This is a frustrating but unfortunately common situation. I went through something similar a few years ago and learned that timing is everything here. Since you mentioned this is for your first mortgage payment as newlyweds, here are some immediate steps: 1) Call your bank again TODAY and specifically ask to speak with their "Exception Processing" or "Funds Availability" department - not just customer service. Use those exact terms. 2) Explain that this is causing financial hardship due to a mortgage payment deadline. Many banks have expedited review processes for documented hardships. 3) Request they separate the hold on just the tax refund from your pre-existing account balance - there's no legal reason they should restrict funds that were already in your account. 4) Get a reference number for your case and ask for a supervisor's direct contact information. The marriage factor might actually be relevant here - if your tax return shows a different name than what's on your bank account (maiden name vs married name), that could be triggering their fraud detection system. If that's the case, bringing in your marriage certificate might help resolve this faster. Also, definitely contact your mortgage servicer today to explain the situation. Most will work with you if you're proactive about communication rather than waiting until after you miss the payment.

I'm dealing with something similar right now! My bank froze my account after a tax refund deposit last week. What's really frustrating is that they won't even let me access the money that was already in there before the refund hit. After reading through all these responses, I'm realizing I need to be way more aggressive about this. I called once and just accepted their "we'll review it" response, but clearly that's not enough. Going to call back today and specifically ask for the Exception Processing department like someone mentioned above. Has anyone had success getting their bank to release just the pre-existing balance while they review the refund portion? That seems like it should be a reasonable compromise since those funds weren't part of whatever triggered their system. Also planning to file that CFPB complaint - didn't know that could speed things up so much. This whole situation is such a nightmare when you have bills due!

Has your son considered taking the mother back to court to update the custody agreement? If the actual situation doesn't match the legal documents, that's a problem for tax purposes. The IRS generally follows the custody agreement. If he can get the agreement modified to reflect reality (that the child lives with him/you most of the time), it would be much easier to legitimately claim the child on taxes going forward. Also, make sure to look into the Child Tax Credit and the Credit for Other Dependents. Depending on your income and situation, you might qualify for one of these if you're able to claim your granddaughter.

I went through something very similar with my grandson a few years ago. The situation you're describing - where you're providing all the care but someone else has legal custody - is unfortunately common. Here's what I learned: The IRS uses what's called the "tie-breaker rules" when multiple people could potentially claim the same child. Generally, the parent with whom the child lived for the greater number of nights during the year gets to claim them. But when parents aren't living together, the custodial parent (according to the divorce decree or separation agreement) typically has the right to claim the child. However, there's an important exception: if you can prove that your granddaughter lived with you for more than half the year (183+ nights) and you provided more than half of her support, you might be able to claim her as a "qualifying relative" rather than a "qualifying child." My advice: Start documenting everything NOW for next year's taxes. Keep a detailed calendar of where she sleeps each night, save every receipt for her expenses, and get letters from her school, doctor, etc. showing your address as her primary residence. You might also want to consult with a tax professional who specializes in family situations like this - the rules can be tricky but there are often ways to make it work legally.

Has anyone used FreeTaxUSA for this kind of situation? I'm in the same boat (1099-K with about $15k but actual profit only $280) and wondering if it handles this well. TurboTax keeps trying to charge me extra for the Schedule C even though I barely made anything.

This is such a common confusion point! I went through the exact same thing last year with a similar situation - 1099-K showing around $19k but net profit of only $320 after legitimate business expenses. Here's what I learned after researching extensively and talking to a tax professional: Even though you're under the $400 self-employment tax threshold, you should still file a return with Schedule C to report the income and expenses. The key reason is that the IRS already knows about that gross income from PayPal's 1099-K reporting. If you don't file, their automated matching system will likely flag the "missing" income and you could get a CP2000 notice asking you to explain the discrepancy. It's much easier to file now showing how your expenses reduced that gross amount to under $400 than to deal with notices later. You won't owe any self-employment tax since you're under $400 net profit, and if this was your only income and you're under the standard deduction, you probably won't owe any income tax either. But filing creates a clear paper trail that prevents future headaches with the IRS matching system.

