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pro tip: sign up for informed delivery with usps. sometimes the check comes before the wmr updates js
Iowa resident here! Filed Feb 3rd and still waiting on my state refund too. It's nerve-wracking when you have bills coming up. The 14-21 day timeframe SebastiΓ‘n mentioned seems pretty accurate from what I've seen others post. Hang in there - at least we don't have to deal with the PATH Act delays for state like we do with federal!
Has anyone used TurboTax to report a personal injury settlement? Wondering if it handles this situation well or if I should go to an actual tax preparer this year.
Congrats on the settlement! For a class action personal injury settlement like yours, the good news is that most of it will likely be tax-free under IRC Section 104(a)(2). However, you'll want to carefully review the settlement documentation to see if it breaks down different components. Key things to look for in your paperwork: - Compensation for physical injuries/medical costs (non-taxable) - Punitive damages (taxable) - Interest on the award (taxable) - Attorney fees (may affect your reporting) Since this was for defective airbags that presumably caused physical injuries, the bulk should be non-taxable. But class action settlements sometimes include punitive damage components that would be taxable. I'd recommend keeping detailed records of the settlement breakdown and consider getting professional guidance if the documentation isn't clear. Better to be certain upfront than deal with issues later during tax season!
The IRS rep was kinda right but also wrong lol. The 971 itself won't stop the refund but that 570 definitely will until they resolve whatever is triggering it
Based on your transcript, the 570 code is definitely holding up your refund - it's basically a freeze on your account while they review something. The 971 notice (dated 3/3) should explain what they need to verify. Since you're HOH with $0 taxable income but claiming a large refund, they're probably just verifying your filing status and credits. The good news is your account balance shows -$8,963 which means the refund amount is there waiting to be released. Keep checking for that 846 code - once the 570 clears, you should see it pretty quickly. If you don't get the notice by mid-March or want more specific info about your timeline, taxr.ai has been super helpful for people in similar situations with these code combinations.
If you're worried about going over $50,000 for the grant, you should also check if the grant looks at your gross income or adjusted gross income (AGI). If it's based on AGI, you could potentially make some last-minute moves to reduce your 2024 AGI, like contributing to a traditional IRA or 401k if you haven't maxed those out.
Thanks for this suggestion! The grant is actually based on MAGI (Modified Adjusted Gross Income) rather than just gross income. I do have some room left in my 401k for the year, so this might be a perfect solution. Do you know if 401k contributions have to clear by December 31st to count for 2024, or can I make them until tax filing time like with IRAs?
401k contributions generally must be made through payroll deductions by December 31st to count for that tax year. Unlike IRAs which allow contributions until the tax filing deadline, 401k contributions are strictly calendar year. If you have a December paycheck coming, you could see if your employer will let you increase your 401k contribution percentage for just that final check. Another option could be to look at Health Savings Account contributions if you have a high-deductible health plan, or see if you have any business expenses you could accelerate if you have any self-employment income.
I work in payroll and just want to confirm what others have said - income counts when it's paid, not when it's earned. Your 1/3/2025 check will be reported on your 2025 W-2, even though some of those days were worked in 2024.
That's such a relief to hear from someone in payroll! So even if I work Dec 26-31, since that paycheck won't come until January, none of that will count toward my 2024 income total? I was so worried I'd have to take unpaid time off.
That's correct! As long as your paycheck date is January 3, 2025, those earnings will count toward your 2025 income for tax purposes, regardless of when you actually performed the work. The key is the payment date, not the work date. Since you're staying under $50K with your December 23rd check, you should be fine for your grant requirements. Just make sure to double-check with your grant administrator about their specific income calculation method to be 100% certain.
Steven Adams
The IRS processing pipeline has multiple stages that aren't visible to taxpayers. E-file acceptance only confirms successful transmission to IRS servers (Stage 1). Transcript visibility requires passing through initial validation (Stage 2) and entering the processing queue (Stage 3). During peak filing periods (February-April), the time between Stages 1 and 3 averages 14-21 days for returns without complexities. My TaxAct return from February 8th didn't appear on transcripts until February 25th, then processed with DD on March 1st.
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Nia Davis
I'm going through the exact same thing right now! Filed with TaxAct on February 28th, got the acceptance confirmation immediately, but my transcript has been completely blank for 2024 tax year. It's really nerve-wracking as a first-time filer not knowing if this is normal. Reading through everyone's experiences here is actually pretty reassuring - seems like this 2-3 week delay between acceptance and transcript visibility is just how the system works during busy season. I've been checking the Where's My Refund tool daily too and it still says "processing." Thanks for posting this question, I was starting to think something was wrong with my return!
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