Does anyone know if there's a time limit for claiming FICA refunds in this situation? I had to repay some bonus money from 2019 back in early 2022, but I'm just now learning I could've claimed the FICA taxes back.

This thread has been incredibly helpful! I'm dealing with a similar situation where I had to repay about $8,000 in wages from 2021. Based on what everyone's shared, it sounds like my first step should be contacting my former employer's payroll department to request the FICA refund directly. If that doesn't work out, I'll need to file Form 843. Quick question though - when calculating the FICA refund amount, do I need to include both the employee and employer portions, or just what was withheld from my paychecks? The employer matching contributions weren't technically "my" money to begin with, so I'm not sure if those are recoverable through this process. Also, has anyone had success getting their former employer to cooperate on this? I'm wondering if there's a specific way to approach them that's more likely to get results.

Has anyone used the IRS's Interactive Tax Assistant for this question? It literally has a tool specifically for determining if you should file jointly or separately. Saved me tons of research time!

Just to clarify a key point that might be confusing from your question - married couples cannot claim each other as dependents, period. That's not an option available to you. Your only choices are filing jointly or filing separately. Given your situation (you made $7,800 as a student, husband made $65,000), filing jointly will almost certainly be better. Here's why: 1. **Higher standard deduction**: $27,700 for married filing jointly vs. $13,850 each if filing separately 2. **Education credits**: As a student, you'll likely qualify for the American Opportunity Credit or Lifetime Learning Credit, which are more beneficial (or only available) when filing jointly 3. **Income averaging effect**: Your low income will help bring down your combined tax rate The only scenario where filing separately might make sense is if one of you has significant student loans on an income-driven repayment plan, since those payments are based on income. But even then, you'd need to calculate whether the loan payment savings outweigh the tax benefits lost. I'd strongly recommend running the numbers both ways before deciding, but for most couples in your situation, joint filing saves significantly more money.

Your husband definitely made a mistake. My tax guy always says your tax status is based on your status on December 31st of the tax year. If ur married on that day, you're married for the whole year according to the IRS. He needs to file an amended return ASAP with the correct status. If you both file differently, it'll trigger automated flags in the IRS system and potentially lead to both returns being audited.

This is exactly why I started using a professional tax preparer. The rules around filing status are so confusing especially with kids and marriage involved. The $300 I spend each year for professional prep has saved me thousands in avoided mistakes.

Don't wait for transcript updates - call the IRS verification hotline directly at 800-830-5084 to confirm your verification was processed correctly. Sometimes the online system doesn't sync properly, and you can lose weeks waiting for something that's stuck. Ask specifically if there are any other holds on your account besides the identity verification. If they say it's clear, request they expedite the release of your refund due to financial hardship if that applies to you.

I went through this exact process about 3 weeks ago and can share my timeline. After ID.me verification, it took exactly 9 business days for my transcript to show any movement. The key thing I learned is that the IRS systems update overnight, typically between 12am-6am EST, so checking first thing in the morning is most productive. One thing that helped me track progress was setting up IRS account notifications - they'll email you when there are transcript updates instead of you having to check manually every day. Also, don't panic if you see a 570 code appear first - that's actually a good sign that your verification went through and they're now processing your return. The 571 code (hold release) usually follows within 3-5 business days after that. My advice: check Wednesday and Friday mornings like Maya suggested, but don't stress about daily checking. The system will update when it updates, and constantly refreshing won't speed it up!

One thing to keep in mind is that you'll also need to make sure your S corp is paying you reasonable compensation through payroll (W-2 wages) if you're providing services to earn that 1099-NEC income. The IRS expects S corp shareholders who work in the business to take a reasonable salary before taking distributions. Since you're actively earning this income through your services, you can't just take it all as distributions - some portion needs to go through payroll with proper withholdings. This is a common oversight that can trigger IRS scrutiny.

Great question! Yes, you're handling this correctly. When the 1099-NEC is issued directly to your S corporation with the business name and EIN, that income should be reported on your Form 1120-S as business income. This is actually the proper way it should work once you've incorporated. One additional thing to consider - make sure you're tracking any business expenses related to earning that income so they can be deducted on the corporate return. Also, since you're actively providing services to earn this income, remember that you'll need to pay yourself reasonable compensation through payroll (W-2 wages) before taking any distributions. The IRS expects S corp shareholders who work in the business to receive reasonable W-2 wages for their services. It sounds like your clients are now properly issuing 1099s to your business entity rather than to you personally, which simplifies your tax situation going forward!