Just wanted to add a cautionary note about the depreciation recapture that comes when you eventually sell the rental property. All that furniture depreciation you're claiming now will need to be "recaptured" as ordinary income (taxed at higher rates than capital gains) when you dispose of the property. This doesn't mean you shouldn't depreciate - you absolutely should take advantage of the deductions now! Just be aware that it's essentially deferring taxes rather than eliminating them. The time value of money still makes it worthwhile, but it's good to plan ahead. Also, make sure you're only depreciating items that actually stay with the rental long-term. If you're planning to take some furniture back for personal use when you move out tenants, that gets complicated tax-wise. I'd recommend only depreciating stuff you're truly committed to keeping as rental property assets.

One thing I haven't seen mentioned yet is the importance of establishing a clear "placed in service" date for your depreciation. Since you converted your personal residence to a rental 6 months ago, that's when your depreciation period begins - not when you originally bought the items for personal use. Make sure you document this conversion date well, as the IRS may ask for evidence that this is when the property truly became available for rent (lease agreements, advertising, etc.). This date affects not only when depreciation starts but also how you calculate your first-year depreciation if you're using MACRS. Also consider whether any of your items qualify for bonus depreciation or Section 179 deduction, which could allow you to deduct more in the first year rather than spreading it over 5-7 years. There are limitations for rental property, but it's worth exploring with your tax preparer, especially for items placed in service this year.

I had this exact same issue two years ago with a 1099-NEC that had my last name spelled "Johnson" instead of "Johnston" - just missing one letter. I was stressed about it too, but it turned out to be a non-issue. I ended up filing with my correct name spelling on the return and reported the income exactly as shown on the form. No problems whatsoever - my return processed normally and I got my refund without any delays or questions from the IRS. The key thing everyone's mentioned is absolutely right - the SSN is what matters for their matching system. I did reach out to the company for a corrected form initially, but they were slow to respond and I didn't want to delay my filing. In the end, it wasn't necessary anyway. If you're planning to file in the next couple weeks like you mentioned, I'd say go ahead and file with the misspelled form. Just make sure to use your correct legal name on your tax return and report all the income shown. You can still request a corrected form for your records if you want, but don't let it hold up your filing.

I've dealt with this exact situation multiple times as a tax preparer, and I can confirm what others have said - a misspelled last name on your 1099-MISC won't cause filing issues as long as your SSN is correct. The IRS matching system is primarily based on your Social Security Number, not the exact spelling of your name. When you file your return, use your correct legal name as it appears on your Social Security card, but report the income exactly as shown on the 1099-MISC (even with the misspelled name). You don't need to delay your filing to wait for a corrected form. If you want to request one for your records, that's fine, but it's not necessary for tax filing purposes. The most important thing is that you report all the income shown on the form and that your SSN matches. I've never seen a return rejected or flagged solely because of a name spelling discrepancy when the SSN was correct. File with confidence using your correct information!

I'm dealing with this exact situation right now too! My refund showed as sent 8 days ago on WMR but nothing in my account. After reading everyone's experiences here, I'm feeling much more confident this will work out. It sounds like the 5-7 business day window for bank rejection is pretty standard, so I'm probably right at the point where it should bounce back to the IRS soon. I'm going to check my tax transcript tomorrow to see if there are any rejection codes showing up yet. Has anyone noticed if there's a pattern to when these rejections typically happen - like do they tend to process on weekdays vs weekends? Also planning to verify my mailing address through my IRS online account just to be safe before the paper check gets issued. This community is so helpful - thanks everyone for sharing your experiences!

I'm going through this exact same thing right now! Filed my return 3 weeks ago and WMR shows my refund was sent 7 days ago, but I'm pretty sure I mixed up a couple digits in my account number. My bank confirmed they haven't received anything, so I'm expecting it to bounce back soon. Reading through everyone's experiences here has been incredibly helpful - I had no idea this was so common! I'm going to check my transcript this weekend to see if there are any rejection codes, and I've already verified my mailing address through my IRS online account. It's reassuring to know that the IRS typically handles these situations automatically with the paper check reissue. Has anyone here had experience with how long it takes for the rejection codes to show up on the transcript after the bank rejects the deposit?

Just FYI - the IRS is way more interested in cases where there's a lot of money involved. If this person is just making a few thousand in unreported cash, it might not be worth their time to investigate. They typically go after cases where they can recover significant amounts of tax revenue. This isn't to say don't report it, but manage your expectations about both the response and any potential reward. The bigger the case, the more likely they are to act on the information.

Before you go down the whistleblower path, make sure you have solid documentation. The IRS needs more than just "I know they got paid in cash" - they want bank records, receipts, witness statements, or other concrete evidence showing unreported income. Also consider that if this person finds out you reported them (which can happen during audits or legal proceedings), it could escalate your business dispute. The IRS investigation process can take years and there's no guarantee they'll even pursue the case or that you'll receive any reward. If you're mainly motivated by wanting them to pay their fair share rather than getting revenge or money, the anonymous Form 3949-A might be the better route. It removes the personal risk and still gets the information to the IRS.

As someone who was completely lost on this topic last year, I can confirm what everyone's saying - the tax tables are ONLY for federal income tax. I made the mistake of thinking that was my total tax bill and was shocked when I looked at my actual paystub! What really helped me understand this was looking at my year-end W-2. Box 1 shows your wages subject to federal income tax, Box 2 shows the actual federal income tax withheld (this should roughly match what you'd calculate from the tax tables), then Box 4 shows Social Security tax withheld and Box 6 shows Medicare tax withheld - all completely separate amounts. So when you're budgeting, yes, you need to account for all three taxes. The silver lining is that as an employee, you don't have to worry about calculating the FICA taxes yourself - your employer does that math and takes it out automatically. You just need to make sure your federal income tax withholding is on track by adjusting your W-4 if needed. The tax filing process will make a lot more sense once you see how these different taxes are handled separately on your return!

This thread has been incredibly helpful! As someone who just switched from being a contractor to a W-2 employee, I was making the same mistake of thinking the tax tables showed my total federal tax burden. One thing I learned the hard way during my contractor days - if you're ever self-employed or doing freelance work on the side, you'll need to calculate and pay the Social Security and Medicare taxes yourself through self-employment tax on Schedule SE. That's when you pay both the employee AND employer portions (12.4% for Social Security + 2.9% for Medicare), which really adds up. But as a regular employee now, seeing those three separate line items on my paystub makes everything much clearer. The tax tables are just one piece of the puzzle, and understanding that distinction is crucial for proper tax planning. Thanks everyone for breaking this down so clearly!