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Pro tip: If you used direct deposit, check your bank account directly instead of just relying on the Where's My Refund tool. Sometimes the money gets deposited before the tool updates. Happened to me last year - I was checking the tool daily while the money was already sitting in my account for 3 days!
This happened to me too! I was freaking out because the status was stuck on "return received" for weeks, then randomly checked my bank account and boom - full refund was there. The IRS tracking system can definitely lag behind the actual deposit.
Exactly! The IRS systems don't always communicate with each other in real-time. The processing department might release your refund while the status update for the tracking tool is queued in a different system. Another thing to check is whether you have any past-due federal or state debts. Things like unpaid student loans, child support, or state taxes can result in your refund being offset (reduced) or delayed. The Where's My Refund tool doesn't always show this information clearly.
Did you check both the IRS website AND the IRS2Go app? Sometimes one updates before the other. Also make sure ur entering the EXACT info from ur return - even a dollar off will give u the "information can't be found" message.
this happened to my brother last year and he ended up getting a notice from the irs about 2 weeks later saying the payment didnt go thru. they gave him like 10 days to fix it before penalties kicked in. make sure ur checking ur mail everyday!!
Do you know if he got the notice by email or regular mail? I'm moving soon and worried I might miss something important from the IRS.
definitely regular mail. the irs almost never emails people (usually its a scam if you get an email claiming to be irs). my brother said the letter was pretty clear and gave him options for how to pay. just keep an eye on your mailbox! if ur moving make sure u fill out a change of address form with the irs - they have a specific form for it called 8822 i think. regular post office forwarding doesnt always work for irs stuff.
Make a payment through DirectPay NOW!!! I had this exact thing happen to me in 2021 and thought I'd just wait for the rejection notice. Big mistake. The incorrect bank account happened to be a valid account (just not mine) and the payment "went through" but then was returned a week later. By then I was past the deadline and got hit with penalties.
I'm a tax preparer and I see this situation all the time. File your 2024 return on time no matter what! The systems for different tax years are separate, so a new return won't interfere with resolving the old ones. You can request an automatic extension until October if you need more time to gather documents, but remember that any taxes owed are still due by the April deadline. One thing to check: did you elect to apply any portion of previous refunds to this year's taxes? If so, that could complicate things since those credits might be in limbo. Make sure your 2024 return doesn't rely on carryover credits from those unprocessed returns.
What about amended returns? I'm in a similar situation but need to amend my 2023 return. Should I wait until my original 2023 return finishes processing before filing the amendment?
Yes, for amended returns you absolutely need to wait until the original return has been processed before filing the amendment. The IRS can't process an amendment to a return that hasn't been processed yet - it would just create more confusion in the system. If you file an amendment before the original return is processed, it will likely be rejected or get stuck in processing limbo. Wait until you can verify your original return has been processed (check your transcript or account online) before submitting Form 1040-X.
Has anyone tried requesting a Taxpayer Advocate? I had a similar issue last year and the local Taxpayer Advocate Service office was able to resolve it within 6 weeks after I'd been stuck for almost a year. You have to show that you're experiencing a financial hardship though, like facing eviction or utility shutoff, or that the IRS has made the same error repeatedly.
One thing to consider - if you can't afford to pay the additional tax right now, don't ignore the notice! You can set up a payment plan on the IRS website pretty easily. I had to do this last year when I got hit with a surprise $3,600 tax bill. The online payment agreement lets you choose monthly payments that fit your budget. The interest rates aren't great, but they're better than ignoring it and getting hit with bigger penalties later. Just search "IRS payment plan" and you'll find the application.
Thank you for mentioning this. If I end up owing the full amount, a payment plan might be my only option. Do you know if they run a credit check or anything for these payment plans?
They don't run a credit check for standard payment plans. The IRS offers short-term plans (paying within 180 days) with no setup fee, or long-term plans with a small setup fee. For amounts under $10,000, it's usually automatic approval as long as you've filed all required tax returns. The current interest rate is around 7% annually, plus a small failure-to-pay penalty of 0.25% per month while you're on the plan. Still way better than ignoring it and getting hit with the full 0.5% monthly penalty plus potential collection actions.
Make sure you check the letter carefully for any signs it might be a scam! Real IRS letters have a notice number (like CP2000) in the upper right corner. Scammers are getting really good at making fake IRS notices. The real IRS never asks for payment via gift cards, wire transfers, or cryptocurrency. And they'll never threaten immediate arrest or deportation. If the letter seems fishy, you can always call the IRS directly at their main number (not a number listed in the letter) to verify it's legitimate.
This is really important advice. My parents almost fell for a scam last year that looked EXACTLY like a real IRS letter. The only thing that tipped me off was they wanted payment through Zelle.
Isabella Russo
If your bonus was $4,200 and you got $2,400 after taxes, that actually sounds about right. Remember that withholding includes: - Federal income tax (22% for supplemental wages) - Social Security (6.2%) - Medicare (1.45%) - State income tax (varies by state, but often 5-9%) - Local taxes in some areas - Any retirement contributions that come out automatically So hitting 43% total withholding is unfortunately pretty normal. The good news is you might get some back when you file, especially if you're in a tax bracket lower than 22%.
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James Johnson
ā¢Thanks for breaking that down! My state tax is about 6% and I do have a 5% 401k contribution that's automatic on all my income. When you add it all up, I guess it does get close to that 43%. Do you know if there's any way to adjust withholding specifically for bonuses? Or am I just stuck with this high withholding rate?
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Isabella Russo
ā¢Unfortunately, you generally can't adjust withholding specifically for bonuses. The IRS rules for supplemental wages are pretty rigid - employers must withhold at either the flat 22% rate or use the aggregate method. Your best option is to adjust your W-4 withholding on your regular paychecks to compensate if you're consistently getting large bonuses. But be careful not to underwithhold too much or you could face penalties. The IRS withholding calculator can help you find the right balance.
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Rajiv Kumar
I remember when I first started getting bonuses and was shocked at the withholding too! One trick I learned: if you know a bonus is coming, temporarily increase your 401k contribution to the max for just that pay period. The bonus gets diverted to retirement pre-tax, and you avoid the heavy withholding. Then you can switch your contribution back to normal afterward. It's a nice way to boost retirement savings and avoid the tax shock. Just make sure you're not depending on that bonus cash for immediate expenses if you do this!
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Aria Washington
ā¢Smart move! Does this work if your company has a separate bonus check? Mine always issues bonuses as a completely separate payment from regular payroll.
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