This is probably gonna sound dumb, but check how many allowances youve put on ur W4. More allowances = less tax taken out during the year = bigger bill at tax time. I kept putting like 3 or 4 allowances (thinking it was like household size??) and kept owing money every April. Finally my payroll person explained that I should put 0 or 1 for my situation. Now I get a refund instead.

The "federal income tax is exempt reset" message you're seeing is key here! This typically happens at the beginning of each tax year when your payroll system automatically resets any tax-exempt status you might have had. If you previously filled out your W4 claiming exemption from federal withholding (maybe during a previous job or if your tax situation changed), the system requires you to resubmit that exemption status annually. What likely happened is your W4 was set to exempt or had very low withholding, so little to no federal taxes were taken from your paychecks despite what you thought you were seeing. Double-check your W2 box 2 (Federal income tax withheld) - if this amount is $0 or very low compared to your income, that confirms the issue. You'll need to contact your HR department to get a new W4 form and fill it out correctly for your current situation. Don't just guess at the numbers - use the IRS withholding calculator or the worksheet that comes with the W4 to determine the right amount. This will prevent the same problem next year!

Have you tried calling? Sometimes they can give more info

Looking at your transcript, you're definitely subject to PATH Act since you're claiming EIC. The good news is that with a processing date of Feb 17th and cycle 20250505, you should see movement soon! The 04-15-2025 dates on codes 766 and 768 are just system placeholders - not your actual refund date. Your cycle indicates weekly updates, so check your transcript again this Thursday/Friday. With an $8,660 refund and clean transcript (no holds or errors), you should get paid within the next week or two max. Hang in there! 💪

Has anyone had the IRS question this deduction during an audit? I'm planning a remote hiking trip next year and will need similar insurance, but I'm worried about raising red flags.

Based on my experience as someone who frequently travels to remote areas for work, you should definitely be able to deduct the medical portion of that travel insurance. The key is getting proper documentation from your insurance provider. When I had a similar situation for a research expedition in remote Canada, I called my insurance company and explained I needed a breakdown for tax purposes. They provided a letter stating that 75% of my premium ($320 out of $425) was specifically for medical evacuation and emergency treatment coverage, while the remaining 25% was for trip interruption and baggage coverage. Make sure to keep detailed records of why you needed this specialized coverage - the fact that your regular insurance had no coverage in Alaska and you were 200+ miles from the nearest hospital makes this a pretty clear-cut case for legitimate medical necessity. The IRS generally accepts these deductions when there's a genuine medical need and proper documentation. One tip: when you call the insurance company, specifically mention you need the breakdown "for IRS medical expense deduction purposes" - they're familiar with this request and often have standard language they use for these letters.

Has anyone had success using the "garage sale rule" with the IRS? I've read that they generally consider occasional sales of personal items like a garage sale, even when done online, and don't expect you to report those sales if they're at a loss?

I'm in a similar boat - selling old furniture and electronics to help with bills. One thing that's helped me feel more confident is keeping a simple spreadsheet with what I'm selling, the sale price, and my best estimate of what I originally paid (even if I don't have receipts). For items where I really can't remember the original price, I've been looking up similar items online to get a reasonable estimate of what they would have cost when new. The key is being reasonable and honest - the IRS isn't expecting perfect records for personal items you bought years ago. Also, don't stress too much about the PayPal vs eBay threshold differences. Even if you do get a 1099-K, it's just a reporting document - it doesn't automatically mean you owe taxes on money you didn't actually profit from. The important thing is that you can show these were personal items sold at a loss when you file your return. Keep good records of what you're doing now, and you'll be fine even if you cross whatever threshold ends up applying this year.

The system is broken af. took 6 months to get my refund last year

I'm in the exact same situation! Filed on January 12th with EITC and still stuck on "Received" status. The waiting is killing me because I really need that money for rent and other bills. What's really frustrating is that the app keeps saying to check back daily but nothing ever changes. I've been obsessively checking WMR and IRS2Go multiple times a day hoping to see it move to "Approved" but nope, still the same PATH Act message. At least we know we're not alone in this. Seems like everyone who claimed EITC or ACTC is in the same boat. I'm trying to stay positive and remind myself that mid-February isn't that far away, but when you're stressed about money it feels like forever. Hang in there! Hopefully we'll start seeing some movement in the next week or two.