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If your return is simple like you said, you should be fine within the 21 day window. But one thing nobody mentioned is that bank processing can add 1-5 business days AFTER the IRS releases the funds. So even when it finally says "Refund Sent," you might not see it in your account immediately, especially if you're getting a paper check instead of direct deposit.
The IRS deposit hit my bank account before the Where's My Refund tool even updated to "Sent" last year. That tracker is wildly inconsistent.
That's definitely possible too! The IRS systems and their refund tracker don't always sync up perfectly with what's actually happening. Some banks also show pending deposits earlier than others. The tracking system is more of a general guideline than a precise tracker. That's why I usually tell people to add a buffer of a few days to whatever timeline the IRS provides, just to avoid disappointment. But occasionally it does go the other way and shows up earlier than expected!
Just curious, did you opt for direct deposit or a paper check? Direct deposit is MUCH faster. Paper checks can add weeks to the process.
I did direct deposit for sure! I'm not living in the stone age lol. Do people still actually get paper checks??
One thing I haven't seen mentioned yet is that you should check if you're eligible for first-time penalty abatement for the 2023 balance due. If you had a good compliance history for the past 3 years (which it sounds like you might since you mentioned filing 2020-2022 on time), you could qualify to have the failure-to-pay penalties removed. You'd still be responsible for the interest, but getting the penalties removed could save you a decent amount. You'd need to request this specifically, either by calling the IRS or submitting a letter. Just make sure to pay the balance first, then request the abatement after.
That's really helpful - I didn't know about first-time penalty abatement! I think I would qualify since all my other returns were filed on time. Do I need to wait until the whole situation is resolved with my 2019 refund, or can I request the abatement as soon as I pay the 2023 balance?
You can request the first-time penalty abatement as soon as you pay the 2023 balance in full. You don't need to wait for the 2019 refund situation to be resolved. Just call the main IRS number on your notice and specifically ask for "first-time penalty abatement under the IRS's First Time Abatement administrative waiver." Have your 2023 notice handy when you call. The agent will check your eligibility based on your filing compliance for the past 3 years. If approved, they'll remove the failure-to-pay penalties, though the interest will remain. The whole process usually takes just one phone call if you qualify.
I'm surprised nobody has mentioned Form 8379 (Injured Spouse Allocation) - couldn't this help with getting the refund applied to the balance due? I thought that's what you use when the IRS is holding your money.
Form 8379 is for injured spouse claims, not for this situation. That form is used when a joint filer wants to recover their portion of a refund that was applied to their spouse's separate debt (like back child support, student loans, etc). What you're thinking of might be Form 911 (Taxpayer Advocate Service Application) which can help when you're experiencing financial hardship due to IRS delays. Or possibly just a letter requesting that the 2019 refund be applied to the 2023 balance when it's processed.
Just wanted to add that you might want to look into Section 179 deduction for this. I recently set up a home recording studio for my podcast and was able to deduct almost all of the equipment in the first year instead of depreciating it over time. For the gym equipment, the mixed-use nature makes it more complicated, but if you can document that the primary purpose is for your business, you should be able to deduct the business percentage. Like others have said, keep a detailed log of business vs personal use. Also, don't forget about related expenses - special flooring for the gym area, mirrors, additional electrical work, etc. These could all potentially be partially deductible as well.
Thanks for mentioning Section 179! I'll definitely look into that. Do you know if there's an upper limit on how much you can deduct that way in a single year? And good call on the related expenses. I'll need special rubber flooring and probably some electrical work for all the lighting. Did you use a specific method to calculate your business percentage?
Section 179 has a pretty high limit - for 2023 it was $1,160,000, so you're unlikely to hit it with a home gym setup. But there are some specific rules about what qualifies. For calculating business percentage, I used a combination of physical space (what percentage of my home is used for business) and time usage (what percentage of time the equipment is used for business vs personal). I kept a log for about 3 months showing when I used the equipment for recording versus personal use, which gave me a solid basis for my claimed percentage. My accountant said this approach provides good documentation if ever questioned.
I just came across this post - I'm literally in the same boat but with a home yoga studio for my wellness channel! My CPA told me to take pictures of the setup when it's in "business mode" with all the lighting and cameras, and then document EVERYTHING. She recommended creating a business plan that clearly outlines how this pivot to fitness content aligns with your overall business strategy. Having documentation that predates the purchases helps show business intent. One thing nobody mentioned - if you're forming a separate business entity for this new content direction, the rules might be different than if you're just expanding your existing business. Might be worth looking into!
That's super smart about the pictures showing the "business configuration" vs personal use. I did something similar with my home office and it was really helpful when I got randomly audited last year.
I filed on February 3rd and got my refund direct deposited on February 12th, so 9 days total from submission to money in my account. Was honestly shocked at how fast it was! I have a pretty simple return though - just W-2 income, standard deduction, no credits besides the standard ones. My friend who claimed EITC is still waiting though. I think certain credits definitely slow things down a lot.
That's super fast! Did you use a particular tax prep software? I'm trying to decide between a few different ones.
I used FreeTaxUSA and it was really smooth. I've tried TurboTax and H&R Block in previous years but this was way cheaper (federal filing is free and state was only like $15). The interface isn't as fancy but it does exactly the same thing. The direct deposit option was easy to set up and they transmitted my return to the IRS immediately after I submitted it. Got an acceptance email from the IRS about 12 hours later, and then the refund 8 days after that.
Just a heads up - if you claim certain credits like the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the IRS legally cannot issue your refund before mid-February regardless of when you file. That's why some people will always wait longer than others.
Adding to this - I claimed the EITC this year, filed on January 28th, and just got my refund yesterday (Feb 18th). So exactly in line with that mid-February timing. Don't panic if you claim these credits and see others getting faster refunds!
Thanks for this info! I don't think I qualify for those credits but that's good to know for future reference. Is there any list somewhere of which credits might cause delays?
Luca Ricci
Dont forget that au pairs are responsible for filing their taxes even after they leave the US. My au pair left in January and we're helping her file from abroad. We scanned all her docs and shes using one of the softwares mentioned above. Make sure you get her a forwarding address or email where the IRS can contact her if needed.
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Aisha Mohammed
β’I've heard some au pairs just ignore filing once they go back to their home country. Is there any actual consequence if they don't file?
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Ethan Campbell
Don't forget to check that the 1099 or W-2 they received has the correct amounts. Our Au Pair's agency initially issued a 1099 with an incorrect amount that included room and board value. Many agencies make this mistake. The correct taxable amount should only include their stipend (usually around $195-250 per week), not the estimated value of housing, meals, etc. Also, make sure you have their foreign address for the tax forms. You'll need the complete international format address for the 1040NR.
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Astrid BergstrΓΆm
β’This is really helpful! I didn't even consider that the 1099 might include room and board. I'll double check her paperwork right away. Thank you!
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Ethan Campbell
β’You're welcome! It's a common oversight that can significantly impact their tax liability. If you find that the form does incorrectly include room and board value, contact the agency ASAP to request a corrected form. If they won't issue a corrected form (some agencies are difficult about this), you can still file correctly by reporting the full amount from the incorrect 1099, then deducting the room and board portion on the appropriate line of the 1040NR with an explanation statement attached to the return.
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