Can't reach IRS? Claimyr connects you to a live IRS agent in minutes.
Claimyr is a pay-as-you-go service. We do not charge a recurring subscription.
Using Claimyr will:
- Connect you to a human agent at the IRS
- Skip the long phone menu
- Call the correct department
- Redial until on hold
- Forward a call to your phone with reduced hold time
- Give you free callbacks if the IRS drops your call
If I could give 10 stars I would
If I could give 10 stars I would If I could give 10 stars I would Such an amazing service so needed during the times when EDD almost never picks up Claimyr gets me on the phone with EDD every time without fail faster. A much needed service without Claimyr I would have never received the payment I needed to support me during my postpartum recovery. Thank you so much Claimyr!
Really made a difference
Really made a difference, save me time and energy from going to a local office for making the call.
Worth not wasting your time calling for hours.
Was a bit nervous or untrusting at first, but my calls went thru. First time the wait was a bit long but their customer chat line on their page was helpful and put me at ease that I would receive my call. Today my call dropped because of EDD and Claimyr heard my concern on the same chat and another call was made within the hour.
An incredibly helpful service
An incredibly helpful service! Got me connected to a CA EDD agent without major hassle (outside of EDD's agents dropping calls ā which Claimyr has free protection for). If you need to file a new claim and can't do it online, pay the $ to Claimyr to get the process started. Absolutely worth it!
Consistent,frustration free, quality Service.
Used this service a couple times now. Before I'd call 200 times in less than a weak frustrated as can be. But using claimyr with a couple hours of waiting i was on the line with an representative or on hold. Dropped a couple times but each reconnected not long after and was mission accomplished, thanks to Claimyr.
IT WORKS!! Not a scam!
I tried for weeks to get thru to EDD PFL program with no luck. I gave this a try thinking it may be a scam. OMG! It worked and They got thru within an hour and my claim is going to finally get paid!! I upgraded to the $60 call. Best $60 spent!
Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Join the conversation
Join the conversation
This is a really complex situation that trips up a lot of people! I went through something similar last year and want to add a few practical tips based on my experience: 1. Get everything in writing from HR - specifically the date they're processing the correction and confirmation about the W-2 correction that Zainab mentioned. My HR initially said "early 2025" which wasn't specific enough to determine if it fell within the 2.5 month window. 2. The 1099-R you receive will be key - it should have distribution code "8" in Box 7 for excess contributions returned due to failed ADP/ACP tests. Make sure to keep this with your tax records. 3. Don't forget that if you're getting earnings returned too (which is common), those earnings are taxable as ordinary income for the year being corrected (2024 if done by March 15, 2025). The earnings portion may also be subject to the 10% penalty if you're under 59Ā½. 4. Consider talking to a tax professional if the amounts are significant. The interaction between the returned contributions, earnings, and how they affect your tax liability can get pretty complex, especially if you're near certain income thresholds for other tax benefits. The 2.5 month rule is real and it's specifically in the IRS regulations for 401(k) plan corrections. Your HR person is correct about the timing impact on which tax year is affected.
This is such helpful advice! I'm dealing with this exact situation right now and your point about getting everything in writing is spot on. My HR department has been pretty vague about timing too - they just said "soon" when I asked about the correction date. One thing I'm wondering about - you mentioned talking to a tax professional if the amounts are significant. What would you consider "significant" in this context? I'm looking at about $3,000 being returned plus maybe $200-300 in earnings. Is that worth the cost of professional help, or should the tools and guidance mentioned in this thread be sufficient for most people? Also, do you know if there's a standard timeframe companies typically take to issue the corrected W-2s after processing the excess contribution return? I want to make sure I'm not filing my taxes before getting all the correct documentation.
Kelsey Chin
ā¢For $3,000-3,300 total, you're probably fine using the tools mentioned here rather than paying for professional help, unless you have other complex tax situations. That amount shouldn't push you into different tax brackets or significantly impact other deductions. Regarding W-2 timing - in my experience, companies usually issue corrected W-2s within 30-45 days after processing the excess contribution return. Since they need to correct the 401(k) deferral amount in Box 12, they can't really delay it too long. I'd suggest waiting until you receive both the 1099-R for the returned excess AND the corrected W-2 before filing. Filing with the wrong W-2 information and then having to amend is more hassle than just waiting a bit longer. You could also ask HR directly for their timeline on issuing corrected W-2s - they should have a process for this since non-discrimination test failures aren't uncommon.
Chloe Green
I went through this exact situation two years ago and can confirm that the HR rep is correct about the 2.5 month rule. It's found in IRS Treasury Regulation 1.401(k)-2(b)(2)(vi), which specifically addresses corrections of failed ADP/ACP tests. One thing that caught me off guard was that the "earnings" portion of the returned excess can be substantial if your 401(k) had good returns during the year. In my case, I had contributed $2,500 excess, but the earnings on that amount were almost $400 by the time they processed the correction. Both amounts were taxable in 2024 since they corrected it in February 2025. Also worth noting - if your company uses a plan year that's different from the calendar year, the 2.5 month window would be different. Most companies use calendar year plans, but it's worth confirming with HR. The key is to make sure you get both the 1099-R (showing the distribution) and a corrected W-2 (showing the reduced 401k contribution amount). Without both documents being corrected, your tax return won't properly reflect what actually happened.
