Pro tip: if you call FreeTaxUSA directly and explain what happened, they will often refund the state preparation fee. I accidentally paid but didn't file last year (was comparing prices between services), and they gave me a full refund when I explained the situation. Their customer service is actually pretty good compared to most tax prep companies. I think their number is 1-800-585-3926 or something like that. Just be super nice and explain you didn't understand you were being charged without filing.

I had almost the exact same thing happen to me with FreeTaxUSA last year! The key thing to understand is that they charge you for the "preparation" service as soon as you agree to pay, even if you haven't actually filed yet. It's definitely confusing because most people think the charge happens when you submit. Since you can see "Ready to file" in your account, your taxes definitely haven't been submitted to the IRS yet. You have two options: 1) Go ahead and e-file since you've already paid for the preparation, or 2) Print the forms and mail them yourself (but you won't get the $14.99 back). I'd recommend just e-filing at this point since you've already paid and it's much faster than mailing. But for next year, definitely look into the IRS Free File program since you qualify based on your income - it would have saved you that $14.99 completely.

Has anyone had experience with settlements that include back pay AND emotional distress? My understanding is they're taxed differently - wages are subject to both income tax and employment taxes, while emotional distress is only subject to income tax.

Based on everything discussed here, it sounds like you're in a pretty straightforward situation compared to some of the more complex settlements mentioned. Since your $27k settlement appears to be primarily for lost wages from your employment dispute, you'll likely need to report the full amount as taxable income and can deduct your attorney fees as an above-the-line deduction (which effectively means you're only taxed on the $18k you received). For setting aside money for taxes, I'd recommend being conservative and setting aside about 25-30% of the $18k you actually received (so roughly $4,500-$5,400). This should cover both federal and state taxes depending on your bracket. Given the timing and amount, you should also consider making estimated tax payments to avoid underpayment penalties. The tools and services others have mentioned (taxr.ai for calculations and Claimyr for IRS questions) seem like they could save you a lot of headache in figuring out the specifics for your situation. Don't let this stress you out too much - employment settlements are pretty common and the tax treatment is well-established once you know the rules!

Slightly different perspective - before you panic completely, have you tried checking your return against free tax software just to verify if there are actual errors? I've used FreeTaxUSA for years and it's super straightforward. You could input all your info there and see if the numbers match up with what the Fiverr person gave you. This way you'd know for sure if you're being overcharged on taxes due to missing deductions. It might take an hour or two, but it would give you peace of mind before you potentially pay someone else to redo everything.

I'm dealing with a similar back tax situation right now and your story is giving me major anxiety! One thing I've learned through this process is that you absolutely cannot file returns with known errors - it can actually make your situation with the IRS worse, not better. The missing preparer signature is a huge red flag. Any legitimate tax professional should be willing to sign their work. If she's refusing to do that, it suggests she either knows there are problems with the returns or she's not actually qualified to prepare them. For the advertising deductions specifically - those can make a massive difference in what you owe. If she left those off completely, you could be overpaying by hundreds or even thousands of dollars. Given that you're already dealing with back taxes, every dollar counts. I'd give her 24-48 hours to respond and fix everything. If she doesn't, cut your losses and find a local CPA or enrolled agent. Yes, it'll cost more upfront, but it's way cheaper than dealing with IRS penalties later if the returns are wrong. The peace of mind alone is worth it when you're trying to get right with the IRS. Also, definitely keep all your communications with her in case you need to file a complaint later. Good luck!

I've been helping people with tax issues for years and wanted to chime in here. Venmo is definitely a legitimate option for tax refunds, but I'd recommend having a backup plan just in case. Sometimes financial apps can be unpredictable with large deposits, especially if it's your first time receiving that amount. If you're concerned about timing, you might want to consider getting a prepaid debit card from a major bank as an alternative - they usually process faster than opening a new traditional account and are more reliable than app-based services. Also, keep in mind that once your refund hits Venmo, you'll want to transfer it out fairly quickly since Venmo isn't FDIC insured like traditional banks. Best of luck with your refund!

Just wanted to share my recent experience since I was in almost the exact same situation! Had to use Venmo for my refund after my bank account got unexpectedly closed. I was super nervous about it but it worked perfectly. Got about $3,400 deposited directly into my Venmo balance with no issues. The key things I did: made sure my name matched exactly between my tax return and Venmo account, enabled direct deposit in the app settings beforehand, and triple-checked those routing/account numbers. The money showed up exactly when the IRS said it would. I did transfer most of it to a new bank account within a couple days just to be safe, but honestly the whole process was way smoother than I expected. Hope this helps ease your worries a bit!

Quick tip from someone who makes this mistake every year: make sure you're not confusing lines on Form 8949 with Schedule D lines! The numbering is different and I always mix them up.

I had the exact same confusion with the Capital Loss Carryover Worksheet last year! The key thing that helped me understand it was realizing that when Line 3 tells you to "enter 0 if the result is zero or less," that's actually the correct step even though it feels wrong. Here's what's happening in your case: Your Line 1 ($8,021 loss) minus Line 2 ($3,000 used) equals ($5,021). Since this is less than zero, you enter 0 on Line 3. The worksheet then continues to calculate your actual carryover amount through the remaining lines. The reason the worksheet is structured this way is because it needs to separate short-term and long-term capital losses properly. Your $5,021 carryover will show up correctly on either Line 8 (short-term carryover) or Line 13 (long-term carryover) depending on how long you held the investments before selling them. So yes, your intuition that you should have a $5,021 carryover is absolutely correct! The worksheet just takes a roundabout way to get there because it has to handle the tax code requirements for properly categorizing the losses.