I work at an accounting firm and see this question a lot. Just to clear up confusion: your brother's driver's license status has NOTHING to do with his ability to file tax returns. These are completely separate systems. The only connection might be if: 1. Your state has a refund intercept program for DMV debts 2. His suspended license fees have been referred to collections 3. Your state has a professional license suspension program for tax debts (which doesn't apply here since it's the other way around) File those taxes! Waiting only creates more problems.

Just wanted to add some reassurance here - I went through almost the exact same situation last year! My license was suspended for lapsed insurance (also terrible with deadlines), and I was panicking about tax season. The bottom line is your brother can absolutely file his taxes normally. The IRS doesn't care about driver's license status at all. For his federal return, he should expect no issues whatsoever. For the state return, it really depends on Michigan's specific policies. In my state (Ohio), they do have an offset program, but it turned out my reinstatement fees hadn't been referred to it yet because the suspension was relatively recent. My advice: have your brother call the Michigan Secretary of State office and ask directly if his case has been sent to the Treasury offset program. That way he'll know ahead of time if his state refund might be reduced. Even if it is, getting some money back is better than getting none, and he really needs to file regardless. The stress isn't worth it - I spent weeks worrying for nothing! File those taxes and deal with the license separately.

One thing to be aware of - if you receive a W-2G, the IRS also received a copy. So ignoring it will definitely cause problems since they'll be expecting to see that income reported on your tax return. If you don't report the winnings that are on your W-2G, you'll almost certainly get a letter from the IRS later asking why the income wasn't included. That could potentially lead to penalties and interest on top of any taxes owed.

Just wanted to add some clarity on the timing aspect - you don't need to wait until you receive your W-2G in the mail to start preparing. Casinos are required to give you a copy immediately when you win, and they must send the official form to you (and the IRS) by January 31st. Also, keep in mind that gambling winnings are considered "other income" and get reported on Schedule 1 (Form 1040), line 8b specifically. The withholding amount from your W-2G gets entered on your main 1040 form along with other tax payments and withholdings. One last tip - if you're planning to claim gambling losses to offset your winnings, make sure you have detailed records before you file. The IRS can be pretty strict about gambling loss documentation, so having a contemporaneous log with dates, locations, and amounts is crucial if you ever get audited.

Congratulations! That sudden change to $0.00 is exactly what you want to see. I went through the same thing last month - my balance showed amounts owed one day, then suddenly dropped to zero the next morning. Got my refund deposited exactly 5 days later. The fact that both 2023 and 2024 show $0.00 means the IRS has processed everything and cleared your account. This usually happens in the final stages before they release your refund. Pro tip: Download the IRS2Go app if you haven't already - it'll give you push notifications when your refund status updates. Also worth checking your transcript tomorrow to see if any new transaction codes appeared overnight. You're definitely in the final stretch now!

This is such great news! The sudden change to $0.00 across both tax years is definitely a positive indicator that your return has been processed and approved. I experienced something very similar last year - my balance showed amounts owed one day, then completely zeroed out the next morning. From what I've seen in this community, once your account balance drops to zero like this, you're typically looking at 3-7 business days before the refund hits your account. The IRS system updates are usually pretty accurate when they show these kinds of dramatic changes. Make sure to check your account transcript in the next day or two for transaction code 846 - that's the golden ticket that means your refund has been officially scheduled for deposit. You can access it through the same IRS account portal where you're seeing the $0.00 balance. The timing of this happening within just a few hours is actually really encouraging. It suggests the IRS systems are actively processing your case rather than it just sitting in a queue somewhere. Hang in there - you're almost at the finish line!

Anyone know if this applies the same way for Schedule SE 2023? My husband and I are in similar situation but neither of us hit the $160,200 limit individually although together we go over. Am I understanding right that we'll both owe the full 12.4% SS tax on our side hustle income? That seems so unfair when couples who have one high earner wouldn't pay this!

I've been a tax preparer for 15 years and this is one of the most common misconceptions I see with married couples who both have self-employment income. The key thing to remember is that Schedule SE is NOT affected by your filing status - it's always calculated individually. Even though you file a joint return, Social Security benefits are earned individually, so the taxes that fund them are also calculated individually. Each spouse needs their own Schedule SE, and line 8A should only include that person's individual W-2 wages, never the combined amount. One tip: if you're doing this yourself, make sure you're using the correct wage base limit for the tax year you're filing. It increases almost every year due to inflation adjustments. Also, don't forget to claim the deduction for the employer portion of self-employment tax on your joint return - that's one place where filing jointly actually helps you!

I went through this exact situation a few years ago and can share what I learned. The IRS doesn't aggressively pursue homebuyer credit repayments initially, but they will eventually catch up through their automated matching systems. When they do, you'll owe the missed payments plus interest that compounds over time. Here's what I recommend: First, gather all your tax returns from 2010 onwards and identify which years you made the $500 repayment and which you missed. You'll need to file Form 1040X (amended returns) for each year you missed. The repayment goes on Schedule 2, Line 10 as "Repayment of first-time homebuyer credit." One thing that surprised me was that the IRS was actually quite reasonable when I contacted them directly about it. They set up a payment plan for the back taxes and interest, and there were no additional penalties beyond the standard interest charges. The key is being proactive - if you wait for them to send notices, you'll pay significantly more in interest. Don't stress too much about this. It's fixable, and you're definitely not the first person to forget about these repayments during major life changes like divorce and job transitions.

I'm in a very similar situation and appreciate everyone sharing their experiences here. I also took the 2008 credit and missed several years of repayments during some major life changes. One thing I wanted to add that might help others - I discovered that even if you think you made the repayment correctly, it's worth double-checking. I thought I had been making payments properly for a few years, but when I reviewed my old returns, I realized I had been entering the repayment amount in the wrong section of the form, so the IRS system wasn't recognizing it as a homebuyer credit repayment. For anyone dealing with this, I'd suggest creating a simple spreadsheet listing each tax year from 2010 forward, whether you made the $500 repayment that year, and calculating your remaining balance. This helped me get organized before deciding how to move forward. The math is straightforward - you start with $7,500 and subtract $500 for each year you properly made the payment. Also, for what it's worth, I called my local Taxpayer Advocate Service office and they were able to provide some general guidance about the process, though they couldn't help with the actual filing. Sometimes local offices are easier to reach than the main IRS lines.