


Ask the community...
The PATH Act hold works like this: returns with EITC/ACTC filed before February 15th are processed upon receipt, but refunds are held until after February 15th. The exact timing after that depends on several factors: - Returns processed and approved by February 15th typically see deposits between February 17-28th (exactly 90% of these are deposited within 7 business days) - Returns still requiring additional verification after February 15th follow normal timeframes from completion date (typically 3-5 business days) - Direct deposits generally arrive 1-3 business days after the IRS release date Based on the 2024 processing statistics, the average wait time after February 15th is exactly 5.2 business days for fully processed returns.
I filed on January 20th last year with EITC, and my experience was different than what most people describe. My return was actually still being processed when February 15th hit, so I didn't get my refund until March 2nd. Compared to my brother who filed just two days before me but got his refund on February 21st. The key difference? His return was simpler and completed processing before the PATH hold lifted, while mine had some education credits that required additional review. So while the 21-day period doesn't technically restart, your individual processing time can vary significantly depending on the complexity of your return.
Tax professional here. The implications depend on a few factors: 1. The amount on the 1099-NEC (which determines the tax liability) 2. Whether she's had compliance issues before 3. If she files other tax returns on time The IRS uses an Automated Underreporter (AUR) program that matches 1099s against tax returns. For 2022 returns, this matching typically happens in late 2023 through mid-2024 (we're right in that window now, actually). If she files an amended return now, she'll likely just owe: - Original tax due - Interest (currently around 7%) - Possibly a small late payment penalty If she waits for the IRS to catch it (and they will, I promise), add: - Accuracy-related penalty (20% of tax) - Higher interest accumulation - Potential compliance flags on her account Don't let her lose sleep over it though! This is fixable and honestly *snort* the IRS has bigger fish to fry than small contractor income.
According to the IRS website (https://www.irs.gov/businesses/small-businesses-self-employed/amended-returns-form-1040-x), you can now e-file amended returns for 2022, which might speed up processing. The site also mentions that the IRS generally has 3 years to assess additional taxes, but I've seen forum posts where people didn't get notices about missing 1099 income until 18+ months after filing. Has anyone confirmed if there's a typical timeframe for when these notices go out? I'm wondering if your daughter might still be in that window where they haven't processed the mismatch yet.
Just to clarify what others have said - the verification is absolutely mandatory, not optional. The question isn't whether you'll need to verify, but when and how. Wouldn't it be better to handle it now rather than potentially complicating your tax situation for next year too? The IRS has special procedures for military stationed overseas - have you looked into those specific options that might make this easier for your situation?
I was in almost the exact same situation last year while stationed in Okinawa. After trying to navigate the verification process myself for weeks, I finally discovered you can request a military-specific accommodation. I contacted the taxpayer advocate through my base's legal office, submitted my verification documents there, and they handled everything. Refund was processed within 3 weeks after that. The key was working through the base legal office - saved me months of headaches!
The IRS system this year is like a traffic jam during rush hour - sometimes your return gets stuck at a red light while others sail through. I've found that returns with certain credits or deductions get pulled into the slow lane for extra review. If you claimed home office deductions, education credits, or recovery rebate credits, that could explain why yours is moving at a snail's pace compared to previous years. Might be worth checking if any of those apply to your situation.
Alright, here's what's probably happening (and why you shouldn't panic... yet π ). The IRS has implemented new fraud detection algorithms this year that are flagging more returns for manual review. It's like getting randomly selected for additional screening at the airport - annoying but not necessarily because you did anything wrong. If you're at the 14-day mark, give it another week before taking action. But DO check your TurboTax account for any notices - they sometimes hide rejection notices in the most ridiculous places in their interface. Click on 'Tax Home' then 'Your tax returns & documents' then the specific year to see detailed status.
Thanks for breaking this down! I had something similar happen and found out my return was actually rejected because I transposed two digits in my W-2. The crazy thing is I only discovered it by accident when I logged into TurboTax for something completely unrelated. They never emailed me about the rejection! I just resubmitted and it was accepted within hours. Definitely worth checking the actual TurboTax account.
Esmeralda GΓ³mez
I don't think that's entirely right. The Child Tax Credit has income phase-outs that can reduce what you get, especially with multiple kids. And if your divorce agreement says your ex gets to claim some of the kids, you can't just claim them all because you want to. Trust me, I learned this the hard way... got a lovely letter from the IRS six months later. π Not fun explaining THAT to my ex.
0 coins
Klaus Schmidt
It's more nuanced than some are suggesting. Unlike the Earned Income Credit which has different tiers based on number of children (topping out at 3+), the Child Tax Credit truly does apply separately to each qualifying child. I've compared this to other countries' systems where benefits often diminish after a certain number of children, but the US CTC doesn't work that way. Each qualifying child under 17 can receive up to the full amount, subject only to your income phase-out limits. Just be absolutely certain you're entitled to claim each child based on your divorce decree - that's where most post-divorce tax issues arise.
0 coins