Careful here - while employer health insurance isn't included in gross income, make sure you're calculating AGI correctly for whatever tax credit you're looking at. Some credits use Modified AGI (MAGI) which adds certain things back to your AGI. For example, Premium Tax Credit uses a MAGI that includes tax-exempt interest and untaxed social security. The MAGI for IRA deduction eligibility adds back student loan interest and tuition deductions. What specific tax credit are you trying to qualify for? That might change what income counts.

Great question! I went through this exact situation two years ago when I was right at the income threshold for the American Opportunity Tax Credit. The general rule everyone's mentioned is correct - employer-paid health insurance premiums are NOT included in your gross income. However, I'd strongly recommend double-checking which specific income metric your tax credit uses, since some use AGI while others use Modified AGI (MAGI). For most common credits like the Child Tax Credit, Earned Income Tax Credit, and American Opportunity Tax Credit, they typically use your AGI from line 11 of Form 1040. Your employer health insurance contributions won't appear there. One thing that helped me was pulling up the IRS instructions for the specific credit I was applying for. They usually have worksheets that walk you through exactly what income to include. Since you mentioned the $75k threshold, that sounds like it could be the American Opportunity Tax Credit or possibly the Retirement Savings Contributions Credit - both of which use AGI, not MAGI. With your $71,500 in regular income, you should be comfortably under the threshold even with some wiggle room for any other income sources. The employer health insurance won't push you over!

Quick tip: make sure you're correctly classifying people as contractors vs employees. This is my biggest nightmare as a business owner. If you're telling them WHEN, WHERE and HOW to do the work, the IRS might consider them employees, not contractors. The difference matters ALOT because for employees you need to withhold taxes, pay unemployment insurance, etc. For contractors you just send a 1099. Getting this wrong can result in huge penalties and back taxes!

Great advice from everyone here! I'm actually dealing with a similar situation right now where I have about 6 subcontractors for a large project. One thing I learned the hard way is to get those W-9 forms BEFORE you make any payments, not after. I made the mistake of paying two contractors first and then asking for their W-9s later - one of them completely ghosted me and the other took weeks to respond. Now I'm scrambling to get the paperwork sorted before year-end. Also, keep detailed records of exactly what services each contractor provided and when. The IRS can ask for this documentation if there are any questions about your 1099 filings. I use a simple project tracking spreadsheet that includes dates, amounts, and description of work performed for each contractor. Makes tax time so much easier!

The "good standing" concept is a bit misleading with the IRS. Unlike some agencies, there's no formal "good standing" status. Instead, there are just accounts with or without issues. Check tax account transcripts for all years you're concerned about. Look for "code 150" which means a return was processed. If it's not there for a given year, either no return was required or they're still looking for one. You can request a compliance check from the IRS collections department. You might also see if you qualify for the streamlined filing compliance procedures, which are more forgiving than standard late filing.

One thing that hasn't been mentioned yet is the IRS Fresh Start Initiative, which might be relevant to your situation. This program offers various relief options for taxpayers trying to get current with their tax obligations, including penalty relief and payment plans. Since you mentioned the older unfiled returns are from years when you weren't making much money, you might also want to consider that if your income was below the filing threshold for those years, you may not have been required to file at all. The filing requirements change each year, but generally if you made less than the standard deduction amount, no return was required. Before spending money on third-party services, I'd recommend starting with the free IRS resources. You can create an online account at irs.gov to view your tax transcripts immediately, and if you need to speak with someone, try calling early in the morning (7-8 AM local time) when wait times are typically shorter. The IRS also has Taxpayer Advocate Service offices that can help if you're having trouble resolving issues through normal channels. For the years you're missing documentation, the IRS can provide you with wage and income transcripts showing what was reported under your SSN, which can help you reconstruct your tax situation for those years if needed.

Technically HRB doesn't "use" any bank for direct deposit to your personal account. If you just did standard direct deposit, the IRS sends it directly to your bank. If the account/routing number is correct but no money arrived, then either: 1) Your bank rejected it for some reason (name mismatch, closed account, etc) or 2) The IRS is having a delay. You need to call the IRS because if your bank rejected it, the IRS automatically converts to a paper check but this takes several more weeks.

I've been through this exact situation and it's so frustrating! Based on your transcript showing code 846 on 5/22 and no deposit after 8 days, the direct deposit was almost certainly rejected by your bank. The IRS has probably already initiated a paper check but it won't show up on your transcript right away. A few things to check: Make sure the name on your tax return matches your bank account exactly (even middle initials matter), and call your bank's customer service to ask if they have any record of rejecting a deposit - sometimes they don't proactively tell you. The paper check should arrive within 2-4 weeks of the rejection, but getting confirmation from the IRS directly will give you peace of mind about the timeline. Hang in there - you'll get your money, it's just taking the scenic route!

I went through this exact scenario in 2023. Did your letter have a specific CP number in the top right corner? Was it a CP05 by any chance? What about your tax situation - did you claim any credits like the Child Tax Credit or Earned Income Credit? The reason I ask is that different types of reviews have different timelines, even though they all use the standard 60-day letter.

I'm going through this exact same nightmare right now! Got my 60-day letter in late January, and here we are in March with absolutely nothing. What's really frustrating is that I've been a consistent early filer for years and never had issues before. One thing I learned from calling (after waiting 3+ hours on hold) is that you should definitely request a "case trace" when you do get through to someone. The agent told me this creates a paper trail showing you've inquired about your delayed return, which can be helpful if you need to escalate later. They also mentioned that returns selected for manual review this year are taking 90-120 days on average, not the 60 days they initially quoted. The medical bills situation really hits home - I'm in a similar boat with unexpected expenses. Have you considered reaching out to your medical providers to explain the situation? Some are willing to work with payment plans when you can show proof of the pending refund. Not ideal, but might buy you some time while the IRS gets their act together. Stay strong - we're all in this together! Let us know what happens when you call them.