I'm going through this exact same thing right now! Filed on Feb 18th and my transcript updated on March 5th with all the codes except 846. The "no tax return filed" message on the wage transcript had me convinced something went horribly wrong with my filing. Reading everyone's experiences here is such a relief - sounds like this is just how the IRS systems work during PATH season. I need my refund for some investment opportunities too, so I totally understand the anxiety! Based on what everyone's sharing, it seems like most people see their 846 code within 8-16 days of the initial transcript update. Mine should hopefully appear by next week if the timeline holds. Thanks for posting this question - I was about to start calling the IRS daily!

I'm dealing with this exact scenario right now too! My transcript updated on March 4th with codes 150, 570, and 971, but still no 846. The wage & income transcript showing "no tax return filed" had me in a complete panic - I thought maybe my return got lost in the system somehow. Reading through everyone's experiences here is incredibly helpful. It sounds like this database mismatch between the Account Management System and the wage/income system is just a normal part of how the IRS processes returns during PATH season. The technical explanations about separate databases really make sense of why we're seeing these contradictory messages. I'm also waiting on my refund for some time-sensitive financial moves, so I completely understand the stress! Based on the timelines people are sharing here (mostly 8-16 days from initial transcript update to 846 code appearing), I'm cautiously optimistic mine should show up within the next week or so. Has anyone noticed if the day of the week matters for when these updates typically appear? I've been checking every morning but wondering if there's a pattern to when the IRS pushes these final updates through their system.

Thank you all for this incredibly thorough discussion! As someone who's been lurking in this community for a while but never posted, I felt compelled to share my experience after reading through all these helpful responses. I actually went through this exact situation about six months ago when I helped my sister-in-law with her IVF treatments. Like many of you, I initially got conflicting advice from tax professionals - one said it was definitely a gift tax issue, another said it wasn't, and my regular CPA admitted he wasn't sure about fertility treatments specifically. What ultimately gave me confidence was doing exactly what several people here suggested: I contacted the IVF clinic directly and worked with their billing department to set up payments. They were incredibly helpful and even provided documentation showing that the treatments were medically necessary for fertility enhancement. I ended up paying about $28,000 directly to the clinic over the course of her treatment cycle. When tax season came around, my CPA (after doing his own research into Publication 502 and IRC Section 2503(e)) confirmed that no gift tax return was needed. The direct payment to the medical provider for qualifying medical expenses made it completely exempt from gift tax limitations. My sister-in-law is now 7 months pregnant with twins, and knowing that I could help without creating tax complications for either of us made the whole experience that much more meaningful. For anyone still on the fence about this issue, the law really is clear once you dig into the actual IRS publications rather than relying on general assumptions about gift tax rules.

This thread has been absolutely invaluable! I'm currently facing the exact same situation with my younger brother and his wife who are starting their second round of IVF treatments. After their first attempt failed last year, they're emotionally and financially drained, and I want to help with the costs for their next cycle. Like so many others here, I initially got contradictory advice. My tax preparer insisted that any payment over $18,000 (the 2025 limit) would require a gift tax return, while the fertility clinic's financial counselor told me that medical payments are completely exempt. The confusion was really stressing me out because we're talking about potentially $35,000+ for this treatment cycle. Reading through all the professional confirmations here about IRC Section 2503(e) and Publication 502 has given me the confidence I needed. I'm particularly grateful for the practical advice about working directly with the clinic's billing department and keeping detailed documentation. I'm planning to contact their IVF clinic this week to set up direct payment arrangements. It's such a relief to know that I can provide this support without creating tax complications for any of us. The emotional burden of infertility is already so heavy - the last thing they need is additional stress about tax implications from accepting help. Thank you to everyone who shared their expertise and personal experiences. This community has been an incredible resource for navigating what seemed like an impossibly complex tax question!

My daughter was a first-time filer this year. Claimed two dependents. No verification needed. Return processed in 16 days. Refund deposited directly. No issues at all. System worked smoothly. Never had to call. Just made sure all information was accurate. Used quality tax software. Double-checked everything before submitting.

The verification requirements can be unpredictable, but here's what I've learned from helping clients through this process: The IRS uses multiple data points beyond just "first-time filer with dependents." They cross-reference SSNs against previous filings, W-2 wage reporting, and even address history. If your daughter's information is consistent across all these databases, she'll likely process without issues like Sadie's daughter did. However, if there are any discrepancies - maybe she moved recently, changed her name, or her employer reported wages differently than expected - that could trigger verification regardless of filing status. The key is having all supporting documents ready (Social Security cards, birth certificates for dependents, photo ID) just in case, but not assuming verification is inevitable.

