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If your return was accepted but now says "we may need more information," check if you claimed any of these credits, as they often trigger additional review: - Earned Income Tax Credit - Child Tax Credit - American Opportunity Credit - Premium Tax Credit (for health insurance) My return was held up last year because of EITC verification. Took almost 8 weeks total but eventually processed without me needing to do anything.
I work for a tax prep company, and EITC claims are getting extra scrutiny this year. The IRS is definitely taking longer on refunds involving credits. We're seeing average wait times of 5-6 weeks for returns with credits compared to 2-3 weeks for simpler returns.
I'm going through almost the exact same situation! Filed through FreeTaxUSA about 5 weeks ago, got the initial acceptance, then that dreaded "we may need more information" message appeared. Haven't received any mail yet either. Reading through these comments has been incredibly helpful - I had no idea about the identity verification delays when switching from a professional preparer to self-filing. That's probably exactly what's happening since we used H&R Block last year. The 21-30 day processing time Brandon mentioned gives me some peace of mind that we're still within normal range, even if it feels like forever when you're counting on that refund. Going to check out that Treasury Offset Program number Axel mentioned just to rule out any debt issues, and might try the taxr.ai tool if we don't hear anything in another week or two. Thanks everyone for sharing your experiences - makes me feel a lot less alone in this waiting game!
Does anyone know if Robinhood gives you any warning when you're buying an MLP? I feel like they should tell you that you're buying something that's going to complicate your taxes before you purchase it.
They don't. I learned this the hard way too. Robinhood just shows stocks and doesn't distinguish which ones are MLPs vs regular corporations. You can usually spot them because they often have "LP" in their name (like "XYZ Pipeline LP") but if you're new to investing you wouldn't know what that means.
I had this exact same situation happen to me! Bought what I thought were regular oil stocks on Robinhood and got blindsided by K-1 forms. Here's what I wish someone had told me from the start: 1. Yes, select "Partnership/LLC" in TurboTax - that's correct for the 1065 K-1 you received 2. MLPs (Master Limited Partnerships) are common in the oil/pipeline sector and they're taxed differently than regular stocks 3. Keep ALL your K-1 forms - you'll need them when you sell because the tax basis gets adjusted each year One tip that saved me a lot of headache: if the amounts are small (like under $1000 in income), the multi-state filing requirements others mentioned usually don't apply. TurboTax will calculate this automatically. Also, consider moving these investments to an IRA if you plan to keep them long-term. MLPs in retirement accounts avoid the K-1 hassle entirely (though there are some other considerations with UBTI if the amounts get large). Don't feel bad about not knowing - Robinhood really should warn people about this before purchase!
One thing nobody has mentioned yet - if you don't set up a new agreement when your short-term plan expires, the IRS can also offset (take) any future tax refunds until your debt is paid. They do this automatically without having to go through the normal collection process. This happened to me for three years straight before I finally set up a proper installment agreement.
Thanks for mentioning this! Is there any way to protect future refunds once you're in a formal agreement like the PPIA?
Even with a PPIA in place, the IRS will still offset any tax refunds. That's standard for any type of installment agreement. The only way to protect future refunds is to adjust your withholding so you don't have a refund coming - basically aim to break even or owe a tiny amount each year. This actually works in your favor in two ways: you get more money in each paycheck throughout the year (instead of giving the IRS an interest-free loan), and you can use that extra money to make payments on your tax debt, which does reduce interest charges.
Just want to add that ignoring the end of your payment plan is risky for another reason - the IRS charges both penalties AND interest on unpaid tax debt. The failure-to-pay penalty is 0.5% per month (up to 25% total), and the interest rate is currently around 7%. Those keep accumulating even if they haven't started active collections yet.
Does getting on a PPIA stop these penalties from adding up? My tax debt keeps growing despite making payments.
Yes, being on a PPIA does reduce the failure-to-pay penalty rate from 0.5% per month down to 0.25% per month, which helps slow down how fast your balance grows. However, the interest will continue to accrue at the full rate on your unpaid balance. The key is that as long as you're making your required PPIA payments on time, you're considered "in compliance" with the IRS, which prevents them from taking collection actions and keeps the penalty rate lower. But unfortunately, there's no way to completely stop interest from accumulating until the debt is fully paid off. @AmieliaDietrich If your debt is still growing despite payments, it might be worth requesting a review of your payment amount through the PPIA process to see if you can qualify for higher monthly payments that actually make progress against the principal balance.
Anyone else think its crazy that in 2023 were still dealing with paper checks and snail mail for tax refunds? The whole system needs an overhaul smh
Nah, other countries manage to do it securely and efficiently. The US is just behind the times.
I had the exact same thing happen to me last year! What worked for me was filing Form 3911 (Taxpayer Statement Regarding Refund) - you can download it from the IRS website. It's specifically designed for this situation. Fill it out completely and mail it with copies of your ID and proof of your new address. I got my replacement check about 6 weeks later. Way faster than just writing a letter, and it goes directly to the right department. Hope this helps!
William Rivera
Anyone know if the 2025 tax law changes will affect this at all? I heard some suspended deductions are coming back.
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Emily Sanjay
โขYou're right! The current law has the TCJA provisions sunsetting after 2025, which means miscellaneous itemized deductions subject to the 2% AGI floor are scheduled to return in 2026. If that happens, employees might once again be able to deduct unreimbursed employee business expenses, including certain legal fees related to their employment. Of course, Congress could always extend the current rules or make other changes before then, so it's something to keep an eye on as we get closer to that date.
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NebulaNomad
I went through something very similar last year and ended up working with a tax attorney who specializes in employment-related legal expenses. One thing that really helped my case was documenting exactly how the harassment was impacting my work performance and income potential. The key distinction the attorney explained is whether the legal fees were incurred to protect your ability to earn income versus just for personal protection. In my case, I had to show that the restraining order was necessary to maintain my employment and earning capacity, not just for general safety. We ended up being able to deduct about 60% of the legal fees on my California return by arguing they were directly related to income production. The documentation was crucial - I had emails showing how the harassment was affecting my work, performance reviews that mentioned the impact, and even some lost client interactions due to the situation. Worth noting that California's rules are more favorable than federal right now, so definitely explore both angles if you're in CA. The investment in getting proper tax advice paid for itself in my case.
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