I had the exact same situation last tax season! After researching on the IRS website (https://www.irs.gov/individuals/get-transcript), I found that code 826 is just informational. As long as you reported all your interest income correctly, you're fine. In my case, everything matched up and I didn't need to take any action. My refund processed normally and I received it within 3 weeks of filing.

I just went through this exact same thing! Code 826 showed up on my transcript about 2 weeks after I filed my return. I was initially worried because I have multiple investment accounts and wasn't sure if I had missed reporting something. After comparing my transcript with all my 1099-INT forms, everything matched up perfectly. The code is basically the IRS saying "we received interest income information about you from XYZ Bank" - it's part of their normal verification process. As long as you reported all your interest income on your return (either on Schedule B if over $1,500 or directly on Form 1040 if under), you should be good to go. The timing makes sense too since financial institutions have until January 31st to file their forms with the IRS, so these codes often appear in February/March.

the dates on those letters dont mean anything!!!! my letter was dated april 10 but the postmark on the envelope was may 3. the irs be sending stuff out weeks after they claim. dont worry about it honestly.

Don't stress about this - it's totally normal! I went through the exact same thing last year. The IRS systems are notoriously slow to sync up with each other. When you verify your identity, that information doesn't instantly update across all their databases. The "no record of processed return" letter is basically an automated response that gets triggered when they can't find a COMPLETED return in their system at that moment. But your return is definitely there - it's just sitting in a processing queue waiting for all the verification checks to clear. I'd give it another week or two before calling. In my experience, once you see your transcript update with processing codes (look for TC 150 which means your return was accepted for processing), you'll know things are moving along. The whole process took about 3 weeks total for me after verification. Keep checking your transcript on Fridays since that's when they typically update. You've got this!

When I was about your age I got hit with a state levy too. One thing to check - did you file your state tax return separately from your federal return? A lot of young people use free tax software that sometimes only files federal taxes unless you specifically select and often pay extra for state filing. If that happened, the state would have no record of you filing at all, even if you did your federal taxes perfectly. Had this exact thing happen to me my first year out of college.

Hey @GalaxyGlider, I totally understand the panic you're feeling right now - tax issues are scary when you're young and just starting out! Based on what everyone's shared here, it sounds like you have some good options to resolve this. First things first: definitely call the state tax agency ASAP (like tomorrow morning). Have your Social Security number, the levy notice, and any tax documents from 2023 ready. Explain that you moved and this is the first notice you've received. A few quick things to check while you're gathering info: - Do you have a copy of your 2023 state tax return? If you can't find one, that might be a clue that you only filed federal - Check your bank account/credit card statements from early 2024 - look for any payments to your state's tax department - If you used tax software, log back into that account and see if there's a record of state filing The good news is that at 22 with a $42k income, you're likely looking at a relatively small tax amount if you did miss filing. Most states are willing to work with people who contact them proactively, especially if it was an honest mistake due to moving or filing confusion. Don't let this mess up your finances or stress - it's totally fixable! Keep us posted on how the call goes.

I totally get that anxious feeling while waiting! I went through the exact same thing last month - Informed Delivery showed IRS mail with no preview image, and I was refreshing my mailbox app constantly. Turned out to be my 5071C verification letter, and honestly the whole process was way less scary than I'd built it up to be in my head. The online verification at idverify.irs.gov took me about 20 minutes (I had to dig around for my prior year AGI), but once I had everything together it was straightforward. Since you mentioned your husband's deployment, definitely lead with that when you verify - whether online or by phone. I've heard from others in military families that mentioning deployment timelines can really help prioritize your case. Also, if you haven't already, you might want to check your IRS online account transcript while you wait - sometimes there are processing codes that update before the physical letter arrives. Fingers crossed it shows up tomorrow and you can get this wrapped up quickly! The waiting is definitely the worst part.

I completely understand that anxious feeling! I just went through this exact situation about 6 weeks ago. Informed Delivery showed IRS mail with no image preview, and like you, I was hoping desperately it was my verification letter. It turned out to be the 5071C form I was waiting for. The online verification at idverify.irs.gov was actually pretty smooth - took me about 18 minutes total, mostly because I had to locate my prior year AGI from my files. Given your husband's upcoming deployment, I'd definitely recommend having your 2022 tax return handy along with some account numbers (they asked me for my credit card account number for verification). If the online route doesn't work, call the specific number on the letter and immediately mention the military deployment timeline - I've heard from several people that this can really help expedite processing. Once I completed verification, my refund was processed in exactly 16 days. The waiting is absolutely the hardest part, but you're probably very close to getting this resolved! Hoping it arrives tomorrow and you can knock this out quickly before the deployment.

Have you considered setting up a 529 plan and making a contribution before selling the property? If you're in a state that offers tax deductions for 529 contributions, you might be able to offset some of the capital gains tax with the state tax deduction. Not a complete solution but could help reduce the overall tax impact.

I went through a similar situation two years ago with a rental property for my daughter's college expenses. One strategy that worked well for me was a partial gift/partial sale approach. I gifted her the maximum annual exclusion amount ($18,000 for 2025) as her share of the property equity, then sold her the remainder at fair market value with seller financing at a low interest rate. This kept her in a lower tax bracket for the capital gains while still getting me the cash flow I needed for tuition payments. The key was structuring the sale price and payment schedule to minimize the tax impact on both sides. I'd definitely recommend running the numbers on this approach compared to an outright sale, especially since you mentioned the property has appreciated significantly. Also worth noting that this strategy helped preserve some of her financial aid eligibility since the property transfer was structured as a purchase rather than a windfall.