Has anyone checked the "Where's My Refund" tool on the IRS website? That should tell you if your refund is being processed as direct deposit or paper check. I've found that to be more reliable than trying to guess what might happen.

I went through something similar when my bank got acquired by a larger institution. Here's what I learned: most credit unions have a grace period (usually 30-90 days) where they'll automatically forward deposits sent to old account numbers to your new account. Since your routing number stayed the same and it's still your name on the account, there's a really good chance your refund will go through just fine. The bank systems are designed to handle these transitions. That said, if you're really worried about it, you could try using the "Where's My Refund" tool on the IRS website to monitor the status. If there are any issues with the direct deposit, it will show up there and you'll know to expect a paper check instead. I'd personally wait it out rather than proactively calling the IRS to change to a check, since direct deposit is so much faster when it works. But that's just my two cents based on my experience!

People haven't mentioned quarterly estimated taxes yet, but that's super important for self-employed folks! Based on your situation, you're probably getting hit with underpayment penalties too, which would be included in that high blended rate. When you're self-employed, you're supposed to make quarterly tax payments throughout the year. If you don't, the IRS charges penalties that get factored into your total tax bill.

Hey Klaus! I totally feel your pain on this - that 39% rate freaked me out too when I first started freelancing. Everyone else has given great explanations, but I wanted to add one thing that might help you going forward. Since you're doing graphic design work, make sure you're deducting ALL your creative software costs - Adobe Creative Suite, fonts, stock photos, design assets, etc. Those subscriptions add up to thousands per year and are 100% deductible business expenses. Also, if you're meeting clients in coffee shops or co-working spaces, those costs are deductible too. Even things like business cards, portfolio printing, or a new computer/tablet for design work can be deducted (or depreciated if it's expensive equipment). The key thing to remember is that every business deduction saves you money on both regular income tax AND that brutal 15.3% self-employment tax. So a $1000 deduction could save you $153 in SE tax alone, plus whatever your income tax bracket is. Start keeping better records now for next year - use an app like Expensify or even just a simple spreadsheet. Your future self will thank you when tax time comes around again!

I completed my verification on February 17th this year, and like your boyfriend, the notification disappeared almost immediately. My return was fully processed and the refund hit my account on March 4th. The system seems to be working much better this year than in previous tax seasons. If he verified through ID.me (which is what the IRS uses), and that verification was accepted, you should be in good shape for summer tuition planning.

As someone who went through identity verification last year, I can relate to the anxiety! The quick disappearance of the notification is definitely promising. In my experience, the IRS system has become much more efficient - when verification goes smoothly, it really does process that fast. One thing I'd suggest is setting up an IRS account online if your boyfriend hasn't already. You can check his account transcript there, which updates more frequently than Where's My Refund and gives you a clearer picture of what's happening behind the scenes. The transcript will show codes that indicate where his return is in the process. Also, just to manage expectations for summer tuition - even with successful verification, refunds can still take 3-6 weeks to process completely. It might be worth having a backup plan just in case, but based on what you've described, things sound like they're moving in the right direction!

Watch out for the quarterly estimated tax payments if your trading is profitable! I got hit with an underpayment penalty last year cause I didn't realize I needed to make payments throughout the year on my trading gains. The Fidelity dashboard shows YTD figures but doesn't remind you about this requirement.

Based on your numbers, you're looking at about $800 in net short-term capital gains ($2,300 - $1,500), which will be taxed at your ordinary income rate. The Fidelity YTD dashboard is generally reliable for tracking realized gains/losses. A few key things to consider: First, make sure you understand wash sale rules - if you've been buying back the same or substantially identical securities within 30 days of selling at a loss, some of those losses might be disallowed. Second, consider whether you need to make estimated quarterly tax payments. If you'll owe more than $1,000 in additional taxes and your current withholding doesn't cover at least 90% of this year's tax liability (or 100% of last year's), you might need to pay quarterly. For someone in your situation with relatively modest gains, setting aside 20-25% of your net gains is usually a safe approach, but the exact amount depends on your total income and tax bracket. Given the complexity of trading taxes, especially with frequent transactions, it might be worth consulting with a tax professional or using specialized tax software that can handle investment activities properly.

I'm confused about whether the answer to the TurboTax question affects anything in the actual tax forms that get submitted to the IRS. Does answering "yes" to their question about prior disaster distributions actually show up anywhere on your final tax return?

I just went through this exact same scenario with my 2023 taxes! I had a COVID-related disaster distribution in 2020 and used the 3-year spread option. TurboTax kept asking about prior disaster distributions and I was worried I'd mess something up. What helped me was understanding that the question is really just TurboTax trying to figure out if there are any ongoing tax implications from previous distributions. Since you've already completed your 3-year reporting cycle (2020-2022), there's nothing more to report for that specific distribution. I ended up answering "yes" to the question, and TurboTax walked me through a few follow-up questions but ultimately didn't generate any additional forms for 2023. The software is smart enough to recognize when you've completed the reporting requirements. One tip: keep copies of your 2020-2022 returns with the 8915-E and 8915-F forms handy in case you need to reference the amounts you previously reported. It gave me peace of mind to double-check that everything added up correctly across the three years.