According to Internal Revenue Manual section 21.4.1, what you're experiencing is likely a 'processing path change.' Per IRS guidelines, when a return moves between different processing departments, the tracking status may reset temporarily. This commonly occurs when: 1) Identity verification is needed, 2) Income discrepancy is detected, 3) Credits require additional verification, or 4) Address change processing is occurring. Given your recent divorce, the system may be reconciling your new filing status. I recommend checking your tax transcript for codes 570/971, which would confirm this theory. I was so worried when this happened to me, but it resolved itself within 14 days.

Let me walk you through what might be happening here. In approximately 15% of cases, a return that shows full progression and then reverts is experiencing what's sometimes called a 'verification loop.' It's possible, though not certain, that your recently changed marital status triggered additional verification. The IRS might be cross-referencing your new filing status with previous years' data. If that's the case, you might want to check if your ex-spouse has already filed, as this can sometimes create processing delays when both parties file as single for the first time after filing jointly in previous years.

I had the exact same switch from 05 to 02 this year. Called and confirmed it's nothing to worry about. Got my refund exactly 8 days after the cycle date shown on transcript. The cycle just tells you which batch your return is processed in. 02 is Tuesday's batch.

The IRS typically assigns cycle codes based on a combination of factors including the type of return, processing center workload, and sometimes even the last two digits of your SSN. In most cases, a change from 05 to 02 is simply administrative and doesn't necessarily indicate any issues with your return. It's generally considered that cycle 02 might actually be slightly faster for processing.

Have you tried running your numbers through a tax calculator yet? I always do this before filing to avoid surprises. With HOH status and 4 dependents, you might qualify for: 1. Child Tax Credit (if children are under 17) 2. Credit for Other Dependents (if any are 17+ or other qualifying relatives) 3. Earned Income Credit (based on your income level) 4. Possibly education credits if any dependents are in college Can I ask how old your dependents are? That makes a huge difference in which credits you qualify for!

Looking at the 2023 tax tables, a Head of Household with $31,100 income would have a federal tax liability of approximately $1,841 before any credits. With 4 dependents, you'd likely qualify for $8,000 in Child Tax Credits ($2,000 × 4) if they're under 17, with up to $6,000 being refundable. Additionally, your EITC with 4 qualifying children and that income would be around $5,988. Even after covering the $1,841 you'd owe, and subtracting the $30 already withheld, you could potentially receive over $10,000 in refundable credits. The key is making sure all your dependents qualify under IRS rules. For 2024, I'd strongly recommend updating your W-4 to avoid this situation again.

Have you considered requesting a transcript instead of a verification letter? Compared to the verification letter process which is crawling along at a snail's pace right now, transcripts can often be accessed immediately online. I was in a similar situation last year when I needed verification for a pension rollover, and I ended up using my transcript instead. Many financial institutions will accept a transcript in place of a verification letter - it's worth asking if that would work for your situation.

I went through this exact process last year when I needed verification for my retirement account rollover. The letter took exactly 18 days to arrive. What helped me was calling the Retirement Plans Services line (877-829-5500) rather than the general IRS number. The agents there are specifically trained on retirement issues and were able to expedite my verification letter when I explained my situation. Stay calm - these delays are frustrating but temporary.

Anyone know if there's a diff between the DDD (direct deposit date) on transcripts vs what WMR shows? My WMR still shows processing but transcript has a date. Wondering if I should trust one over the other or if they sync up eventually?

I was in exactly your situation 18 days ago. Had a deposit date of February 26th, 2024 with $4,782 in EITC. Money hit my account at precisely 3:27am on the exact date shown on my transcript. The PATH Act only delayed my processing until February 15th, but once I had a deposit date, it was 100% reliable. Used the money to cover my $1,213 quarterly estimated tax payment that was due.