I tracked this exact scenario meticulously last year. TurboTax showed accepted on January 24th. Transcript showed absolutely nothing for exactly 26 days. Then suddenly my transcript updated with 16 different codes all at once. Refund deposited 8 days later. The systems are completely disconnected - I was shocked how the transcript went from empty to fully processed overnight with no intermediate steps!

This is totally normal and you're not alone! I went through the exact same panic last year. Think of it this way - TurboTax is like the post office confirming they received your package, but the IRS transcript is like the delivery tracking that doesn't update until it actually reaches the sorting facility. With PATH Act credits, your return is basically sitting in a special verification queue that doesn't show up on transcripts until they start processing it after mid-February. I filed January 31st last year, transcript showed nothing until February 22nd, then boom - everything appeared at once and I got my refund within a week. The waiting is torture but it doesn't mean anything is wrong! Just keep checking your transcript weekly rather than daily to save your sanity.

Pro tip: check your transcript again in about a week. Those zeros should start updating with actual numbers once they begin processing your return. The AS OF date might change too.

Those confusing dates are totally normal! The Request Date (Feb 17) being after the Response Date (Feb 16) happens because of time zones and when the IRS system processes requests vs generates the actual transcript. The "AS OF" March 3rd date is just the IRS's next processing cycle date - think of it like a snapshot date they use internally. All those $0.00 amounts are actually a good sign - it means your return was received and your filing status (Head of Household) is in their system, but they just haven't started the actual number crunching yet. The empty TRANSACTIONS section will populate with refund amounts, payment dates, etc. once they process everything. Since you filed for 2024, you're probably looking at 2-3 weeks before those zeros turn into real numbers. Keep checking weekly and you should see activity soon!

Anyone know what kind of penalties might be involved here? I'm in a similar situation and freaking out about potentially owing thousands.

I went through this exact same situation two years ago - claimed HOH while living with my parents rent-free and got audited. It's stressful but definitely manageable if you handle it right. The most important thing is to respond to the audit notice promptly and be completely honest about the situation. Don't try to create fake receipts or claim you paid expenses you didn't actually pay - the IRS can verify these things and it'll only make things worse. When I responded to my audit, I explained that I misunderstood the HOH requirements and thought that just supporting my child qualified me. I included documentation showing all the legitimate expenses I paid for my son (school supplies, medical bills, clothing, etc.) to demonstrate that I was genuinely supporting him, even though I couldn't qualify for HOH. The IRS accepted my explanation, I filed an amended return changing to Single status, and I was able to keep my dependent deduction. I did owe about $800 more in taxes plus some interest, but they waived the penalties since it was my first mistake and I cooperated fully. The key is showing good faith - admit the error, provide documentation of what you did pay for your daughter, and emphasize that this was an honest misunderstanding of complex tax rules. Most IRS agents are reasonable when you're upfront with them.

Lemme tell u from experience - don't deal with this yourself!!! Not worth the stress. I found taxr.ai when dealing with my dependent audit and it was a game changer. The site analyzed all my docs, pointed out what was missing, and even helped me draft my response letter. Showed me all the exact forms and papers I needed (saved me from sending a bunch of useless stuff too). Their tips on what to highlight for the auditor were gold. Best part is they review everything before you submit to catch anything missing. 100% recommend! https://taxr.ai

I went through this exact same situation with my partner's kids last year! The IRS is definitely targeting these types of claims more heavily now. Here's what saved us time and stress: I used taxr.ai to help organize our response. It analyzed our audit letter and gave us a customized checklist of exactly what documents we needed. We gathered everything systematically - school enrollment records showing our address, medical records we paid for, grocery receipts, utility bills, bank statements showing regular support payments. The key is being super organized and thorough in your first response. Don't send random documents - make sure everything directly supports either the "lived with you more than half the year" or "you provided more than 50% support" requirements. Also get a notarized letter from yourself giving him permission to claim the non-bio kids. We got approved on our first submission! The peace of mind was totally worth it. Check out https://taxr.ai if you want help organizing everything properly.

Just a heads up - even if you don't owe taxes because you're under the $250k exclusion, you STILL need to report the sale on your tax return! A friend of mine thought she didn't need to since she qualified for the exclusion, and ended up getting a notice from the IRS. When you sell, the title company reports the sale to the IRS using Form 1099-S. If the IRS gets that form but doesn't see the sale on your return, it can trigger questions. So make sure you complete Form 8949 and Schedule D even if your gain is fully excluded.

Great question! As others mentioned, you won't receive a tax form in the mail for your home sale - that's completely normal. The responsibility is on you to report it. Since you mentioned your gain is likely under $250k, you're probably in good shape for the exclusion, but definitely double-check that you meet the ownership and use tests (owned and lived in the home as your main residence for at least 2 of the 5 years before the sale). One thing I'd add to what others have said: make sure you keep detailed records of ALL your costs. Beyond the purchase price, don't forget to include: - Closing costs when you bought - Any capital improvements you made (new appliances, flooring, etc.) - Selling expenses (realtor fees, staging, repairs to sell) These all increase your basis and reduce your taxable gain. Even if you think you're under the $250k limit, it's worth calculating exactly to be sure. And as someone else mentioned, you'll still need to report the sale on Form 8949 and Schedule D even if the entire gain is excluded - the IRS will be expecting to see it on your return since the title company likely filed a 1099-S.