With 2 kids under 16 you should qualify for Child Tax Credit ($2000 per kid) plus Additional Child Tax Credit if its not all used up. The EITC could be substantial too at your income level. But yeah the SE tax gonna take a bite 🤡

Based on your income and situation, you're likely looking at a decent refund! With $20,800 income, HOH status, and 2 kids under 16, you should qualify for: - Child Tax Credit: $4,000 ($2k per kid) - Earned Income Credit: Around $5,500-6,000 for your income level with 2 kids - Self-employment tax: ~$2,940 (ouch, but expected) So even after SE tax, you could be looking at a refund in the $6,000-8,000 range. Definitely recommend using tax software or seeing a pro to make sure you're getting every credit you qualify for. Good luck!

This happened to me last year...my "tax guy" gave me copies of everything but never actually filed! I only found out when I didn't get my refund and the IRS had no record of my return. Now I always use tax software that gives me a confirmation when the IRS accepts my return.

Hey Aisha! Don't stress - this confusion is totally normal for first-time filers. Here's the simple breakdown: Your W-2 is like a receipt from your employer showing what they paid you and what taxes they already took out of your paychecks. You don't "submit" this to the IRS - your employer already sent them a copy. The 1040 is your actual tax return - think of it as the form that calculates whether you owe more money or get a refund. This is what you (or your tax preparer) must file with the IRS. Since your tax guy gave you a completed 1040, you need to find out if he already e-filed it for you or if you need to submit it yourself. Try texting him one more time asking specifically: "Did you e-file my 1040 tax return? I need confirmation that it was submitted to the IRS." If he doesn't respond, you'll need to either submit the 1040 yourself (if it's not filed yet) or call the IRS to check if they received your return. The deadline is coming up, so don't wait too long to figure this out!

Slightly different perspective - I'd recommend talking to a tax attorney who specializes in partnership taxation, not just your CPA. While IRC 1341 seems like the right approach, there are nuances with carried interest that might affect your specific situation. For example, depending on how your partnership agreement was structured, there might be arguments for treating this as a capital loss rather than a Claim of Right issue, which could have different tax implications. A specialized attorney could also help if the IRS challenges your position.

This is a complex situation that touches on several areas of tax law. Based on your description, IRC 1341 does seem like the appropriate approach, but I'd strongly recommend getting specialized advice given the amounts involved. One thing to keep in mind is timing - make sure you're clear on when exactly the repayment obligation crystallized. For IRC 1341 purposes, it matters whether the repayment obligation arose in 2024 when you left, or if it was always contingent on not meeting the vesting requirements. Also, since you mentioned your accountant is researching this, make sure they're familiar with Revenue Ruling 2019-11, which provides guidance on applying IRC 1341 to partnership distributions. The IRS has been more active in this area recently, so having current guidance is important. The documentation everyone else mentioned is crucial - you'll want everything in writing showing the original allocation, the tax distributions made to cover your liability, and the subsequent repayment requirement. This creates a clear paper trail that supports your position. Given the complexity and dollar amounts, consider getting a second opinion from a tax professional who specializes in partnership taxation and carried interest. The intersection of these rules can create opportunities or pitfalls that aren't immediately obvious.

use a free filing service like cash app taxes if ur income under 73k

Just a heads up - with no federal withholding, you'll still get the full EIC and CTC as refundable credits! The IRS will cut you a check for the difference. Make sure you have all your docs ready (W2, SSNs for kids, etc) and double check those qualifying child requirements. Good luck! 💰

This is exactly the kind of confusion that trips up so many divorced parents! Your tax software is actually correct - you CAN claim the Earned Income Credit even though your ex will be claiming the Child Tax Credit for your daughter. The key thing to understand is that the IRS treats these as completely different types of benefits. The EIC is what's called a "custodial benefit" - it goes to the parent the child actually lived with for more than half the year, regardless of any custody agreements about who claims the child as a dependent. Since your daughter lived with you for more than 6 months, you qualify for EIC based on your income. Your ex can still claim the Child Tax Credit because your custody agreement gives him the right to claim her as a dependent, but that doesn't affect your EIC eligibility at all. Make sure you keep good records showing your daughter lived with you for more than half the year (school records, medical records, etc.) in case the IRS ever questions it. But you're absolutely entitled to that EIC - don't leave money on the table because of bad advice!

I've been following this thread and want to add something that might help clarify the situation even further. As someone who went through a messy divorce with complicated custody arrangements, I learned the hard way that there's a big difference between what divorce agreements say and what the IRS actually recognizes. Your custody agreement can legally transfer the right to claim your daughter as a dependent to your ex (which allows him to get the Child Tax Credit), but it absolutely cannot transfer away your right to the Earned Income Credit if she lived with you for more than half the year. The IRS considers EIC a benefit that belongs to the custodial parent, period. I made the mistake of not claiming EIC for two years because I thought our custody agreement prevented it. When I finally figured out I was wrong, I had to file amended returns to get that money back. Don't make the same mistake I did - if your daughter lived with you for more than 6 months, claim that EIC! The IRS has been very clear that custody agreements between parents don't override their rules about who qualifies for custodial benefits. Just make sure you can document where your daughter actually lived throughout the year, because that's what really matters to the IRS, not what your paperwork says about who claims her as a dependent.