Has anyone found a way to get the Excel formulas for Box 12 to properly link to the right forms? My template has fields for the codes but doesnt seem to do anything with them lol.

I've been using Excel templates for my taxes for about 3 years now and have learned a few things about handling Box 12 codes the hard way! The key is understanding that Box 12 codes fall into different categories: some reduce your current taxable income (like Code D for 401k), some require additional forms (Code W needs Form 8889 for HSA), and some are just informational (like Code AA for Roth contributions). For your specific situation with codes D, W, and AA - Code D doesn't need any action since it's already excluded from your Box 1 wages. Code W will need Form 8889 if you want to deduct HSA contributions. Code AA is just tracking info for your Roth contributions. Most basic Excel templates don't handle the complexity of linking these codes to the right forms automatically. You might want to create a simple reference sheet in your workbook that lists each code, its purpose, and which form it affects. This has saved me from making costly mistakes in previous years. If your template doesn't have built-in logic for these codes, you're essentially doing manual tax prep with Excel as a calculator - which can work but requires you to really understand the tax rules.

I think your decision should depend on how comfortable you are with current tax law! I have a similar background (accounting degree but no tax experience) and I chose to take the class last year. Honestly, I was shocked at how much tax law has changed since my college courses. Even basic things like standard deduction amounts, child tax credits, earned income credit calculations have all changed in recent years. The class was really helpful for learning the CURRENT rules rather than what I learned in school 4 years ago.

As someone who worked in tax prep for several years, I'd recommend taking the class even with your accounting background. The test isn't just about knowing tax concepts - it's about knowing H&R Block's specific approach to handling different situations. The class will teach you their interview process, how to use their proprietary software effectively, and most importantly, their quality review standards. Even if you pass the test without the class, you'll still need to learn all of this on the job, which can be stressful during busy tax season when you're trying to help clients efficiently. Plus, the class gives you a chance to ask questions about scenarios you might encounter, and you'll build relationships with other new preparers and the instructors. Those connections can be really valuable when you need help during your first season. The time investment upfront will likely save you stress and mistakes later.

I experienced this last year. It took 2 weeks to get a letter asking me to verify my identity, then another 3 weeks for them to process it after I verified. The whole thing took about 5-6 weeks total from when I first saw that message until I got my refund. Super annoying but pretty routine these days.

I went through this exact same situation last month! The "Action Required" message is basically the IRS's way of saying they need to take a closer look at your return before releasing your refund. Since you filed Head of Household, they're probably going to verify that you actually qualify for that filing status - it's one of the most commonly reviewed areas. Here's what I learned from my experience: Don't just wait around doing nothing. Get your account transcript from irs.gov right now so you can see what specific codes they've put on your account. The transcript will show you exactly what type of review they're doing (identity verification, dependent verification, income matching, etc.). The letter will eventually come (took about 2.5 weeks for me), but knowing what's happening ahead of time will save you stress and help you prepare the right documents. When I got my letter, they wanted proof that my kids lived with me - school enrollment records, medical records showing my address, etc. My refund was released about 10 days after I sent in the requested documentation. The key is responding quickly and completely once you get their letter. Good luck!

Anyone know if there's a penalty for filing late if you're actually owed a refund? I think I'm probably due money back for at least two of the years I didn't file.

Jessica, I totally feel your stress about this! I was in a similar boat a few years ago and it's really not as scary as it seems once you get started. One thing I'd add to the great advice already given - make sure you check if you're owed any refunds for those years, especially 2020. Like others mentioned, you only have 3 years to claim refunds, so the 2020 refund deadline is approaching fast (April 15, 2024 was the original deadline, so you'd have until April 15, 2027 to claim it, but double-check this with the IRS). Also, don't beat yourself up about this. Life happens, and the IRS deals with catch-up filers all the time. The important thing is you're taking action now. Once you get through the first return, the others will feel much more manageable. You've got this! If you do end up owing money, the IRS is usually pretty reasonable about setting up payment plans too. The key is just getting everything filed so you know where you stand.

I see a lot of correct answers here but wanted to point out one potential complication: If you went back to work with accommodations or in a different role and receive BOTH wages AND workers comp benefits, you need to be careful. The wages are still taxable income even if your disability payments aren't. Also, if you received any unemployment benefits during the same period, those ARE taxable (they're not covered by IRC 104(a)(1)). I've seen people get confused when they have multiple income streams during recovery from workplace injuries.

@Savanna Franklin - Just wanted to circle back to your original question since there's been a lot of great discussion here. To directly answer your concerns: Your 35% permanent disability rating settlement from your construction injury is indeed tax-free under IRC 104(a)(1) and Revenue Ruling 68-10. Your buddy was right - these payments are completely tax-exempt, and your cousin was wrong about needing to be retired. You don't need any special forms, and you simply don't report the disability payment as income at all on your tax return. Since you mentioned you can still work light duty, your future wages from that work will be taxable as normal, but the disability settlement itself remains tax-free regardless of your employment status. The key thing is making sure your settlement documents clearly classify the payment as workers compensation for your work-related injury. If there are any portions labeled as interest or structured differently, those might have different tax treatment, but the main disability compensation should be fully exempt.