I went through this exact same situation two years ago and it was incredibly stressful! Here's what I learned: definitely try to stop that direct debit through your bank first - that's your best bet to avoid the double charge altogether. If you can't stop it in time, the IRS will process it as an overpayment, but you'll need to be proactive about getting your money back. I found that calling early in the morning (around 7-8 AM) gave me the best chance of getting through to someone without waiting hours. One thing that really helped me was keeping a detailed log of every call I made, including date, time, who I spoke with, and what they told me. The IRS representatives sometimes give conflicting information, so having that record was invaluable when I had to call back. Also, don't be afraid to escalate if you're not getting results. After about 6 weeks of getting nowhere, I asked to speak with a supervisor and that's when things finally started moving. Got my refund about 3 weeks after that call. Hang in there - I know it feels overwhelming right now, but this absolutely can be resolved. The IRS deals with overpayments regularly, so you're not asking them to do anything unusual.

I feel for you - this is such a stressful situation! I actually went through something similar last year when I accidentally set up both electronic withdrawal and mailed a check for the same tax payment. Here's what worked for me: First, definitely call your bank ASAP to stop that scheduled direct debit if possible. Even if it's the weekend, many banks have 24/7 customer service lines that can help with stop payments. If both payments do end up processing, the IRS will recognize it as an overpayment, but you'll need to be proactive. I had success using Form 843 (Claim for Refund and Request for Abatement) rather than Form 8888 that was mentioned earlier - my tax preparer said 843 is specifically designed for situations like this where you've made an erroneous payment. The waiting is definitely the hardest part. In my case, it took about 7 weeks to get the refund check, but I called every 2 weeks to check status which seemed to help keep things moving. Also, if you have a local Taxpayer Assistance Center, they can sometimes help expedite these situations better than the phone lines. Don't lose hope - I know it's scary to have that much money tied up, but the IRS really does handle overpayments routinely. Just document everything and stay persistent!

Just wanted to add that the dealer might be able to transfer the tax credit directly at point of sale starting soon! That way you get the benefit immediately instead of waiting for tax time. Not sure if this helps with your income limit situation though. Check if your dealer participates in this program.

I went through this exact situation last year with my Model Y purchase! We were also just over the $300K limit when filing jointly, so I did extensive research on the married filing separately option. Here's what I learned: Yes, if your individual AGI is under $150K and the Tesla is titled in your name only, you can qualify for the credit when filing separately. However, you need to run the complete numbers because filing separately often costs more than the $7,500 credit saves. In our case, we lost about $3,200 in various tax benefits (mainly child tax credits and dependent care credits) but gained the $7,500 EV credit, so we still came out ahead by $4,300. The key things that hurt us were: 1) Only one spouse can claim the kids as dependents, 2) We couldn't take the child and dependent care credit, 3) We both had to itemize instead of one taking standard deduction. My advice: Use tax software to model both scenarios with your actual numbers before deciding. Also consider maxing out your 401(k) contributions this year to lower your AGI - that might get you under the joint filing limit without needing to file separately at all.

I'm dealing with the exact same situation right now - code 840 appeared on my transcript about 5 days ago and I've been stressed about whether I'll get my refund via direct deposit or if they'll switch to a paper check. Reading through everyone's experiences here has been incredibly reassuring! It sounds like the consensus from multiple people who've actually been through this is that 840 is just a temporary review hold and doesn't change your payment method. I'm particularly relieved to hear from the tax preparer that direct deposit info stays intact during the 840 process. My situation is similar to yours @Naila Gordon - I need this refund for business cash flow and can't afford unexpected delays. Based on all the timelines people have shared (mostly 11-21 days), I'm going to plan for about 3 weeks total and check my transcript daily. Thanks everyone for sharing your real experiences - this community knowledge is so much more helpful than trying to decipher IRS publications on my own!

I went through this exact situation about 8 months ago and wanted to share my experience to hopefully ease some concerns. I had code 840 appear on my transcript after filing my Schedule C return with significant home office and equipment deductions. Like many of you, I was worried about cash flow timing for my business. The 840 stayed on my transcript for exactly 14 days, then switched to 846 on a Tuesday morning, and I had my direct deposit in my business account by Thursday. The key thing that helped me was calling the Taxpayer Advocate Service after about 10 days - they couldn't speed up the process but confirmed my direct deposit info was still valid and that 840 reviews are actually quite common for business returns with larger deductions. One practical tip: I started tracking the cycle dates on my transcript because the IRS typically updates accounts on specific processing days each week. Once you know your cycle, you can focus your daily checks on the days when changes are most likely to occur. This saved me from constantly refreshing and helped manage my stress levels while waiting for resolution.

Quick tip for anyone doing backdoor Roth conversions: Convert IMMEDIATELY after contributing to minimize any gains in the traditional IRA. I literally do the conversion the same day or next day after the contribution. The reason is that any earnings that happen between contribution and conversion are taxable in the year of conversion. By converting immediately, you'll have minimal or zero earnings to report, making your tax situation much simpler.

One thing to keep in mind when filing your 2023 Form 8606 is that you'll need to report your contribution on Line 1 (nondeductible contributions for 2023) and Line 14 (your total basis in traditional IRAs). Since this is your first backdoor Roth and you had no prior IRA balance, your basis will simply be the $6,500 you contributed. When you file your 2024 return next year, you'll report the conversion on Part II of Form 8606. The good news is that since you converted immediately after contributing, you should have little to no taxable income from the conversion - just make sure to report any small earnings that may have occurred between contribution and conversion. Also, double-check that your IRA custodian sends you the correct tax forms. You should receive a Form 5498 showing your 2023 contribution and a Form 1099-R showing your 2024 conversion. Keep these with your tax records since they support your Form 8606 filings.

Just to add some clarity since there still seems to be confusion: Form 1096 = A transmittal form (cover sheet) that businesses use when sending copies of information returns (like 1099s) to the IRS. You only need this if you paid contractors and need to report those payments. Schedule C = The form self-employed people use to report business income and claim expenses. This is part of your personal tax return. If you're self-employed and trying to deduct expenses, you need Schedule C, not Form 1096. TurboTax definitely handles Schedule C - it's one of the most common forms for self-employed individuals.

TurboTax actually has a good system for handling self-employment income and expenses. When you start the process, make sure you indicate that you have self-employment income. It will then guide you through the Schedule C section where you can enter all your business income and expenses. If you're not seeing this section, you might need to upgrade to the Self-Employed version of TurboTax. The basic versions don't always include Schedule C preparation.