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I used taxr.ai when this happened to me its actually crazy accurate. told me exactly when id get my refund and what was holding it up. Better than waiting for the notice tbh
how does it work? do u just upload ur transcript?
yep! just upload and it breaks everything down. Gives you a timeline and everything. Best dollar I ever spent no cap
I went through the exact same thing last year with a 570 code and EIC review! The good news is your transcript looks normal for this type of hold - they're just verifying your income to make sure the EIC amount is correct. Since your AGI is $7,739 and you're claiming $2,090 in EIC, they want to double-check that you actually earned that income and qualify. The 971 notice should arrive within the next week or so and will tell you exactly what documents to send in. Pro tip: start gathering your documents now - W2s, 1099s, any records of the income that supports your EIC claim. When that notice comes, respond ASAP because the faster you send everything back, the faster they'll release your refund. In my case, it took about 4-5 weeks total from the 570 code to getting my money. Your $3,331 is safe, it's just sitting there waiting for verification. Hang in there! šŖ
I'm confused about the child tax credit situation with Form 8332. If I let my ex claim our kids using this form, does that mean they get ALL the tax benefits? Or do I still get some of them?
When you release the claim using Form 8332, you're allowing your ex to claim the child as a dependent, which generally means they'll receive the following benefits: - Child Tax Credit - Credit for Other Dependents - Education credits - Dependent care credit However, even if you've released these claims, the custodial parent (presumably you) can still claim: - Head of Household filing status (if you qualify) - Earned Income Credit - Child and Dependent Care Credit The IRS specifically ties some benefits to which parent the child lives with for the majority of the year, regardless of who claims them as a dependent.
Just want to add one more tip that saved me a lot of trouble - make sure you keep detailed records of when you give the completed Form 8332 to your ex. I take a photo of the signed form and send it via email so there's a timestamp, then also give them the original. Last year my ex lost the form right before filing and we had to scramble to get another one signed. Having that digital backup with the date stamp helped prove I had provided it on time. Also helped when the IRS had questions later - I could show exactly when the form was completed and delivered. The whole process is stressful enough without having to worry about lost paperwork!
I almost messed up my tax loss harvesting by forgetting about the special rules for mutual funds! If anyone's planning to sell mutual funds (not ETFs) on December 31st, remember that mutual funds only trade once per day after market close. You have to place your order before the fund's cutoff time (usually 4pm Eastern) for it to execute on that day. Miss the cutoff and your trade gets processed on the next business day, which would be next year!
Good point! Also, some brokerages have earlier cutoffs for mutual fund orders, like 3pm Eastern instead of 4pm. Always check your specific brokerage's policies.
That's a great add! Fidelity and Schwab typically use the 4pm Eastern fund cutoff, but you're right that some brokerages impose their own earlier deadlines. TD Ameritrade used to require mutual fund orders by 3pm Eastern for same-day execution before they were acquired by Schwab. Always best to give yourself plenty of buffer time rather than trying to squeeze in orders at the last minute. I learned that lesson the hard way a few years ago when I missed tax loss harvesting a big position because my order went through 5 minutes after cutoff.
Just want to add another important timing consideration - if you're planning to do tax loss harvesting with international stocks or ADRs (American Depositary Receipts), be extra careful about the settlement timing. While US stocks typically settle T+2, some international securities can have longer settlement periods. Also, if you're holding stocks in a foreign market that trades on a different schedule (like Tokyo or London), make sure you understand when their December 31st equivalent deadline falls in your local time zone. I had a friend who missed harvesting losses on some European stocks because he didn't account for the time difference properly. The key takeaway remains the same - it's the trade date that matters, not settlement - but just wanted to flag these additional complexities for anyone with international holdings in their portfolio.
Why is this happening to so many people this year? Is the IRS just understaffed and flagging returns randomly? How are we supposed to plan our finances when they can just hold our money for 60+ days without explanation? I'm on day 47 of my 570 "review" and still nothing. Called multiple times and get different answers each time. Just venting, but this system is broken.
I'm going through the exact same thing right now! Got my 570 code about 3 weeks ago and the waiting is driving me crazy. Like you, I've never had this happen before - always got my refund within 2-3 weeks max. From what I've been reading, it seems like the IRS is being extra cautious this year with their reviews. I didn't claim anything unusual either - just my standard deduction and W-2 income. My theory is they're flagging more returns because of all the fraud from previous years, but that's just speculation. The hardest part is not knowing what specifically triggered it. Did you try calling them yet? I'm debating whether it's worth the hassle of trying to get through their phone lines or if I should just wait it out like everyone suggests.
Aidan Hudson
Has anyone had experience with the IRS questioning or auditing these blindness deductions? I'm legally blind but haven't claimed it because I'm worried about triggering an audit if I suddenly start claiming it or amend past returns.
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Zoe Wang
ā¢I amended 3 years of returns to add the blindness deduction and didn't get audited. Just make sure you have proper documentation from your eye doctor. The letter should specifically state that you meet the IRS definition of legally blind - vision that cannot be corrected to better than 20/200 in the better eye or a field of vision of 20 degrees or less.
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Zoe Papadakis
I'm dealing with a similar situation right now! I've been legally blind since childhood but only recently learned about the tax benefits. One thing I'd add is that if you're employed, you might also want to look into whether your employer offers any vision-related benefits or accommodations that could have tax implications. Some assistive technology purchases for work can be deductible as unreimbursed employee expenses if you itemize. Also, I discovered that if you use a tax preparer, many of them aren't familiar with these specific deductions for blindness. When I went to H&R Block last year, the preparer had to look it up because they'd never handled it before. So don't feel bad about not knowing - even some tax professionals miss this stuff! It might be worth specifically asking your preparer about disability-related deductions when you file going forward.
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