Is the DirectPay system pretty straightforward to use? And would I need to file any forms or just make the payment?

DirectPay is super easy to use - just go to IRS.gov and look for the "Pay" button. You'll need basic info like your SSN, name, address, and bank info (routing/account numbers). No forms needed to make the payment itself. You should still fill out the 1040-ES worksheet for your own records to calculate the correct amount, but you don't have to mail that in if you pay online. The system will give you a confirmation number - keep that for your records. Come tax time next year, you'll report this payment on your 1040 as estimated tax paid.

This is the approach I use! Way simpler than trying to calculate exact quarterly payments. I just make sure my withholding covers last year's tax bill and then I don't worry about my side hustle income until tax time.

Does the online account show if a check was issued and/or cashed? I'm having a similar issue with a missing refund and wondering if this would tell me what happened to it.

Yes, the online account will show if a refund was issued and the date it was sent. It doesn't specifically show if a check was cashed, but it does show the status as "refund issued" once they've sent it out. If your account shows the refund was issued but you never received it, that's when you need to request a trace (Form 3911) to determine if it was cashed or returned to the IRS. The account information at least confirms whether they actually sent something or if it's still being processed.

This is good to know! Does the interest get added automatically or do you have to request it specifically? And is it taxable income for the year you receive it?

The interest gets added automatically - you don't need to request it. The IRS system calculates it based on how long your refund has been delayed beyond the original due date of your return (not from when you actually filed if you filed late). And yes, unfortunately the interest is considered taxable income in the year you receive it. The IRS will actually send you a Form 1099-INT the following January if the interest is $10 or more, and you'll need to report it on your next tax return. Kind of ironic that they tax you on the interest they pay you for their own delay!

Yikes, that's exactly what I'm afraid of! Did they hit you with a big penalty? I'm definitely not trying to do anything that would trigger an audit... Thanks for the warning!

The penalty wasn't huge - about 20% on top of what I owed back - but I also had to pay interest on the unpaid amount. The bigger headache was going through the entire audit process, which was stressful and time-consuming. The agent actually wasn't mean about it since it's such a common misunderstanding. He explained that even though my employee handbook required me to wear Buckle clothes, they're still considered regular street clothes suitable for everyday wear. The test isn't whether they're required, but whether they could reasonably be worn outside work.

I work at a high-end jewelry store, and we can deduct our required black suits because we're specifically prohibited from wearing them outside work (it's in our contract). But that's different from regular retail clothes that you'd wear anyway.

Is Cash App Taxes really completely free? No hidden fees for filing state returns or anything? Seems too good to be true compared to paying $70+ with H&R Block.

Yes, it's actually completely free for both federal and state returns. No hidden fees or surprise charges. They make their money from the Cash App ecosystem and other financial services they offer, not from the tax preparation. The catch (if you want to call it that) is that it doesn't support some more complex tax situations like multiple state filings or foreign income. But for a basic married filing jointly return with W-2 income, it handles everything perfectly. I've used it for two years now with no issues and got my refunds quickly both times.

I used TaxSlayer last year after switching from H&R Block. It was about $30 cheaper for my situation (married filing jointly with a mortgage). The interface is decent but not as polished as H&R Block. It got the job done though and my refund amount matched what I was expecting.

That's a really good point I hadn't thought about. In this case, my client hasn't made any 2025 estimated payments yet - they were planning to rely entirely on the credit elect. If we amend now to get most of it refunded, would you recommend they start making quarterly payments right away to cover 2025 tax liability?

Yes, I would definitely recommend they start making quarterly estimated payments immediately. Since they're eliminating most of their credit elect cushion, they'll need to ensure they're meeting safe harbor requirements to avoid underpayment penalties. They should calculate their projected 2025 tax liability and make sure they're paying either 90% of that amount or 100% of their 2024 tax liability (110% if their AGI was over $150,000) through quarterly installments. The next deadline is September 16, 2024, so they still have time to adjust their payment strategy. I usually advise clients in this situation to slightly overpay estimates to provide a buffer, especially if they're close to the threshold where penalties might apply.

Filed one in May for a credit elect change and it took exactly 19 weeks to process. Got the refund direct deposited about a week after that. So roughly 5 months total from submission to money in account. This was a paper-filed amendment though, might be faster if you can e-file.