OK boomer, but some of us actually need that money for bills and can't just wait around indefinitely while the government sits on it. Not everyone has the luxury of treating their refund like bonus money that can show up whenever.

I understand that many people depend on their refunds for important expenses. My point wasn't that delays don't matter - it's that they happen every year, and panicking doesn't help. If you absolutely need tax refund money by a certain date, the better long-term solution is to adjust your withholding so you're not giving the government an interest-free loan throughout the year. That way you have access to more of your money in each paycheck rather than waiting for a refund that's subject to processing delays every year.

I filed last Thursday electronically through TurboTax. My return was accepted by the IRS within an hour, and the Where's My Refund tool is already showing "approved" status. Seems like new submissions are still being processed normally.

Thanks for mentioning this! I just checked and it looks like my form does have the right months of coverage checked off. I started with this company in March, and the form shows coverage beginning in April (which makes sense with our 30-day waiting period for benefits). Definitely a good tip to verify this information.

Right?? I have a whole file cabinet of tax forms I've been keeping "just in case" but have never once needed to reference again.

You're exactly right, and that might be part of OP's problem. You can't claim education credits for expenses that were covered by tax-free scholarships. It's one or the other. Many tax preparers get this wrong, especially when they don't specialize in education-related tax situations. When I was in school, I actually chose to count some of my scholarship as taxable income so I could claim the education credits, which were worth more to me than the tax I paid on that portion of the scholarship. Tax planning is wild!

Thanks for confirming! That makes sense. I think I need to look closer at my own returns now, since I had both scholarships and education credits. Any idea how far back the IRS typically looks when they find this kind of error? Just wondering if I should proactively amend older returns too.

ALWAYS call first, then follow up with mail. When you call, get the name and ID number of whoever you speak with, and ask them what specific documentation they need. Then mail those exact documents with a cover letter referencing your call and who you spoke with. I've gone through 3 state audits (self-employed) and this approach has consistently worked best.

That's super helpful advice, thank you! Never thought to ask for an ID number but that makes total sense. Did you send things certified mail too or is regular mail sufficient?

I hadn't even considered the HSA option! We do have a high-deductible plan through my wife's work. Do HSA contributions have the same deadline as IRA contributions where we can make them up until tax day?

Yes, HSA contributions follow the same deadline as IRA contributions! You can make contributions for the previous tax year up until the tax filing deadline (usually April 15th). Your HSA provider will give you the option to designate which tax year the contribution is for when you make it between January and April. For 2025, the contribution limit for family coverage is $8,300 (it may be adjusted for inflation), which gives you significant room to reduce your AGI. The great part about HSAs is that unlike FSAs, the money never expires, and you can invest it for the long term if you don't need it for immediate medical expenses.

Wait, really? I thought EITC was just based on AGI and number of kids. What's this about investment income? Now I'm worried because I sold some stocks this year...

Thanks for this tip about Form 4852! I didn't know that was an option. Do you have to try contacting your employer first before using this form? And did you face any issues with the IRS accepting your return with the substitute form?

Yes, you should make a reasonable effort to get your W-2 from your employer first. The form asks you to describe the steps you took to obtain the missing W-2. In my case, I documented my calls to the company's HR department and the bankruptcy trustee. I didn't have any issues with the IRS accepting my return with Form 4852. Just make sure your income and withholding estimates are as accurate as possible using your last paystub. If your employer eventually sends a W-2 that differs significantly from your estimates, you might need to file an amended return, but in my experience the paystub information was very close to what would have been on the W-2.

I accidentally underestimated by about $3k last year. Got hit with the failure-to-pay penalty (0.5% per month on the unpaid amount) plus interest. For me it ended up being about $120 in penalties total. Not the end of the world but definitely avoidable if you can estimate better.

I've found that if you can show you made a "good faith effort" to estimate correctly, sometimes the IRS will waive the penalties. Document everything about why your estimate was off. In my case, I had a surprise capital gains distribution from a mutual fund that I didn't know about when filing the extension, and the IRS accepted my explanation and waived most of the penalties.