This exact thing happened to me too! Filed in late January and went through the same roller coaster - normal processing for weeks, then that terrifying "Action Required" message for about 6 days, then back to "refund date will be available soon." I was absolutely convinced I had made some major error on my return! From what I've learned through my own research and talking to others, this is happening because the IRS rolled out new fraud detection systems this year that are WAY more sensitive than before. They're automatically flagging tons of legitimate returns for review, then clearing them once their automated systems do a deeper check. The fact that your status went back to normal is actually the best possible outcome - it means you passed whatever security review they were running. If there was a real issue requiring your input, that "Action Required" message would have stuck around. I ended up getting my transcript from irs.gov which showed exactly what was happening with specific codes (way more informative than the vague WMR messages). My refund showed up about 2 weeks after the status went back to normal, and the deposit date appeared in WMR about a week before the actual deposit. Don't stress about it - this seems to be the new normal for 2024 tax season. The system is just being extra cautious but most people are getting cleared automatically. Keep checking WMR every few days and you should see progress soon!

This is happening to SO many people this year! I'm a tax professional and we've been fielding dozens of calls about this exact scenario. What you experienced is actually a really good sign - when the "Action Required" message disappears and goes back to normal processing, it means their automated fraud detection system flagged your return for review but then cleared it without needing any action from you. The IRS implemented much more aggressive fraud detection algorithms this season that are triggering a lot of false positives on simple returns. The system does an initial scan, flags certain returns for deeper review, then usually clears them within a few days once the automated checks are complete. Since your status has been back to "refund date will be available soon" for 5+ days and you haven't received any letter, you're almost certainly fine. The key is that it went BACK to normal - if there was a real issue, that action required message would have stayed put. I'd recommend checking your transcript at irs.gov for more detailed info, but based on what you've described, you should see a deposit date appear in WMR within the next 1-2 weeks. This exact pattern has been happening to thousands of taxpayers this season and 95%+ get their refunds without any issues once the status self-corrects like yours did. Try not to stress - you're in good company!

Just to add some reassurance from someone who's been through this - you're definitely on the right track! I was in almost the exact same situation two years ago (college student, part-time jobs, parents claiming me as dependent) and I was so stressed about messing something up. The key things that helped me were: 1) Filing my own return and checking the "can be claimed as dependent" box, 2) Getting my refund for overwitheld taxes (which was awesome!), and 3) Making sure my parents had my 1098-T for education credits on their return. One small tip - if you're using tax software, most of them will ask you early on whether you can be claimed as a dependent, and then they automatically adjust everything else based on that answer. Makes it pretty foolproof. You've got this! The dependent filing thing seems scary at first but it's actually pretty straightforward once you understand the basics.

Yes, absolutely! The tax software handles the standard deduction calculation automatically based on your dependent status. For 2024 taxes, if you're claimed as a dependent, your standard deduction is limited to the greater of $1,150 OR your earned income plus $400 (but capped at the regular standard deduction amount of $14,600 for single filers). So in your case with $13,500 in earned income, your standard deduction as a dependent would be $13,900 ($13,500 + $400). This is actually pretty close to what you'd get as an independent filer anyway! The software will automatically use this calculation when you indicate you can be claimed as a dependent. You don't need to worry about doing the math yourself - just answer the dependency question honestly and let the software handle the rest. The main difference you'll notice is in tax credits (like education credits going to your parents instead of you), but for basic income tax calculation and refunds, being a dependent usually doesn't hurt you much, especially at your income level.

One thing to consider - could you contribute to traditional IRAs for both you and your husband to lower your AGI? Might help with other income-based benefits even if EITC is out of reach.

The rollover option @Yuki Tanaka mentioned is crucial - if you took that pension distribution within the last 60 days, you can still roll it into an IRA and it would be treated as if the distribution never happened for tax purposes. This would bring your AGI back down significantly and potentially make you eligible for EITC again. Even if the 60-day window has passed, there are sometimes hardship exceptions available. Given that you mentioned needing the money for home repairs, it might be worth exploring whether any exceptions apply to your situation. If rollover isn't possible, definitely look into maximizing traditional IRA contributions for both you and your husband to reduce AGI. Also consider whether the home repairs qualify for any energy efficiency credits or other tax benefits that could help offset the higher tax burden from the pension distribution.

Has anyone taken their actual course? The book was helpful but I'm wondering if the more expensive program adds enough value to justify the cost?

As someone who's been implementing tax strategies for my consulting business over the past year, I'd recommend starting with the fundamentals before diving into any paid programs. The biggest wins often come from proper bookkeeping and understanding which expenses you can legitimately deduct. That said, if you're serious about tax optimization, consider getting a comprehensive analysis of your current situation first. I used an AI tax analysis tool that showed me I was missing about $8k in deductions annually just from poor categorization of business expenses. Sometimes the low-hanging fruit saves you more than complex strategies. For a 30% growth year like yours, focus on quarterly estimated taxes and cash flow planning too - that growth might put you in a higher bracket and create estimated payment penalties if you're not careful. The strategies are only valuable if you have the foundation right first.

Great question! I faced this same confusion when I started my resale business. The key principle is that sales tax you collect is NOT your income - you're acting as a collection agent for the state. Report only $123,500 on line 1 of Schedule C (your actual product sales). The $6,500 in sales tax never appears on your federal tax return because it was never your money to begin with. Think of it this way: if a customer pays you $100 for an item plus $5 sales tax, you only earned $100. The $5 goes straight to the state. Including it as income would mean you're paying federal income tax on money that isn't yours. Keep detailed records of all sales tax collected and remitted - this documentation will be crucial if you're ever questioned about why your bank deposits don't match your reported gross receipts. The IRS understands this difference, but you need to be able to explain it clearly.

This thread has been incredibly helpful! I'm in a similar situation with my dropshipping business and was making the same mistake of including sales tax in my gross receipts. One thing I'd add is that if you use payment processors like PayPal or Stripe, make sure to check their reporting features. PayPal's 1099-K forms can sometimes include the sales tax amounts in the reported gross payments, which might make it look like you have more income than you actually do. You'll need to reconcile this difference when filing your Schedule C. Also, for anyone using marketplaces like eBay or Amazon, remember that in marketplace facilitator states, the platform collects and remits sales tax on your behalf. In those cases, you won't see the sales tax in your seller reports at all - the customer pays it directly to the marketplace. This actually makes the Schedule C reporting cleaner since your gross receipts will already exclude the sales tax. Just wanted to share this since payment processor reporting can be another source of confusion when trying to figure out your actual taxable income versus total money received.