Has anyone had issues with their employer FSA administrator not processing reimbursements quickly? My daycare costs are due at the beginning of the month, but my FSA takes 3-4 weeks to reimburse me, creating a cash flow problem.

This is such a common confusion point! I went through the same thing last year and here's what I learned from my CPA: The key thing to remember is that you CAN use both benefits, but you cannot claim the same expenses twice. So with your $21,000 in childcare costs: 1. Use your $5,000 FSA first (this saves you taxes on that $5,000 based on your tax bracket) 2. You have $16,000 remaining expenses 3. For 2025, you can claim up to $3,000 of those remaining expenses for the Child and Dependent Care Credit (since you have one child) 4. The credit percentage depends on your AGI - it ranges from 20% to 35% So you'd get the tax savings from the FSA PLUS a credit of 20-35% on up to $3,000 of additional expenses. This is definitely not double dipping - it's exactly how the system is designed to work. One tip: make sure you keep detailed records of all your childcare payments and your provider's tax ID number. You'll need this for Form 2441 when you file. Also, some states have their own childcare credits that might stack on top of these federal benefits, so it's worth checking your state's rules too.

Filed with H&R Block on January 31st and still waiting here too. Starting to think this year is just different across the board. I've been checking my transcript weekly and finally saw some movement - got a 971 notice code last Friday but still no 846 deposit date. From what I'm reading here, it sounds like the IRS is just swamped this year regardless of which tax prep service people used. The fact that even CPA-filed returns are taking longer than usual tells me this isn't an H&R Block-specific problem. Really appreciate everyone sharing their timelines and experiences - helps me feel less like I'm the only one stuck in limbo!

Filed with H&R Block on January 26th and finally got my refund deposited yesterday (March 6th) - so about 38 days total. My return included CTC and a small amount of self-employment income, which I think put me in the "complex" category that's taking longer this year. What's frustrating is that the WMR tool never updated beyond "processing" even after my transcript showed the 846 code. For anyone still waiting, definitely check your transcript directly rather than relying on WMR - it's much more accurate. Based on all the experiences shared here, it really seems like 2024 processing is just slower overall regardless of prep method. The silver lining is that once the IRS actually processes your return, the deposit happens quickly.

As someone new to understanding IRS transcripts, this thread has been incredibly educational! I'm still learning how to read these codes, but from what everyone's explained, it sounds like your -$6,595 balance is actually great news - that's what they owe you! The way multiple people broke down how the 767 code was just correcting an error from your amended return rather than taking away money you deserved really helped me understand the process. I've been intimidated by my own transcript codes, but seeing this community explain everything so clearly gives me confidence that these systems, while confusing, do eventually work out. Hope you see that direct deposit soon! 🙏

As a newcomer to this community and someone still learning to decode IRS transcripts, this thread has been absolutely invaluable! I'm pretty new to understanding these codes, but from what I've gathered from everyone's detailed explanations, your situation looks really promising. The consistent message that a negative account balance like -$6,595 actually means the IRS owes YOU that money was a huge revelation for me - I would have assumed the opposite! I've been struggling with my own transcript codes and feeling overwhelmed by all the numbers, but seeing how this community breaks everything down step by step makes it so much less intimidating. The way multiple people explained that the 767 code was just an error correction from your amended return rather than them taking away money you deserved really helped me understand how the process works. It's frustrating how the IRS makes these codes so cryptic when they could just use plain English, but having knowledgeable community members like everyone here makes such a difference for those of us still learning. Hope you see that direct deposit hit your account soon! 🙏

Another option worth exploring is equipment financing specifically - many lenders offer competitive rates for business equipment purchases, and you can often finance 80-100% of the equipment cost with the equipment itself as collateral. This keeps your retirement funds intact while still getting the equipment you need. I'd also suggest running the numbers on tax-adjusted returns. That 300% return over 8-10 years might look different when you factor in the immediate tax hit from the withdrawal (potentially 22-32% depending on your bracket) plus the 10% penalty if you're under 59½. Don't forget to account for lost compound growth on those retirement funds over the same period. If you do decide to proceed with the withdrawal, consider timing it strategically - maybe split it across two tax years to avoid bumping into a higher bracket, or coordinate with other business expenses to maximize your deductions in the withdrawal year.

I'm dealing with a similar situation right now, though mine involves about $15k for manufacturing equipment. One thing I learned from talking to my accountant is that you might want to look into the timing of when you "place the equipment in service" versus when you make the withdrawal. If you withdraw the funds in December 2024 but don't purchase and start using the equipment until January 2025, you'll pay taxes on the withdrawal income in 2024 but can't claim the Section 179 deduction until 2025. This could put you in a higher tax bracket for 2024 with no offsetting deduction. Also, don't forget about state taxes if you're in a state with income tax - that adds another layer to the withdrawal cost that equipment depreciation might not fully offset. Have you calculated what the actual after-tax cost of the withdrawal would be versus a business loan? When I ran my numbers, even at 8% interest for equipment financing, I came out ahead compared to the combined federal tax, state tax, and 10% penalty hit from early retirement withdrawal. The math gets even more favorable for financing when you consider that loan interest is deductible as a business expense, so you're effectively getting a discount on the interest rate equal to your marginal tax rate.

Has anyone else noticed that a lot of accountants seem confused about S corp basis calculations? I've had three different CPAs give me three different answers about how to handle distributions when we've had prior losses.

I'd definitely recommend getting a second opinion on this. Based on what you've described, it sounds like your tax preparer might be misunderstanding something about your situation. The key issue is tracking your basis correctly. Your basis in the S corp stock starts with your initial investment, gets reduced by your share of losses, gets reduced by distributions you receive, and gets increased by additional capital contributions or your share of income. If you made additional capital contributions during 2024 (like the $75K you mentioned in another comment), those should increase your basis and likely eliminate any capital gains treatment on your distributions. Make sure your tax preparer has accounted for all capital contributions, not just your original investment. Also, if you've made any loans to the S corp (even informal ones where you paid business expenses out of pocket), those create "debt basis" which can help absorb losses and avoid capital gains on distributions. I'd suggest asking your tax preparer to show you the specific basis calculation they're using. They should be able to walk through: starting basis + capital contributions + income - losses - distributions = ending basis. If that number goes negative, only the negative portion would be capital gains. Don't just accept their conclusion without understanding the math behind it - this is a common area where even experienced preparers make mistakes.