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Hot take: maybe this is a sign we should all adjust our withholdings so we don't end up giving the government an interest-free loan every year š¤·āāļø
Same situation here! Filed in early March and still showing "no file processed." From what I've gathered lurking in tax forums, it seems like the IRS is just massively backlogged this year. I've seen people say their transcripts updated overnight from "no file processed" straight to showing a refund date, so there's hope! One thing that helped ease my anxiety was setting up automated transcript monitoring through the IRS website - at least then I don't have to manually check every day. Hang in there, we'll get through this bureaucratic nightmare eventually! šŖ
Oh wow, automated transcript monitoring sounds like a game changer! I had no idea that was even an option. I've been manually checking like 5 times a day which is probably not great for my stress levels š Do you know where exactly on the IRS website I can set that up? And thanks for the reassurance - it's good to hear from someone else going through the same thing!
Did the agent mention anything about the specific date when your account was flagged for verification? I'm tracking similar cases, and it seems like returns filed between February 1st and February 15th, 2024 had a higher incidence of these automatic verification flags. Also, did you file with any credits like EIC or CTC that might have triggered additional review under the PATH Act?
I filed on February 3rd and had the exact same experience - verification flag that cleared itself after about 12 days. Received my refund on March 21st, which was about 5 weeks after the verification cleared. So much faster than the 9 weeks they quoted me!
Has anyone noticed if these verification issues are more common with certain tax preparation software? I used FreeTaxUSA this year and got flagged, but never had issues with TurboTax in previous years.
I experienced something very similar! Filed on 2/8, got the ID verification flag, and it cleared automatically after 11 days. What really helped me was checking my account transcript weekly on the IRS website - you can see the exact codes and dates when things change in your processing status. The 9-week estimate is definitely their standard "cover all bases" response. In my case, I received my refund exactly 4 weeks and 2 days after the verification cleared. The key thing to watch for is when your processing actually resumes - that's when the real countdown begins. For your mother's medical expenses, I'd plan for the 6-week mark as a realistic expectation, but don't be surprised if it comes sooner. The automated reversal is actually a good sign that your return is straightforward and just got caught in their security net initially.
Wait I'm confused about something. If I sell a jacket I bought for $50 five years ago and sell it for $40 this year, isn't that technically a capital loss? Can I deduct that loss somewhere on my taxes?
Unfortunately, losses on personal items aren't deductible on your taxes. The IRS specifically prohibits claiming losses from selling personal property (like clothing, furniture, etc.). The good news is that you don't have to pay taxes on that $40 since it wasn't a gain. But you can't claim the $10 loss either. It's basically a tax-neutral event. The only personal property losses you can deduct are from casualties or thefts, but not from normal sales of used personal items.
I went through this exact situation last year and wanted to share what I learned! You're absolutely right that this is essentially an online garage sale situation, not a business. The $600 threshold is correct - that's why they asked for your SSN verification. You'll likely receive a 1099-K, but don't panic! The key thing to remember is that you're only taxed on actual profit, not the gross sales amount. Since you're selling personal clothing items for less than you originally paid (which is almost always the case with used clothes), you won't owe taxes on this income. When you get the 1099-K, you'll report it in TurboTax, but then you'll also enter your cost basis (what you originally paid for the items) to show there was no taxable gain. Don't include the shipping fees in your taxable calculation - those are just pass-through costs. Focus on the actual item sale prices versus what you originally paid. Even without receipts, you can make reasonable estimates of your original purchase prices. A vintage band t-shirt you sold for $25 probably cost you $15-30 originally, a jacket you sold for $40 might have cost $60-80 new, etc. The IRS accepts reasonable estimates for personal items. The most important thing is NOT to just report the full $815 and pay taxes on it - that would mean paying taxes on money that isn't actually taxable income!
This is such a helpful breakdown! I'm in a similar situation and was getting overwhelmed by all the conflicting information online. Quick question - when you say "reasonable estimates" for original purchase prices, do you have any tips for how to approach that? Like, should I err on the conservative side or try to be as accurate as possible to my actual memory of what I paid? I sold mostly thrift store finds that I then resold, so some items I only paid $5-10 for originally but sold for $20-30.
This is super helpful to read everyone's experiences! I'm in almost the exact same boat - filed 2/8, got the mysterious ID verification that disappeared on its own after about 10 days, and was told 9 weeks when I called. Reading all these responses gives me hope that it'll be much sooner than that. The fact that so many people are experiencing the same auto-reversal thing makes me think there's definitely something new with their system this year. I'm going to start checking my transcript more regularly for that 846 code everyone mentioned. Thanks for sharing your timeline - it really helps to know what others have gone through!
Welcome to the club! š It's honestly reassuring to see so many people going through the same thing - makes me feel less like I did something wrong with my return. I'm definitely going to start checking my transcript daily too (joining the obsessive checkers club apparently!). The whole auto-reversal thing is really weird but seems to be working in our favor based on everyone's experiences here. Fingers crossed we both get our refunds way sooner than the 9 weeks they quoted us!
I'm going through this exact same situation right now! Filed 2/4, got hit with the mysterious ID verification around 2/12, and then it just vanished on its own last Friday. Called yesterday and got the same 9-week spiel from the agent. It's so reassuring to see all these similar experiences and timelines - especially hearing that most people got their refunds way earlier than quoted. The auto-reversal thing seems to be happening to a lot of us this year. I'm definitely going to start obsessively checking my transcript for that 846 code now! Thanks for posting this - it gives me so much hope that I won't actually be waiting until mid-April for my refund.
Gabriel Freeman
Have you tried checking your transcript instead? WMR isn't always accurate after adjustments. I discovered that 76% of adjusted returns get their refund within 14 days of leaving errors, while 24% take between 15-21 days. Only about 3% experience additional delays beyond that. The IRS has actually improved their processing time by 22% this year compared to last year for these types of adjustments.
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Cynthia Love
I went through this exact same situation just two months ago! Filed early January, got stuck in errors for the Child Tax Credit issue, and was told I was out of errors on a Thursday. My transcript updated the following Tuesday with all the adjustment codes, and I had my direct deposit exactly 9 days after being told I was out of errors. The waiting is absolutely torture, especially when you have expenses planned around that money! One thing that helped me was setting up text alerts through my bank app so I'd know immediately when the deposit hit instead of obsessively checking my account balance. The IRS is actually pretty consistent with their 7-21 day timeline once you're out of errors - you should definitely see movement within the next week or two. Hang in there! š¤
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