I went through this exact situation two years ago and it was incredibly stressful! What really helped me was creating a simple spreadsheet documenting all the payments from that client - dates, amounts, and which forms they appeared on. This made it crystal clear that it was the same income being double-reported. The key thing to remember is that you've already correctly reported your income, so you're not actually in the wrong here. The IRS deals with this payment processor double-reporting issue constantly, especially with platforms like Stripe, PayPal, and Square becoming so common. If you do get a CP2000 notice (which honestly might not even happen), having that documentation ready makes responding super straightforward. You just explain the situation and provide the evidence. In my case, I never even got a notice - I think their systems are getting better at recognizing these situations automatically. For next year, definitely have that conversation with your client about not issuing a 1099-NEC when payments go through Stripe. Most small business owners don't realize they're creating this headache for their contractors!

I'm dealing with almost the exact same situation right now! My client issued a handwritten 1099-NEC for payments that were already reported on my Stripe 1099-K. The unprofessional look of the form had me questioning whether it was even legitimate at first. After reading through all these responses, I feel much better about not amending my return since I already reported all my income correctly. The spreadsheet idea from Ellie is brilliant - I'm definitely going to create one documenting all the payments to have ready just in case. Has anyone had success educating their clients about this issue? I'm thinking of sending a brief email to all my clients who pay through payment processors explaining that they don't need to issue 1099-NECs for those payments. Might save everyone headaches next tax season!

Speaking as someone who just went through this first last year - one thing nobody mentioned is that if you had a FSA (Flexible Spending Account) or HSA (Health Savings Account) through your work for healthcare, you DEFINITELY want to keep all those medical receipts for the birth and prenatal care! You can use those accounts to pay for qualified medical expenses tax-free. The midwife, ultrasounds, and birth costs would all qualify for FSA/HSA reimbursement. The baby shower and registry items wouldn't, though.

Great question! As a new parent myself, I went through this same confusion last year. Everyone's covered the basics really well - you're absolutely right that claiming a dependent gives you the child tax credit (up to $2,000), not additional deductions, so most of those baby purchase receipts aren't needed for tax purposes. One thing I'd add that hasn't been mentioned yet - if you're planning to go back to work and will need childcare, start keeping track of those expenses now! The Child and Dependent Care Credit can be worth up to $2,100 for one child (if you qualify for the full amount). You'll need receipts showing what you paid, when you paid it, and the provider's tax ID number. Also, don't forget about the birth certificate - you'll need that not just for taxes, but for adding your baby to health insurance and other benefits through your employer. The IRS doesn't typically ask for proof when you file, but they can request it later if your return gets reviewed. Congratulations on the new addition to your family!

I'm going through this exact same issue! My spouse and I own our home together and installed a new heat pump last year. Got the identical rejection message through TaxSlayer about the Form 5695 joint occupancy processing error that will be fixed March 17th. This thread has been a lifesaver - I was convinced I had messed up the energy credit calculation or done something wrong with the joint ownership documentation. Spent way too much time double-checking my numbers and re-reading the instructions. It's such a relief to know this is a widespread IRS system issue affecting everyone with joint property ownership and energy credits, regardless of which tax software we're using. I'm definitely going to wait for the March 17th electronic fix rather than paper filing. Based on everyone's experiences here, it sounds like our forms are correct and we just need the IRS to resolve their processing bug. Thanks to everyone who shared their situations - this community support beats trying to navigate confusing error messages alone!

I'm experiencing the exact same Form 5695 rejection issue! My partner and I jointly own our home and installed a new electric heat pump and upgraded insulation last year. Got rejected through Credit Karma Tax with the identical "Joint Occupancy on Form 5695" error message saying it'll be fixed March 17th. This thread has been incredibly reassuring - I spent hours convinced I had made some calculation error or misunderstood the joint ownership requirements. It's such a relief to know this is a widespread IRS processing bug affecting all tax software platforms, not something we did wrong with our forms. I'm also planning to wait for the March 17th electronic fix rather than paper filing. Between the longer processing times for mailed returns and potential state return complications, it seems like waiting a couple more weeks is the better option. Plus, based on everyone's experiences here, we shouldn't need to modify anything on our returns - just resubmit once the IRS resolves their system error. Thanks to everyone for sharing their situations and solutions!

Hey Cedric! I went through something very similar with my 2019 taxes last year. The good news is that once you receive the partial disallowance letter, the IRS has already made their determination and your adjusted refund should be processed relatively quickly. In my case, I received my $450 adjusted refund about 3 weeks after getting the letter. Since you mentioned it's for a business expense deduction (I saw your comment below), those typically process faster than credit-related adjustments. The IRS usually deposits these payments using the same method you chose on your original return - so if you had direct deposit set up, it should go to the same account. One thing that helped me was checking the letter for any specific processing codes or timelines mentioned in the fine print. Sometimes they include estimated processing dates that aren't obvious at first glance. If it's been more than 4-6 weeks since you got the letter, definitely call the number printed on it - those specialized lines are usually much better than the main IRS number.

I just went through this exact situation a couple months ago with my 2019 return! Got the partial disallowance letter in January and was so confused about what would happen next. In my case, it took exactly 19 days from when I received the letter to when the adjusted refund hit my bank account. Mine was also for a business expense issue - I had claimed some equipment purchases that the IRS couldn't verify with the documentation I provided. The thing that stressed me out was that there's really no way to track the progress once you get that letter. The "Where's My Refund" tool on the IRS website didn't update until the very last day, and even calling didn't give me much additional info beyond "it's processing." Since you mentioned your issue is also with business expenses, you're probably looking at that 2-4 week window everyone's talking about. The silver lining is that once they send you that letter, the hard part (their review and determination) is already done. Now it's just a matter of their payment processing system doing its thing. Hang in there - I know the waiting is nerve-wracking, but your money is definitely coming!

Has your year-to-date income reached a new tax bracket threshold? The withholding calculation can suddenly jump when you cross into a new bracket since the system thinks your annual income will be higher.

I went through something very similar last year and it turned out to be a combination of factors. First, definitely check with HR about your W-4 - but also ask them specifically about any recent payroll system updates or migrations. Many companies switched payroll providers in 2024-2025 and during these transitions, employee withholding settings often get reset to default values (usually zero allowances, which maximizes withholding). Also, make sure to get a copy of your current W-4 on file and compare it to what you remember submitting. Sometimes during system migrations, the data doesn't transfer correctly and you end up with completely different withholding settings. One more thing - if you're paid bi-weekly, some payroll systems will annualize your income based on recent pay periods that included bonuses or overtime, which can temporarily bump you into higher withholding calculations even after the bonus period ends. This usually corrects itself after a few pay cycles, but it's worth asking HR about. The good news is that if this is an employer error, they should be able to fix it quickly for future paychecks. And like others mentioned, any excess withholding will come back to you as a larger refund next year, though I know that doesn't help with your immediate cash flow situation.