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You need to use the EITC Assistant on the IRS website. With your income level and three qualifying children, you're looking at a significant Earned Income Credit. You should also claim the Child and Dependent Care Credit if you paid for childcare. Your refund will likely be substantial, but you need to file correctly. The self-employment tax will reduce it somewhat, but the credits should more than offset this. Consider making estimated tax payments next year to avoid any penalties.
Would this income level also qualify for the Additional Child Tax Credit if the regular Child Tax Credit exceeds their tax liability? I'm trying to understand if there's a phase-out that would apply here or if they'd get the full refundable portion.
Based on your income levels, you're definitely in a good position for a substantial refund! With $19,000 total income and 3 qualifying children, here's what I'd expect: **Child Tax Credit**: $6,000 (3 kids ร $2,000 each) **EITC**: Around $6,500+ with 3 kids at your income level **Self-Employment Tax**: ~$706 (as others mentioned) The key factors that will determine your exact refund: - How much was withheld from your W-2 (this is crucial!) - Your filing status (Head of Household vs. Married Filing Jointly makes a huge difference) - Whether you qualify for Additional Child Tax Credit if your credits exceed your tax liability Your income is low enough that you'll likely get most/all of these credits as refunds rather than just reducing tax owed. I'd estimate you're looking at $8,000-$10,000+ refund range, but definitely use the IRS EITC Assistant tool that Sara mentioned - it's the most accurate way to calculate the Earned Income Credit portion. Don't forget to keep receipts for those medical expenses too - they might be deductible if they exceed 7.5% of your AGI!
wait what does cycle 5 even mean? im new to all this tax stuff
Last digit of your cycle code. Cycle 5 means weekly updates, usually Thursday night/Friday morning
Same situation here! Filed 1/25, accepted 1/27, cycle 20250605 with ACTC. My transcript looks almost identical to yours - processing date Feb 24, code 150 with $0.00, and those future April dates. The waiting game is brutal but at least we know PATH should lift soon. That long number you mentioned (70211-424-09595-5) is just an internal IRS reference number, totally normal. Hang in there, we're all in this together! ๐ค
Has anyone here actually received confirmation that their paper return was processed? I mailed mine 4 months ago to the Austin address (I'm in California) and the "Where's My Refund" tool still says "Return Not Processed" when I check. Getting really worried they lost it.
I feel your pain on this address confusion! I went through the same nightmare last year when I had to paper file. The key thing to remember is that the IRS has been consolidating processing centers, which is why you're getting conflicting info from different sources. For 2023 California returns, Sydney Torres gave you the correct addresses above. Just to reinforce: - NO payment: Austin, TX 73301-0002 - WITH payment: Cincinnati, OH 45280-2501 Pro tip: Use certified mail with return receipt so you have proof it was delivered. The IRS can take 6-8 weeks just to acknowledge they received a paper return, so don't panic if you don't see it in their system right away. Also, double-check that you're looking at the 2023 Form 1040 instructions, not older versions. The IRS updates these addresses periodically, and outdated info floating around online is probably why your neighbor and others are giving you different addresses. Good luck with your filing!
This is really helpful, thank you! I'm actually in a similar situation - had to switch to paper filing this year after years of e-filing. One question though - do you know if there's a different address if you're filing an amended return (1040X)? I might need to file one later and want to make sure I don't send it to the wrong place again. The whole processing center consolidation thing has made this so much more confusing than it used to be.
Good question about amended returns! Form 1040X has different mailing addresses than regular 1040s. For California residents, amended returns (1040X) should be sent to: Internal Revenue Service Austin, TX 73301-0215 This is the same processing center but a different P.O. Box number specifically for amended returns. Unlike regular returns, amended returns all go to the same address regardless of whether you're sending additional payment or expecting a refund. Just remember that amended returns take even longer to process - typically 16-20 weeks compared to the 6-8 weeks for regular paper returns. And you can't e-file a 1040X for most situations, so you'll be stuck with paper filing for amendments regardless. Hope this helps save you from another mailing address headache!
Did you move during that time? Sometimes they sent paper checks that got lost in the mail
nope same address for 5 years
Check your 2020 and 2021 tax transcripts - they should show if the EIP was issued and when. If it shows as issued but you never got it, you'll need to request a payment trace. The IRS has been dealing with tons of these cases where the system shows payments went out but people never received them. Don't give up - you're entitled to that money!
Emma Morales
Don't forget about FBAR requirements if you're keeping that money in a foreign account! If you have more than $10,000 in foreign financial accounts at any time during the calendar year, you need to file an FBAR (FinCEN Form 114). The penalties for not filing are insane - up to $10,000 for non-willful violations and the greater of $100,000 or 50% of account balances for willful violations.
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Ruby Knight
โขI'm not keeping anything in foreign accounts - all the wire transfers are coming directly to my US bank account. Does that mean I don't need to worry about FBAR? Also, does the bank automatically report these transfers to the IRS since they're international?
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Emma Morales
โขYou're good on the FBAR front since you're not keeping money in foreign accounts. That only applies if you have financial accounts outside the US. Your bank is definitely filing reports on these international wire transfers though. Banks are required to file a Currency Transaction Report (CTR) for transactions over $10,000, but they also file Suspicious Activity Reports (SARs) for patterns of activity like multiple transfers just under reporting thresholds - exactly like what you're describing with regular $6,500-$9,500 transfers. The IRS can easily access these reports, so they'll know about this income whether you report it or not. Always better to report properly than risk an audit and penalties.
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Katherine Hunter
Make sure you're keeping good records of everything - the wire transfers, any communications with the buyer, and especially any shipping receipts. If you're shipping to their US warehouse, that's domestic shipping which is generally not deductible against your capital gains. But if you have any other expenses directly related to the sales (like special packaging materials), those might be deductible against your proceeds.
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Lucas Parker
โขWhat tax form does this even go on? Is it Schedule C for business or something else since it's personal items?
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