This is such a common issue during tax season! I work as a tax preparer and see this exact problem multiple times every year. The key thing to understand is that your tax software is incorrectly expecting a 1095-A form when you don't actually need one. Since the Marketplace confirmed you never had their coverage and you only have employer insurance (1095-C), this is 100% a software configuration issue. Here's my step-by-step fix: 1) Go to your health insurance section and look for ANY question about "premium tax credits" or "advance payments" - these often get auto-populated incorrectly, 2) Make sure you select ONLY "employer-provided coverage" and clear any checkboxes related to Healthcare.gov or state exchanges, 3) Look for a section about "reconciling advance payments" - if this exists in your software, make sure it's disabled since you never received advance payments. If you're still getting rejected after checking all these areas, the nuclear option is to start a completely fresh return - sometimes the software gets confused with cached data. Since today is the deadline, consider filing Form 4868 for an automatic extension to October 15th if you can't resolve this immediately. This gives you breathing room to fix it properly without penalties!

This is definitely a tax software issue, not an IRS problem! Since you have a 1095-C from your employer and the Marketplace confirmed you never had coverage with them, you shouldn't need a 1095-A at all. The rejection is happening because somewhere in your tax software you've accidentally indicated you had Marketplace insurance. Go back to the health insurance section and look for any questions about "premium tax credits," "advance premium tax credit payments," or anything mentioning Healthcare.gov - these often get checked by mistake. Make sure you're only selecting employer coverage options. If you can't find the issue quickly, consider filing Form 4868 for an extension since it's already April 15th. That will give you until October to sort this out without penalties. This is a very common and fixable problem!

Omar, you're absolutely right to be concerned about this! I went through the same confusion last year when I started getting paid through Zelle for my consulting work. The key thing to understand is that while Zelle doesn't send 1099-K forms like PayPal or Venmo, ALL income is still taxable regardless of how you receive it. Think of it this way - if someone paid you $25,000 in cash, you'd still owe taxes on it even though there's no paper trail, right? For your $25,000 in annual Zelle payments, you'll need to report this as business income on Schedule C of your tax return. Make sure you're also tracking any business expenses you can deduct - things like software subscriptions, equipment, home office expenses, etc. These deductions can significantly reduce your tax liability. My advice: Start keeping meticulous records NOW. Create a simple spreadsheet with columns for date, client name, amount, and description of work. Also save screenshots of your Zelle transactions as backup documentation. The IRS may not get automatic reports from Zelle, but if you're ever audited, they'll definitely want to see proof of your income and expenses. Don't risk not reporting it - the penalties and interest for unreported income are way worse than just paying the taxes upfront. Better to be safe and compliant!

The confusion around Zelle and tax reporting is totally understandable, Omar! I went through this exact same worry when I started my freelance photography business. Here's the bottom line: Zelle's exemption from 1099-K reporting requirements doesn't exempt YOU from reporting the income. The $25,000 you're making annually absolutely needs to be reported on Schedule C as self-employment income, and you'll owe both regular income tax AND self-employment tax on it (about 15.3% for Social Security/Medicare). Since you mentioned your record-keeping hasn't been meticulous, I'd strongly recommend going back through your bank statements and Zelle transaction history to create a complete record of all payments received. The IRS can easily spot unreported income during an audit by comparing your bank deposits to your reported income, even without 1099 forms. Also, don't forget about quarterly estimated tax payments! With $25K in annual income, you're likely going to owe more than $1,000 when you file, which means the IRS expects you to make quarterly payments throughout the year rather than paying it all at once in April. You can use Form 1040ES to calculate what you should be paying each quarter. The good news is that as a freelancer, you can deduct legitimate business expenses like software, equipment, home office costs, etc. to reduce your taxable income. Just make sure you keep receipts and documentation for everything you claim.

Been in this exact situation! Got my CP21B about 5 weeks ago and was stressing hard about the timeline. Mine ended up taking about 3 weeks from notice to check arrival. The best advice I can give is to obsessively check your transcript for the 846 code - that's when you know it's officially processed and on the way. Also definitely verify your address is current with the IRS since they mail to whatever they have on file. I know the waiting is brutal but based on what I've seen here and my own experience, most people get their checks within that 2-6 week window. Hang in there and keep checking that transcript! 🤞

I'm in the exact same boat! Just got my CP21B notice about 2 weeks ago and have been anxiously checking my transcript daily. From everything I've read here, the 2-6 week timeline seems pretty standard but the variation is crazy depending on which processing center you're at. Really appreciate everyone sharing their experiences - it's so reassuring to know I'm not the only one obsessively refreshing my transcript looking for that 846 code! 😅 The waiting game is brutal but sounds like most folks do see their checks within that window. Definitely going to double-check my address is current with the IRS after reading all these comments. Fingers crossed we all see movement soon! 🤞

I keep seeing conflicting info about mortgage interest! Has anyone else noticed that some newer homes dont qualify for the full mortgage interest deduction? I think theres a new loan limit around $750k.

@Molly Hansen - Just to add another perspective on your mortgage interest situation: don't forget to also consider if you had any mortgage insurance premiums (PMI) during the year. If you paid PMI and meet certain income requirements, that could also be deductible and help push your itemized deductions higher. Also, since you mentioned you've been getting 1098s since 2019, you might want to double-check that you haven't been missing out on deductions in previous years. If you were taking the standard deduction but could have benefited from itemizing in any of those years, you can still file amended returns (Form 1040X) for up to three years back to claim those deductions. The mortgage interest deduction really is one of those things that can make a big difference depending on your total tax picture, so it's worth running the numbers each year!

This whole discussion has been eye-opening! I've been doing my own taxes for years and always wondered why my tax software would give me both deductions when I thought they were mutually exclusive. The building analogy really helped - I was thinking of deductions as a single bucket where you had to choose between standard vs itemized, but QBI operates in its own separate space entirely. It's actually brilliant policy design when you think about it - it ensures that business owners get fair treatment regardless of their personal financial situation. One thing I'm curious about though - does the QBI deduction affect your eligibility for other tax credits or benefits that are based on AGI? Since it reduces taxable income but happens after AGI calculation, I assume credits like the Earned Income Tax Credit would be unaffected, but I want to make sure I understand the full picture.

This has been such an enlightening discussion! As someone who's been preparing taxes for small business clients for over a decade, I love seeing people finally "get" the QBI deduction structure. One additional point I'd add: the reason QBI feels so generous compared to other deductions is because it was specifically designed to help pass-through entities (sole proprietorships, partnerships, S-Corps) compete with C-Corporations after the corporate tax rate was lowered to 21% in 2017. Before QBI, business owners using pass-through structures were potentially facing much higher effective tax rates than corporations. The deduction essentially creates partial parity between corporate and pass-through tax treatment, which explains why it stacks with the standard deduction rather than competing with it. It's not really a "personal" deduction like mortgage interest or charitable contributions - it's more like a business tax rate adjustment disguised as a deduction. For anyone still wrapping their head around this: think of QBI as the tax code's way of saying "we want to make sure small business owners aren't penalized for not incorporating as a C-Corp." Once you understand that underlying policy goal, the mechanics make much more sense!