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Be prepared for a long wait. My cousin had this happen with her stepson two years ago, and it took almost 9 months to resolve. The ex-wife had claimed him despite not having seen him in over a year. The worst part was that my cousin's refund was held up the entire time - over $5,000 with the Child Tax Credit. She ended up having to take out a loan to cover expenses she had been counting on that refund for. Make sure your sister has a financial backup plan while this gets sorted.
This is a classic IRC Section 152(e) conflict scenario. The resolution pathway depends on several factors: 1. If there's a Form 8332 signed by the custodial parent (which seems unlikely given your description) 2. If there's a pre-2009 divorce instrument specifically allocating the exemption 3. The application of the tiebreaker rules in absence of the above In your case, the tiebreaker rules would likely apply, with residency being the primary factor (where the child lived for the majority of nights during the tax year). Your sister should complete Form 8862 (Information To Claim Certain Credits After Disallowance) along with her paper return and include substantial documentation proving residence and support.
Would this situation qualify for the Earned Income Credit too, or just the Child Tax Credit? I'm dealing with something similar and trying to figure out which credits are affected by these dependent disputes.
Have you checked your transcript on the IRS website? Sometimes that updates before the WMR tool and can give you more detailed info. Do you have access to your online account?
This is exactly what I was going to suggest! My transcript showed codes 846 and a deposit date a full week before WMR updated. The transcripts are like the behind-the-scenes view of what's happening with your return.
According to the IRS.gov refund status page (https://www.irs.gov/refunds), most refunds are issued within 21 days of e-file acceptance. I filed on February 2nd this year, got accepted same day, and received my refund on February 14th - exactly 12 days later. The IRS Direct Deposit system batches payments on specific days, so once approved, you'll typically see the money within 1-3 business days of your scheduled date. The cycle seems faster this year than in previous tax seasons.
Wait, are we really trusting these third-party refund processors? TPG takes a cut of your refund and then makes you wait even longer? š¬ I switched to direct deposit with the IRS this year after the TPG nightmare last year. Three extra days of waiting while they sat on my money. No thanks!
TPG is like the middleman in a relay race - they're just one leg of the journey your money takes. The IRS hands the baton (your refund) to TPG, who then passes it to your bank. Each handoff takes time. While it's frustrating, it's actually a normal part of the process when you choose to have your preparation fees deducted from your refund. If you want to avoid this next year, you can pay your preparation fees upfront and get direct deposit straight from the IRS, cutting out the middleman entirely.
Oh come ON with these service recommendations! Every thread has someone pushing some paid service! The IRS phone system is frustrating but if you call right when they open you CAN get through! I'm so tired of people acting like you HAVE to pay some third party just to talk to the government agency WE FUND with our tax dollars!!!
According to the IRS's own data (https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue), they're still answering less than 35% of calls, with average wait times over 40 minutes for those who do get through. I've personally tried the "call right when they open" approach multiple times without success. Services like Claimyr use technology to navigate the phone tree and wait on hold so you don't have to - seems reasonable for people who value their time or have urgent issues.
Diego Chavez
Just went through this exact situation last month! My direct deposit got rejected because my bank account had a fraud lock (thanks to my attempt to buy concert tickets from a sketchy site... lesson learned š ). Check took exactly 9 days to arrive after the 570/971 codes appeared. The day it was mailed, my transcript updated with code 846 and WMR finally changed to approved. Such a relief after checking those sites 20 times a day!
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NeonNebula
ā¢Did you find that the date on your transcript matched when you actually received the check? I'm trying to figure out how accurate those dates are.
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Anastasia Kozlov
ā¢Thanks for sharing this. Got same situation. Helpful timeline. Gives me hope.
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Sean Kelly
Many people don't realize there's a specific IRS refund schedule. Paper checks typically go out on Fridays. If your 7-day hold ends this week, watch for transcript update next Monday or Tuesday. I've tracked hundreds of these cases in tax forums. International accounts often trigger extra verification. Keep all notices they send - you'll need them if there are further issues.
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