This is such a frustrating situation, but you're definitely not alone! I work as a tax professional and see this H&R Block system disconnect issue multiple times every tax season. What's happening is that H&R Block uses different systems for their consumer-facing app/website versus their professional tax software. The professional system (what your preparer is seeing) connects directly to the IRS e-file system and shows real-time status updates. Their consumer app, unfortunately, sometimes pulls from a different database that doesn't sync properly. The "rejected" status you're seeing is likely a temporary glitch or could be showing an old status from before a successful resubmission. Since your preparer can see "accepted" in their professional system, that's almost certainly the accurate status. Here's what I'd recommend: Wait until Monday or Tuesday, then check the official IRS "Where's My Refund" tool. That's the definitive source - if it shows your return was accepted and is being processed, you can completely ignore what the H&R Block app says. The IRS tool typically updates 24-72 hours after acceptance. If you're still seeing conflicting information after a few more days, ask your H&R Block preparer to print you a copy of the acceptance acknowledgment from their system. That document would be your proof that the return was successfully filed if any issues come up later. Try not to stress too much - this is almost certainly just a technical glitch!

I've been dealing with tax issues for years and honestly, the best advice I can give is to always trust the IRS's own systems over any third-party software. H&R Block, TurboTax, FreeTaxUSA - they all have their glitches and system sync issues. The fact that your preparer can see "accepted" in their professional system is definitely a good sign since that connects directly to the IRS e-file network. But here's what I always do when there's any confusion: I wait 3-4 business days after filing, then check the IRS "Where's My Refund" tool AND create an account on IRS.gov to view my tax transcripts. The transcripts will show you exactly what the IRS has received and processed. If after a week you're still seeing conflicting information, I'd recommend going back to H&R Block and asking to speak with a senior tax professional or manager. Sometimes the front-line preparers don't have access to all the diagnostic tools, but the more experienced staff can dig deeper into what might be causing the discrepancy. Don't let this stress you out too much - 99% of the time these status conflicts resolve themselves within a few days once all the systems catch up with each other.

Has anyone seen the 2024 updates to how LLC members are classified? There were some proposed regulations that would have changed the test for who qualifies as a limited partner for self-employment tax purposes, but I'm not sure if they were finalized.

Just want to add some clarity from my experience as a tax preparer - the confusion here is totally understandable because you're dealing with two different classification systems that use similar terminology but serve different purposes. Your LLC operating agreement designates you as "members" under state law. But when that LLC elects partnership taxation (which happens automatically with 2+ members), the IRS needs to categorize each member's role for self-employment tax purposes using the GP/LP framework from partnership law. The key test is simple: if you materially participate in the business (which includes management decisions, day-to-day operations, or working more than 500 hours annually), you're classified as a general partner equivalent for tax purposes. This means you'll pay self-employment tax on your share of ordinary business income. Since both you and your wife are active in managing the business, you should both be classified as general partners on your Form 1065 and Schedule K-1s. This won't affect your LLC liability protection at all - that's governed by state law, not federal tax classification. Your CPA needs this info because it determines how your self-employment taxes are calculated on Schedule SE of your personal returns.

Am I completely misunderstanding something? I thought Roth contributions were always made with after-tax dollars, so why would lowering your MAGI matter for contribution eligibility? Isn't the whole point that you pay taxes now so you don't pay them later in retirement?

Based on everyone's helpful responses here, it sounds like your $4,000 charitable donation alone won't help you get under the Roth IRA income limits unless you have other significant itemized deductions totaling over $14,600. Instead, I'd recommend focusing on "above-the-line" deductions that directly reduce your MAGI regardless of whether you itemize: 1. Max out your 401(k) contributions if your employer offers one ($23,500 limit for 2025) 2. Contribute to an HSA if you're eligible ($4,150 for individual coverage in 2025) 3. Consider a traditional IRA contribution if you're not covered by a workplace plan With your $142k income, you'd only need to reduce your MAGI by about $2,000-3,000 to get comfortably under the phase-out threshold. An HSA contribution alone could get you there while also giving you triple tax benefits (deductible contribution, tax-free growth, tax-free withdrawals for medical expenses). You could still make those charitable donations for the good causes you support, but don't count on them to help with your Roth eligibility unless you're already planning to itemize for other reasons.

