience and tracking this community: • Varo's early deposit works great for predictable payments (like paychecks) • Tax refunds are more variable because the IRS controls the release timing • Your 3/26 DDD is still valid - most people see deposits between 9am-5pm on their DDD • The fact that WMR shows "approved" is a good sign - means no holds or issues I'd suggest checking your account every few hours rather than constantly refreshing. The stress isn't worth it when you're already dealing with caring for your mom. If nothing by tonight, definitely contact Varo tomorrow morning to confirm they don't have any flags on your account. Hang in there - you're not alone in this waiting game! 💪

Hey Emma! 👋 I'm going through the exact same thing right now - DDD of 3/26 with Varo and nothing yet. Filed on 2/28, so we're probably in the same processing batch. I've been checking my account obsessively since 6am and driving myself nuts! Reading through all these responses is actually really helpful though. Sounds like we're still well within the normal timeframe, even though the waiting is brutal when you really need the money. The technical explanations about ACH processing and batch releases make me feel better - at least there's a logical reason for the delay rather than something being wrong with our returns. I'm going to try to stop refreshing my app every 10 minutes and just check a few more times this afternoon. Fingers crossed we both see our deposits hit soon! Let me know if yours comes through - I'll do the same. We got this! 💪

The tax implications of mid-year divorce can be really overwhelming, but you're smart to think through these issues now rather than being surprised later. A few additional points that might help: Since your divorce is finalizing in August/September, you'll definitely be filing as Single for 2024 (not married filing jointly). However, don't overlook the potential for Head of Household status if you end up with your daughter for more than half the year - even with the 60/40 split, track those nights carefully because holidays, summer breaks, and other variations could push you over the threshold. For the house situation, I'd strongly recommend getting a CPA involved to run the numbers on selling before vs. after divorce. The difference between the $500K married exclusion and $250K single exclusion could be substantial depending on your home's appreciation. Some couples even delay finalizing the divorce by a few weeks to coordinate a beneficial sale. One thing I learned during my own divorce: consider proposing a tax provision in your settlement where you alternate years claiming your daughter, or where the non-custodial parent gets the dependency exemption in exchange for the custodial parent keeping Head of Household status. These creative arrangements can benefit both parties. Also, start keeping meticulous records NOW of all shared expenses, overnight stays with your daughter, and household costs. The IRS doesn't require this documentation with your return, but if there's ever a dispute or audit, you'll be grateful to have everything organized.

I've been through a very similar situation and want to emphasize something that several others have touched on but bears repeating: the timing of your house sale could literally save you thousands of dollars in taxes. When my divorce was finalized in October 2023, we initially planned to sell the house afterward. Thankfully, our tax advisor caught this and explained that selling while still married would preserve our $500K capital gains exclusion versus the $250K each we'd get as single filers. Our house had appreciated about $400K since purchase, so this timing difference saved us roughly $37,500 in taxes (15% capital gains rate on the extra $250K exclusion). We ended up requesting a brief delay in finalizing the divorce to coordinate the sale, and the court was actually quite understanding when we explained the significant financial impact. Most judges recognize that better financial outcomes for both parties means less potential for future disputes. For your daughter and the dependency/Head of Household question: even with your ex having primary custody, if you can document that your daughter stayed with you for more than 183 nights (including partial custody during school breaks, holidays, etc.), you could still qualify for Head of Household. The tax savings compared to Single filing status can be substantial - potentially $1,000-3,000 annually depending on your income. My biggest recommendation is to get a tax professional involved in reviewing your divorce agreement before it's finalized. They can spot opportunities and potential issues that even good divorce attorneys might miss since tax law isn't their specialty.

Has anyone successfully appealed a Section 179 recapture with the IRS? I accidentally dropped to 47% business use on my work truck last year (got a company car mid-year but kept the truck), and now facing a big tax hit. My accountant says I should just pay it, but wondering if anyone's had luck with appealing these situations?

Great question about Section 179 and vehicle usage! I went through something similar with my construction business vehicles last year. Just to add to what others have mentioned - one strategy that worked for me was being very strategic about which vehicle I used for different types of trips. When I got my second work truck, I made sure to use my original truck for all client visits, job site inspections, and supply runs to keep the business percentage high, while using the new truck for the heavier hauling work. I also found it helpful to set up a simple system where I logged the odometer reading and purpose every time I got in either vehicle. It only takes a few seconds but gives you bulletproof documentation if the IRS ever questions your business use percentages. One thing to watch out for - the recapture calculation can be pretty harsh if you fall below 50%. In my case, dropping from 70% to 45% business use would have meant recapturing about 60% of my original Section 179 deduction as ordinary income. Definitely worth the effort to stay above that threshold!

Has anyone here successfully claimed the R&D credit for software that ultimately didn't work out? We spent about $120k developing a specialized analytics tool but ultimately abandoned it because we couldn't solve some key technical problems. Can we still claim the R&D credit even though the project failed?

@Rajiv Kumar - Based on what you've described, your custom SaaS development sounds like it has strong potential for R&D credit qualification. The key factors working in your favor are: 1) creating new functionality not previously available, 2) solving technical challenges, and 3) having your developer document the process. However, I'd recommend being extra careful about a few things given your setup. Since you're using an outside developer, make sure your contract clearly establishes that you retain substantial rights to the software and bear the financial risk of the project. The IRS scrutinizes contractor arrangements closely for R&D credits. Also, with the Section 174 changes mentioned by Ryan Kim, you'll need to capitalize and amortize your $75k investment over 5 years starting in 2022, but you can still claim the R&D credit in the year the expenses were incurred. This actually makes the credit more valuable since you're getting an immediate credit against expenses that are now spread over multiple years. One practical tip: if you do move forward with claiming the credit, consider getting professional help with the documentation. The IRS four-part test requires very specific language and evidence, and it's easy to miss subtle requirements that could trigger an audit or disqualification.

Just wanted to add a few things from my experience claiming vision expenses in Ontario: 1. Don't forget about contact lenses if you use them - they're also eligible medical expenses, including contact lens solutions if prescribed by your optometrist. 2. If you need to travel to see a specialist (like for complex prescriptions or eye conditions), you can claim travel expenses too - 61 cents per kilometer for 2024 if you drove. 3. Consider timing your purchases strategically. Since you can claim medical expenses for any 12-month period ending in the tax year, you might want to coordinate with other family members' medical expenses to maximize the benefit. 4. Keep digital copies of all receipts - I learned this the hard way when my original receipt faded and became unreadable years later during a CRA review. The threshold can be tricky to hit on your own, but if you're married/common-law, you can combine medical expenses with your spouse to reach that $2,635 or 3% threshold more easily. Good luck with your new glasses!

Great thread everyone! As someone who just went through this process, I wanted to add a few practical tips: Make sure to ask your optometrist to note on your prescription if you have any specific medical conditions affecting your vision (like astigmatism, presbyopia, etc.) - this can help justify the medical necessity if questioned. Also, if you're getting progressive lenses or bifocals, these are typically fully claimable since they're addressing a medical vision condition. Same goes for specialized coatings if they're prescribed for medical reasons (like anti-reflective coating for people with light sensitivity). One thing I learned is that if you're self-employed, you might be able to claim a portion of your glasses as a business expense instead of (or in addition to) medical expenses, especially if you do a lot of computer work. Worth checking with an accountant if that applies to your situation. And definitely shop around for prices - the medical expense credit is based on what you actually paid, so finding a good deal means you still get the same percentage back but spend less upfront!