Just want to add something important - if you're claiming the Child Tax Credit with no income, make sure your child has lived with you for more than half the year (183 days). The IRS is really strict about this requirement, and it's one of the things they check carefully since this credit is frequently claimed incorrectly. Also, your child needs to be under 17 at the end of the tax year to qualify. If they turned 17 during 2023, unfortunately you can't claim the Child Tax Credit for them for that year.

I did this exact thing last year! Filed with zero income as a disabled parent and still got $1,500 for my daughter through the Additional Child Tax Credit. Used the free version of TaxAct to file. Just make sure to complete Schedule 8812 along with your 1040 - that's where you calculate the refundable portion. One thing nobody mentioned yet - your qualifying child must also not provide more than half of their own support. Shouldn't be an issue for young kids, but something to keep in mind if you have an older teen who might have had some income of their own.

The real issue is that our tax system hasn't kept pace with how people actually earn money today. It was designed in an era when most people either owned a business or worked for someone else - there wasn't much in between. Today, lots of us are in hybrid situations - employees who also do gig work, investors who also earn wages, etc. The tax code is still catching up to these realities. I think eventually we'll need to move to a system that treats all income more equally and doesn't create these weird incentives and disincentives based on how you earn your money. Until then, the best approach is to understand the rules and structure your affairs accordingly.

This is such a fascinating discussion! As someone who works in tax preparation, I see this frustration from clients all the time. The fundamental issue you're raising touches on something economists call the "double taxation of labor" - though it's not exactly double taxation in the traditional sense. What's particularly interesting is that some countries do actually have systems that partially address this. For example, several European nations have "imputed deduction" systems where workers can deduct a standard amount for work-related costs even without receipts, essentially acknowledging that earning income has inherent costs. The closest thing we have in the US is the standard deduction, which you could argue serves a similar function - it's a recognition that everyone has basic costs associated with earning income, even if we can't itemize them specifically. Your comparison to investment income is spot-on though. The preferential treatment of capital gains (especially long-term) does create this weird situation where passive income gets better tax treatment than active labor. Some policy experts have proposed flipping this - making earned income tax-free up to a certain threshold while taxing investment returns at ordinary income rates. The political reality is that any major overhaul like this faces huge resistance from various interest groups, but the underlying logic of your argument is sound. Labor shouldn't be treated as "pure profit" when there are real opportunity costs and often out-of-pocket expenses involved.

Called the IRS yesterday and got hung up on 3 times lmaooo we love to see it 🤮

mine switched from still processing to processing after 8 weeks and got my ddd 2 days later! there is hope yall!!

Pro tip: sign up for informed delivery with USPS so you know when its coming

Just went through this last year - can confirm it's always a paper check for 1040X refunds. The IRS systems don't link your amended return to your original direct deposit info for security reasons. Since you mentioned it's a big amount, definitely set up that USPS Informed Delivery like Axel suggested. Also keep checking "Where's My Amended Return" on the IRS website for status updates. The wait is painful but hang in there!

Pro tip: In the future, NEVER have your fees taken out of your refund! Always pay upfront with a credit card. When you choose to have fees deducted from your refund, your money goes through a third-party bank that charges additional fees and creates opportunities for "errors" like this. If you pay the tax prep fee directly, your refund comes straight from the IRS to your bank account with no middleman.

This is exactly why I switched to filing directly through the IRS Free File program last year. No middleman, no hidden fees, and your refund goes straight from the IRS to your bank account. I was tired of these tax prep companies finding creative ways to skim extra money. For your situation, definitely get your IRS transcript and document everything. The transcript will show exactly what the IRS sent and when. If there's a discrepancy between what they sent and what you received, you have TurboTax dead to rights. Don't let them drag this out - escalate immediately and threaten to file complaints with the CFPB and your state's attorney general if they don't resolve it within a week. These companies count on people not checking their math or giving up when they encounter resistance. Stay persistent!