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I figured out a way to tell if you're on daily or weekly processing cycles. Just look at your old transcripts, find your cycle code and look at the last two digits. If it ends in 01-04, you're on daily processing. If it ends in 05, you're on weekly processing. This could help people figure out when to expect updates. I was looking at my own transcript from last year and noticed this pattern. Here's what I found on my transcript: PROCESSING DATE Feb. 20, 2023 TRANSACTIONS CODE EXPLANATION OF TRANSACTION CYCLE DATE AMOUNT 150 Tax return filed 20230505 02-20-2023 8 - See how my cycle code is 20230505? The last two digits are 05, which confirms I'm on weekly processing. This is consistent with the pattern I've been seeing. Weekly processing (05) means my transcript updates once a week (usually Thursday nights/Friday mornings). If your cycle code ends in 01, 02, 03, or 04, you're on daily processing and could see updates any day of the week. I've been tracking this for a couple of years now and it's been consistent. The 8-digit cycle code (like my 20230505) contains important information - the first 4 digits are the year, the next 2 are the week of the year, and the last 2 tell you if you're daily or weekly. Anyone else can check their old transcripts to confirm this pattern and better predict when they might see updates on their refund status!
Just got my SC state refund deposited but the website is still showing step 4 of 5. Wanted to let everyone know the money might come before the tracker updates. Don't lose hope if your stuck on step 4!
Hey everyone, I'm really confused about how changing my filing status might impact my paychecks. I recently got divorced (finalized last month) and I'm not sure what to do with my W-4 at work. I've been filing as "Married Filing Jointly" for the past 5 years, but now I'll have to switch to "Single" or maybe "Head of Household" since I have my daughter living with me most of the time. I'm worried that changing my W-4 will mean less money in each paycheck, which would be tough right now with inflation and everything else going on. My annual salary is about $68,500, and I'm currently having extra withholding taken out ($50 per paycheck) because last year we owed about $800 at tax time and I don't want that happening again. Does anyone know how much my take-home pay might change if I update my W-4 now? Should I wait until January to make this change? I'm also wondering if I should adjust that extra withholding amount. Any advice would be really appreciated!
I'm a tax professional and wanted to add some clarification to help with your situation. Since your divorce was finalized in 2024, you'll file as either Single or Head of Household for your entire 2024 tax year - not Married Filing Jointly as some have suggested. Your marital status on December 31st determines your filing status for the whole year. Given that your daughter lives with you most of the time and you're supporting the household, you should definitely qualify for Head of Household status. This will give you a much better tax situation than Single - the standard deduction for HOH in 2024 is $21,900 vs $14,600 for Single, plus more favorable tax brackets. For someone at your income level ($68,500), switching from Married to Single withholding will likely reduce your take-home pay by about $150-180 per biweekly paycheck. However, this is necessary to avoid a large tax bill next April. I'd actually recommend keeping that extra $50 withholding during this transition year to be safe. Update your W-4 as soon as possible rather than waiting until January. The longer you wait, the more risk you have of underwithholding for 2024. Most payroll systems can implement W-4 changes within 1-2 pay periods, so if you submit it now, you should see the changes by December. Use the IRS Tax Withholding Estimator at irs.gov to get personalized recommendations for your specific situation. It's free and much more accurate than trying to calculate this manually.
Thank you for the professional clarification! This is exactly the kind of authoritative guidance I was hoping to find. I really appreciate you confirming the December 31st rule - I was getting confused by some of the conflicting information in earlier comments. The specific dollar amounts you provided ($150-180 reduction per biweekly paycheck) really help me plan my budget. That's actually not as bad as I was fearing, and knowing it's necessary to avoid a big tax bill makes it easier to accept. I'm definitely going to use the IRS Tax Withholding Estimator this weekend and get my updated W-4 submitted to HR first thing Monday morning. The Head of Household status sounds like it will save me quite a bit compared to Single filing - that higher standard deduction alone is significant. One quick follow-up question: when I fill out the new W-4, should I indicate Head of Household status somewhere on the form, or does the withholding just follow the Single rates and then I claim HOH when I actually file my taxes next year?
Great question! On the current W-4 form, you don't specifically select "Head of Household" as a withholding status. The form only has options for Single/Married Filing Separately or Married Filing Jointly. For withholding purposes, you would select "Single or Married Filing Separately" on your W-4, but then you can use Step 3 (Claim Dependents) to account for your daughter, which will reduce the amount of tax withheld. This helps approximate the tax benefit you'll get from HOH status when you file. The actual Head of Household filing status is something you claim when you file your 2024 tax return next year - the W-4 withholding is just an estimate to get you close to your actual tax liability. The IRS Tax Withholding Estimator will help you figure out the right combination of selections on the W-4 to account for your HOH status and dependent. This is why it's so important to use that estimator tool - it takes into account your actual filing status (HOH) and calculates what your W-4 should look like to have the right amount withheld, even though the form itself doesn't have an HOH option.
