I had a friend who didn't report about $1200 in side income from these apps. The IRS sent him a letter 18 months later asking about it! Turns out the person who paid him filed it as a business expense, which created a mismatch. Not worth the stress IMO.

Thanks for asking this question - I was wondering the same thing! Based on all the responses here, it's clear that even small amounts like your $650 need to be reported. I appreciate everyone sharing their experiences with the various tools and services mentioned. One thing I'd add is to make sure you keep good records of what the payments were for. If it was truly income from work/services, you'll need to report it. But if any of those CashApp payments were reimbursements from friends (like splitting dinner bills) or gifts, those might not be taxable income. The key is being able to document the nature of each payment. It sounds like the safest approach is to report everything and let the IRS sort it out rather than risk getting a letter later asking questions you can't easily answer.

I completely understand the stress you're experiencing right now - discovering that your CPA made the same critical error for two consecutive years would shake anyone's confidence! But after reading through all these helpful responses, it's clear you have a solid roadmap for resolving this. What strikes me most is how proactive you've been in catching this error during your own document review rather than waiting for an IRS notice. That actually demonstrates exactly the kind of responsible business management that works in your favor when requesting penalty abatements. A few additional thoughts based on what others have shared: **Timeline expectations**: While the amendment process can take 6-8 months for full IRS processing, you should be able to file your 2024 return normally once you've submitted the corrections with proper explanations. **CPA firm accountability**: Their initial reaction to this discovery will tell you everything you need to know about their professionalism. A reputable firm should immediately take full responsibility, handle all corrections at no cost, and explain what process changes they're implementing to prevent future errors. **Documentation is key**: Beyond your EIN confirmation letter, gather any business contracts, bank documents, or prior communications that show you consistently provided the correct EIN. This creates an ironclad case that the error was purely on the preparer's side. You're handling this exactly right by addressing it head-on rather than hoping it goes away. The IRS actually appreciates taxpayers who proactively correct errors with proper documentation and explanations.

I'm really sorry to hear about this stressful situation! As a fellow small business owner, I can only imagine how panicked you must have felt when you discovered this error. But after reading through all the excellent advice here, it sounds like you have a clear path forward and this is definitely fixable. What really stands out to me is that you caught this through your own diligent document review rather than getting blindsided by an IRS notice. That actually puts you in a much stronger position - it demonstrates good faith effort and responsible business practices, which the IRS takes into account when considering penalty waivers. A few things I'd emphasize based on what others have shared: - **Time is your friend right now** - Discovering this in January gives you plenty of runway to get everything corrected before the next filing season gets crazy - **Don't let your CPA minimize this** - Transposing an EIN for two consecutive years suggests a systematic problem with their quality control, not just a simple typo - **Keep detailed records** of every step you take to fix this, including all communications with your CPA firm The consensus seems to be that EIN errors, while serious, are more common than you'd think and the IRS has established procedures for handling them. With proper documentation and prompt action, you should be able to get through this without major penalties. You're handling this exactly right by taking immediate action instead of hoping it goes away. Stay strong - you've got this!

Has anyone used those property tax consulting companies that promise to get your assessment lowered? My neighbor said they charge like 30-40% of whatever they save you in the first year. Seems steep but might be worth it with such a big increase??

I went through this exact same situation two years ago - my assessment jumped from $185k to $278k seemingly overnight! I was absolutely terrified about what it would mean for my taxes. Here's what I learned: First, don't panic. While your assessment went up 50%, your taxes likely won't increase by that much. Most municipalities are required to adjust their mill rates when they do widespread reassessments to prevent massive tax increases for everyone. Second, definitely appeal if you think the assessment is too high. I gathered comparable sales data from my neighborhood and found several homes that sold for significantly less than what they assessed mine at. The appeal process took about 3 months, but they reduced my assessment by $31k. Also check what exemptions you might qualify for. I discovered I was eligible for a homestead exemption that I had never applied for, which saved me an additional $200 per year. The key is to act quickly - most places have strict deadlines for appeals (usually 30-60 days from when you receive the notice). Don't just accept the new assessment without doing your homework first!

Your manager is absolutely misleading you! I'm a server at a busy casual dining restaurant, and the "all your tips go to taxes" line is probably the most common lie managers tell to keep good hosts from switching positions. Here's my real situation: I make about $24/hour after taxes on average as a server, compared to the $13/hour I was making when I hosted at my previous job. Yes, I pay taxes on my tips - roughly 22% total between federal, state, and FICA taxes - but that still leaves me with 78% of my tip income PLUS the $2.83 base hourly wage. The math is straightforward: if I make $150 in tips during a dinner shift, I pay about $33 in taxes and keep $117 from tips, plus my hourly wage. That works out to way more than I'd make hosting for the same hours at $12/hour. Your manager knows that experienced hosts are harder to replace than servers, so they're trying to keep you in your current role with tax misinformation. It's purely for their convenience, not your financial benefit. I'd recommend being persistent but professional about requesting server training. Frame it as wanting to develop new skills rather than calling out their lie directly. Most managers will eventually cave once they realize you've done your homework on how restaurant taxes actually work. Don't let them cap your earning potential with false information about the tax code!

As someone who works in payroll for a restaurant chain, I can confirm that your manager is absolutely giving you false information. This is unfortunately a very common tactic we see managers use to prevent good hosts from transitioning to serving roles. The reality is that tips are taxed as ordinary income at your regular tax rate - typically 10-12% federal for someone making $12/hour, plus 7.65% for FICA taxes, plus state taxes if applicable. So you're looking at roughly 20-25% total tax rate, meaning you keep 75-80% of every tip dollar. Here's what actually happens with your paychecks: Your employer reports your credit card tips automatically, and you're supposed to report cash tips. The restaurant then withholds taxes on both your hourly wage and reported tips. Many servers find that their $2.75/hour base wage isn't enough to cover all the withholding on tips, so they either owe at tax time or request additional withholding. But even accounting for taxes, servers consistently out-earn hosts by a significant margin. I've processed thousands of paychecks and can tell you that servers typically make 1.5-2x what hosts make, even after all taxes are considered. Your manager is prioritizing their own convenience over your financial growth. I'd recommend pushing back professionally - good hosts are valuable, but that doesn't mean you should be kept from advancing your career with tax misinformation.

Thanks for all the helpful advice everyone! I'm leaning toward putting $6,000 for the child tax credits instead of the full $8,000 to ensure I get that refund. Just to make sure I understand - when I file my actual tax return next year, I'll still claim all 4 kids and get the full $8,000 credit regardless of what I put on the W-4, right? The W-4 just affects how much they take out of my paychecks during the year? Also @Emma Johnson, thanks for the tip about checking the box in Step 2(c) since my spouse doesn't work - I definitely would have missed that!

One more thing to consider - since you mentioned your household income is around $135K, you should be aware that the Child Tax Credit starts to phase out at $150K for married filing jointly (in 2025). You're well under that threshold, so you'll get the full $2,000 per child, but it's something to keep in mind if your income increases in future years. Also, with 4 kids, don't forget you might be eligible for the Child and Dependent Care Credit if you have any childcare expenses (even though your spouse stays home, you might have summer camps, after-school care, etc.). That's another credit that could affect your overall tax picture, though it won't change what you put on the W-4 since that credit can't be anticipated in withholding. Your plan to put $6,000 instead of $8,000 sounds solid for getting that refund you're looking for!