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Has anyone noticed that the child tax credit formula treats single parents differently than married couples? I'm right at the edge of the phaseout threshold as a single parent ($198,500 income) but my sister and brother-in-law make more combined and don't start losing the credit yet. Seems unfair tbh.
That's how all the tax brackets work though? Singles get phased out at lower amounts than married filing jointly. It's not unique to the child tax credit formula. Married couples filing jointly have a $400k threshold vs $200k for other filing statuses.
True, but the gap seems bigger for this credit than for other things. And considering single parents have all the responsibility with no support, you'd think they'd give us a break on the child tax credit formula at least. I just find it frustrating that two incomes totaling $390k can get the full credit while a single parent making $210k gets less help per child. The cost of raising kids doesn't magically go down just because there's only one parent in the household.
Quick question about the child tax credit formula - does anyone know if you can still claim the credit if your child turned 17 during the tax year? My daughter's birthday was in November 2024, and I'm getting different answers from different sources about whether she qualifies for the 2024 tax year (filing in 2025).
Unfortunately, the rule is that the child must be under 17 at the END of the tax year (December 31st) to qualify for the child tax credit. Since your daughter turned 17 in November 2024, she wouldn't qualify for the 2024 tax credit when you file in 2025. However, check if you qualify for the Credit for Other Dependents (worth up to $500) which has no age limit as long as she's your dependent.
My timeline: Filed Feb 5, accepted same day, approved Feb 15, DD hit Feb 17. I have a simple return though - just W2 income, standard deduction. I think the complexity of your return makes a huge difference in timing. My sister claimed EITC and she's still waiting even though she filed before me.
Thanks for sharing your timeline! Did you check the Where's My Refund tool at all during your wait? Just wondering if it was accurate or if your money showed up before the tool updated.
I checked Where's My Refund every few days. It was pretty accurate - showed "Return Received" until Feb 15, then switched to "Refund Approved" with my expected deposit date listed as Feb 17. The money actually hit my bank account around 3am on Feb 17, exactly as predicted. The tool only updates once a day (usually overnight), so it's not worth checking multiple times daily. If you have the IRS2Go app, it'll give you the same information but it's a little more convenient than going to the website each time.
Had anyone filed with EITC or ACTC? Those credits always slow things down. My timeline: Filed Jan 29, accepted Jan 30, stuck on "Your refund is still being processed" until Feb 22, approved Feb 23, DD Feb 28. The delay was expected because of the EITC, but still frustrating every year.
The easiest way to spot a fraudulent preparer is if they base their fee on a percentage of your refund. That creates an obvious incentive for them to inflate your refund by any means necessary! Legitimate professionals charge based on the complexity of your return, not the outcome.
One thing nobody mentioned yet - if you filed through a tax preparer like H&R Block or TurboTax, sometimes they have additional tools or resources to help track your refund or explain statuses like Tax Topic 152. I had this same issue last year and when I logged into my TurboTax account, they had more detailed tracking info than the IRS website provided. Plus they had an explanation of what Tax Topic 152 usually means for different filing situations.
Which tax software gives the most detailed tracking? I used FreeTaxUSA this year and their tracking doesn't seem to have any more info than the IRS site.
In my experience, TurboTax and H&R Block tend to have the most detailed tracking features built into their apps and websites. They pull data from the IRS but present it in a more user-friendly format with better explanations. FreeTaxUSA is great for filing affordably, but their after-filing support isn't as robust as the premium services. TaxAct falls somewhere in the middle - better tracking than FreeTaxUSA but not quite as comprehensive as TurboTax.
Tax Topic 152 actually showed up on my return status for about 3 weeks last year. I claimed both EIC and the Child Tax Credit. The bars disappeared and I got that topic message instead. I freaked out at first, but then my refund suddenly appeared in my account with no other updates or notices. The WMR tool never even updated to "approved" status for me - it went straight from Topic 152 to "refund sent" after it was already in my account. So sometimes the system just doesn't update properly even though your refund is being processed normally. The IRS systems are ridiculously outdated.
That's actually reassuring! Did you do anything special to get your refund moving or did it just suddenly appear one day? I'm hoping mine moves along without me having to do anything.
Leila Haddad
One thing nobody has mentioned yet - have you looked into Section 382 limitations? If you're considering incorporating a new business that might eventually use these NOLs, you should know that there are strict rules about ownership changes when NOLs are involved. Section 382 of the tax code limits how much of an NOL can be used after an "ownership change." The IRS doesn't want people trading companies just for their tax attributes. So if you start a new corporation that you want to eventually use these losses in, be very careful about any ownership changes, investment rounds, etc. I had a client with substantial NOLs who unknowingly triggered Section 382 limitations by bringing in new investors, and it severely restricted how much of their NOLs they could use each year going forward.
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Emma Johnson
β’Does this Section 382 stuff apply to all business types or just C-corps? I've got an S-corp with some losses and am thinking about bringing in a partner next year. Would that trigger these limitations?
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Leila Haddad
β’Section 382 primarily applies to C corporations, not pass-through entities like S corporations where losses generally flow through to shareholders. However, S corporations that were previously C corporations and are carrying C corporation NOLs would still be subject to these limitations. For your S-corp situation, adding a partner wouldn't trigger Section 382, but it could affect how losses are allocated among shareholders. When ownership percentages change in an S-corp, it can affect the allocation of losses based on each shareholder's basis and the number of days in the tax year that each ownership percentage was in effect. Different rules apply, but you should definitely consult with a tax professional before adding that partner.
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Ravi Patel
Might be an unpopular opinion but with a loss that big ($2.8 million) I wouldn't rely on forum advice. This is definitely "hire a tax attorney who specializes in business losses" territory. The consultation fee will be worth it because they might identify options none of us here would know about. Different business structures, potential for a partial sale of rights, reorganization possibilities - these are complex areas with lots of exceptions and special rules. A specialist might find creative but fully legal approaches that could help you monetize at least some portion of these losses.
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Amina Diallo
β’You're absolutely right. I appreciate all the advice here, but I think I do need professional help with this. Does anyone have recommendations for how to find a tax attorney who specifically specializes in business losses and NOLs? Is there a particular certification or background I should look for?
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Astrid BergstrΓΆm
β’Look for a tax attorney who is also a CPA - that combination is powerful for complex business tax issues. I'd specifically ask potential attorneys about their experience with NOL monetization strategies and business restructuring for tax purposes. The best ones will typically have backgrounds working at either the IRS, major accounting firms in their business tax departments, or law firms with dedicated tax practices. You want someone who has actually handled similar situations, not just someone who understands the general tax code.
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