Yeah this happened to me too! I got the letter almost 3 weeks ago but still no payment. I ended up checking the Get My Payment tool and it showed my payment was scheduled for direct deposit on 3/19 but my bank has no record of it. Called my bank and they suggested I contact the IRS because they have no pending deposits for me.

Thanks for letting me know I'm not alone! I checked the Get My Payment tool again today and now it's showing they mailed a check on 3/21 even though I have direct deposit set up for my tax refunds. So weird and frustrating! I guess I'll just keep checking my mail. Hopefully it shows up soon - really counting on that money right now.

Economic Impact Payments are technically advance payments of a tax credit, but they aren't taxable income. You don't have to report them as income on your tax return. You will likely need to reconcile the amount on your 2025 tax return, especially if you were underpaid based on your circumstances. For example, if you had a child in 2025 that wasn't accounted for in your stimulus payment.

Do you know if the IRS is actively auditing claims right now? My brother used one of those ERC specialty firms and got almost $400k, but I'm worried he's going to end up owing it all back plus penalties.

Yes, the IRS announced earlier this year that they're significantly increasing audit activity specifically targeting ERC claims. They've actually paused processing new claims while they develop better fraud detection systems and have added staff specifically for ERC audits. If your brother used an ERC mill that made questionable eligibility determinations, he should seriously consider talking to a qualified tax professional immediately - not the firm that filed the claim. The IRS has stated they're focusing on claims that show "common indicators of non-compliance," and those $400k claims from businesses that didn't experience clear revenue drops or government shutdowns are prime targets.

This is unfortunately a common situation. Many of these ERC mills collected their fees and have now disappeared, leaving clients exposed to potential audit risk. As a tax professional, I would recommend: 1) Gather all documentation about how the firm determined you qualified. Did they provide a detailed eligibility analysis? 2) Consult with a reputable tax professional (CPA or tax attorney) who can review your specific situation and documentation. 3) If the determination was clearly improper, you might want to consider a voluntary disclosure to the IRS, though the formal program has ended. The IRS is most concerned with willful fraud. If you relied on what you believed was professional advice in good faith, that's a factor the IRS will consider, though it doesn't eliminate repayment obligation if you truly didn't qualify.

That makes sense! I noticed something similar with H&R Block software. Do you think it's safer to go with what the IRS forms calculate or what the tax software says?

In my experience, I've found that tax software like TurboTax is generally correct because it's applying all the rules comprehensively. The paper worksheets sometimes require you to go back and forth between multiple forms in a specific order, which is easy to mess up when doing it manually. If there's a significant difference though, I'd recommend double-checking your entries in the software to make sure everything is correct. Tax software can only be as accurate as the information you provide. Most major tax software is regularly updated to comply with current tax laws, so it's usually reliable if you've entered everything correctly.

That's actually really helpful! I did include my tuition costs, but I wasn't sure about some of my required course materials. Do textbooks count for the Lifetime Learning Credit? I thought those were only eligible for the American Opportunity Credit.

Thanks for this breakdown! Do you think it makes more sense to put the emergency fund in a regular savings account or one of those high-yield savings accounts? And any suggestions for a reasonable "treat" that won't make me feel guilty?

Definitely go with a high-yield savings account for your emergency fund! Regular savings accounts are paying almost nothing (like 0.01%) while high-yield accounts are offering around 4-5% right now. That's a huge difference and it's just as easy to set up. Most online banks have no minimum balance requirements for these accounts too. For a reasonable treat that won't trigger guilt, look for something that improves your daily life rather than a one-time splurge. Maybe upgrading something you use daily like a good coffee maker if you're a coffee drinker, better headphones if you listen to music a lot, or even a meal prep service for a month to save you time and reduce food waste. These kinds of purchases can actually save money long-term while still feeling like a nice reward.

This is actually really good advice! I adjusted my withholding last year and now instead of getting a $2400 refund, I get about $200 more in my monthly paychecks. It's helped me keep up with bills way better instead of struggling all year then getting one big check.

Where exactly in H&R Block do you find this? I'm looking at that section right now and I don't see anything specific about "prior Roth contributions." Is it hidden in some submenu?

It's a bit buried in the interface. After you get to the "IRA, 401(k), or Other Retirement Plans" section, you need to click on the specific Roth IRA contribution entry. Then there should be an "Advanced" or "Additional Information" button or link. Click that and you'll see additional fields, including one for your previous years' contributions or basis amount. If you're using the desktop version rather than the online version, the navigation might be slightly different, but the concept is the same - look for an advanced or additional info section related to your Roth IRA entries.

I've been using TaxAct for years and have never seen any warning about Roth IRA basis. I wonder if this is just an H&R Block thing or if I've been missing something important all along?