22 Quick tip from someone who's been there - if you're filing late for your partnership, include a letter explaining that you're first-time business owners who were unaware of the filing requirements. The IRS often waives penalties for first-time filers if you have a reasonable explanation!

Just to add to the excellent advice already given - don't forget that even though you haven't started operations, you may still need to obtain an EIN (Employer Identification Number) if you haven't already. The IRS requires partnerships to have an EIN for filing Form 1065, regardless of activity level. Also, make sure to keep detailed records of that laptop purchase including the receipt, date of purchase, and business purpose documentation. Even though it's a simple expense, proper documentation will be crucial if you ever get audited. The IRS likes to see clear business purpose for all deductions, especially in the early years when partnerships haven't established revenue patterns. One more thing - consider setting up a separate business bank account if you haven't already. It makes tracking expenses much easier and shows the IRS you're treating this as a legitimate business entity rather than just a personal venture.

@297b08930051 I totally get your frustration! I went through this exact same confusion during my first tax season here in the US. The whole Pathward situation is like trying to track a package that goes through a distribution center you can't access - which is basically what's happening! Here's what I wish someone had told me upfront: When you chose to have H&R Block deduct their fees from your refund, your money takes this route: IRS → Pathward (they grab H&R Block's cut) → Your bank account. Pathward is essentially just H&R Block's behind-the-scenes payment processor, not a bank you can log into or interact with directly. For tracking your refund, stick to these two reliable sources: • **H&R Block online account** - Log in and look for "Check Refund Status" or "E-file Status" • **IRS Where's My Refund tool** at irs.gov - This is usually the most up-to-date and accurate Pro tip: Once the IRS tool shows your refund as "sent," expect an additional 2-4 business days for Pathward to process the fee deduction and forward the rest to your bank. Don't worry about over-preparing with documents - that's actually smart! It's the follow-up process that nobody explains well. You're definitely not alone in feeling lost in this "tax maze" - the system really is unnecessarily complicated for newcomers. Hang in there, you've got this! 😊

@297b08930051 I totally understand your frustration - I went through this exact same confusion when I first started filing taxes! The Pathward situation is honestly one of the most poorly explained parts of using H&R Block, and you're definitely not alone in feeling overwhelmed. Here's the key thing that helped me finally understand: Pathward isn't actually a bank account you can access. It's more like a temporary holding station that H&R Block uses to collect their fees before sending your refund to your real bank account. Think of it as: IRS sends refund → Pathward takes H&R Block's cut → remainder goes to your bank. To track your refund status, you'll want to check: • Your H&R Block online account (look for "Check Refund Status" or "E-file Status") • The IRS "Where's My Refund" tool at irs.gov (this is usually the most accurate) The IRS tool will show when they've sent your refund, and then you typically wait 2-4 business days for Pathward to process everything and send the money to your actual bank account. Don't feel bad about being confused - they really don't explain this process clearly upfront! The fact that you're being proactive about tracking everything shows you're doing great. Once you get through this first tax season, it'll all make much more sense for next year. You've got this! 😊

I went through this exact same situation about 3 months ago and completely understand your stress! The "Action Required" message is definitely scary when you first see it, but it's actually become pretty routine lately. Since you mentioned claiming education credits, that's almost certainly what they want to verify. The IRS has really increased verification requests for education-related credits this year. When I got my letter (CP05), they wanted my 1098-T form, proof of tuition payments, and enrollment verification. Here's what helped me get through it: - Start gathering your education documents now - 1098-T forms, tuition receipts, bank statements showing payments - When the letter arrives, read it carefully and respond with exactly what they ask for - Use certified mail with return receipt when sending documents - Be patient - it took about 7 weeks after I responded to get my refund, but I did get the full amount The codes you're seeing on your transcript (570 and 971 on the same date) are actually good news - it means they're just requesting verification, not adjusting your return. I know the waiting is awful when you need that money, but this really is just routine verification. As long as your education expenses were legitimate, you'll get your refund! Hang in there - you've got this! 💪

I went through this exact same thing last year with education credits! The "Action Required" status is definitely nerve-wracking at first, but it's actually super common now - especially for education-related credits like the American Opportunity Credit. When I got my CP05 letter, they wanted my 1098-T form, receipts showing actual tuition payments, and proof I was enrolled at least half-time. The whole verification process took about 6 weeks after I responded, but I got my full refund with no changes. Here's what I'd recommend doing right now: - Gather your 1098-T forms and any tuition payment receipts/bank statements - Get enrollment verification from your school if you claimed AOTC - Make copies of everything before sending anything The 570 and 971 codes you're seeing on your transcript are actually good news - they indicate a verification request, not an adjustment. When your letter arrives (should be within the next week or two), respond immediately with exactly what they ask for and use certified mail with return receipt. I know waiting is stressful when you need that refund, but this really is just routine verification. As long as your education expenses were legitimate, you'll get your money! The IRS is just being extra cautious with education credits lately. Hang in there - you've got this! 💪

20 Quick question guys - I'm using TurboTax Business for our partnership filing with no income. Does anyone know if I still have to pay the full price even though we have basically nothing to report?

Just went through this exact situation last month! We formed our LLC partnership in September but didn't start generating revenue until January. You absolutely need to file Form 1065 even with zero income - the IRS considers you "in business" once you've made that first business purchase (your printer). For online filing, I'd recommend checking out FreeTaxUSA Business - it's much cheaper than TurboTax but still handles e-filing perfectly. Since you only have minimal activity, you'll probably qualify for their basic tier. The form will show your printer as a business asset and any setup costs as startup expenses. Pro tip: Make sure to keep detailed records of that $350 printer purchase and any other business expenses, even small ones. You'll need the dates and amounts for your first filing, and it establishes good bookkeeping habits for when your craft business takes off! The March 15th deadline is coming up fast, so don't wait too long. If you're cutting it close, you can always file for an automatic extension using Form 7004.

One thing nobody has mentioned yet is that the form 8962 repayment limitation is income-based, so it varies depending on your household income as a % of the federal poverty level. If your income is just slightly above one of these thresholds, you might be able to reduce your income enough to qualify for a lower repayment limit. For 2024 returns (filed in 2025), I believe the limits are: - Under 200% FPL: $350 single/$700 family - 200-300% FPL: $950 single/$1,900 family - 300-400% FPL: $1,500 single/$3,000 family - Over 400% FPL: No limitation, full repayment

I've been dealing with Form 8962 repayment limitations for a while now, and one thing that really helped me was understanding the timing of when to report income changes to the marketplace. If you know your income is going to be higher than expected (like getting a bonus or new contract), you can actually report this change during the year and reduce your advance premium tax credit payments. This prevents you from having to pay back as much at tax time, even with the repayment limitation protection. The key is to report changes within 30 days if possible. I learned this the hard way after two years of hitting the repayment cap. Now I check my projected annual income every quarter and update the marketplace if there's a significant change. It's made my tax filing much smoother and reduced the amount I have to repay each year.