I want to emphasize something that might get overlooked in all the technical discussion - make sure you and your daughter are on the same page about this decision before filing. Even though you're providing most of the support, this can create family tension if not handled carefully. From a practical standpoint, you'll want to calculate whether claiming your granddaughter actually benefits your family more than if your daughter claims her. Sometimes the parent might qualify for credits (like EITC or additional CTC) that could be worth more than what you'd get, especially if they're in a lower tax bracket. Also, keep in mind that once you start claiming her, you'll need to be consistent about it or have clear agreements about alternating years. The IRS doesn't like seeing the same child bouncing between different tax returns without proper documentation. One more thing - if your daughter receives any government benefits that are based on household size or dependents, claiming the child on your taxes might affect her eligibility. Worth checking before you file.

This is exactly the kind of complex family situation where getting professional advice can save you from costly mistakes. As others have mentioned, you'll need to navigate the qualifying child vs. qualifying relative tests, and document everything carefully. One thing I'd add is to consider the timing of when you establish this arrangement. If you're going to claim your granddaughter, it's better to have all the documentation and agreements in place before the tax year ends rather than scrambling at filing time. Also, don't forget about state tax implications - some states have different rules or additional credits for dependents that might factor into your decision. The federal rules are complex enough, but state rules can sometimes tip the scales one way or another. Keep detailed records not just of direct expenses like food and clothing, but also indirect costs like the increased utilities, housing space, and transportation costs related to your granddaughter. These all count toward the support calculation and can really add up over a full year.

Great question about audits and recent changes! I've been reporting gambling income using the session method for about 4 years now and haven't been audited, but I did have a close call that taught me a lot about record-keeping. Two years ago, I received a CP2000 notice from the IRS because they had records of a W-2G that I thought I had reported correctly, but there was a discrepancy in how I calculated it. It turned out I had mistakenly netted the W-2G amount against session losses instead of reporting the full W-2G amount. The detailed gambling diary and photos of my players club statements that people mentioned in this thread were exactly what saved me - I was able to provide documentation showing my actual play and losses, and the IRS accepted my corrected return without penalties. As for recent changes, the main thing to be aware of is that the IRS has been getting better at matching gambling income reports. Casinos are required to report W-2Gs and other large transactions, and the IRS computer systems are getting more sophisticated at flagging discrepancies. This makes good record-keeping even more important. One thing that's helped me is treating my gambling record-keeping like a business - I use a simple spreadsheet with columns for date, casino, games played, buy-in amount, cash-out amount, and net result. At year-end, it's easy to sum up winning sessions vs. losing sessions. The consistency everyone's mentioned really is key!

This thread has been absolutely fantastic for understanding gambling tax reporting! As someone who just started seriously tracking my casino visits this year, I was completely lost on the session method until reading through all these detailed explanations and real-world examples. One thing I wanted to add that might help other newcomers - I've found it really helpful to photograph my buy-in receipts and cash-out tickets at the casino, in addition to keeping the detailed diary everyone mentioned. This creates a visual backup of the paper trail that complements the written records. Plus, if you ever lose a physical ticket, you have the photo as backup documentation. I'm also curious about something that hasn't been discussed much - what about promotional credits or free play that casinos give you? I've received some free slot play credits as part of promotions, and I'm not sure how to handle those in my session tracking. Do you treat the promotional credits as part of your "buy-in" amount, or do you handle them differently since you didn't actually spend cash on them? The emphasis throughout this thread on consistency and good record-keeping has really given me confidence that I can handle this myself rather than paying for professional help. Thanks to everyone who shared their experiences - this is exactly the kind of practical guidance that makes tax season less stressful!