I've been preparing taxes for friends and family for over 10 years, and this is a very common misunderstanding. Your federal and state returns are completely separate systems. Many people don't realize that the IRS (federal) and your state's department of revenue are entirely different agencies with different rules, forms, and processing systems. They do share information eventually, but an error on one doesn't automatically affect the other. If your federal return was accepted, it's in process regardless of what happens with your state return. The only time you'd need to worry is if the information you provided on both returns contradicts each other significantly.

Hey Muhammad! I totally get the stress - tax season as a new grad is already overwhelming enough! 😅 Just wanted to echo what everyone else is saying: your federal return is completely safe! Think of it this way - the IRS and your state tax agency are like two different companies that don't share the same computer system. Your federal acceptance has nothing to do with your state error. Since you're just starting out with taxes, here's a pro tip for the future: always double-check your state info before hitting submit, especially things like state ID numbers or addresses. TurboTax is usually pretty good about catching errors, but it can't catch everything. While you're waiting for that state letter, you can track your federal refund progress using the IRS "Where's My Refund" tool. It should show up there within a few days of acceptance. Hang in there - you've got this! 💪

Has anyone considered the pro/cons of NOT repaying the CARES withdrawal? I took about $30k out and am now able to repay, but I'm wondering if it might actually be better to just pay the taxes (I selected the 3-year option) and keep the money out? My reasoning is that I'm 52 and might get more benefit from using that money now rather than having it locked away until retirement.

I went through a very similar situation last year and want to share what I learned. First, definitely make sure you understand which tax treatment you originally elected for your CARES withdrawal - this makes a big difference in how the repayment works. One thing that caught me off guard was the timing. Even though you have until the 3-year deadline to repay, you need to make sure you do it in the right tax year if you want the tax benefits for that year. I almost missed this and would have had to wait until the following year to get my refund. Also, regarding your Roth conversion question - since you mentioned your income is still relatively low, this could be a great opportunity. You're essentially paying taxes now at lower rates to avoid potentially higher rates later. Just make sure you have enough cash outside of retirement accounts to pay the conversion taxes without touching the converted funds. Have you calculated what your total tax liability would be for both the CARES repayment (if you don't repay) and the Roth conversion? That might help you decide the optimal strategy.

sign up for those email alerts they mentioned! thats how i knew exactly when mine was approved last year

I've been through this exact same situation! Filed through Cash App for NY state taxes last year and got the same "processing" message. It's totally normal - that's just their standard first status for all returns. The fact that you can see your tax year (2024) and form type (IT-201) displayed correctly means Cash App transmitted everything properly to NY state. I'd definitely recommend signing up for those email alerts like others mentioned - that's how I found out when mine was approved. NY typically takes 2-3 weeks to process, sometimes longer during busy periods. Cash App is legit for tax filing, so don't worry about that part!

Have you checked if there were any math errors on your return? Sometimes that can cause major delays.

I feel your pain! I'm actually going through something similar - been waiting 10 months for my 2023 refund. After reading through all these comments, I'm definitely going to check my tax transcript like Nick suggested. That breakdown of the codes to look for is super helpful. I had no idea about the Taxpayer Advocate Service either - might be worth looking into if this drags on much longer. It's frustrating how inconsistent the whole process seems to be. Some people get their refunds in weeks, others wait over a year. Hang in there, Ryan! 🤞

Just to add another perspective - while it's definitely good to correct mistakes, don't overthink this too much. The Child and Dependent Care Credit is one that the IRS sees errors on constantly. The documentation requirements are confusing, and providers often make mistakes. As long as you did actually pay for childcare (even if the amount was lower than what was reported), this is really just a matter of filing the 1040-X with the correct amounts. Given that you're voluntarily correcting this before any IRS contact, they're extremely unlikely to view this as anything but a good-faith correction. Don't let anxiety about this consume you - it's a relatively minor correction in the grand scheme of tax issues.

I went through almost the exact same situation two years ago with my daycare provider inflating numbers on their year-end statement. The guilt and anxiety were eating me alive, but the process was much smoother than I expected. Here's what worked for me: I filed Form 1040-X and in the explanation section wrote something like "Correcting Child and Dependent Care Credit based on actual amounts paid rather than inflated documentation provided by care provider." I included my bank statements and receipts showing the actual payments I made. The IRS processed my amended return without any issues - no audit, no penalties, just had to pay the additional tax owed plus a small amount of interest (maybe $18 on a $800 difference). The whole thing was resolved in about 8 weeks. The fact that you're coming forward voluntarily before they discover it shows good faith. Don't torture yourself over this - you trusted documentation that was provided to you, which is completely reasonable. File the 1040-X with the correct amounts and put this behind you. You're doing the right thing.