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Just want to add that the TurboTax "5 days early" feature is such a scam, especially with Child Tax Credit returns. I paid for it too, thinking I'd get my refund faster, but it only applies AFTER the IRS releases your refund. With the PATH Act hold, that doesn't even start until mid-February at the earliest. Basically TurboTax knows most people with kids file early hoping for a quick refund, so they push this "feature" knowing full well the IRS won't release those refunds any sooner regardless. I complained and actually got my money back from TurboTax for this - might be worth trying!
Did you just call TurboTax customer service to get the refund for the early feature? I want to try this too since I'm in the same boat - paid for early refund but still waiting because of Child Tax Credit.
I used their chat support on the website and explained that I felt the feature was misleadingly advertised since it didn't disclose the PATH Act restrictions for Child Tax Credit claims. I was polite but firm that I wouldn't have purchased it had I known it wouldn't actually get my refund any earlier due to the mandatory IRS hold. The first agent tried to explain how the feature works, but I asked to escalate to a supervisor who approved the refund. Just be persistent - they know it's a bit deceptive for CTC filers!
For what it's worth, I'm in the same situation. Filed on Jan 19, claimed Child Tax Credit for my two kids, and still showing "Processing" on the IRS site. Called my tax preparer and they said it's 100% normal and almost all Child Tax Credit returns are held until late February regardless of when you filed. They told me to expect my refund around March 5-10 based on previous years' patterns. The PATH Act delay is annoying but apparently it's helped reduce tax fraud significantly. Just trying to be patient at this point!
Do you know if this also applies to the Additional Child Tax Credit or just the regular Child Tax Credit? I claimed both and wondering if that makes the wait even longer.
For what it's worth, my husband and I just went through this exact situation last year. We got married in February but had already done our taxes in January (filed as single). It worked out fine, but we had one small issue - we both got refunds sent to our individual accounts, which was a little awkward since we had just combined finances after the wedding. If you're planning to merge finances after marriage, maybe consider where you want your refunds to go! You can have them direct deposited to any account you choose, so you could send them to a joint account if you already have one set up, even if you're filing as single.
That's actually super helpful! We are planning to set up a joint account right after the wedding, but I hadn't thought about the refund issue. Did you have any problems updating your name with the IRS after you got married? I'm taking his last name so I'm a little worried about that process too.
The name change process wasn't too bad, but make sure you update your name with Social Security first before doing anything with the IRS. The IRS system checks against the Social Security database, so if the names don't match, it can cause processing delays. For the refund situation, you could either wait to file until you have a joint account set up, or you could always have the refund sent to just one of your existing accounts temporarily. Some people even choose to get paper checks for this reason, though that takes longer.
Just a heads up - one advantage to filing before your wedding is that it's one less thing to worry about when you're dealing with all the post-wedding chaos. My wife and I got married last April and we regretted not filing beforehand because we were so busy with thank you notes, changing names, merging accounts, etc. Also, start gathering documentation now for next year's taxes when you'll file jointly! It's way more complicated combining two people's tax situations. Especially keep track of any wedding-related expenses that might be deductible (rare, but some business-related wedding expenses can be).
What wedding expenses could possibly be tax deductible??? I've never heard of this!
Have you considered the Credit for Other Dependents? It's different from the Child Tax Credit and specifically designed for dependents who don't qualify for the CTC, including those without SSNs. It's worth $500 per qualifying dependent. Your children would still need ITINs, but this credit was created specifically for taxpayers in situations like yours. You'll need to file Form 8862 along with your return to claim it.
Is the Credit for Other Dependents the same as the Foreign Dependent Credit mentioned earlier? Or are these two different credits I could potentially claim? And would my children still need to meet the residency test to qualify for this credit?
The Credit for Other Dependents is the official name of what some people call the Foreign Dependent Credit. They're the same thing - a $500 credit for dependents who don't qualify for the full Child Tax Credit. This is exactly what was created for situations like yours. No, your children don't need to meet the US residency test for this credit, which is why it works for dependents living abroad. They still need to qualify as your dependents under tax law, meaning you provide more than half their support. You'll claim this on your Form 1040 in the same section where the Child Tax Credit would be, but you'll indicate they qualify for this $500 credit instead.
My tax preparer told me that if your kids visit you in the US for at least 31 days during the year, you might be able to claim them for the full Child Tax Credit. Has anyone tried this approach?
Something that might help - tax software like TurboTax will handle all those Schedule D Tax Worksheet calculations automatically. Yes, it's still doing all 47 steps, but at least you don't have to do them manually. I had a similar situation with some small 1250 gains in my kids' accounts.
I'm actually using TaxAct and it's still a nightmare because I have to keep switching between the regular tax calculation and the special calculation for Form 8615. Have you dealt specifically with the Kiddie Tax situation? That seems to be what's making everything extra complicated.
I have dealt with Kiddie Tax and Form 8615, and you're right that it adds another layer of complexity. TaxAct should still handle the calculations, but it requires you to enter information very carefully. For Kiddie Tax situations, make sure you're entering the parent's tax information correctly when prompted, as that's a key input for Form 8615 calculations. Also, if you're filing separate returns for each child (rather than including them on your return), you need to ensure consistency across all the returns. The software should walk you through this, but it can be confusing when you have to switch between different calculations.
This is one of those situations where the tax code is just ridiculous for average people. I went through something similar with my son's college fund that generated a tiny bit of Section 1250 Gain last year.
Totally agree! The complexity of the tax code punishes regular families trying to save and invest responsibly. My approach? Document your good faith effort to follow the rules, and don't lose sleep over small amounts that won't materially affect your tax liability.
McKenzie Shade
I'm an Etsy seller who also deals with some "specialty" items, and I just file as "handmade goods" or "specialty craft items" on my Schedule C. Never had any issues. The IRS cares that you're reporting income correctly, not the exact nature of what you sell (unless it's illegal lol). For business expenses, anything that's "ordinary and necessary" for your business can be deducted. So yes, keep those receipts! If the things you buy (special shoes, pedicures, etc.) are specifically for creating your content, they're legitimate business expenses. Just make sure you're only deducting the business portion if any items are also used personally.
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Harmony Love
β’How do you handle items that are partially personal and partially for business? Like if I get a pedicure and use it both for content but also just for personal reasons?
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McKenzie Shade
β’You need to calculate a reasonable business-use percentage. For example, if you get a pedicure primarily for content creation but also enjoy it personally, you might deduct 70-80% as a business expense. The key is being reasonable and consistent with your approach. If you're using something like a cell phone for both business and personal, you'd calculate what percentage is business use. Same with internet, clothing items, or beauty treatments. Just be prepared to explain your calculation method if ever questioned. And always keep good records showing the business purpose of each expense.
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Rudy Cenizo
Has anyone used a professional tax preparer for this kind of business without having to get super specific? I'm in a similar situation but not comfortable doing my own taxes.
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Natalie Khan
β’Yes! I use an independent CPA (not one my family knows) and just say I'm a "digital content creator" or "online media producer." They know what questions to ask about expenses and deductions without needing specific details about the content. Just find someone who works with a lot of social media people and online businesses.
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