I'm so sorry for your loss, Yara. Dealing with tax complexities while grieving is incredibly challenging, and I can understand how overwhelming this situation must feel. The advice you've received here is absolutely correct - you must use the stepped-up basis (fair market value on the date of death) rather than your husband's original purchase price. This is required under IRC Section 1014 for all inherited assets, even though it means a smaller loss deduction in your case. As someone new to this community, I'm impressed by the comprehensive guidance everyone has provided. A few key takeaways for your immediate next steps: **Contact your brokerage right away** - Ensure they've properly coded these as inherited assets. If your 1099-B shows the original cost basis instead of the stepped-up basis, request a corrected form before filing. **Document everything thoroughly** - Get official date-of-death valuations from both your brokerage and verify against the fund companies' websites. Keep all records of the inheritance, original statements, and sale transactions. **Consider professional help** - Given the conflicting advice you mentioned and the complexity of inherited assets, a consultation with a tax professional who specializes in estate matters could provide valuable peace of mind, especially for this first year. Remember that even with the stepped-up basis, your capital losses can still offset other gains and provide up to $3,000 in annual deductions against ordinary income, with any unused losses carrying forward indefinitely. You're handling this exactly right by seeking clarity before filing. That proactive approach will help ensure everything is done correctly during an already difficult time.

I'm so sorry for your loss, Yara. Having to navigate complex tax rules while dealing with grief is incredibly difficult, and I can only imagine how stressful this must be on top of everything else you're going through. The advice everyone has provided here is absolutely spot-on - you must use the stepped-up basis, which is the fair market value of the mutual funds on your husband's date of death. This is mandated by Section 1014 of the Internal Revenue Code and applies to all inherited assets, regardless of what the original purchase price was. I know it feels unfair that you can't use the higher amount he actually paid, but the law is very clear on this point. From my own experience dealing with inherited investments, here are the most important steps to take right now: **Get your brokerage records corrected immediately** - If they issued a 1099-B showing your husband's original cost basis instead of the stepped-up basis, you'll need a corrected form before filing. Most brokerages have specific procedures for inherited assets once you provide the death certificate. **Secure multiple sources for date-of-death valuations** - Get the official values from your brokerage, but also check the mutual fund companies' websites for that specific date. Having documentation from multiple sources will strengthen your records. **Don't let the losses go to waste** - Even though the loss amount is smaller than you hoped, you can still use it to offset other capital gains and deduct up to $3,000 against ordinary income this year, with any remaining losses carrying forward indefinitely to future tax years. You're being smart by getting this sorted out before filing. That proactive approach will help ensure everything is handled correctly and give you confidence moving forward. Hang in there - the first year dealing with inherited assets is definitely the hardest from a paperwork standpoint, but you've got this.

My brother went through this and found out something interesting - in some states, judges are actually starting to recognize this inequity. His divorce was in Colorado, and the judge actually specified in their decree that he gets to claim their daughter in even years and his ex gets odd years, DESPITE him not being the custodial parent. The judge specifically cited the fact that he pays significant support as the reason. Has anyone else seen this trend in their state? It seems like courts are slowly recognizing that the old "custodial parent gets everything" approach isn't always fair, especially when the non-custodial parent is providing significant financial support.

This is such a frustrating situation that highlights a real gap in how our tax system handles modern family structures. You're absolutely right that it feels unfair when you're contributing significantly to your child's expenses but getting zero tax recognition for it. One thing that might help is documenting everything meticulously - every support payment, medical expense, school cost, etc. Even if you can't claim your child now, having detailed records becomes crucial if you ever go back to court to modify your agreement or if circumstances change. I've also seen some non-custodial parents successfully argue for modifications to their divorce decrees years later when they can demonstrate they're paying substantially more than the original support calculation anticipated. Courts are increasingly recognizing that the financial reality often doesn't match the initial custody arrangement. The system definitely needs reform to better reflect the actual financial contributions both parents make. In the meantime, it's worth consulting with a family law attorney about whether your specific situation might qualify for a modification, especially if your support payments represent a large percentage of your child's total expenses.