Thanks everyone for the helpful responses! This clears up my confusion. I was hoping the IP PIN would simplify things but sounds like I need to be prepared for both. Really appreciate the detailed explanations - makes sense that they serve different security purposes even though it's frustrating to deal with multiple layers.

Just to add some clarity from someone who's been through this multiple times - the IP PIN is basically your "password" to file, while identity verification is like showing your driver's license. Even with the PIN, if the IRS system flags something unusual about your return (could be income changes, new deductions, etc.), they'll still ask you to verify. It's annoying but it's actually protecting you from having someone else successfully file a fraudulent return even if they somehow got your PIN. The good news is once you verify successfully, it usually gets easier in future years.

This is such a common issue this year! I'm a tax preparer and I've seen dozens of clients with the exact same situation - people who always got state refunds suddenly owing hundreds or even over $1000. The main culprits are usually: 1) State withholding table changes (which many states implemented without much fanfare), 2) Your freelance income pushing you into a higher state tax bracket or affecting credits, and 3) Loss of state tax credits due to income thresholds. For your $2,500 freelance income, you'll need to pay California state income tax on that amount (likely around 6-9% depending on your total income), plus it might have pushed you out of certain state credits or into a higher bracket for some of your other income. My advice: Pull up your prior year California return and compare it line-by-line with this year's. Look specifically at your state withholding amounts, any credits you claimed last year vs this year, and your effective tax rate. This will show you exactly where the difference is coming from. Also submit a new DE-4 form to your employer to increase your California withholding for next year - better to get a smaller refund than owe $780 again!

I'm dealing with this exact same situation! I'm in Texas and suddenly owe $520 to the state when I've gotten refunds for the past 4 years. Like you, nothing major changed - same job, same filing status. The only difference is I started doing some part-time tutoring that brought in about $1,800 throughout the year. What's really frustrating is that I compared my paystubs and my state withholding did seem slightly lower this year, but I just assumed it was because of some minor payroll system update. Now I'm wondering if Texas also changed their withholding tables like some of the other states mentioned here. I'm definitely going to try that line-by-line comparison suggestion from the tax preparer above. It's so annoying that these changes happen without clear communication to employees. Thanks for posting this - at least now I know I'm not the only one going through this!

I'm in a similar situation - been waiting since early February and it's so frustrating! The 60-day timeline seems to be pretty standard this year from what I've been reading. Your code 766 with the 4/15/24 date is interesting - that's typically when credits get applied to your account, but like others mentioned, it doesn't always mean that's your refund date if you're still under review. I've been checking my transcript obsessively and noticed that the IRS seems to be taking longer with reviews in 2024. Have you received any correspondence from them asking for additional documentation? Sometimes they'll request more info during the review process which can extend the timeline even further. Hang in there - I know the waiting is brutal!

The 60-day review period is unfortunately calendar days, not business days, so you're looking at the full two months. I went through this exact same situation last year - filed early February and didn't get my refund until mid-April. The code 766 with 4/15/24 is actually a good sign though! It means the IRS has processed your credits and that date is when they'll be officially applied to your account. While it doesn't guarantee your refund will be released that exact day, it usually means you're getting close to the end of the review process. In my experience, once you see that 766 code with a future date, the refund typically follows within 1-2 weeks after that date. The review process this year has definitely been slower than usual - I think they're being extra cautious with verification. Keep checking your transcript for a code 846 (refund issued) - that's what you're really waiting for! Hang in there, you should hopefully see movement soon after 4/15.

I'm experiencing the exact same thing! Verified my identity through ID.me 6 days ago and still have the "Action Required" message with completely blank transcripts. It's been such a stressful waiting game not knowing if everything is processing correctly. Reading through everyone's experiences here has been incredibly helpful and reassuring. The explanation about the manual processing queue really makes sense - I had no idea that after ID verification, returns have to be manually reviewed instead of being processed automatically. That explains why everything takes so much longer! I'm definitely going to try checking my transcript early Friday morning around 3-4am like some people suggested. I had no clue the IRS did their weekly updates at specific times like that. It's amazing how many of us are all dealing with this identical situation right now - really shows how backed up their system must be this year. Thanks for posting this question because I was starting to worry that I somehow messed up during verification or that my return got lost. The 2-3 week timeframe seems to be pretty consistent based on everyone's experiences, so I'll try to be patient. At least now I know this is totally normal and not something we did wrong!

I'm going through this exact same situation right now! Verified my identity about 10 days ago and still stuck with "Action Required" and completely blank transcripts. It's been driving me crazy wondering if something went wrong. After reading through all these experiences, I feel so much better knowing this is totally normal this year. The explanation about the manual processing queue really helps - I had no idea that after ID verification, returns have to be manually reviewed by actual people instead of going through the automated system. That completely explains why it takes 2-3 weeks! I'm definitely going to try checking my transcript at 3am on Friday like several people mentioned. Had no clue the IRS does their weekly updates at specific times like that. It's wild how many of us are all experiencing this identical timeline - really shows how backed up they must be. Thanks for posting this question because I was starting to think I messed up my verification somehow. The waiting is brutal but at least now I know it's completely normal and we just have to be patient while they work through the queue!

This is great information everyone is sharing! I'm also a service-based business owner (handyman services) and was completely unaware I could deduct mileage. I've been driving to client locations for two years now and never claimed any of these miles because I thought it was just "commuting." I do have a dedicated office space in my basement where I handle all my scheduling, invoicing, and business planning. It sounds like I need to start tracking my mileage immediately and possibly look into amending previous tax returns? One question though - do I need to track mileage for every single trip, or can I estimate based on regular routes to frequent clients? Some of my clients are repeat customers where I go to the same address multiple times per month.

Great thread with lots of helpful information! I'm also self-employed (freelance marketing consultant) and this discussion has been really eye-opening. I've been missing out on mileage deductions for client meetings because I thought since I work from home, any driving was just "personal" travel. One thing I want to add that I learned from my accountant last year - if you're using the standard mileage rate, make sure you're using the correct rate for the tax year. The rates change annually. For 2024, it's 67 cents per mile for business use (up from 65.5 cents in 2023). Also, don't forget that you can deduct mileage for business-related trips beyond just client visits. This includes driving to the bank for business deposits, to the office supply store for business purchases, to networking events, etc. As long as the trip has a legitimate business purpose and you're traveling from your home office (principal place of business), it should qualify. The key is really having that qualifying home office and keeping meticulous records. I use a simple spreadsheet with columns for date, starting location, destination, business purpose, and miles. Takes 30 seconds to log each trip but can save hundreds or thousands at tax time.