This thread is absolutely fantastic - I wish I had found information this clear when I was navigating EFIN requirements as a new preparer! The misinformation problem is so real. I actually had a similar experience where I was told conflicting information by different IRS representatives. What strikes me most is how @DeShawn Washington, @Oliver Schmidt, and @Ravi Patel have provided such specific, actionable guidance based on their actual experiences. The detail about selecting "Legal Resident Alien" vs "Non-resident Alien" in the dropdown is exactly the kind of practical tip that can make or break an application. @LunarEclipse - I really hope you're following this thread! It sounds like you can move forward with your own EFIN application and avoid all the complicated business partnership scenarios that were being discussed earlier. The consensus from people who've actually done this successfully as permanent residents is pretty clear. For anyone else reading this who might be in a similar situation: save this thread! The combination of official publication references (@CosmicVoyager citing Publication 3112) and real-world application experiences makes this an incredibly valuable resource. It's exactly this kind of community knowledge-sharing that makes the difference between success and unnecessary complications when starting a tax prep business.

Wow, this thread has been absolutely incredible to read through! @LunarEclipse - I hope you're still following along because it looks like your whole problem just got solved! The fact that multiple people here have successfully gotten EFINs as permanent residents completely changes your situation. What really stands out to me is how this discussion evolved from exploring complex family business arrangements and contractor relationships to discovering that you can likely just apply directly yourself. @CosmicVoyager's citation of Publication 3112 was the game-changer, and then @DeShawn Washington, @Oliver Schmidt, and @Ravi Patel provided the real-world validation with their actual application experiences. The practical tips are gold - especially the dropdown selection detail and the document requirements. It's honestly concerning how much misinformation is floating around, even from IRS reps themselves! As someone just getting started in tax prep myself, I'm saving this entire thread as a reference. The combination of official IRS publication citations and detailed first-hand experiences makes this an invaluable resource. Plus all the backup strategies and tools people mentioned (like taxr.ai for compliance analysis and Claimyr for IRS communication) give great options for various situations. Thanks to everyone who contributed their knowledge here - this is exactly what makes this community so valuable for newcomers like us!

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!

why not just open a new bank account? most banks let u do it online now

I've used Venmo for tax refunds a couple times and it's been smooth. One thing I'd add to what others said - make sure you have the right routing and account numbers from Venmo. You can find them in the app under "Manage Balance" then "Direct Deposit". Also heads up that Venmo reports any deposits over $600 to the IRS now, but since this is your own refund it shouldn't matter tax-wise. Good luck!