Don't forget about the financial aid implications! When your kid applies for college, 529 plans owned by parents are counted as parental assets (assessed at a max of 5.64% for financial aid), but 529s owned by grandparents or other relatives used to not count at all until the money was withdrawn. This changed recently though - starting with the 2024-2025 FAFSA, distributions from grandparent-owned 529s no longer count as student income. So the old strategy of having grandparents own the account doesn't have the same advantage it used to. But there's still a consideration with divorce - the custodial parent's finances are what matter for FAFSA. If your ex is the custodial parent and also owns the 529, it could affect financial aid differently than if you (the non-custodial parent) own a separate 529.

I went through a similar situation with my divorce two years ago. Here's what I learned: the key is understanding your state's specific rules about 529 deductions. In my case (Ohio), I had to be the account owner to claim the state tax deduction, so I ended up opening my own 529 account. One thing to consider that hasn't been mentioned yet - check if your state has a "recapture" provision. Some states will require you to pay back previous tax benefits if you change the beneficiary or if the account owner changes. This didn't affect me since I opened a new account, but it's something to be aware of if you're thinking about transferring ownership of the existing account. Also, don't overlook the investment management aspect. When you have separate accounts, you each get to choose your own investment strategy, which can actually be beneficial. My ex is more conservative with investments while I'm more aggressive, so having separate accounts lets us each manage according to our risk tolerance while still working toward the same goal of funding our daughter's education. The paperwork is a bit more complex come tax time, but it's worth it for the flexibility and potential tax benefits.

Anyone else notice that sometimes the pre-filled forms from accountants have calculation errors? I almost filed with a mistake last year that would have cost me $800. Make sure you double-check all the numbers before submitting!!!

Just want to add another perspective here - if your accountant used professional tax software to prepare your forms, you might be able to ask them for the electronic file (.tax file or similar) that you could then import into compatible software for e-filing. This would save you from manually re-entering all the data and reduce the chance of transcription errors. Also, before you submit anything, I'd strongly recommend calling the IRS practitioner priority line if your accountant gave you a power of attorney form. Even though they can't file for you due to their emergency, you might still be able to get priority phone support to verify everything looks correct. The number is different from the regular taxpayer line and typically has much shorter wait times. One last tip - if you do end up mailing paper forms, send them certified mail with return receipt. It costs a few extra dollars but gives you proof of delivery and timing, which can be crucial if there are any processing delays or questions later.

I would strongly recommend documenting everything right away while it's fresh in your mind. Write down exactly what the preparer told you verbally about your return, fees, and the advance loan. Note dates when you requested documents and when you received them. Take pictures of any paperwork you have, even handwritten notes. I learned from my own experience that these small details can make a huge difference when building your case. Also, check your bank statements for the exact amount of the advance deposit. The electronic trail of deposits will be important evidence showing exactly how much you received versus what was issued.

This is absolutely infuriating and I'm so sorry you're going through this. What you've described is textbook tax preparer fraud and theft. Beyond the excellent advice already given about IRS forms and reporting, I'd also suggest checking if your state has a Consumer Protection Division or Attorney General's office that handles financial fraud cases. Many states have specific programs for tax preparer fraud that can work alongside federal investigations. One thing that hasn't been mentioned yet - consider filing a complaint with the Better Business Bureau if the preparer's business is listed there. While it won't get your money back directly, it creates another paper trail and warns future potential victims. Also, if you paid the preparer with a credit card, contact your card company immediately to dispute the charges. Explain that you were charged for services not rendered (since he inflated your income without authorization and kept money that should have gone to you). Credit card companies often have stronger fraud protections than other payment methods. Document absolutely everything - take photos of all paperwork, save text messages, and write down every conversation you remember having with this person. The more evidence you have, the stronger your case will be across all the agencies you'll be reporting to. You're doing the right thing by pursuing this aggressively. This preparer is likely doing this to other clients too, so your actions could help protect others from the same scam.

word of advice: DONT CALL!! been on hold for 3 hours today and got hung up on twice. just do the online thing

I just went through this process last month! The online verification at idverify.irs.gov is definitely the way to go - took me about 20 minutes total. You'll need your Social Security card, driver's license, and either your prior year tax return OR a bank statement/utility bill. They ask you some questions about your credit history too. After I verified, I got my refund in about 5 weeks, which was faster than I expected. Pro tip: do it during off-peak hours if possible to avoid the site being slow!

I was in almost the exact same boat last month (though I guess my situation was slightly less complicated). Called the TAS number (877-777-4778) every day for a week at exactly 7:00 AM Eastern when they open. Finally got through on Thursday, explained my situation, and the advocate was actually pretty helpful! She created a case file and contacted the specific department handling my amended return. Got a resolution within 10 days after that. The secret seems to be calling right when they open - who would have thought government offices actually answer phones at opening time? 😂

I'm dealing with a very similar situation - my 1040X has been stuck "in process" for 76 days now and I'm getting nowhere with the regular IRS phone lines. Based on what everyone's shared here, I'm planning to try calling the TAS national line (877-777-4778) first thing tomorrow morning at 7 AM sharp, since Gabriel had success with that timing. If that doesn't work, I'll look up my local TAS office using the zip code tool on their website. One question for those who've successfully worked with TAS - how specific did you need to be about financial hardship? I'm not facing eviction or utility shutoffs, but the delay is preventing me from finalizing some financial planning decisions that are time-sensitive. Would that qualify, or do they really need to see immediate financial distress? Thanks everyone for sharing your experiences - this thread has been incredibly helpful!