Great question! I went through this exact confusion when I had some casino winnings last year. The key thing to understand is that gambling winnings are treated as ordinary income, which means they get added to all your other income and taxed at your marginal tax rate - not a flat 24%. The 24% you're seeing is just the federal withholding rate that casinos are required to take out on certain large winnings (like jackpots over $5,000). Think of it like the taxes withheld from your paycheck - it's just an advance payment toward what you'll actually owe. So for your $800,000 example, here's what would happen: 1. Casino withholds 24% federal ($192,000) plus any state taxes 2. At tax time, you add the full $800,000 to your other income 3. If this pushes you into the 37% bracket, you'd owe 37% on the portion in that bracket 4. You'd either get a refund if they over-withheld, or owe more if they under-withheld Also don't forget - you can deduct gambling losses up to your winnings if you itemize and keep good records. Save those losing tickets and keep a gambling diary! The most important thing is to set aside extra money beyond what they withhold, because you'll likely owe more at tax time.

Just to add another perspective - I work as a tax preparer and see gambling tax situations all the time. One thing that trips people up is that the withholding rates can vary depending on what you win and where you win it. For example, if you win at a tribal casino, they might not withhold anything at all even on large jackpots, because they follow different rules. But you still owe the same taxes! I've had clients who thought they were "tax-free" wins and then got shocked at filing time. Also, if you're a regular gambler, keep in mind that the IRS can sometimes classify you as a "professional gambler" if you gamble frequently enough, which changes how you report everything. It's rare, but worth knowing about if you spend a lot of time at casinos or playing online. The safest approach is always to assume you'll owe taxes at your marginal rate and set aside that percentage of any winnings, even if nothing was withheld. Better to have extra money saved than to scramble come tax time!

i know everyone hates wmr but maybe just use that for now? better than nothing

I'm dealing with the exact same issue! Filed on 1/28 and getting that same "We are not able to provide assistance to you via the identity verification tool" message. It's so annoying because I've been checking my transcripts for the past 3 years without any problems. The system worked fine when I checked it in December for prior year info, but now suddenly it won't verify my identity? Makes no sense. I even tried using different browsers and clearing my cache but nothing works. Really hoping this gets fixed soon because WMR is practically useless compared to the detailed info you get from transcripts.

One thing nobody mentioned - if you're filing multiple years of back taxes, mail them in SEPARATE envelopes! I made the mistake of putting 3 years in one envelope and the IRS misplaced two of my returns. Took 9 months to sort out. Also, make copies of EVERYTHING before sending! Trust me, you'll thank yourself later if anything goes wrong.

Just wanted to add one more important point - if you're expecting refunds for both 2022 and 2023, you should definitely prioritize filing your 2022 return first since that 3-year deadline (April 2025) is coming up fast. You've got more time for your 2023 return. Also, don't forget to include all your income documents when you file. I see you mentioned W-2s and 1099s - make sure you have ALL of them, including any 1099-INT for bank interest or 1099-DIV for dividends, even if they're small amounts. The IRS already has copies of these documents, so if you miss one, it could delay your refund or trigger correspondence. Since you mentioned the tax stuff makes your head spin, consider using Free File if your income qualifies (usually under $73,000). It's free IRS-approved software that can handle prior year returns and walks you through everything step by step. Much easier than trying to figure out paper forms on your own!

Does anyone know if you could get in trouble with the IRS for not filing if you were actually owed a refund? I'm in a similar situation - didn't file for 3 years but I think I had too much withheld from my paychecks.

Hey Sean, I totally understand the anxiety you're feeling - I went through something similar a few years back! The good news is that with income levels around $8k-$10k per year, you were likely below the filing threshold for some of those years anyway (the standard deduction would have covered most of your income). Here's what I'd recommend: First, don't ignore it any longer - it's better to be proactive. Contact the IRS to get wage transcripts for those years (Form 4506-T) so you can see exactly what was reported. You'll probably find that you had taxes withheld and are actually owed refunds! The IRS generally won't penalize you for late filing if you're owed a refund, but you do lose the right to claim refunds after 3 years from the original due date. So if you had refunds coming for 2021, you need to file by April 15, 2025 to claim them. Don't let this stress consume you - tackle it step by step and you'll get through it. The IRS deals with situations like this all the time, and they're generally reasonable when you're making an effort to get compliant.

Hey, I just wanted to add one more thing that might help - make sure you're keeping all your certified mail receipts and documentation of every interaction with the IRS. My family went through a similar nightmare with my mother-in-law's ITIN last year. What ultimately worked for us was sending a letter to the Taxpayer Advocate Service explaining the entire timeline with copies of all previous correspondence. They have the authority to cut through a lot of the bureaucratic tape when the normal IRS channels aren't working. You can find your local Taxpayer Advocate Service office here: https://www.taxpayeradvocate.irs.gov/contact-us/ They were able to resolve our issue in about 3 weeks after we had been struggling for almost 6 months through normal channels.

Just wanted to say that I work with international taxpayers frequently, and this is unfortunately a common issue with ITINs. The IRS systems don't always properly connect newly issued ITINs with previously filed returns, especially when there's an amended return involved. Here's a tip that's worked for my clients: When you file your next amended return, attach a clear cover letter that states in bold at the top "ITIN VERIFICATION ISSUE - PREVIOUSLY FILED RETURN" and include a copy of the ITIN assignment letter you received from the IRS. This flags it for special handling. Also, be aware that ITIN applications are processed by a completely different department than tax returns, which is why these issues happen. The ITIN Operations department in Austin, TX issues the ITINs, but they don't necessarily communicate that to the return processing centers automatically.