Just to clarify something I'm seeing in some of the responses - the key date is December 31st of the tax year. If your son turned 18 in December 2023, that means he was 17 at the beginning of 2023 and turned 18 during the year. For Child Tax Credit purposes, he needed to be under 17 at the end of the year (December 31, 2023) to qualify. I had a similar situation when my daughter turned 17 in November a couple years back. I remember being disappointed to lose that credit, but was still able to claim her as a dependent for other purposes. Double-check your son's birthdate against these requirements just to be certain.

I went through this exact situation two years ago when my son turned 18 in November. The age cutoff rules can be really frustrating, especially when you're used to getting certain credits year after year. Just want to add one thing that helped me - make sure you keep detailed records of his college expenses if he's starting school. Even though you lose the Child Tax Credit, education credits like the American Opportunity Tax Credit can actually be more valuable (up to $2,500 vs the $2,000 CTC). You'll want to save all tuition statements, book receipts, and required fee documentation. Also, if your son has any part-time job income, make sure he understands whether he needs to file his own return. The IRS gets copies of his W-2s regardless, so coordination between your returns is important to avoid any complications with dependent claims. The silver lining is that this is typically a one-time adjustment year. Once you navigate it this time, you'll know exactly what to expect going forward!

turbotax has been sus lately ngl. might switch to hr block next year

Same boat here! Filed 8 days ago through TurboTax and still showing pending. Called their support and they said it's just heavy volume this season. The waiting is killing me though - really need that refund for some bills coming up. Fingers crossed we both see movement soon! 🤞

Pro tip: you can call the IRS automated system at 800-829-1040 and it will tell you if you have any outstanding balances. No need to wait for a human. Just have your SSN and filing status ready. It's how I check if I owe anything before I file each year.

Just wanted to add that you should also check if you have any estimated tax payment requirements for this year to avoid being in this same situation again. Since you had to pay additional taxes on your amended return, it might mean your withholding or estimated payments weren't quite right. The IRS generally expects you to pay as you go throughout the year, either through payroll withholding or quarterly estimated payments. If you end up owing more than $1,000 when you file, you might be subject to underpayment penalties next year even if you pay on time. You can use Form 1040ES to calculate if you need to make estimated payments for the current tax year. Better to stay ahead of it than deal with another surprise balance later!

I think there's confusion about how SBTPG compares to regular banks. When you see people posting that their bank released their tax refund early, that's usually with direct IRS deposits. SBTPG is different because they're a third-party processor - they have to wait until they actually receive the funds from the IRS, then they take out any tax prep fees you might owe, and only then do they forward the remainder to your bank account. In my experience last year, my credit union showed the deposit exactly on the DDD around noon, while my sister with Chase didn't see it until the next morning even though we had the same DDD.

As someone who's been through this exact situation, I can confirm that SBTPG will stick to your DDD of 2/25 - they won't release it early. I had a similar DDD last month and spent way too much time refreshing my bank app expecting it to show up early (spoiler: it didn't!). What I learned is that SBTPG operates differently from regular banks that might post IRS refunds a day early. They receive the funds from the IRS on your DDD, process any fee deductions if applicable, then initiate the transfer to your bank account. In my case, the money hit my account around 2 PM on the exact DDD date. Since you're so organized with your budgeting (love the spreadsheet prep!), you can confidently plan for the funds to be available on 2/25. The waiting is the hardest part, but at least you know exactly when to expect it!

Has your CPA discussed the potential benefits of a tax-free reorganization under Section 368? Depending on your specific situation, there might be ways to restructure the company that could facilitate the ownership transition with more favorable tax treatment.

One strategy that hasn't been mentioned yet is considering a self-canceling installment note (SCIN). This could be particularly valuable given your mom's desire to step back from the business and your 5-7 year timeline. With a SCIN, your mom would sell her shares to you and your sister in exchange for installment payments, but the note automatically cancels if she passes away before it's fully paid. This provides several benefits: it removes the remaining unpaid balance from her estate for tax purposes, gives her income during her lifetime, and allows you to potentially acquire the shares at a discount to reflect the cancellation risk. The payments would need to be higher than a regular installment sale to account for this risk, but it could provide significant estate tax savings if structured properly. This approach works particularly well when the selling family member is older or has health concerns. You'd definitely want your attorney and CPA to model this carefully, as the IRS has specific valuation requirements, but it's worth exploring alongside the other options mentioned here.