


Ask the community...
OMG this Credit Karma/TurboTax advance thing confuses SO MANY PEOPLE every year! š« It's almost like they deliberately make it unclear! The community wisdom here is: YES, your entire refund goes to the Credit Karma card. That's how they structure these advances - they front you some money now, then when your actual refund comes in, they take the whole thing, keep their advance portion, and put the rest on your card. You can transfer it out later, but it's definitely a way to keep you in their ecosystem longer. Next year, if you don't want this to happen, choose direct deposit to your bank instead of taking the advance!
I went through this exact situation last year. I took the TurboTax advance to my Credit Karma card because I needed some money quickly. When my actual refund was processed by the IRS about 3 weeks later, the remainder (after they subtracted the advance amount) showed up on my Credit Karma card too. I remember being confused just like you because I was expecting it to go to my checking account like in previous years. I had to transfer the money from the Credit Karma card to my bank, which took about 2 days. Not the end of the world, but definitely something I wish I'd understood better beforehand.
There's an important distinction between the Child Tax Credit and the status as a qualifying dependent. Did your e-file rejection specifically mention which tax benefit was being disputed? The Qualifying Child algorithm the IRS uses has a tiebreaker system that might come into play if multiple people could potentially claim the child.
Additionally, are you claiming Head of Household filing status? That's another consideration if your return was rejected. The resolution process might involve multiple forms depending on which specific benefits are being claimed.
I went through this exact nightmare last year when my ex's parents claimed my son. I remember on February 12th my return got rejected, and I was panicking. I gathered every single document I could think of - school records, medical bills, even grocery store receipts showing I bought children's items regularly. Filed by paper on February 28th, and then had to wait. I called the IRS twice in March to check status. Finally got my refund on May 15th, and they sent a notice to the grandparents requiring them to pay back what they incorrectly claimed. Stay strong and document EVERYTHING!
Does this additional W2 push you into a different tax bracket? Or does it affect any tax credits you claimed based on your Adjusted Gross Income? The impact on your tax liability could be more complex than just the taxes on the additional income itself.
That's such a good point about the tax credits! I didn't even think about that when I had a similar situation. Turns out my missing 1099 pushed me over an income threshold that reduced my premium tax credit, which was a much bigger financial hit than just the taxes on the income itself.
I handled an identical situation for a client last month. Their original Form 1040 was e-filed on February 10th, and they discovered a missing W-2 on March 1st. We monitored their tax transcript until we confirmed the original return was fully processed (cycle code 20241405), then submitted Form 1040-X with the additional W-2 information. The amendment was accepted without complications. The key technical point: the IRS computer systems assign a specific DLN (Document Locator Number) to your original return, and amendments need to reference this number correctly, which is why timing matters.
This is almost certainly identity theft. The IRS has specific procedures for this situation. You need to file a paper return with Form 14039 (Identity Theft Affidavit) attached. Include a copy of your government ID and as much documentation as possible. The IRS will then investigate both returns to determine which is legitimate. They'll also place an identity protection marker on your account for future years. Don't wait on this - identity thieves typically file early in the season to beat legitimate taxpayers to the punch. Also file a police report and FTC complaint at identitytheft.gov as this creates an official record of the theft.
I went through this exact situation two years ago. At first I panicked thinking my identity had been completely stolen, but it turned out to be much simpler. My previous employer had accidentally submitted a W-2 with a typo in the SSN that happened to match mine. I called the IRS, explained the situation, and they helped me file a paper return with documentation. It took about 12 weeks to process instead of the usual 3 weeks for e-filing, but everything worked out fine in the end. Don't assume the worst right away - there are several possible explanations that aren't identity theft!
Ian Armstrong
FWIW, the 'as of' date is just when the IRS computer system last updated your acct. It's not a magic 8-ball for when you'll get $$$. Most ppl in the PATH delay see these changes. The comp systems run weekly cycles, usually updating overnight Wed-Thurs. If you claimed EITC/ACTC, you're under PATH delay until at least mid-Feb. Seeing date changes is actually a good sign - means your return is active in the system, not stuck. Hang in there!
0 coins
Eli Butler
I've noticed that returns with refundable credits like the Child Tax Credit seem to have more volatile 'as of' dates compared to simpler returns. My brother filed a basic return with just W-2 income and his transcript barely changed at all, while mine with CTC looked like a ping-pong match of dates. Both of us got our refunds within the normal timeframe though. The complexity of your return seems to affect how many processing cycles it goes through.
0 coins