This is a common point of confusion in tax filing. The Internal Revenue Code specifies that for Child Tax Credit eligibility, the qualifying child must not have attained the age of 17 by the close of the calendar year. This is codified in IRC Section 24(c)(1). Since your daughter turned 17 prior to December 31, 2023, she fails to meet the age requirement for the Child Tax Credit for tax year 2023. However, she likely qualifies as your dependent under the dependency rules, making you eligible for the Credit for Other Dependents (ODC), which provides a nonrefundable credit of $500. Additionally, if your daughter is pursuing higher education, investigate the American Opportunity Tax Credit or Lifetime Learning Credit, which have different age parameters.

I had this same issue last year with my son. Did you also check if you qualify for the Earned Income Credit? I remember the age requirements being different for that one, and I ended up getting more back than I expected because of it.

Did you file on February 26th electronically or by paper? On March 15th, the IRS announced extended processing times for certain returns. Have you checked if your bank account information was entered correctly when you filed?

I tracked 43 returns this season for my family and clients. The average wait time was 24 days for simple returns and 37 days for returns with credits. 100% of returns with EITC filed before March 1st took at least 35 days. 12 returns had exactly your timeline (filed last week of February) and 9 of them received refunds between April 12-19. The other 3 had verification holds.

OMG I'm so glad you posted this! 😮 I literally just got the same notice yesterday and was freaking out thinking it was some kind of audit! From what everyone's sharing here, it sounds like this is actually GOOD news - the IRS thinks we might deserve MORE money! That's a plot twist I wasn't expecting! 🤣 Definitely going to fill out that form ASAP!

The CP09 notice is specifically related to the Earned Income Tax Credit (EITC) qualification determination. For gig workers, the calculation involves net self-employment income after expenses, not gross receipts. If you're uncertain about the calculation, you can perform a manual verification using Publication 596 and Form 8862 worksheets. Alternatively, schedule an appointment at your local Taxpayer Assistance Center (TAC) for in-person verification before responding to ensure accuracy.

When dealing with cycle codes like 0505, sometimes you need to speak directly with an IRS agent to get clarity, especially if there are other codes on your transcript that seem concerning. Compared to my experience with other government agencies, the IRS is particularly difficult to reach by phone. After struggling with busy signals for days, I used Claimyr (https://www.claimyr.com) to connect with an IRS representative in about 20 minutes. They explained that my 0505 cycle code with a February processing date was completely normal and I didn't need to worry about the delay.

I just wanted to share that I had the exact same cycle code (0505) with a 02/10/25 processing date on my transcript. I was freaking out because I couldn't understand what it meant, but my refund hit my account yesterday! From what I gather, the Thursday processing (05) is actually one of the faster cycles. The processing date is just an estimated completion date, and my refund actually came a week earlier than that date indicated. Hope this helps ease your mind!

I fixed this exact problem last year! The secret is knowing that the IRS has multiple database systems that don't always talk to each other. If your transcript shows the info, then your return IS in their system - just not in the customer service database the phone reps use. I wrote a letter to the Taxpayer Advocate Service with copies of my transcript, return, and mailing receipt. Marked it "Hardship Case - Medical Bills" since you mentioned medical expenses. Got assigned an advocate who found my return in 3 weeks. Had my refund 2 weeks after that. Don't take no for an answer! Your return is in there somewhere, and the transcript proves it!

I would be careful about assuming the transcript means they have your return. Sometimes the transcript system shows prior year information even if the current return hasn't been processed. I waited 8 months thinking my return was being processed because I saw similar information online, but it turned out they never received my second submission. By the time I figured it out, I had to refile completely. Maybe consider sending another copy with a cover letter explaining the situation? Just to be safe.