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.

Does FreeTaxUSA import your info from previous years if you're switching from TurboTax? And can it handle self-employment income without charging extra like TurboTax does?

FreeTaxUSA can't directly import your data from TurboTax, but you can upload a PDF of last year's return and it will pull some of the basic info. You'll need to enter some things manually the first year, but after that, it remembers your info for future years. Yes, it handles self-employment income without charging extra! That's actually one of the main reasons I switched. TurboTax wanted to charge me an extra $120 just because I had a small side business, but FreeTaxUSA includes Schedule C in their free version. The only thing they charge for is state filing (about $15) and audit assistance if you want it.

I've used both H&R Block and TurboTax. H&R Block's interface isn't as slick but I actually found it more straightforward. They also have fewer upsells in my experience. Never had any data issues like what you're describing with TurboTax.