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Another tip for Path filers - make sure you're looking at the right transcript! There are 4 different types and the Account Transcript is the one that shows refund info. I was confused at first because I kept checking the Return Transcript which doesn't show processing or refund dates. Also, if you see code 570 (additional account action pending) followed by 971 (notice issued), don't panic! That often means they're just verifying something and a release code (571) usually follows within a week or two.
What about code 846? I see that on mine with a date of 3/5/25 but WMR still shows processing. Does that mean I'm getting my refund on 3/5?
Code 846 is exactly what you want to see! That's the "refund issued" code, and the date next to it is when the IRS will release your refund. So yes, your refund should be sent on 3/5, though it might take 1-3 business days after that to show up in your bank account depending on your bank's processing time. The WMR tool often lags behind the transcript updates, so it's totally normal for your transcript to show a refund date while WMR is still on processing. Your transcript is the more accurate source.
Has anyone received their Path refund earlier than the date shown on their transcript? Mine shows 3/7 but I'm hoping it might come sooner!
I actually got mine a day earlier than the transcript date! Transcript said 2/28 but it hit my bank on 2/27. I think it depends on your bank though.
I've been doing my own business taxes for my small craft shop for 3 years now. My advice: if you have a simple situation with clear income/expenses, absolutely do it yourself. Just make sure you: 1) Keep ALL receipts (paper or digital) 2) Track mileage if you use your car for business 3) Separate business/personal expenses completely 4) Set aside at least half a day to do your taxes carefully I learned the hard way that rushing through leads to mistakes. For your first year with minimal revenue, a CPA probably isn't worth the $300-500 they'll charge.
What about quarterly estimated taxes? Do you have to file those for a small business even in your first year?
For your first year in business, you generally get a pass on penalties for not making quarterly estimated tax payments. The IRS has a "safe harbor" provision where if you had no tax liability last year, you won't be penalized for not making estimated payments this year. However, starting your second year, you'll likely need to make quarterly payments if you expect to owe $1,000 or more in taxes. The tax software will help calculate what you should pay each quarter. I set calendar reminders for all four quarterly due dates so I don't forget - they're not on the normal tax deadline schedule!
I tried using TurboTax for my first year in business and ended up missing so many deductions. When I finally used a CPA the next year, she found over $2,000 in deductions I'd missed! Just saying sometimes paying a pro is worth it.
Has anyone had their refund delayed because of the Residential Clean Energy Credit (Form 5695)? I claimed it for solar panels and I'm on day 50 with no updates. Starting to get worried I made a mistake on that form.
Solar credits are definitely causing delays this year. Mine took 55 days to process last year. The IRS is reviewing them more carefully because there's been a lot of fraud with energy credits. Double-check you had all the proper certification documents for your installation. As long as everything was done properly, you'll get your refund - it just takes extra time.
Thanks for the info! That makes me feel better. We definitely have all the certification documents and receipts from our installer. I guess I'll just have to be patient. Did you end up having to contact the IRS directly or did your refund just show up eventually?
Guys I'm so frustrated! Filed on Feb 2, it's now March 18 and still nothing. Have 3 kids so claiming Child Tax Credit and also the daycare expenses credit. WMR still shows "being processed" and the tax transcript just says "no record of return filed" which is freaking me out!!!! Has anyone seen this and still got their refund eventually???
The "no record of return filed" on transcript usually means they haven't started processing it yet. Had this happen last year and eventually it updated. Check again in a week. Mine took 49 days total with CTC and dependent care credits.
Have you checked if your employer is withholding for state taxes? I had a similar shock last year because my company (based in another state) wasn't withholding ANY state income tax for my state of residence. Check your paystubs carefully to see if there's both federal AND state withholding happening.
Just checked my paystubs and you might be onto something! I see the federal withholding but there's nothing listed for state taxes at all. My company is headquartered in TX (no state income tax) but I live and work remotely in IL. Could this be why I'm showing such a big tax bill? Do I need to make estimated tax payments to Illinois or something?
That's almost certainly your problem! Illinois definitely has state income tax (4.95% flat rate I believe), and if your company isn't withholding it because they're Texas-based, you'll owe all of that at tax time. You should immediately contact your HR department and ask them to start withholding Illinois state tax. For the amount you've already earned without withholding, you might want to make an estimated tax payment to Illinois to avoid underpayment penalties. The Illinois Department of Revenue website has forms for this.
One more thing to check - make sure you're not accidentally marked as "exempt" from withholding on your W-4. I've seen new employees check that box not understanding what it means, and then no federal tax gets withheld at all, leading to huge tax bills.
This happened to my nephew! He checked "exempt" thinking it meant exempt from filling out the complicated parts of the form. Ended up with zero withholding and a massive tax bill. Double check your W-4 and paystubs!
I just pulled up a copy of my W-4 and I definitely didn't check the exempt box. But I did notice something weird - my employer is still using the old W-4 form (the one with allowances) even though I thought that changed years ago? Could this be causing withholding issues? I claimed "0" allowances thinking that was the most conservative option, but maybe that doesn't work the same way with the new tax laws?
Lucas Adams
Does anyone know if the IRS automatically gets copies of 1099-NECs? Like, do they already know I didn't report this income?? Now I'm worried they've been building a case against me this whole time π°
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Harper Hill
β’Yes, the company that paid you would have sent a copy of your 1099-NEC to the IRS. The IRS has automated systems that match reported income with filed tax returns, so they likely know about the discrepancy. That's why it's good you're fixing it proactively!
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Caden Nguyen
One tip - when you file your 1040-X, include a brief letter explaining that this was an honest oversight and that you're voluntarily correcting it as soon as you discovered the error. I did this when I had to amend a return, and I think it helped me avoid penalties. Make sure to keep copies of EVERYTHING you send them.
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