As someone who went through a divorce earlier this year, I completely understand the anxiety about how W-4 changes will affect your paycheck. The good news is that while you'll see less take-home pay initially, you're protecting yourself from a much bigger problem - owing a large amount at tax time. Since your divorce was finalized in 2024, you'll definitely want to file as Head of Household for this year (not Single) given that your daughter lives with you most of the time. This status has significantly better tax benefits than Single - you'll get a $21,900 standard deduction vs only $14,600 for Single filers. I'd strongly recommend updating your W-4 immediately rather than waiting until January. Every paycheck you delay increases your risk of underwithholding. When you update it, select "Single or Married Filing Separately" for withholding purposes, but make sure to claim your daughter in Step 3 to account for the tax benefits you'll get from HOH status. That extra $50 withholding you're doing? Keep it for now. You're in a transition year and it's better to get a refund than owe money. You can always adjust it next year once you see how everything works out. The IRS Tax Withholding Estimator at irs.gov will give you the most accurate picture of what your paychecks will look like and help you fill out the W-4 correctly for your specific situation.
This is such helpful advice! I'm in a very similar boat - just got divorced a few months ago and have been dreading updating my W-4 because I was scared about losing so much take-home pay. But you're absolutely right that it's better to have less money now than get hit with a huge tax bill later. I had no idea about the Head of Household benefits being so much better than Single status. That $7,300 difference in standard deduction is huge! I definitely qualify since my kids live with me full-time and I'm covering all the household expenses. Quick question - when you used the IRS Tax Withholding Estimator, did you find it pretty user-friendly? I've tried some of the other IRS online tools before and they can be pretty confusing. I want to make sure I get this right the first time so I don't have to keep adjusting my withholding throughout the year. Thanks for sharing your experience - it's really reassuring to hear from someone who's been through this exact situation!
The IRS Tax Withholding Estimator is actually pretty straightforward to use! I was pleasantly surprised because like you, I've struggled with some of their other online tools. It walks you through step by step and asks for basic info like your filing status, income, current withholding, and dependents. The key is having your most recent paystub handy when you use it - you'll need to enter your year-to-date earnings and tax withholdings. It then shows you exactly what to put on your W-4 and gives you an estimate of whether you'll owe or get a refund. One tip: when it asks about your filing status, make sure to select "Head of Household" since you qualify. The tool will then factor in all those tax benefits we mentioned and give you a much more accurate withholding recommendation than if you just selected "Single." The whole process took me maybe 15 minutes, and it gave me so much peace of mind to see the actual numbers instead of just guessing. You've got this! Getting through a divorce is hard enough without the added stress of tax confusion.
Hey tax ppl! Got my state refund deposited yday (filed mid-Feb) but still nothing from fed. Is this normal? Do they process separately or is there usually a pattern? I'm 1099 if that matters. TIA for any help! Just wondering if I should be worried or if fed usually takes longer after state comes thru.
Did you claim any tax credits like the Earned Income Credit or Child Tax Credit? According to IRS Publication 17, certain credits can trigger additional verification processes that extend processing time significantly beyond the standard 21-day window.
Federal and state processing are completely independent systems, so this is totally normal! I filed around the same time and got my state refund about 2 weeks ago but still waiting on federal. The IRS is dealing with a much larger volume of returns nationwide compared to individual state tax agencies. Since you're 1099, your return likely requires additional review for self-employment income verification, which can add several weeks to processing time. I wouldn't worry unless you hit the 8-week mark from your acceptance date. The "Where's My Refund" tool should update once it moves through their queue.
Hey tax folks, I'm trying to figure out if I need to bother with reporting Cost of Goods Sold on my tax return. My situation is that I run a small side business selling items that I get almost entirely for free (through donations, freecycle, family cleanouts, etc). For the whole 2024 tax year, I probably spent less than $150 total on actual inventory purchases. The rest was completely free to me, but I'm making decent sales from these items. It seems pointless to track and report COGS when my actual costs are so minimal compared to revenue. Would the IRS see it as a red flag if I just don't report any COGS? Or would I be better off just lumping that tiny $150 as a general expense somewhere else on Schedule C? I don't want to create problems for myself, but also don't want to overcomplicate things when my costs are basically nothing.
Wait, I thought Schedule C doesn't even have a place for COGS unless you check the inventory box? If you're getting stuff for free, can't you just leave that box unchecked and avoid the whole COGS section entirely?
That's not correct. If you're selling products (as opposed to just services), you need to check "Yes" to the inventory question on Schedule C, which then requires you to complete the COGS section. The fact that you acquired inventory for free doesn't change this requirement - those items still count as inventory with a zero cost basis. Trying to avoid the COGS section by incorrectly answering the inventory question would be misrepresenting your business operations and could create problems. The proper approach is to complete the COGS section accurately, even if many of your entries show zero cost.
I've been dealing with a similar situation in my resale business. One thing that helped me was understanding that the IRS Publication 334 (Tax Guide for Small Business) specifically addresses inventory valuation methods, including situations where you acquire goods at little to no cost. The key insight I learned is that even with zero-basis inventory, you still need to maintain proper records showing the flow of goods through your business. This actually protects you more than it hurts you - it demonstrates that you're running a legitimate business operation rather than just having unexplained income. For your $150 in actual purchases, definitely include those in COGS. For the free items, track them with zero cost but document the source (donations, estate sales, etc.). This creates a clear paper trail that supports your business model if you're ever questioned. Your high profit margin becomes explainable rather than suspicious when you have proper documentation showing legitimate acquisition methods.
Beatrice Marshall
Dose this work for amended returns to?
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Melina Haruko
amended returns are totally different beast my friend ๐
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KylieRose
This is super helpful! I've been trying to figure out my processing cycle for months. Just checked my 2023 transcript and my cycle code ends in 02 - so I'm on daily processing. No wonder I've been seeing random updates throughout the week instead of just Fridays like some people. Thanks for sharing this method, way better than guessing!
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