This is definitely a tricky situation! I'd recommend being very cautious here. Even if the IRS made an error, you could still be on the hook for penalties and interest if you spend money that wasn't rightfully yours. Here's what I'd do in your shoes: 1. Don't cash the check immediately - deposit it into a separate savings account that you won't touch 2. Get your 2022 account transcript as others suggested to see all payments/credits 3. Review your 2022 tax return AND any amendments you filed - look specifically at estimated tax payment lines 4. If you used a tax preparer or accountant, contact them to review your records The fact that you had K-1s and amendments makes this more complicated. Sometimes estimated payments get applied incorrectly between tax years, or there can be duplicate reporting of payments on amended returns. I'd also suggest keeping detailed records of all your communications with the IRS about this issue. If they do come back later claiming it was an error, having documentation of your good faith efforts to resolve it could help with penalty abatement. Better to be safe than sorry with a $12k+ situation!

The statute of limitations for the IRS to recover erroneous refunds is generally 2 years from the date the refund was issued, but there are some important exceptions to be aware of. If the IRS can show the refund was obtained through fraud or misrepresentation, there's no statute of limitations - they can come back indefinitely. However, in your case where it appears to be an IRS processing error rather than anything you did wrong, the 2-year rule would likely apply. That said, the clock starts ticking from when the refund check was issued, not when you cash it. So even if you hold onto the money, the IRS still has that full 2-year window to realize their mistake and demand repayment. One thing to keep in mind - if this refund is related to your 2022 amendments that involved K-1s, the IRS might still be processing corrections from the partnership level that could affect your individual return. Partnership audits and corrections can take years to work through the system, and any adjustments could potentially impact this refund. I'd definitely recommend getting that account transcript and reviewing your amendment paperwork carefully. With complex K-1 situations, it's not uncommon for estimated payments to get misapplied or double-counted during the amendment process.

Just wanted to add something that might help - if your wife's employer won't budge on mileage reimbursement, she should at least make sure she's maximizing any other benefits they offer. Some home health companies provide things like cellphone allowances, uniform allowances, or continuing education reimbursements that can help offset some of the unreimbursed driving costs. Also, I'd suggest having her document not just mileage but also the time spent driving between clients. If she's clocking out at one location and driving unpaid to the next, that's unpaid work time that affects her effective hourly rate. Sometimes when employers see the full picture - including how much unpaid time employees spend transitioning between clients - they're more motivated to either provide reimbursement or adjust scheduling to minimize excessive driving. One more thing: if she ends up needing to buy a more fuel-efficient car because of all the driving for work, keep those receipts too. While she can't deduct it now, having documentation of work-related vehicle purchases could be useful if the tax laws change or if she ever transitions to contractor status.

You're absolutely right to be thinking ahead about this! As others have mentioned, the TCJA eliminated unreimbursed employee expense deductions for W-2 employees through 2025, so direct mileage deductions aren't available right now. However, I'd encourage your wife to start tracking everything meticulously from day one. Use a mileage log app or even just a simple notebook - record date, odometer readings, destinations, and business purpose for each trip. This creates a paper trail that's valuable for several reasons: 1. **Employer negotiations** - Having concrete data about miles driven and costs incurred gives you real numbers to present when requesting reimbursement programs 2. **Future tax changes** - If Congress doesn't extend the TCJA provisions past 2025, employee deductions could return 3. **Documentation for any classification issues** - If there are ever questions about employee vs. contractor status Also, make sure she understands what qualifies as deductible business mileage vs. commuting. Generally, travel from home to a regular workplace is considered commuting (not deductible), but travel between different work locations during the workday is business travel. Since she goes directly to client homes rather than reporting to an office first, the rules might be more favorable than typical commuting situations. Worth having a conversation with a tax professional who deals with healthcare workers - they often see these situations and know the nuances better than general preparers.

Has anyone tried using both FreeTaxUsa and Cash App Tax by entering the same tax information to see if they give different refund amounts? I've heard that different software can sometimes calculate things slightly differently.

Great question! I've been using FreeTaxUsa for the past three years and it's been solid for my situation. As someone who also has self-employment income, I can confirm it handles Schedule C really well and walks you through all the common deductions like home office, business expenses, etc. One thing I'd add to the discussion is that FreeTaxUsa has a really nice feature where you can save your return and come back to it multiple times before filing. I usually start my taxes early and work on them in chunks, so being able to save progress is huge for me. The $14.99 state filing fee is a bit of a bummer compared to Cash App Tax's free state filing, but honestly the interface and thoroughness of FreeTaxUsa has been worth it for me. Their tax guidance is really comprehensive - they explain WHY you might qualify for certain deductions rather than just asking yes/no questions. For your investment income, both should handle basic stuff like dividends and capital gains just fine. If you have more complex investment situations (like wash sale rules or partnership income), FreeTaxUsa tends to have better explanations of how to report those correctly.

Just got my refund on Green Dot yesterday - March 21st! My official DDD was March 22nd, so they did release it one day early. I filed on February 3rd and got accepted the same day. Had to wait through the whole PATH Act delay since I claimed EITC. The money showed as pending at first around 9am, then fully available by 2pm. Hope this helps with your timeline expectations!

Thanks for sharing your experience @Amina Diallo! That's actually really encouraging to hear that Green Dot did release your refund a day early. I'm in a similar situation with the PATH Act delay since I claimed EITC too, so it's helpful to see the timeline from someone who just went through it. Did you notice any specific time of day when the pending status changed to available? I'm trying to figure out if I should be checking morning, afternoon, or if it's pretty random. Also curious - did you get any notifications from the Green Dot app when the deposit hit, or did you just have to keep checking manually?

I messed this up last year and just paid the 6% excess contribution penalty becuz I didn't understand recharacterization. DON'T DO WHAT I DID! The penalty repeats every year until you fix it too. For what it's worth, I use Fidelity and when I finally called them about fixing it this year, they were super helpful. They walked me thru the recharacterization process over the phone. Their system automatically moves the proportional amount of earnings too, so I didn't have to calculate anything.

This is such a helpful thread! I'm in a similar boat - discovered I'm over the income limit after already contributing. One thing I want to add for anyone else going through this: make sure to check if your employer offers after-tax 401k contributions with in-service withdrawals. My HR department told me about this option which might be better than the backdoor Roth route depending on your situation. You can contribute way more than the IRA limits (up to $70k total including employer match for 2024), and if your plan allows it, you can roll the after-tax portion directly to a Roth IRA. Just another option to consider alongside recharacterization. Every situation is different but it's worth exploring all your retirement savings strategies when you're in the higher income brackets.