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Pro tip: the cycle code is actually part of a longer number that contains the year and week info too. Like 20231101 means 2023, 11th week, Monday processing. Understanding these patterns helps predict your update schedule.
The cycle code ending in 01 is actually pretty standard - nothing to worry about! It just means your return gets processed on Mondays. From my experience, 01 cycles tend to move at a decent pace, though every situation is different depending on your specific return details. Keep checking your transcript on Tuesday mornings like others mentioned, and don't stress too much about the cycle code itself - it's more about timing than anything else.
Everyone is missing a simple solution. Grandma could just give OP the $70k, file the gift tax return, and use some of her lifetime exemption. Unless Grandma has already given away millions or has an estate worth over $12 million, there will NEVER be any actual gift tax paid. The annual exclusion just lets you avoid filing paperwork, but exceeding it doesn't automatically mean you pay tax! I did this last year. Got $100k from my parents for a house downpayment. They filed a gift tax return. No tax was owed. Simple as that.
You're right, and a few others mentioned this too. I think we get so caught up in avoiding the gift tax that we forget the lifetime exemption is so high. Thanks for the reminder that going over the annual limit isn't the end of the world - it just means filing a form. Did your parents need an accountant to handle the gift tax return or is it something they could do themselves?
They did it themselves. The Form 709 isn't that complicated if you're just reporting a straightforward cash gift. They said it took about an hour to complete with some basic guidance from the IRS instructions. Just make sure to file it by the tax deadline in the year after the gift is made. If your grandma has a more complex estate or has made lots of other large gifts, then having an accountant might be worthwhile. But for a simple gift like $70K when she hasn't used much of her lifetime exemption, it's pretty straightforward.
This is a great thread with lots of helpful information! As someone who works in tax preparation, I see this confusion about gift taxes all the time. The key takeaway is that the IRS looks at the economic substance, not just the form of transactions. One point I'd add is that even if your grandma uses her lifetime exemption, she should keep good records of all gifts made. The IRS can ask for documentation going back several years, especially if there are questions about the timing or intent of multiple family gifts. Also, for anyone considering the direct payment route for education or medical expenses - make sure the payment goes directly from the giver to the institution. If grandma gives you money and you pay the school, that counts as a regular gift. But if she writes the check directly to the university, it's unlimited and doesn't count against any limits. The gift splitting option mentioned by others is also really powerful for married couples and something many people don't realize they can do.
Pro tip: if you're having trouble reaching the IRS, try calling your local Taxpayer Advocate Service. They can sometimes help push things along.
Just went through this same nightmare last month! Here's what I learned: the IRS processing times are absolutely brutal right now - like 11-12 weeks instead of the usual 7. But here's the kicker - they don't always send rejection letters promptly either. I'd recommend calling the ITIN hotline (1-800-908-9982) and asking for a status update. Yeah, you'll be on hold forever, but at least you'll know if it's still processing or if there's an issue. Also, make sure you kept copies of EVERYTHING you sent - birth certificate, passport, whatever docs you used. If it does get rejected, the most common reasons are: wrong form version, missing supporting docs, or unclear photocopies. Don't give up though - once you know what went wrong, the resubmission usually goes smoother! šŖ
Freya Larsen
There are actually a few factors that might affect your timeline after verification: 1. The type of credits you claimed (EITC/CTC generally take longer) 2. Whether you filed electronically or by paper (e-file is faster) 3. Whether your return had any other compliance flags 4. The current IRS backlog situation I would say, based on what I've generally seen, most people who verify their identity see movement within 3-4 weeks, though it can certainly be faster. The 9-week timeline is probably their worst-case scenario estimate for the most complex situations. If you're approaching week 5 with no movement at all, that would be when I'd consider reaching out to the IRS again.
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Omar Hassan
ā¢This is helpful information, but I'm curious: ⢠Does filing status make a difference? (Single vs. Joint) ⢠Is there any way to check if there are other issues besides ID verification? ⢠Do you know if amended returns after verification restart the clock completely?
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Yuki Kobayashi
I went through this exact same process last year! Had to verify identity over the phone in February, and they gave me the same "up to 9 weeks" timeline that had me panicking. But here's the thing - I got my DDD (Direct Deposit Date) exactly 19 days after verification. My transcript was completely blank for about 2 weeks, then suddenly updated with all the processing codes overnight. The key is to check your transcript every Thursday night/Friday morning - that's when most updates happen. Don't stress too much about the 9-week timeline, it's really their worst-case scenario. Since you filed jointly for the first time, make sure there are no name/SSN mismatches between you and your spouse's info, as that can cause additional delays. But honestly, most people I know who had to verify got their refunds within 2-4 weeks. You should see movement soon!
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Nia Jackson
ā¢This is really reassuring to hear! I'm in a similar situation - verified by phone about 10 days ago and have been obsessively checking my transcript daily (probably not healthy lol). The fact that yours updated suddenly after being blank for 2 weeks gives me hope. Quick question - when your transcript finally updated, did you get all the codes at once (150, 846, etc.) or did they appear gradually over a few days? Also, did WMR (Where's My Refund) update at the same time as your transcript or was there a delay between them?
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