Thank you for this information! I found the section in H&R Block you mentioned and it did ask for the advanced payment amount. Once I entered the total from my bank statements (around $1,800), it adjusted my refund calculation and everything made more sense. It does actually do the Form 8812 automatically. I also realized I was comparing to years when my child was younger and I qualified for additional credits. Getting half the child tax credit in advance definitely explains the difference in my refund amount.

I used H&R Block and it seemed to handle it fine. Make sure you're entering the EXACT amount of advance payments you received. If you put in even a slightly wrong number it can mess up the calculations. I had to go through my bank statements and add up all the deposits to get it right.

Thanks for the suggestion. I double-checked my bank statements and realized I was off by about $300 in what I thought I received. After correcting the amount, both software packages gave me the same result. You're right that even small differences can affect the calculation.

Thank you so much! This is exactly what I was looking for. I had no idea to look for the Revenue Procedure documents - no wonder I couldn't find it. Really appreciate you providing the direct link too. Do they publish these Revenue Procedures every year around the same time? I'd like to bookmark this for future reference.

Yes, they publish them annually, typically in late October or early November for the upcoming tax year. They're always titled "Revenue Procedure [YEAR]-XX" where the year is the current year and XX is the specific number assigned to that procedure. For example, the 2025 tax brackets (for taxes filed in 2026) will likely be published as "Revenue Procedure 2024-XX" around October/November 2024. The easiest way to find them is to search the IRS website for "Revenue Procedure inflation adjustments" and filter by the most recent year.

That's a clever workaround! Never thought of using the Withholding Estimator for that purpose. I've been just using TurboTax's published tables and assuming they're correct since they have to be for their software to work properly.

Thanks for pointing this out! I had no idea there was a time limit. Does the clock start from when they sent the letter confirming my refund, or from the original tax filing deadline?

The clock starts from the original tax filing deadline for that year, not from when they sent you the letter. For 2020 taxes, the original filing deadline was May 17, 2021 (it was extended from the usual April 15 due to COVID). So you'd have until May 17, 2024 to claim your refund. After that deadline passes, unclaimed refunds become the property of the U.S. Treasury and you can no longer get your money back. That's why it's important to address this sooner rather than later.

Exactly what happened to me too! I was waiting for a $1,500 refund that never came, then found out they used it to pay off an old student loan debt I had defaulted on years ago. They can offset your refund for federal debts, child support, state income tax, etc.

Thank you for this perspective! I just asked our HR person and apparently they don't have any process in place for 83b elections at all. When I mentioned the 409A valuation, she didn't even know what that was and had to ask the CFO. I'm starting to think our entire equity plan might have some serious problems. Is this a red flag about the company generally?

This is definitely concerning. Proper equity administration is a basic function for any company granting stock. The fact that HR doesn't understand 409A valuations suggests they may not be complying with other important equity regulations either. While it might not indicate problems with the entire company, it does suggest the equity plan might not have been properly established with appropriate legal guidance. I'd recommend documenting everything, following your accountant's advice about the 83b, and possibly consulting an equity compensation attorney if you have significant equity. This could affect not just your taxes but the actual enforceability of your equity rights.

Can confirm this is accurate. I missed the 83b deadline by 3 days because of mail delays (always check the postmark requirements!) and ended up with a massive tax bill when my company went public. Tried to appeal with the IRS and got shut down immediately. The "optional" part is technically true - you don't HAVE to file it - but not filing it is like saying "I'd prefer to potentially pay 10x more in taxes later.

This is seriously helpful - thank you! Got the 409A valuation today ($0.03 per share) and I'm sending in the 83b tomorrow via certified mail. Will definitely be keeping copies of everything. I had no idea about potential state filings though - will need to look into that immediately.

That's an excellent point about possibly getting outdated advice. She mentioned getting this information from "her tax guy" who I suspect might be someone she's been using for decades. Where can I find that IRS publication online to show her? And is there a specific section that directly addresses this gift vs income deduction issue?

You can find Publication 559 directly on the IRS website (irs.gov), but the publication that most directly addresses gift taxes is actually Publication 950 "Introduction to Estate and Gift Taxes." Look specifically at the section titled "Gift Tax" which clearly explains that gifts aren't income tax deductible. Another helpful resource is the IRS's FAQ page on gift taxes which explicitly states that gifts to individuals don't qualify as income tax deductions. Showing her these official sources should help, especially if her tax preparer is giving outdated or incorrect advice. If she's been doing this for years, she might want to consult with a different tax professional to see if amended returns are necessary.

Did your aunt have to file amended returns for all those years or did the IRS just assess the additional tax? I'm worried about my parents who might have been doing something similar.