I went through something very similar last year with a former employer who incorrectly classified me as full-time on my 1095-C when I was actually a part-time contractor. The key is being persistent and documenting everything. Since you have code 1A and 2C on your form, which clearly indicate full-time status with qualifying coverage offered, you definitely have grounds for a correction. Start with a formal written request to HR citing the specific incorrect codes and referencing your employment contract that shows part-time/temporary status. If they don't respond within 2-3 weeks, escalate to their payroll department or whoever handles tax compliance. Sometimes HR doesn't understand the tax implications, but the payroll/benefits team will. Include copies of your contract, pay stubs showing limited hours, and any documentation about your employment classification. Keep detailed records of all your attempts to resolve this - dates, who you spoke with, their responses. This documentation becomes crucial if you need to file Form 8275 with your return. The IRS understands that these employer errors happen and has processes in place to handle them when you can show you made good faith efforts to get it corrected. Don't let this stress you out too much - as long as you report your actual health insurance situation correctly on your tax return, you should be fine even if the employer won't fix their mistake.

I work as a tax preparer and see this exact issue several times each tax season. The combination of codes 1A and 2C that you mentioned is a dead giveaway that their system incorrectly classified you as full-time when you were clearly part-time temporary. Here's what I always tell my clients in this situation: Start with a written request to HR, but also send a copy to their benefits/payroll department. Large employers often have different departments handling different aspects of tax reporting, and sometimes HR doesn't have the authority to make corrections to tax forms. In your letter, be very specific about the codes and reference the IRS instructions. Say something like "Code 1A indicates I was offered qualifying coverage as a full-time employee, but my employment contract shows I was hired as part-time temporary with explicit exclusion from benefits. Additionally, code 2C indicates full-time status, which contradicts my pay records showing consistent 20-hour weeks." Most employers will correct this once they understand the liability issues. Incorrect 1095-C reporting can create compliance problems for them with the IRS, so it's in their interest to fix it. Give them about 10 business days to respond, and if they don't, that's when you'd file Form 8275 with your return to protect yourself. Don't worry too much about your marketplace subsidies - as long as you report your actual coverage correctly on your tax return, having an incorrect 1095-C shouldn't affect your premium tax credits.

I'm confused about why you'd want to use a credit card for this anyway? The interest rates are usually crazy high compared to actual business loans. Have you looked into SBA loans or even a personal loan? Might save you a ton in interest.

I've been in a similar spot with cash flow issues. One thing to consider is that many business credit cards offer cash advance options or balance transfer checks that might be simpler than trying to create artificial transactions through your payment processor. The interest rates aren't great, but at least you're not creating potentially problematic revenue entries in your books. Another angle - if you really need the funds short-term, you could also look into invoice factoring or merchant cash advances if you have regular receivables. These aren't cheap either, but they're legitimate business financing options that won't raise eyebrows with the IRS like running fake sales through your own payment system might. The key thing everyone's touched on is documentation. Whatever route you go, make sure it's clearly categorized in your books for what it actually is rather than trying to disguise it as something else.

I just went through this exact scenario with my craft business! I purchased $3,750 in materials in December 2023 but didn't sell anything until January 2024. My accountant had me file a Schedule C showing zero income, and we listed the inventory on Part III but didn't claim it as COGS yet since nothing sold. We did deduct my $850 in legitimate business startup expenses like my LLC filing fee, website costs, and business cards. The inventory will become COGS when I file my 2024 taxes as items sell.

Thanks for all the helpful responses everyone! Just to clarify a few additional points that might help other newcomers in similar situations: Make sure you keep detailed records of your inventory purchases with receipts and invoices - the IRS will want to see documentation if questioned. Also, don't forget about the business use of home deduction if you're operating from your residence. Even with zero sales, you can still claim a portion of your home expenses if you have a dedicated business space. And regarding accounting methods - you typically need to choose cash vs accrual when you file your first Schedule C, so research which makes more sense for your business type before filing.

Has anyone dealt with Social Security and Medicare taxes on a TN visa? My employer withheld these taxes from my paychecks, but I've heard conflicting information about whether TN visa holders are exempt under the totalization agreement between US and Canada.

I went through this exact same situation last year as a TN visa holder from Canada! The advice about filing Form 1040-NR as a nonresident is spot on. One thing I'd add is to be extra careful about the tax treaty elections - Form 8833 can save you money but you need to file it correctly. Also, don't forget about state tax implications even though you're in Washington (lucky you - no state income tax!). Some states have different residency rules than federal, but WA makes it simple. For the FBAR reporting, the threshold is $10,000 USD aggregate in all foreign accounts at any point during the year. So if your Canadian accounts totaled more than $10K at any time in 2022, you need to file FinCEN Form 114 by April 15th (no extensions allowed). One mistake I made was not keeping good records of my Canadian tax payments. If you have any investment income from Canada that was subject to withholding tax there, make sure to claim the Foreign Tax Credit on Form 1116 to avoid double taxation. The tax software mentioned above (taxr.ai) actually helped me catch this - saved me about $800! The deadline pressure is real, but you've got this! Consider getting help if your situation is complex, but for a straightforward W-2 situation, the nonresident-specific software should handle it well.

Sorry to butt in, but I had a similar issue and I think you're overthinking this. My FAFSA appeal just needed proof of income change, not specifically a "termination letter." I submitted my dad's old 1099s, recent bank statements showing no more deposits from that company, and a simple letter he wrote explaining when and why his contract ended. The financial aid office approved it no problem. They deal with independent contractors all the time - they know you guys don't get formal termination letters! Just call your financial aid office directly and ask what alternative documentation they'll accept instead of focusing on this one document.

I went through this exact situation last year with my mom who was also a 1099 contractor! Your dad is partially right - companies aren't legally required to provide termination letters to independent contractors like they do for employees. But that doesn't mean you're stuck. Here's what worked for us: Instead of asking for a "termination letter," we requested a simple "confirmation of contract period" email. Companies are often more willing to provide basic dates since it's just confirming facts, not making any statements about termination reasons. For your FAFSA appeal, gather these documents: - Your dad's most recent 1099 form showing his previous income - Bank statements from the last 6 months showing when payments from that company stopped - Any final invoice he sent that wasn't paid or was the last one - A simple written statement from your dad explaining when and why the contract ended Most financial aid offices understand that 1099 workers don't have the same documentation as W-2 employees. Call your school's financial aid office directly and explain the situation - they likely have standard procedures for exactly this scenario. Don't let the two-week deadline stress you out too much; they deal with contractor income changes all the time and know what alternative documentation works. Good luck with your appeal!