Has anyone here dealt with the timeline for getting a refund on a paper return for a prior year? I had to mail in my 2020 return last year and I'm still waiting for my refund. Just wondering what OP should expect if they're mailing a 2021 return now.

I went through something very similar with my 2020 return! The key thing to remember is that when a return gets rejected, it's like it never existed in the IRS system at all. So you're not amending anything - you're filing your original return for the first time. Since your kids already amended their returns to show they're your dependents, your return should go through without issues now. Just make sure to: 1. Print and mail your complete 2021 return (don't try to e-file a prior year) 2. Include a simple cover letter explaining the dependent conflict was resolved 3. Sign and date everything 4. Send it certified mail for tracking The good news is you have until April 15, 2025 to claim your 2021 refund, so you're still well within the deadline. Paper returns are slow (expect 4-6 months for processing), but you should eventually get your refund plus any interest that's owed. One tip: if you need to check on the status after a few months, calling the IRS directly is usually a nightmare. The callback services mentioned in other comments here actually work pretty well for getting through to a real person.

I was SO FRUSTRATED with this exact same issue last tax season! After weeks of checking multiple times daily, I finally figured out that my transcript always updated on Thursday nights/Friday mornings. Once I identified my cycle code (it was 20231705), I realized I was on a weekly processing schedule. From that point on, I only checked on Friday mornings and saved myself tons of anxiety. My refund showed up exactly when predicted by the cycle pattern!

As someone who's been through this exact situation as a 1099 contractor, I can confirm that transcripts typically update overnight during scheduled batch processing windows. However, @Noah Torres makes an interesting point about midday updates - I've heard these can happen during what the IRS calls "emergency processing" situations or when there are system catch-ups after maintenance windows. For your quarterly payment planning, I'd recommend focusing on your cycle code (usually found on your account transcript) which will give you a more predictable timeline than obsessive checking. The IRS processes returns continuously, but transcript visibility follows their database refresh schedule, which is why most of us see changes in the morning after overnight updates.

I went through a very similar situation last year and want to share what I learned the hard way. Like you, I withdrew from my 401(k) for a first home purchase and was hoping the first-time homebuyer exemption would apply. Unfortunately, as others have confirmed, that exemption only applies to IRAs, not 401(k) plans. I ended up paying the full 10% penalty on my $28k withdrawal. The distinction between retirement account types is really important and not well understood by most people. However, I did discover a few things that helped minimize the damage: 1. Make absolutely sure your 10% federal withholding is properly credited on your return - this is crucial and sometimes gets missed in tax software 2. Check if you qualify for ANY other exemptions (disability, medical expenses over 7.5% of AGI, higher education expenses, etc.) 3. Consider if the timing of your withdrawal might qualify for the "separation from service after 55" rule if you changed jobs One thing I wish I had known beforehand: if you have both 401(k) and IRA funds available, always withdraw from the IRA first for major purchases like homes. The withdrawal rules are much more flexible. Also, you can potentially do a rollover from 401(k) to IRA before withdrawing, though you need to be careful about timing and plan rules. The silver lining is that you got your house in a good market! Sometimes the financial benefits of timing a purchase right can outweigh the tax penalties, even though they sting.

I'm dealing with a similar situation and wanted to share what I discovered after consulting with a tax professional. While the first-time homebuyer exemption unfortunately doesn't apply to 401(k) withdrawals (only IRAs), there might be one more avenue worth exploring that hasn't been mentioned yet. If your 401(k) plan allows for loans rather than hardship withdrawals, and if you're still employed with the same company, you might be able to retroactively restructure part of this as a loan instead of a withdrawal. Some plans allow this within a certain timeframe, though it's not common and depends entirely on your specific plan rules. Also, double-check the timing of your withdrawal against any job changes. The "separation from service after age 55" exception has been mentioned, but there's also a lesser-known rule about withdrawals made in the same calendar year you separate from service (even if you're under 55) that might apply in very specific circumstances. Given the complexity and the substantial penalty amount you're facing, it might be worth the cost of a one-hour consultation with a tax professional who specializes in retirement distributions. Sometimes they catch exemptions or strategies that general tax software misses. Hope this helps, and congratulations on the house purchase! Even with the tax implications, homeownership in a good market was probably still the right financial move.

My dad and I were in a similar situation last year. We went with the multi-member LLC route with a 75/25 split and it's worked well for us. One thing nobody mentioned yet - make sure your dad is actually providing some services or capital to the business! The IRS doesn't look kindly on "partnerships" where one person is just there for tax benefits without contributing anything.

Just wanted to add my perspective as someone who went through this exact decision process recently. I ended up choosing a multi-member LLC with my mom (70/30 split) and it's been working great for our consulting business. A few practical considerations that helped me decide: First, the multi-member LLC gives you flexibility to adjust profit/loss allocations in your operating agreement if your business circumstances change. Second, you can always convert to S-Corp status later by filing Form 2553 if you reach the profit threshold where it makes sense. One thing that surprised me was how much simpler the bookkeeping is compared to what I expected. Yes, you file Form 1065, but tax software makes it pretty straightforward, and having clear documentation of who contributed what from the start really helps. Make sure you get that operating agreement drafted properly though - it's worth spending a few hundred dollars on a business attorney to get it right rather than using a template. The IRS will scrutinize family partnerships more closely, so having everything documented properly from day one is crucial.

This is exactly what happened to me last year! Got a CP24 notice in July saying I was owed a $1,247 refund for my 2022 taxes, but when I dug through my bank records, they had already deposited that exact amount back in May. The timing disconnect between their refund processing and notice generation systems is so confusing. I spent way too much mental energy worrying about whether I needed to do something or if they'd accidentally send me duplicate money. Turns out it was just their clunky way of saying "hey, we already fixed your return and sent you the correct amount." What helped me was logging into my IRS online account and seeing that my balance was zero with no pending transactions. That confirmed everything was squared away. I kept the CP24 notice filed with my tax documents for that year, but never had to take any action on it. It's frustrating how these notices are written in a way that creates unnecessary anxiety, but at least now I know what to expect if it happens again in future tax years!

I'm going through the exact same thing right now! Just got my CP24 yesterday saying I'm owed $2,847.22, but when I checked my account, that's exactly what they deposited back in March. The notice is dated June, so it definitely came after the refund. Reading through everyone's experiences here is such a relief - I was worried I'd messed something up or that they'd accidentally send me duplicate money and then demand it back later. It's crazy how their different systems don't sync up properly and create all this unnecessary confusion. I'm definitely going to check my IRS online account like several people suggested to make sure everything shows as balanced. And I'll keep this notice with my tax records just in case. Thanks everyone for sharing your stories - makes me feel so much better knowing this timing issue is super common and not something to stress about!