16 Don't forget about state taxes too! Your W-2 might have state tax info on it, and depending on where you live, you might need to file a state return in addition to federal. Some states don't have income tax tho.

Hey Giovanni! First of all, take a deep breath - you've got this! Getting your first W-2 can feel overwhelming, but it's actually pretty straightforward once you know the steps. Here's what you need to do: 1. **Don't mail your W-2 anywhere** - you keep it for your records and use the information on it to file your tax return 2. **Choose how to file** - Since you're young with a simple tax situation, you can likely file for free using: - IRS Free File (if your income is under $73,000) - Software like FreeTaxUSA, TaxAct, or TurboTax Free Edition - Even tax prep services at libraries or community centers 3. **About your tips** - Your W-2 should show all the tips you reported through the POS system. But if you received cash tips that you didn't report to your employer, you'll still need to include those on your return (they go on a separate line) 4. **Talk to your parents** - Find out if they're claiming you as a dependent on their taxes. This affects how you file and which forms you use The tax software will walk you through everything step-by-step in plain English, so you won't need to decode all that tax terminology on your own. You've got plenty of time before the April deadline, so no need to stress!

Just curious - how do yall handle tip pooling for tax purposes? Our restaurant makes us pool 30% of tips with bartenders and food runners, but I'm not sure if I should be reporting the amount before or after the tip-out.

As someone who's been in the restaurant industry for 8 years, I can't stress enough how important it is to keep detailed records from day one. I use a simple notebook where I write down my total tips each shift - both cash and credit card. At the end of each month, I calculate what percentage of my total income I should set aside for taxes (usually around 22-25%). One thing that really helped me was opening a separate "tax savings" account and automatically transferring money there each week. Treat it like a bill you have to pay - don't touch that money for anything else. Also, make sure you're reporting ALL your tips to your employer, not just credit card tips. I know it's tempting to under-report cash tips, but the IRS has been cracking down hard on servers lately. They have ways of estimating what you should be making based on your restaurant's sales, and if your reported tips seem too low compared to industry standards, you could get flagged for an audit. Better to be honest upfront than deal with penalties and interest later. Trust me on this one!

I'm going through this exact same thing right now! Filed on Feb 18th and my transcript updated on March 5th with all the codes except 846. The "no tax return filed" message on the wage transcript had me convinced something went horribly wrong with my filing. Reading everyone's experiences here is such a relief - sounds like this is just how the IRS systems work during PATH season. I need my refund for some investment opportunities too, so I totally understand the anxiety! Based on what everyone's sharing, it seems like most people see their 846 code within 8-16 days of the initial transcript update. Mine should hopefully appear by next week if the timeline holds. Thanks for posting this question - I was about to start calling the IRS daily!

I'm dealing with this exact scenario right now too! My transcript updated on March 4th with codes 150, 570, and 971, but still no 846. The wage & income transcript showing "no tax return filed" had me in a complete panic - I thought maybe my return got lost in the system somehow. Reading through everyone's experiences here is incredibly helpful. It sounds like this database mismatch between the Account Management System and the wage/income system is just a normal part of how the IRS processes returns during PATH season. The technical explanations about separate databases really make sense of why we're seeing these contradictory messages. I'm also waiting on my refund for some time-sensitive financial moves, so I completely understand the stress! Based on the timelines people are sharing here (mostly 8-16 days from initial transcript update to 846 code appearing), I'm cautiously optimistic mine should show up within the next week or so. Has anyone noticed if the day of the week matters for when these updates typically appear? I've been checking every morning but wondering if there's a pattern to when the IRS pushes these final updates through their system.

I messed this up on my taxes last year and only reported the net amount I received after the marketplace took their cut. My tax preparer caught it during a review and had me file an amended return. The correct way is definitely to report the FULL amount on Line 1 and then deduct the fees separately. The IRS computers match what the marketplace reports to them against what you report. If those numbers don't match, it could trigger a letter or even an audit. Don't make my mistake - it was a headache to fix!

This is such a common source of confusion for new Schedule C filers! Based on all the great advice here, I want to emphasize the key point: always report the GROSS amount customers actually paid on Line 1, then deduct ALL your business expenses on the appropriate lines. I made this same mistake my first year selling crafts online - I only reported what hit my bank account after fees were taken out. When I got that scary letter from the IRS asking about the discrepancy between what the marketplace reported and what I filed, I learned real quick that their computers cross-check everything! The way I think about it now: Line 1 is "what did customers pay for my products?" and then lines 8-27 are "what did it cost me to run this business?" Platform fees, payment processing, shipping supplies, materials - it all goes in the expense section. This actually works in your favor because you get to claim MORE deductions while staying compliant with what the marketplace reported to the IRS. Don't stress too much about getting it perfect on your first try - the important thing is being honest and consistent with your reporting!

I've been lurking here for a while but finally decided to join after reading through this incredibly helpful thread. I'm actually facing the exact same situation right now - filed my 2021 and 2022 returns late, set up a payment plan for 2021, and just got blindsided by the 2022 notice yesterday. The collective wisdom here has completely changed my perspective on this. I was initially panicking thinking I had somehow messed up my existing payment plan or that I'd be in trouble with the IRS for not catching both years upfront. Reading everyone's experiences makes it clear that this is actually a really common scenario and the IRS has standard procedures for handling it. What's been most valuable is seeing the actual numbers people have shared - the penalty relief amounts, the monthly payment increases, and the cost comparisons between modifying existing plans versus waiting to pay balances in full. @Jamal Wilson's breakdown of the penalties and interest math was particularly eye-opening. I'm planning to call the IRS tomorrow morning (taking @Margot Quinn's advice about calling early) with all my paperwork organized. The fact that so many people have had positive experiences with the representatives in the installment agreement department gives me a lot of confidence. Thanks to everyone who shared their stories - this community is an amazing resource for navigating these stressful tax situations! I'll definitely update with my experience once I get it sorted out.

As someone who works in tax resolution, I want to emphasize that you're absolutely on the right track seeking advice here. The situation you've described is extremely common - I see cases like this almost daily where taxpayers set up a payment plan for one year and then get surprised by additional tax liabilities. The advice about calling to modify your existing installment agreement is spot-on. What many people don't realize is that the IRS actually prefers to consolidate multiple tax years into a single payment plan rather than having taxpayers juggle separate agreements or default on existing ones. A few additional points that might help: 1. When you call, mention that you're "current and in good standing" on your existing installment agreement - this immediately signals to the representative that you're a cooperative taxpayer. 2. The IRS has specific procedures for what they call "revising installment agreements" to include additional tax periods. It's a routine process for them. 3. If your combined balance is under $50,000, you'll likely qualify for a "streamlined" installment agreement, which has fewer requirements and faster processing. 4. Consider requesting that any penalty relief be applied retroactively to both tax years if you qualify for first-time penalty abatement. Don't let this situation stress you out more than necessary. You've already demonstrated good faith by setting up the first payment plan, and the IRS recognizes that. They'd much rather work with you to consolidate everything into one manageable payment than deal with defaults or collections issues down the road.