OMG this thread is EXACTLY what I needed!!! I've been freaking out because I'm also cycle 05 and stuck in PATH verification! It's my first time dealing with this and I was so worried something was wrong with my return. The information here is SO helpful - especially about the Thursday updates and what to look for on transcripts. I feel so much better knowing this is normal and there's actually a system to it! 🙏

I've been through this PATH verification process three years in a row now. Last year I got my DDD exactly 9 days after the PATH message appeared on WMR. The year before it was 12 days. This year it was only 7 days. It varies, but cycle 05 is definitely a Thursday update cycle. The transcript will update first, then WMR usually updates the following day or two. My experience is that once you get past PATH verification, things move pretty quickly.

I believe I might have some relevant experience to share. Last year, I was in a somewhat similar situation with my small consulting business. I initially had concerns about how tax credits would affect my quarterly projections, but after careful documentation and consultation, I found that treating the credits as a separate line item in my financial tracking worked best. It might be worth considering setting up a specific category in your accounting software to track these payments separately from your regular business income. This approach helped me maintain accurate projections while ensuring I had all the documentation ready for tax time.

Has anyone received Form 6419 from previous CTC advance payments? Is this still the documentation method the IRS is using for the 2024 tax year reconciliation process?

Let me try to clarify the timeline for Child Tax Credit payments: Step 1: For tax year 2021, the American Rescue Plan temporarily increased the CTC to $3,000-$3,600 and offered monthly advance payments from July-December 2021. Step 2: For tax year 2022, the CTC reverted to $2,000 per qualifying child. No monthly payments. Step 3: For tax year 2023 (what you're filing now in 2024), the CTC remains at $2,000 per qualifying child. Again, no monthly payments. Step 4: For tax year 2024 (what you'll file next year), the CTC is currently set at $2,000 per qualifying child unless Congress changes it. Does that help clarify which tax year you're asking about?

According to IRC Section 24(h)(2), the Child Tax Credit amount for 2023 is $2,000 per qualifying child, with up to $1,600 being refundable as the Additional Child Tax Credit under Section 24(i)(1). There were no advance payments issued for tax year 2023. The advance payment program was specifically authorized under the American Rescue Plan Act of 2021 (P.L. 117-2) and only applied to tax year 2021. If you received monthly payments, those would have been reconciled on your 2021 tax return filed in 2022, not on your current return.

I work at a tax firm and we're seeing this pattern with all our freelance clients: if you have Schedule C income, you need to amend to get the exclusion. It's different from the unemployment exclusion in previous years where the IRS did most adjustments automatically. Think of it like the difference between a rebate check (automatic) versus a tax credit you have to claim (requires action). Your unchanged transcript is similar to what we're seeing with other freelancers - the IRS computer system simply isn't programmed to automatically detect and apply this particular exclusion for most 1099 workers.

I waited 3 months thinking they'd adjust my return automatically because that's what they did with my unemployment income exclusion back in 2021. Complete waste of time! Finally called and found out I needed to amend. Submitted my amendment in April and just got the adjusted refund last week. Could have had that money months earlier if I'd known. The really frustrating part? My neighbor who had unemployment income (not freelance) got his adjustment automatically without doing anything. The system makes no sense.

Word of warning from someone who's been there - don't wait for the IRS letter method to work before taking action. 😅 I sent a letter similar to what you're planning and waited... and waited... and waited. Six months later, I got a form response suggesting I file Form 4852. By then, I was dealing with failure-to-file penalties that took another three months to get removed. The IRS mail system is... how do I put this nicely... not exactly known for its speed. File that extension ASAP while you work on getting the actual information!

Based on collective experience from this sub, your most efficient path forward is: 1. Request your Wage and Income Transcript from irs.gov/transcripts 2. File Form 4852 using data from your last paystub or transcript 3. Submit Form 3949-A to report the employer's failure to provide W-2 4. File Form 4868 for an extension if needed The consensus here is that waiting for employer compliance rarely works if they've already missed the deadline by this much. The IRS actually has your wage data in their system already - employers submit this information separately from sending you your copy. Your focus should be on accessing that information rather than waiting for an uncooperative employer.