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Has anyone actually received their refund EXACTLY at the 120-day mark? I'm genuinely curious if these timeframes are just maximum legal limits or if they actually use the full time period. It seems like such an arbitrary number.
From what I've seen working with taxpayers, the 120-day timeline is more of a "worst case scenario" that the IRS uses to manage expectations. In reality, most reviews are completed much sooner - typically within 60-90 days. The key factors that influence timing include: ⢠The complexity of your return and any credits claimed ⢠Whether the IRS needs additional third-party verification (like employer W-2s) ⢠Current processing volumes at the service center handling your case ⢠Whether your case gets flagged for manual review vs. automated processing Given that your letter was dated February 14th, you're already about 3 weeks in. I'd recommend checking your online account transcript weekly for any code changes, as this often updates before you receive any official correspondence. If you have documented medical hardship, you can also call the IRS to request expedited processing - they do have provisions for genuine financial hardship situations. The waiting is frustrating, but most people in your situation see resolution well before the 120-day mark!
This is really helpful information, thank you! I'm curious about the hardship provisions you mentioned - do you know what kind of documentation the IRS typically requires for medical hardship situations? I'm dealing with some unexpected medical bills myself and wasn't aware this was even an option. Also, when you say "check your online account transcript weekly," are there specific transaction codes we should be looking for that indicate progress is being made?
Can anyone clarify if capital losses expire? I thought I read somewhere that they eventually expire if not used within a certain number of years.
Good question! Under current US tax law, capital losses do NOT expire. You can carry them forward indefinitely until they're used up. This has been the case since 1997. Some people confuse this with net operating losses (NOLs) which do have carryforward limitations, but capital losses can be carried forward until they're fully utilized, regardless of how many years it takes.
I went through a very similar situation a few years ago when I transitioned from US resident to non-resident status. The forced $3,000 annual usage of capital losses against zero income was incredibly frustrating, especially when I knew I'd have significant US income again in the future. What I learned from my tax attorney is that you have two main options: either accept the annual $3,000 "waste" by continuing to file, or skip filing entirely during years with no US source income to preserve the full carryforward amount. The key insight is that as a non-resident with no US source income, you're generally not required to file a return at all. I chose to stop filing during my zero-income years and documented everything carefully. When I resumed filing three years later with US source income, I was able to claim the full original carryforward amount. Just make sure you keep detailed records of your last filed return showing the capital loss carryforward balance - this becomes your reference point when you resume filing. The IRS doesn't penalize you for gaps in filing when you have no filing requirement, and your capital losses remain valid indefinitely under current law.
This is really helpful to hear from someone who actually went through this exact situation! I'm curious about the documentation you mentioned - did you just keep copies of your last filed return, or did you create any additional documentation to explain the gap years? I want to make sure I have everything properly documented if I decide to skip filing during my zero-income years.
its so annoying that we have to pay federal taxes on this tbh. like were just trying to recover/take care of our babies š¤®
fr fr the system is broken
Congrats on the baby! š Just went through this myself last year. One thing to watch out for - if you received any benefits in late December 2023, those might show up on your 2024 1099-G even though you already reported them. Also, keep all your documentation because sometimes the EDD amounts don't match what you actually received due to overpayments or adjustments. Better to have everything organized now than scramble later!
just wanna add something nobody's mentioned yet - if ur using schedule C as a self employed hairdresser, don't forget that writing off too many unusual deductions can increase ur chances of an audit. massage deductions might raise flags if they're large compared to ur income.
This is good advice. I'm a tax preparer (not giving official advice here), but we generally tell clients to be cautious with deductions that could be viewed as personal. The IRS does use statistical models to flag returns, and unusual deductions for your profession/income level can trigger review.
As someone who's dealt with similar work-related health issues, I'd strongly recommend getting that documentation from your chiropractor as others have mentioned. The key is establishing a clear medical connection between your work duties and the need for treatment. One thing I haven't seen mentioned yet - you might want to keep a simple log of how the massages specifically help your work performance. Note things like "reduced shoulder pain allowed me to work full 8-hour shift without breaks" or "improved grip strength after treatment." This kind of documentation can strengthen your case that these aren't just general wellness expenses. Also, $2,600 for bi-weekly massages seems reasonable for medical necessity, but make sure you're not mixing in any purely relaxation sessions. Only the therapeutic treatments that directly address your work-related strain would qualify. Have you considered whether your employer might cover some of these costs as a workplace injury prevention measure? Some salons will reimburse ergonomic supports or preventive care to reduce workers' comp claims.
This is really helpful advice about keeping a log! I never thought about documenting how the treatments actually impact my work performance. That makes total sense - showing the direct connection between the massage and being able to do my job better. I'll start tracking things like you mentioned. And you're right about making sure I separate any relaxation sessions from the therapeutic ones. All of mine have been focused on my work-related pain, but I should probably be more specific in my records about that. As for my employer covering costs - I work at a small independent salon and the owner is pretty tight with expenses. But it might be worth asking, especially if I frame it as injury prevention like you suggested. Thanks for all the practical tips!
James Johnson
I went through this exact same verification process about 6 months ago and it's definitely legitimate. The 14-digit control number comes on an official IRS letter that looks like a regular notice - it's not anything fancy, just has "CP01H" at the top and the control number is clearly labeled. The waiting period is frustrating but it's their way of making sure you actually live at the address on file. I'd recommend checking your mail daily because the envelope looks pretty plain and could easily get mixed in with junk mail. Also make sure to check if you have mail forwarding set up that might redirect it. Once you get the letter and enter the code, the whole verification process takes like 30 seconds and you're good to go. Just hang in there - the system works, it's just slow!
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NeonNova
ā¢Thanks for sharing your experience! Really helpful to know what the actual letter looks like. I was worried I might have already gotten it and thrown it away thinking it was junk mail š Will definitely keep an eye out for that CP01H notice!
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Jacinda Yu
Just wanted to add that I've been seeing this verification step pop up more frequently this tax season. It seems like the IRS is rolling this out to more taxpayers as part of their identity theft prevention efforts. One thing to keep in mind is that if you've moved recently or have any address discrepancies between your current return and what they have on file, this verification is almost guaranteed to trigger. The good news is that once you complete it successfully, you typically won't have to do it again for future returns unless there are major changes to your account. Also, if you're using tax software like TurboTax or H&R Block, they should have warned you about potential verification delays during the filing process, though I know not everyone reads those notifications carefully. The 14-digit control number is definitely the real deal - don't try to bypass it or look for workarounds online, as that could flag your account for additional scrutiny.
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Mateo Gonzalez
ā¢This is really helpful context! I did move last year and updated my address with the IRS in October, so that probably explains why I'm getting hit with this verification. Good to know it's becoming more common and not just something weird happening to me specifically. I'll definitely wait for the official letter rather than trying to find shortcuts - don't want to make things worse by triggering additional reviews!
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