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Have you considered checking your tax transcript directly from the IRS website instead of waiting for TurboTax notifications? It's like comparing primary vs secondary sources - why rely on TurboTax to tell you what the IRS knows when you can check with the IRS directly? Many times I've seen the transcript update before any preparer notification comes through.
Think of tax processing like traffic on a highway - sometimes you sail right through, other times there's unexpected congestion. Your filing is like a car that just entered the on-ramp yesterday. Most cars take at least a day to reach their destination this time of year. The refund advance is more like having someone meet you halfway with some gas money rather than making your car go faster. Be patient - almost everyone gets through the traffic eventually.
PSA: Make sure ur using a real bank account not those prepaid cards. My cousin tried using cashapp and got rejected
good looking out! š
Been doing taxes for years and honestly the timing is all over the place this season. Got mine in 24 hours last week but my friend is still waiting after 6 days. The new security checks are definitely slowing things down. Pro tip: if you haven't gotten it by day 5, call and ask about any verification issues - sometimes there's a hidden flag on your account they don't tell you about.
Wait I'm confused... everyone's saying to repay the full amount including taxes, but isn't that basically paying taxes twice? Once when they originally withheld it and again when paying back money you never received?
You're not paying taxes twice because you get to claim the tax portion back on your tax return. You repay the gross amount to the employer, then the IRS essentially "refunds" the tax portion to you when you file your return and claim it properly. It feels like paying twice in the moment, but it all balances out when you complete your taxes. The system is set up this way because your employer already reported the full amount to the IRS, and they need their books to match what they reported.
This is such a stressful situation, but you're definitely not alone in dealing with this! I went through something similar when my previous employer discovered a payroll error from several months back. One thing that really helped me was creating a timeline of everything - when the overpayments occurred, when I was notified, when I made the repayment, etc. This documentation became crucial when I filed my taxes the following year. Also, don't feel bad about not catching this earlier while dealing with a family health crisis. That's completely understandable, and payroll errors happen more often than employers like to admit. The important thing is that you're handling it properly now. Just make sure to keep copies of everything - the school's demand letter, your repayment receipt, bank records showing the original deposits, etc. You'll need all of this when you file next year to prove your claim for getting that tax money back. The IRS wants to see a clear paper trail that shows you received money, paid taxes on it, then legitimately had to repay it.
Pro tip: set up alerts on your banking app instead of manually checking. Your neck will thank you later š
Been there! The waiting game is brutal but totally normal. TurboTax advance usually hits within 1-2 business days after your return gets accepted. Since yours was accepted 1/22, you're probably looking at Thursday or Friday at the latest. I know it feels like forever when you need the money, but try to distract yourself - obsessively checking won't make it come faster! š
Dmitry Popov
I've been a tax preparer for years and see this situation all the time. Just remember that the earnings portion ($900.06) is taxable in the year you take the distribution (2024), NOT the year you made the contribution. That trips up a lot of people. If you're under 59½, you'll also owe the 10% early distribution penalty on just the earnings portion. The original $6500 contribution comes back to you tax and penalty free.
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QuantumQuasar
ā¢Thank you for clarifying that! So just to make sure I understand completely - the $6500 comes back with no tax or penalty, but the $900.06 in earnings will be taxed as regular income plus a 10% penalty (I am under 59½). And all of this goes on my 2024 return since that's when I received the 1099-R, correct?
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Dmitry Popov
ā¢That's exactly right! The $6500 comes back to you tax and penalty free. The $900.06 in earnings will be taxed as ordinary income on your 2024 return, plus you'll pay the 10% early withdrawal penalty on just that earnings amount. Everything will be reported on your 2024 return because that's when you received the 1099-R. Your tax software should handle this correctly when you enter the 1099-R with distribution code JP.
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Zoe Kyriakidou
This is a really helpful thread! I'm dealing with a similar situation but with a twist - I made the excess Roth IRA contribution in late 2023, but didn't realize my income was over the limit until I was preparing my 2024 taxes this year. By then it was past the 2023 filing deadline. I ended up removing the excess contribution plus earnings in early 2024 and got a 1099-R with code JP. Based on what everyone's saying here, I think I'll owe both the 10% penalty on the earnings AND the 6% excess contribution penalty for 2023 since I didn't remove it before the filing deadline. Does that sound right? And if so, do I need to amend my 2023 return to report the 6% penalty, or does everything just go on my 2024 return?
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Zoe Gonzalez
ā¢Unfortunately, you're correct - since you didn't remove the excess contribution before the 2023 filing deadline, you'll likely owe both penalties. The 6% excess contribution penalty applies for 2023 and needs to be reported on Form 5329 for that year, so you'll need to amend your 2023 return to include this penalty. The 10% early withdrawal penalty on the earnings portion will go on your 2024 return along with reporting the 1099-R income. It's a frustrating double penalty situation, but that's how the IRS rules work when the correction happens after the deadline. I'd strongly recommend consulting with a tax professional for this situation since it involves amending a prior year return and multiple penalty calculations. The timing really matters with these Roth IRA corrections!
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