Has anyone checked if this is related to the verification issues mentioned on the TurboTax support forum? According to https://ttlc.intuit.com/community/tax-topics/help/refund-advance-delays/01/2023, some advance refunds are getting held up for additional identity verification steps that weren't required in previous years. Is there any notification in your TurboTax account about needing to verify identity?

Based on what everyone's shared here, it sounds like TurboTax's advance system is completely overwhelmed right now. I'd recommend checking three things immediately: 1) Log into your TurboTax account and look for any verification messages (like @Ravi Sharma mentioned - this caught a lot of people off guard), 2) Call the specific refund advance department at 800-446-8848 and ask for escalation if you've been waiting over 7 days, and 3) Double-check that all your personal info (especially address) matches exactly what's on file. The advance is totally separate from your actual IRS refund, so even though your return was accepted, the advance goes through TurboTax's lending partner which has its own approval process. Given that you need this for tuition next week, I'd definitely call tomorrow morning - don't wait for it to resolve on its own. Good luck!

Another option I don't see mentioned - check if your potential new employer offers an HDHP option you could enroll in immediately upon starting. Many employers have waived waiting periods for benefits during the pandemic and some have kept those policies. If your current coverage ends October 15th and new employer coverage can start October 16th, that would satisfy the continuous coverage requirement. Just make sure the new plan qualifies as an HDHP for HSA purposes - not all high-deductible plans do!

I want to add one more consideration that might be helpful - if you're planning to leave around October 15th specifically, you might want to think about pushing it to November 1st instead. Since HSA eligibility is determined by having HDHP coverage on the first day of the month, leaving mid-month in October could make you ineligible for the entire month of October. If you leave on October 15th and there's any delay getting new coverage started, you'd lose October eligibility even if you only had a few days gap. But if you can wait until November 1st, you'd maintain full October eligibility and then just need to ensure your new HDHP coverage starts November 1st with no gap. I know job timing isn't always flexible, but even a couple weeks could make a significant difference for your HSA testing period compliance. The penalties for breaking the testing period can be substantial, so it might be worth exploring if your departure date has any flexibility.

Has anyone mentioned the income phaseouts for child tax credits? This was a HUGE factor for us last year. If either of you is close to or over $200,000 in income (for single filers), the child tax credit starts phasing out. In our case, my partner makes about $210k and I make $155k. We found it was WAY better for me to claim both kids because I could get the full child tax credit while she was getting a reduced amount due to her income. Before you decide, calculate your modified adjusted gross income and check where you fall on the phaseout range. Could make a difference of thousands depending on your exact income levels.

Another important consideration that hasn't been mentioned yet is the Earned Income Tax Credit (EITC) if either of you qualifies. With two children, the EITC can be worth up to $6,728 for 2023, but it phases out at different income levels depending on filing status. For Head of Household filers with two children, the EITC phases out completely around $56,838 in earned income, while for single filers it's around $50,594. Given that you both earn in the six-figure range, you likely won't qualify, but it's worth double-checking since this credit can be substantial. Also, don't forget about the dependent care FSA (Flexible Spending Account) if either of your employers offers it. You can set aside up to $5,000 pre-tax for childcare expenses, which effectively reduces your taxable income. This works independently of who claims the children as dependents, so whoever has access to a dependent care FSA should definitely use it. Just remember you can't double-dip - if you use FSA funds for daycare, you can't also claim those same expenses for the Child and Dependent Care Credit. The FSA savings alone could be worth $1,000-2,000 depending on your tax bracket, so make sure to factor that into your planning for next year!

I'm having the same issue but with H&R Block software! Is this happening across all tax software or just TurboTax? My message mentions something about "special provisions for qualified disaster distributions" but I definitely don't live anywhere that had a disaster recently.

This is definitely a legitimate message and you shouldn't worry about having made a mistake! The disaster distribution notification is actually TurboTax trying to help you get the best possible tax outcome. What's happening is that Congress passed several disaster relief provisions throughout 2024 for people affected by hurricanes, wildfires, floods, and other federally declared disasters. These provisions can provide significant tax benefits like waived early withdrawal penalties on retirement accounts, extended repayment periods, and other relief measures. TurboTax's system flagged something in your return - possibly your address, a retirement distribution you reported, or another factor - that suggests you might qualify for these benefits. Rather than potentially filing without these advantages, the software is pausing your filing until it can properly apply the relief provisions. I'd recommend checking if your area was included in any federal disaster declarations in 2024 by visiting the FEMA website. If you did take any early withdrawals from retirement accounts, this could save you hundreds or even thousands in penalties. The wait is usually just a few days to a week while they update the software to handle these complex new provisions properly.

Something everyone missed - make sure you're setting aside money for taxes with EVERY payment you receive! I recommend 30% minimum to cover federal, state, and self-employment taxes. I learned this the hard way my first year freelancing and ended up with a huge tax bill I couldn't pay.

Great advice from everyone here! As someone who's been freelancing for a few years now, I'd add that it's worth opening a separate business checking account specifically for your freelance income and expenses. This makes tracking everything SO much easier come tax time. Also, don't forget about business deductions! Home office expenses, equipment, software subscriptions, professional development courses - these can really add up and reduce your tax liability. Keep detailed records of everything work-related. One more tip: consider making your estimated payments slightly higher than required if you can afford it. I'd rather get a small refund than owe money at the end of the year, especially since freelance income can be unpredictable.