Something that hasn't been mentioned yet - if your employer is reimbursing EXACTLY at the IRS rate ($0.62/mile for 2022), it's what's called an "accountable plan" and that's why it's not taxable. But if they paid you MORE than the IRS rate, the excess would be taxable. For example, if they paid you $0.70/mile, the $0.62 would be tax-free but the extra $0.08/mile would be added to your taxable income. Just something to be aware of if your mileage rate ever changes!

This is a great explanation of how mileage reimbursement should work! I'm an accountant who handles payroll for several small delivery companies, and what your employer is doing is absolutely correct and follows IRS guidelines perfectly. The key thing to understand is that mileage reimbursement at the standard IRS rate ($0.67/mile for 2024, by the way - it increases almost every year) is considered a business expense reimbursement, not income. This is why it's excluded from your taxable wages and added back after taxes are calculated. Your employer is essentially saying: "We owe you $457 in wages (taxable) plus we owe you $186 to reimburse your business vehicle expenses (non-taxable)." This separation is required by the IRS to maintain the non-taxable status of the mileage reimbursement. If they just paid you $643 as regular wages, you'd pay Social Security, Medicare, federal, and state taxes on the full amount. Then you'd have to try to deduct your vehicle expenses at tax time - which isn't even possible anymore for most W-2 employees. You're definitely coming out ahead with their current method! One tip: make sure you're keeping track of your actual vehicle expenses anyway. While you can't deduct them, it's good to know if that $0.62/mile is actually covering your real costs or if you need to negotiate for a higher rate.

Random tip: If your AGI is under $73,000, you qualify for the IRS Free File Program which gives you access to free commercial tax software INCLUDING for things like Schedule 3. TurboTax deliberately hides their Free File version on their website and tries to trick people into paying. Go through the IRS website (https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free) to access the ACTUALLY free versions.

I went through this exact same frustration last year! TurboTax's "free" marketing is so misleading - they hook you in and then hit you with upgrade fees halfway through. Your 401k contributions are definitely what's triggering the Schedule 3 requirement for the Saver's Credit. But here's the thing - you don't need to pay TurboTax's ridiculous fees for this. I ended up switching to FreeTaxUSA after getting burned by the upgrade trap, and they handle ALL the schedules including Schedule 3 completely free for federal filing. The Saver's Credit can actually save you money on your taxes (up to $1,000 depending on your income), so it's worth claiming even if TurboTax is trying to charge you for it. Don't let them scare you into thinking you need their expensive version - there are plenty of legitimately free options that handle the exact same forms without the bait-and-switch tactics. Also, pro tip: if you do qualify for the Saver's Credit, make sure you're maximizing it by understanding the income limits and contribution amounts. It's one of the better tax benefits for people just starting to save for retirement.

I made $9,400 last year and didn't file. Now I regret it because I checked my W-2 and saw they withheld like $500 in federal taxes that I could've gotten back. Is it too late to file for last year?

For someone in your exact situation (single, 24, $9,200 income, not a dependent), you should definitely file! Even though you're under the $12,950 threshold that requires filing, you'll likely get back every penny of federal income tax that was withheld from your paychecks. Check box 2 on your W-2 - if there's any amount there, that's money the government owes you. Plus, you might qualify for the Earned Income Tax Credit, which could actually give you more back than what was withheld. The 1040 form is straightforward for your situation. You can use the IRS Free File program since your income is well under $73,000, or any free tax software. Don't leave money on the table - file that return!

I'm going through the exact same thing right now! Filed in March and have been stuck with a 570 code for months. The worst part is the complete lack of communication from the IRS about what's actually happening or when it might be resolved. What I've learned from my research is that the 570 code with a large EIC like yours ($4,972) almost always triggers an income verification review. They're basically cross-checking your reported income against what your employers submitted to make sure everything matches up. The good news is that your transcript shows all the right pieces are there - your withholding ($843), your EIC ($4,972), and the math adds up to about $5,815 total refund. The system just has a hold while they verify everything. I know everyone says calling the IRS is impossible, but I finally got through last week using the callback feature early in the morning. The agent told me that 570 holds for EIC verification are taking 12-16 weeks this year due to staffing issues. Not what I wanted to hear, but at least it gave me a realistic timeline. Hang in there - from what I've read on here and other forums, almost all of these EIC verification holds eventually get released once they complete their review. It's just a matter of waiting it out unfortunately.

I can totally relate to your frustration! I went through almost the exact same situation last year - filed in April, had a 570 code with EIC, and waited what felt like forever for any movement. The uncertainty is definitely the worst part. One thing that helped me was understanding that the 570 code with a large EIC amount like yours ($4,972) is actually pretty routine. The IRS has automated systems that flag returns with significant refundable credits for review, especially EIC claims over a certain threshold. It's not necessarily because they think anything is wrong - it's just part of their fraud prevention process. Your transcript actually looks pretty clean to me. The fact that your withholding ($843) plus EIC ($4,972) adds up to roughly $5,815 in expected refund means all the pieces are there. The 570 is just temporarily blocking the release while they complete their review. I know waiting is incredibly stressful when you're counting on that money, but try to take comfort in the fact that your situation seems straightforward. No weird codes, no notices, just a standard verification hold. Most of these do resolve within a few months once the review process works through the queue. Keep checking Fridays for updates and hang in there! Your refund is substantial enough that it'll be worth the wait once it finally comes through.

As someone who's dealt with similar situations, I'd strongly recommend erring on the side of caution here. The key factor isn't how you receive the money (cash vs check vs deposit) - it's the underlying nature of the transaction. If you provided labor helping them move and they're compensating you for that time and effort, that's typically considered taxable income regardless of what anyone calls it. The $1,300 amount might seem small, but the IRS has increasingly sophisticated matching systems. If your friend claims this as any kind of business expense or deduction, that creates a paper trail that could eventually be matched against your tax return. The potential headache of dealing with a notice or audit later isn't worth the relatively small tax savings. My suggestion would be to either: 1) Have your friend clearly document this as a personal gift with no services exchanged, or 2) Report it as miscellaneous income to be completely above board. Given that you provided moving services, option 2 is probably the more honest approach. You can always consult a tax professional if you're unsure, but when in doubt, reporting income is usually the safer path.

I've been following this discussion and wanted to add a perspective from someone who's been through IRS correspondence before. The most important thing to understand is that the IRS doesn't really care about the mechanics of how you received payment - they care about the economic substance of the transaction. If you helped someone move and they gave you $1,300, that's almost certainly compensation for services, not a gift. The fact that they're calling it a "gift" doesn't change the reality that you provided labor and received payment for it. True gifts are given without any expectation of services in return. Here's what I learned from my own experience: trying to avoid reporting legitimate income often creates more problems than it solves. Even if the immediate tax burden seems annoying, it's nothing compared to the stress and potential penalties of dealing with IRS notices later. My recommendation would be to report this as miscellaneous income on your tax return. It's straightforward, honest, and protects you from any future complications if your friend's reporting doesn't align with yours. The peace of mind is worth far more than whatever taxes you'd save by treating it as a gift.