This is really comprehensive advice everyone! As someone who's been through the LLC to S Corp transition myself (different industry though), I'd add one more consideration specific to insurance agents - the potential impact on professional liability insurance costs. When I was researching this for my own business, I discovered that some E&O insurance carriers have different premium structures or coverage requirements based on your business entity type. Since E&O insurance is mandatory for insurance agents and can be a significant expense, it's worth checking with your current carrier before making the S Corp election to ensure there won't be any surprises. Also, @Diego, given that your friend is brand new to the industry, he might want to focus on establishing consistent sales processes and building his client base first before getting bogged down in tax optimization strategies. The administrative burden of S Corp compliance (payroll, quarterly filings, etc.) can be a real distraction when you're trying to learn the ropes of a new business. Once he's got a solid foundation and predictable income flow, then the S Corp election becomes much more straightforward to evaluate. The $100k threshold everyone's mentioning is solid, but having consistent monthly income patterns is almost as important as hitting that dollar amount.

Great discussion everyone! I'm a CPA who specializes in small business taxation, and I've worked with quite a few insurance agents over the years. One aspect I'd add to consider is the timing of the S Corp election itself. If your friend decides to go this route, he needs to file Form 2553 within 75 days of forming the LLC (or by March 15th of the tax year he wants the election to take effect). Missing this deadline means waiting until the following tax year. Given that he's brand new, I'd actually recommend he start with the LLC and focus on understanding his business cash flows first. Insurance agents often have irregular income patterns - big commission months followed by slower periods. This irregularity makes it harder to manage the required payroll obligations that come with S Corp status. Also, since he's solo right now, he should consider whether he plans to hire employees eventually. If so, the S Corp structure might make more sense down the road when he has multiple people to manage payroll for anyway. But for a true solopreneur, the added complexity often isn't worth it until that $100k threshold that others have mentioned. The key is having enough consistent income to justify both the additional accounting costs AND the required regular salary payments to himself as an employee of his S Corp.

I'm dealing with a very similar situation right now - my refund was supposedly mailed 12 days ago and still nothing showing up. After reading through everyone's experiences here, it's becoming clear that waiting for transcript updates is basically pointless when you need urgent answers. The fact that so many people have confirmed the transcript system can lag weeks or never update at all for returned checks is really concerning. Given your urgent need for your mom's medical supplies, I'd definitely echo what others have said about calling immediately. The "refund trace" suggestion from @38b8497ad8b0 sounds like the most direct approach to get real answers. I'm planning to call tomorrow myself and specifically ask for that rather than just general refund status questions. It's frustrating that we have to go through phone hell to get basic information about our own money, but it seems like that's the only reliable path forward. Hope you get this resolved quickly - medical expenses can't wait for the IRS's slow systems to catch up.

I'm going through this exact same nightmare right now - my refund was supposedly mailed 6 days ago and nothing in Informed Delivery yet. After reading everyone's experiences here, I'm convinced the transcript system is completely unreliable for returned check tracking. What really stood out to me is how many people discovered their checks were returned ONLY by calling directly, sometimes with transcripts that never updated at all. Given your urgent situation with your mom's medical supplies, I'd absolutely call 800-829-1954 tomorrow and specifically ask for a "refund trace" like @38b8497ad8b0 suggested. Don't waste time waiting for systems that clearly don't work properly. The address formatting issues people mentioned are also eye-opening - even tiny differences like "Apt" vs "Unit" or "Street" vs "St" can cause returns. I'm calling tomorrow myself after seeing how consistent everyone's advice is here. The phone wait will be brutal, but it's infinitely better than waiting weeks for transcript updates that may never come when you have an urgent medical need. Hope you get answers quickly!