That's a really good point about the childcare expenses vs. child tax credit! I just checked both returns and you're absolutely right - in TurboTax I somehow entered our childcare expenses in a way that didn't qualify us for the full credit, but in the IRS system it applied correctly. That accounts for about $900 of the difference! The rest seems to be related to how the student loan interest was calculated. Thank you so much for pointing me in the right direction!

Happy to help! This is actually a really common issue. TurboTax sometimes separates the Child Tax Credit questions from the Child and Dependent Care Credit questions in a way that can be confusing. The Child Tax Credit is different from the Child and Dependent Care Credit (which is for childcare expenses specifically). To maximize both credits, you need to properly identify your child as a qualifying dependent AND correctly enter the childcare expenses. Glad you found the discrepancy!

This is great advice. I always download the actual PDF forms before submitting anything. Sometimes the software interface simplifies things too much and hides important details.

This is super helpful - thank you! I've been trying to format my spreadsheet to match the 8949 exactly but wasn't sure about the column order. Do you know if they care about the font size or anything like that? My PDF looks tiny when I try to fit all the columns on one page.

Font size isn't specified in the requirements, but I kept mine at 10pt to make sure it was readable. If it's too small, it might cause issues with their scanning systems. The key thing is consistent formatting throughout the document. I made sure each page had the same headers and columns. Also, make sure to number your pages (Page X of Y) at the bottom of each page. This helps if they're processing it physically. My tax professional said that consistent formatting is actually more important than font size.

I e-filed last year with around 18,000 crypto transactions. What worked for me was splitting it into 4 separate PDFs (organized by quarter) and attaching each one. I labeled them clearly like "Form 8949 Attachment 1 of 4 - Q1 Transactions" etc. My return was accepted without issues. Just make sure your summary lines on the actual 8949 form match the totals from all your attachments combined. The IRS systems can handle it as long as everything ties out properly!

6 How do you know if they're withholding at the right status? My W-4 says married but I'm not sure if they're actually doing it correctly.

10 You can check your paystub - it should indicate the withholding status they're using. Look for something like "Married" or "Single" near the federal tax withholding line. If it doesn't show, ask your payroll department to confirm what filing status they're using for your withholdings. If you want to be extra sure, you can also calculate what your withholding should be using the IRS withholding tables. Compare that to what's actually being withheld from your paycheck. Any significant difference might indicate they're using the wrong filing status.

15 Just a quick correction - the W-4 form no longer uses allowances as of 2020. The form was completely redesigned. Instead of claiming "0" allowances, you would now use Step 2(c) to withhold at the higher single rate, or specify an additional dollar amount on Line 4(c). While getting a refund feels nice, remember that it means you're giving the government an interest-free loan throughout the year. Ideally, you want your withholding to be as close as possible to your actual tax liability - not too much, not too little.

Do the income limits for QBI apply the same way to these §199A dividends? My accountant told me I make too much for the QBI deduction from my business, so I didn't even consider this dividend angle.

Yes, the same income limits apply to both types of QBI. If your taxable income exceeds the thresholds ($364,200 for single filers or $728,400 for joint filers in 2025), then limitations start to kick in. For §199A dividends specifically, the calculation actually becomes simpler at higher income levels. Unlike business QBI which gets complicated with W-2 wage and property tests at higher incomes, the §199A dividends are simply subject to the phase-out calculation without those additional tests.

They're special because they come from certain types of investments (mainly REITs and some mutual funds) that themselves qualify for the QBI deduction. Rather than keep the deduction at the company level, these companies pass the QBI benefit through to their shareholders. You'll know if you have them because they appear specifically in Box 5 of your 1099-DIV form. If that box is empty or has $0, you don't have any §199A dividends. Not all dividend-paying investments generate this special type.

Does that mean if my state return has something unusual compared to last year, it might be causing the delay? I did claim a renter's credit this year that I didn't claim last year because I wasn't eligible then.

Yes, that's exactly the kind of change that might trigger a manual review at the state level. A newly claimed renter's credit when you didn't have one before creates a pattern change in your return. It doesn't mean anything is wrong - it's just something their system flags for verification. Many states are particularly careful with credit claims since those are common targets for tax fraud. The review might be as simple as an employee quickly verifying the credit eligibility before approving. These reviews typically add 2-3 weeks to processing time but don't require any action from you unless they need additional documentation.

In my experience, yes absolutely. I filed on January 29th this year and got both my federal and Michigan state refund within 2 weeks. My brother filed in late March and is still waiting on his Michigan refund almost 5 weeks later.