Looking at all these codes is like trying to read The Matrix tbh

Honestly dealing with IRS codes feels like learning a whole new language. I've been trying to figure out what's going on with my transcript for weeks and it's so confusing. At least now I know there's an updated resource to check out - thanks for sharing this!

Make sure your dad knows he might qualify for the Earned Income Tax Credit for those years, especially if his income was under $20k. I helped my brother file 6 years of back taxes and he actually got REFUNDS for 4 of those years because of EITC, even with self-employment. The IRS has a "lookback" ability to claim refunds for up to 3 years, so at minimum he should file for the last three tax years ASAP to claim any potential refunds before they expire!

I went through almost the exact same situation with my uncle two years ago - 7 years of unfiled returns, all self-employment handyman work, zero documentation. Here's what I learned that might help: First, don't let him ignore this any longer. The IRS has been cracking down on unfiled returns, and at 64, this could seriously impact his Social Security credits. Self-employment tax contributes to his SS benefits, so those missing years might be costing him money in retirement. We started by gathering every bank statement we could find and used a simple spreadsheet to track deposits that looked like business income. Then we estimated his expenses - vehicle mileage, tools, supplies, etc. Even rough estimates are better than nothing, and the IRS expects some reconstruction for older years. The key thing that saved us was filing voluntarily before the IRS contacted him. When you come to them proactively, they're much more willing to work with you on payment plans and penalty reductions. We ended up owing about $8,000 total for all years, but got it reduced to $3,500 through the Fresh Start program. Start with the most recent 3 years first since those have refund potential, then work backwards. And definitely hire a tax pro who specializes in unfiled returns - it's worth every penny for the peace of mind and expertise.

Based on your transcript and the CP21B letter from December 5th, you should definitely have received your refund by now. The typical timeframe is 2-3 weeks, so something might be holding it up. I'd suggest calling the IRS directly to check on the status - they can see if there are any issues or additional processing steps. Sometimes there are backend delays that don't show up on the automated systems. Keep your CP21B letter handy when you call as they'll likely reference it. Hope you get it sorted out soon!

Hey Thomas! Looking at your situation, since you got the CP21B in December and it's now well past the typical 2-3 week processing time, I'd definitely recommend calling the IRS to check what's going on. Sometimes there can be backend holds or additional verification steps that aren't obvious from the transcript. When you call, have your CP21B letter and transcript ready - they'll need those reference numbers. The regular IRS customer service line should be able to tell you exactly where things stand and if there are any next steps needed on your end. Hope you get it resolved quickly!

One thing to keep in mind is that tax software like TurboTax sometimes applies specialized rounding rules in certain calculations that might not be obvious. For example, when calculating things like the Earned Income Credit or Child Tax Credit, there are specific worksheets with their own rounding rules. Some calculations might require rounding at intermediate steps while others only round at the final step. My advice is to always use the official IRS worksheets and tables rather than trying to recreate the formulas yourself. They're designed to be followed step-by-step and will give you the exact same result as tax software.

The $3 difference is most likely coming from your rounding of taxable income to $84,600 instead of using the exact amount of $84,582. The IRS tax tables calculate tax based on your precise taxable income (rounded only to the nearest dollar), not rounded to the nearest $50. When you used the formula method with $84,600, you calculated a slightly higher tax than what the actual tax tables would show for $84,582. The difference of $18 in taxable income at the 12% bracket would create about a $2.16 difference in tax ($18 × 0.12), which closely matches your $3 discrepancy when combined with other minor rounding differences in your calculations. For future manual calculations, I'd recommend using the official IRS Tax Tables found in the 1040 instructions rather than the bracket formulas. The tables are specifically designed to give you the exact tax amount that software like TurboTax uses, and they're actually easier to use since you just look up your income range rather than doing percentage calculations.

Has anyone done this this year? I'm afraid of getting hit with some penalty if I file for stimulus money this late... is there a deadline to claim these payments?

I'm in a similar situation - never received my third stimulus payment and have been putting off dealing with it because the whole process seemed overwhelming. After reading through everyone's experiences here, it sounds like filing the 1040-X amendment is definitely doable without paying a tax service. Quick question for those who have successfully done this: Do you need any special documentation to prove you never received the payment? I checked the IRS "Get My Payment" tool back in 2021 and it always said "Payment Status Not Available" but I don't have any screenshots or records of that. Will the IRS cross-reference their payment records automatically when they process the amendment, or do I need to provide some kind of proof that I never got it? Also, for anyone still on the fence about this - the deadline for amending 2021 returns (third stimulus) is April 15, 2025, so there's still time but probably better to get it done sooner rather than later given how long the IRS is taking to process amendments right now.