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Does anyone know if we can still claim the Form 7202 credit for the 2024 tax year? I've heard conflicting information and can't find a straight answer anywhere.
Unfortunately, the sick leave credits using Form 7202 were only available through September 30, 2021. They're not available for 2024 tax returns. The program was part of the COVID relief measures and wasn't extended.
Hey AstroAce! I completely understand your confusion with Form 7202 - it really is one of the more complex forms out there. As a tax professional, I've helped dozens of clients through this process. A few key points that might help you: 1. **Average Daily Self-Employment Income**: Take your net earnings from self-employment (from Schedule C) and divide by 260 working days. Don't use 365 days - that's a common mistake that will reduce your credit. 2. **Documentation is crucial**: Keep detailed records of the specific dates you couldn't work due to COVID-related reasons. This includes being sick yourself, caring for someone who was sick, or dealing with school/childcare closures. General business slowdown doesn't qualify. 3. **Maximum credits**: You can claim up to 10 days (80 hours) for your own illness at 100% of your average daily rate, and up to 50 days for family care at 2/3 of your rate. 4. **Watch out for PPP interactions**: You cannot claim credits for the same period covered by forgiven PPP funds. The form can definitely be overwhelming, but breaking it down step by step makes it much more manageable. Make sure you're using the 2021 version of the form if you're amending that year's return. Good luck with your photography business!
Has anyone else successfully dealt with this? I'm going through something similar with my mother claiming me when I've been completely independent for years. Filed my return and now waiting for the IRS to sort it out but it's been 2 months already with no communication.
I went through this exact situation last year. The IRS sent us both letters about 3 months after I filed. I had to send copies of my rent payments, utility bills, and a statement explaining my situation. It took about 2 more months, but they eventually ruled in my favor and processed my return. My mom got hit with an additional tax bill though.
I went through almost the exact same situation with my ex-spouse two years ago. He claimed me as a dependent when we'd been separated for over a year and I was completely self-supporting. The key thing to understand is that you have every right to file your own return claiming yourself, even if he's already filed. The IRS will automatically flag this as a duplicate Social Security Number issue and start an investigation. When you file, make sure to check the box indicating that no one else can claim you as a dependent. Keep copies of everything that proves you support yourself - rent/mortgage payments, utility bills, grocery receipts, bank statements showing your income, etc. You'll need this documentation when the IRS requests it. In my case, it took about 4 months total to resolve, but I eventually got my full refund plus interest. My ex had to file an amended return and pay back the incorrect dependent credit he claimed. The IRS was actually pretty straightforward to work with once I provided the documentation. Don't let him get away with this - it's tax fraud and you shouldn't have to suffer financially because of his dishonesty. File your return as soon as possible so the IRS can start the review process.
This happened to me last year! Check if your company has something called "salary continuation" or "tax equalization" in their benefits package. My company had this policy where if they made a payroll error that resulted in employee tax liability, they would cover the difference. I discovered this buried in our employee handbook after a similar withholding issue. HR initially tried to say I was responsible, but once I pointed to their own policy, they covered the entire amount I owed plus penalties.
I'm dealing with something very similar right now - employer error on withholding that left me with a huge tax bill. One thing that helped me was documenting EVERYTHING. Take photos of both W4 forms, print out every paystub showing zero withholding, and create a timeline of when you submitted the correct form versus when the error should have been caught. Also, don't forget that you can request penalty relief from the IRS through Form 843 if you can show "reasonable cause" - which employer error definitely qualifies for. The fact that you have a properly completed W4 on file is strong evidence that this wasn't your fault. I'd also suggest asking your employer to provide a letter on company letterhead acknowledging their error and explaining what happened. This documentation can be crucial if the IRS questions your penalty abatement request. Most companies will do this if they realize they made a mistake, especially when presented with clear evidence like you have. Stay strong - this is stressful but definitely resolvable with the right approach!
This TurboTax claim bugs me so much. Here's what's really happening: - TurboTax partners with SBTPG (Santa Barbara Tax Products Group) - When the IRS releases your refund, it goes to SBTPG - SBTPG takes out TurboTax fees if you chose that option - SBTPG sends the remainder to your bank Sometimes this process happens quickly and you get your money before the official DDD. But other times, SBTPG sits on it for days. I've had clients get refunds LATER than their DDD because of this middleman step. The most reliable way is to pay TurboTax fees upfront and have your refund sent directly from IRS to your bank.
Based on everyone's experiences here, it sounds like TurboTax's "up to 5 days early" claim is pretty misleading. Since you chose to have fees deducted from your refund, your money has to go through SBTPG first before reaching your bank account. From what I'm reading, most people in this situation get their refunds 2-3 days early at best, not the full 5 days TurboTax advertises. Your $3,780 refund will likely arrive somewhere between October 25th-27th if the pattern holds true. The exact timing depends on how quickly SBTPG processes it and your bank's deposit policies. You can track it on the SBTPG website (taxpayer.sbtpg.com) as someone mentioned earlier - that might give you a better idea of when to expect it than just relying on the IRS WMR tool. Next year you might want to consider paying the TurboTax fees upfront to avoid the middleman delay and extra convenience fee!
Ethan Wilson
Just a heads up, if you owed any back taxes or have other federal debts (like student loans), they might have applied your refund to those. Might be worth checking into that as well.
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Anastasia Smirnova
I'm going through the exact same thing! Filed my 2023 return back in February and still nothing. I've been checking the "Where's My Refund" tool religiously and it just keeps saying "still being processed." At this point I'm wondering if I should try that calling service someone mentioned or just wait it out. The whole situation is so stressful - I was counting on that refund for some bills. Thanks for posting this, at least now I know I'm not the only one dealing with this nightmare!
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