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This happened to me too. The issue is that TurboTax asks about your children in multiple places. Even if you say your ex is claiming them as dependents, there's another section where it asks about qualifying children for Earned Income Credit. If you put their info there, your return will get rejected with that error code.
OMG thank you!! I just checked and you're right - I had their info in the EIC section even though I answered "no" to claiming them as dependents. Deleted their info from that section and resubmitted. Finally went through! Can't believe TurboTax doesn't make this clearer.
Glad it worked out! TurboTax does this annoying thing where it treats the dependent section and the EIC qualifying child section as separate things (which technically they are according to tax law), but they don't make it obvious to normal people. For next year, just remember that if you're not claiming them at all, you generally shouldn't enter their info anywhere in the return.
Has anyone actually called the IRS about this? Their official guidance might be different from what we're all guessing here.
I called them last year about this exact error. 3 hours on hold only to be told I needed to mail in a paper return because their system couldn't handle my specific situation. Complete waste of time.
Don't forget about other deductions beyond just gas/mileage! I do Uber/Lyft part-time and was able to deduct: - Phone mount for car ($25) - Portion of cell phone bill (20% business use) - Car chargers - Dashcam - Snacks/water for passengers (I keep receipts) - Special seat covers to protect from wear and tear - Spotify subscription (for passenger entertainment) Made a big difference on my Schedule C!
Thanks for this list! I hadn't thought about the phone mount or dashcam. Can you really deduct Spotify though? I use it while driving but isn't that kind of a gray area?
You can deduct Spotify if you're using it specifically for your business - like providing music for passengers as part of your service. It's considered a business expense if it's primarily for your customers' experience. If you're just listening to it yourself while doing DoorDash deliveries, that would be much harder to justify as a business expense since there are no passengers benefiting from it. It's all about whether it's necessary for your business operations versus personal enjoyment.
Something I learned the hard way - if you choose standard mileage the first year you use your car for business, you can switch between standard and actual expenses in future years. BUT if you choose actual expenses the first year, you're STUCK with that method for the life of that vehicle in your business. Also, don't forget you can deduct business parking fees and tolls IN ADDITION to the standard mileage rate! Those aren't included in the $0.67/mile.
Yup, this is super important! I made that mistake with my first delivery car. I used actual expenses the first year when the car was new and had higher value for depreciation. When the car got older and needed fewer repairs, standard mileage would have been better but I was stuck with actual expenses. For parking and tolls - gig drivers should use apps that track these separately! I use the Stride app for mileage and the Everlance app to snap photos of parking receipts. Makes tax time way easier.
Thanks for pointing this out! I didn't realize that choosing actual expenses would lock me in for the life of the vehicle. That's definitely something to consider since I might keep this car for several years. And I had no idea about the parking fees and tolls! I've probably spent around $200 on parking in downtown areas for pickups/deliveries. Good to know I can deduct those on top of the standard mileage.
Another completely free option is VITA (Volunteer Income Tax Assistance). They have IRS-certified volunteers who will do your taxes for free if your income is under $60,000. They handle retirement contribution credits no problem! I've been volunteering with them for 3 years. You can find locations near you on the IRS website. Most libraries and community centers host VITA sites during tax season. Bring your documents and they'll do everything for you. It's completely free and they're trained specifically on credits like the one you're trying to claim.
Do you need an appointment for VITA or can you just walk in? And how long does it usually take?
Most VITA sites require appointments, especially this late in the tax season, but some do accept walk-ins. I'd strongly recommend calling ahead to schedule and ask what documents you need to bring. As for time, it typically takes about 45-60 minutes for a return with a retirement savings credit. That's much faster than learning to do it yourself, especially the first time. The biggest advantage is having someone who knows exactly what they're doing handle your specific situation - they can spot potential issues and maximize your refund while ensuring everything is done correctly.
Cash App Taxes (formerly Credit Karma Tax) is also completely free and handles the retirement savings contribution credit. I've used it for the last two years with no issues. No income limits, no upselling, completely free federal AND state filing.
I tried cash app taxes but they don't support multiple states if you moved during the year. Just a heads up for anyone in that situation.
Did you file an extension earlier this year? Sometimes when you file an extension and then try to submit your actual return, you can get weird reject codes if there's any discrepancy between the information on the extension and your final return.
This happened to me! I had filed an extension and when I finally did my taxes, I got rejected because I had typed my SSN wrong on the extension form. Had to call the IRS to sort it out. Super annoying.
Another possibility for this error code is if you've been a victim of identity theft. If someone has already filed a fraudulent return using your SSN, you'll get rejected when you try to file the legitimate one. Might be worth checking if you have any other signs of identity theft.
Dmitri Volkov
Has anyone noticed the refund tracker is totally inaccurate sometimes? My status was stuck on "received" for 3 weeks, then suddenly the money just appeared in my account without the tracker ever updating to "approved" or "sent"! Only updated to show "sent" two days AFTER I already had the money.
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Gabrielle Dubois
β’Same thing happened to me last year! Was checking the tracker obsessively and then boom, money in my account while the tracker was still on the first step. Seems like their systems don't always talk to each other properly.
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Tyrone Johnson
I filed on Feb 4th and got my refund on Feb 18th, so exactly 2 weeks. But my brother filed on the same day and he's still waiting (almost 4 weeks now). The difference? He claimed the Earned Income Credit and I didn't. They definitely prioritize simpler returns.
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Miguel HernΓ‘ndez
β’That's good context, thanks! Mine doesn't have any special credits like that so hopefully it won't be too long. It's amazing how much the timeline can vary based on what's in your return. Makes sense that they'd need more time to verify certain credits though.
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