Something that really bit me - I took a 401k loan and then my company got acquired 3 months later. The new company's plan didn't accept loan transfers, so I had to either repay the full amount within 30 days or have it treated as a distribution. I ended up with a huge tax bill because I couldn't come up with the cash that quickly. Just something to consider if there's any chance of company changes on the horizon!

This is such important information that more people need to know about! I took a 401k loan about two years ago and honestly wish I had found a thread like this first. One thing I'd add - track your loan payments carefully and keep all documentation. My payroll department made an error and didn't process my loan payments for about 6 weeks, which almost put me in default. When I caught it, I had to scramble to make up the missed payments to avoid having the loan treated as a distribution. Also, if you're married and file jointly, make sure your spouse understands the implications too. The potential tax hit if something goes wrong affects both of your tax situations. My husband and I had to adjust our withholdings after I took the loan because of the after-tax repayment situation mentioned earlier. The job loss risk is real - I've seen three coworkers get caught in that exact scenario during the last round of layoffs. One was able to do a rollover to avoid the penalty, but the other two got hit hard tax-wise. Just make sure you have a backup plan if your employment situation changes unexpectedly.

Using Cash App for tax refunds is like using a sports car for grocery shopping - it works, but there are specific things to be aware of. My deposit was scheduled for March 8th last year, and while my friend with a traditional bank had to wait until exactly 8am on the 8th, mine hit Cash App at 9:30pm the night before. The system isn't perfect though - my cousin had his refund rejected because his name on Cash App didn't exactly match his tax return (he used a nickname). Make sure every detail matches your tax forms exactly.

I've been using Cash App for my tax refunds for the past two years and it's been pretty smooth! Last year my DDD was 3/12 and the deposit hit my Cash App around 11 PM the night before (3/11). This year I'm expecting my refund on 3/18 so fingers crossed for similar timing. One tip - make sure you have your Cash App debit card activated and that you've completed identity verification. I learned the hard way my first year that incomplete verification can cause delays. Also keep an eye on your email for any notifications from Cash App about the incoming deposit. Good luck with your refund, especially with those dependent care expenses coming up!

I tracked exactly 37 cases of post-verification delays this season in my tax office. The average wait time between 0605 code and refund was 13.4 days. The longest was 26 days, shortest was 8. Returns with dependent credits (like yours) averaged 16.2 days. Based on this data, you're still within normal parameters, frustrating as it is. If you reach day 21 post-verification with no movement, that's when I'd recommend calling.

I'm dealing with this exact same situation right now! Filed 19 days ago, completed ID verification 8 days ago, and my transcript still shows the 0605 code with absolutely nothing else. It's so frustrating not knowing if everything is processing normally or if something is stuck. Reading through all these responses is actually really helpful though - it sounds like this post-verification waiting period is more common than I realized. I had no idea about checking for the 571 reversal code or that Wednesday early morning updates were a thing. Going to try checking my transcript around 2am Wednesday like Kristin suggested. Thanks everyone for sharing your experiences - makes me feel less alone in this waiting game!

Based on the discussion here, it sounds like you'll need to include that $120 in the employee's taxable wages. Since your company covered what would normally be the employee's responsibility for Aflac premiums without expecting repayment, the IRS treats this as additional compensation. For S-Corps, this is pretty straightforward - add it to their wages in the pay period when you covered the costs, and make sure it's included on their W-2 at year-end. You'll also need to withhold the appropriate payroll taxes on this amount. One thing to double-check is whether your Aflac deductions are currently set up as pre-tax or after-tax, as someone mentioned above. You can see this by looking at how the deduction appears on your payroll - if it reduces taxable income, it's pre-tax; if it doesn't, it's after-tax. This affects exactly how you handle the tax reporting, but either way, covering the employee's portion makes it taxable income to them. Document everything well since it was related to medical leave - you want a clear paper trail showing this was a one-time accommodation during their ankle injury recovery, not an ongoing benefit that could create precedent issues with other employees.

I went through something very similar last year with our S-Corp when an employee had surgery and we covered their portion of various insurance premiums during their recovery. After consulting with our CPA and reviewing the relevant tax code, here's what we learned: The $120 you covered for the Aflac premiums is definitely taxable income to the employee. Since the company paid something the employee would normally be responsible for and isn't seeking reimbursement, the IRS considers this additional compensation regardless of the circumstances that led to it. You'll want to add this amount to their taxable wages on the next payroll run and ensure proper withholding for federal income tax, state tax (if applicable), Social Security, and Medicare. Make sure it also gets included in Box 1 of their W-2 at year-end. One tip from our experience - create a clear policy document about how you handle these situations going forward. Even though this was a compassionate response to a medical situation, having a written policy helps ensure consistent treatment if similar circumstances arise with other employees and can help demonstrate that this wasn't preferential treatment for any particular individual. Also keep detailed records showing this was specifically related to their medical leave and the dates/amounts involved. Good documentation always helps if there are ever any questions down the road.

Great question about the HSA last-month rule and job transitions! I went through something similar a few years ago and learned a lot about maintaining eligibility during the testing period. One thing I'd add to the excellent advice already given is to consider the network differences between your current plan and potential new coverage. If you have any ongoing medical needs or preferred providers, COBRA might be worth the extra cost to maintain your existing network relationships through the end of the year. Also, when comparing marketplace HDHPs, pay close attention to the HSA contribution limits if the plan comes with an HSA from a different provider. Some HSA administrators have higher fees or limited investment options compared to others. Since you're only looking at a few months of coverage, the fees might not matter much, but it's worth checking. The timing advice others have shared is spot-on - you have until October 31st to remain HSA-eligible after your coverage ends on the 10th, and you'll want new HDHP coverage starting November 1st. This gives you a comfortable window to shop and compare options without rushing into a decision.

I've been following this thread and wanted to add another perspective on maintaining HSA eligibility during job transitions. One thing that hasn't been mentioned yet is the importance of documenting everything for your records. When I went through a similar situation, I made sure to get written confirmation from both my old employer about my coverage end date and from my new insurance provider about the HDHP qualification and start date. The IRS can be pretty particular about documentation if they ever audit your HSA contributions, especially when you're using the last-month rule. I'd also suggest calculating exactly how much you can still contribute to your HSA for 2024 once you know your new coverage start date. If there's any gap in eligibility (even if you maintain HDHP coverage), it might affect your contribution limits for the year. The pro-rated contribution rules can be tricky when you have mid-year changes in coverage. Since you're already planning ahead, you might also want to consider whether the new employer's HDHP (if they have one) would be better for 2025 planning. Sometimes it's worth enduring a slightly more expensive marketplace plan for a couple months if it sets you up better for next year's HSA strategy.