Does the online account show if a check was issued and/or cashed? I'm having a similar issue with a missing refund and wondering if this would tell me what happened to it.

Yes, the online account will show if a refund was issued and the date it was sent. It doesn't specifically show if a check was cashed, but it does show the status as "refund issued" once they've sent it out. If your account shows the refund was issued but you never received it, that's when you need to request a trace (Form 3911) to determine if it was cashed or returned to the IRS. The account information at least confirms whether they actually sent something or if it's still being processed.

This is good to know! Does the interest get added automatically or do you have to request it specifically? And is it taxable income for the year you receive it?

The interest gets added automatically - you don't need to request it. The IRS system calculates it based on how long your refund has been delayed beyond the original due date of your return (not from when you actually filed if you filed late). And yes, unfortunately the interest is considered taxable income in the year you receive it. The IRS will actually send you a Form 1099-INT the following January if the interest is $10 or more, and you'll need to report it on your next tax return. Kind of ironic that they tax you on the interest they pay you for their own delay!

Yikes, that's exactly what I'm afraid of! Did they hit you with a big penalty? I'm definitely not trying to do anything that would trigger an audit... Thanks for the warning!

The penalty wasn't huge - about 20% on top of what I owed back - but I also had to pay interest on the unpaid amount. The bigger headache was going through the entire audit process, which was stressful and time-consuming. The agent actually wasn't mean about it since it's such a common misunderstanding. He explained that even though my employee handbook required me to wear Buckle clothes, they're still considered regular street clothes suitable for everyday wear. The test isn't whether they're required, but whether they could reasonably be worn outside work.

I work at a high-end jewelry store, and we can deduct our required black suits because we're specifically prohibited from wearing them outside work (it's in our contract). But that's different from regular retail clothes that you'd wear anyway.

Is Cash App Taxes really completely free? No hidden fees for filing state returns or anything? Seems too good to be true compared to paying $70+ with H&R Block.

Yes, it's actually completely free for both federal and state returns. No hidden fees or surprise charges. They make their money from the Cash App ecosystem and other financial services they offer, not from the tax preparation. The catch (if you want to call it that) is that it doesn't support some more complex tax situations like multiple state filings or foreign income. But for a basic married filing jointly return with W-2 income, it handles everything perfectly. I've used it for two years now with no issues and got my refunds quickly both times.

I used TaxSlayer last year after switching from H&R Block. It was about $30 cheaper for my situation (married filing jointly with a mortgage). The interface is decent but not as polished as H&R Block. It got the job done though and my refund amount matched what I was expecting.

Does FreeTaxUSA import your info from previous years if you're switching from TurboTax? And can it handle self-employment income without charging extra like TurboTax does?

FreeTaxUSA can't directly import your data from TurboTax, but you can upload a PDF of last year's return and it will pull some of the basic info. You'll need to enter some things manually the first year, but after that, it remembers your info for future years. Yes, it handles self-employment income without charging extra! That's actually one of the main reasons I switched. TurboTax wanted to charge me an extra $120 just because I had a small side business, but FreeTaxUSA includes Schedule C in their free version. The only thing they charge for is state filing (about $15) and audit assistance if you want it.

I've used both H&R Block and TurboTax. H&R Block's interface isn't as slick but I actually found it more straightforward. They also have fewer upsells in my experience. Never had any data issues like what you're describing with TurboTax.

Thank you so much for this warning about not rolling it into our own accounts! I honestly might have tried to do that thinking it would simplify things. Do you happen to know if we can just start taking the correct distributions now, or do we need to "catch up" on all the ones we missed over the past years?

You don't need to "catch up" by withdrawing all the missed distributions at once. You should calculate what you should have taken each year, but going forward you just need to start taking the correct annual distributions based on the appropriate life expectancy table. What you DO need to do is file Form 5329 for each year you missed a distribution, request the penalty waiver on each form, and include a letter explaining that you didn't understand the RMD requirements. Then start taking the correct annual distribution this year. Most financial institutions that hold IRAs can help calculate your required distribution amount.

I used H&R Block software (not the in-person service) last year to handle my missed RMDs on an inherited IRA. It worked fine for generating the 5329 forms, but it didn't help with the waiver request letter or calculating what my distributions should have been. I ended up having to research those parts separately.

Thanks for sharing your experience! Sounds like I might need some additional help beyond just the tax software to get the calculations right. I'll look into what supplemental services might help with those calculations while still using the software for the actual filing.