Thanks for citing the specific Treasury Regulation - that's really helpful! Your point about the earnings being substantial is something I hadn't fully considered. With the market doing well this past year, I'm probably looking at more earnings on my excess contribution than I initially thought. Quick question about the plan year timing - how do you find out if your company uses a different plan year than the calendar year? Is that something that would be in our employee handbook or 401(k) plan documents? I've never paid attention to this detail before, but now I'm wondering if it could affect my situation. Also, did you find that your company was proactive about issuing the corrected W-2, or did you have to follow up multiple times? I'm trying to get a sense of whether I should be more aggressive about asking for timeline updates from HR.
Join the conversation
This is a great question that many real estate investors face! The key thing to understand is that the IRS cares more about the legitimate business purpose of the loan than who the lender is. As long as you're using the money specifically for your rental property investment, the interest should be deductible on Schedule E. A few critical points to keep in mind: 1. **Documentation is everything** - Create a formal written loan agreement that includes the principal amount, interest rate, payment schedule, and maturity date. This doesn't need to be overly complex, but it should look professional and be signed by both parties. 2. **Interest rate considerations** - The rate should be reasonable and at arm's length. You can reference the IRS Applicable Federal Rates (AFR) as a baseline. If the rate is significantly below market, the IRS might view part of it as a gift rather than a legitimate loan. 3. **Keep excellent records** - Track all payments made, maintain copies of checks/transfers, and ensure the lender reports the interest income on their tax return. You'll need to provide the lender's information when you file. 4. **Consider recording the loan** - While not required for deductibility, recording a deed of trust or mortgage with your county can provide additional legitimacy and protection for both parties. The fact that it's family doesn't disqualify the deduction - just make sure you treat it like any other business loan with proper documentation and regular payments according to your agreement.
This is really helpful! I'm just getting started with rental property investing and had no idea about the AFR rates. Quick question - when you mention "at arm's length," does that mean I need to negotiate the rate the same way I would with a bank, or is it okay to discuss family-friendly terms as long as we stay above the AFR minimum? Also, do you know if there's a specific form or template the IRS prefers for these private loan agreements, or is any professional-looking contract sufficient?
Miguel Ramos
ā¢Great question about "arm's length" - this basically means the terms should be similar to what unrelated parties would agree to. You don't need to negotiate as aggressively as with a bank, but the rate and terms should be reasonable and commercially viable. Using the AFR as your floor is smart - it shows the IRS you're treating this as a legitimate business transaction rather than a family favor. As for loan agreement templates, the IRS doesn't prescribe a specific form, but your document should include: loan amount, interest rate, payment schedule, maturity date, default provisions, and signatures from both parties. Many real estate attorneys or online legal services offer templates specifically for private real estate loans. The key is making it look professional and comprehensive enough that it would hold up under scrutiny. One additional tip: consider having the agreement notarized. While not required, it adds another layer of legitimacy and shows you're taking the loan seriously as a business transaction.
One additional consideration that hasn't been mentioned yet is the potential impact on your debt-to-income ratio for future financing. Even though this is a private loan, it will still show up as debt if you record it against the property, which could affect your ability to qualify for additional investment property loans down the road. That said, the tax benefits usually outweigh this concern, especially if you're not planning to expand your portfolio immediately. Just something to keep in mind as you structure the loan terms. Also, make sure both you and your brother-in-law understand the tax implications on his side. He'll need to report the interest income, and depending on his tax bracket, this could affect how much benefit you both get from the arrangement compared to a traditional bank loan. The AFR rates mentioned by others are published monthly on the IRS website if you want to check the current minimums for your loan term. This gives you a solid baseline that the IRS has already deemed acceptable for legitimate lending between related parties.
This is a really important point about the debt-to-income impact that I hadn't considered! I'm actually planning to buy another rental property in about 18 months, so this could definitely affect my financing options. Quick question - if I don't record the private loan against the property title, would it still show up on my credit report or affect my DTI ratio with future lenders? I'm trying to weigh the benefits of the additional legitimacy from recording versus keeping my borrowing capacity flexible for expansion. Also, regarding the tax implications for my brother-in-law - he's in a pretty high tax bracket, so I'm wondering if there are any strategies to structure this in a way that's still beneficial for both of us. Would it make sense to consider a shorter loan term to minimize his total tax burden, or does that not really matter from the IRS perspective as long as we stay above the AFR?
Join the conversation
18 Random but related tip - if you're fronting expenses and getting reimbursed later, use a good rewards credit card! I put about $9k of company expenses on my card last year and earned enough points for a round-trip flight. Company gets their supplies, I get reimbursed fully, AND I get travel rewards. Triple win!
1 That's exactly what I've been doing! I get about 2% back on everything so that's like $80-100 free money every month. Almost makes it worth the hassle of fronting the cash. Do you have any issues with your credit score though? Sometimes my utilization gets pretty high before the reimbursement comes through.
18 Great question about the credit score impact. I definitely saw my utilization rate spike at times, which temporarily lowered my score by about 15-20 points some months. But as soon as the reimbursement came through and I paid off the card, my score bounced right back up. If you're applying for a mortgage or other major loan, you might want to be careful about timing and pay the card off before the statement closes. Otherwise, it's usually just a temporary dip that corrects itself after reimbursement.
Natalie Khan
Great question! You're absolutely right to be organized with your documentation - that's key. Since you're getting fully reimbursed through your company's expense report system, you don't need to report these transactions on your personal tax return at all. This falls under what the IRS calls an "accountable plan" since you're providing receipts, documenting business purposes, and getting reimbursed for actual expenses. The company treats these as their business expenses, and from your perspective, it's like they paid the vendors directly - you were just the middleman. The fact that you temporarily used your personal credit card doesn't change the tax treatment. No need to report the $4-5k in purchases as deductions, and the reimbursements aren't considered income to you. Keep doing what you're doing with the documentation though - those records are important if you ever need to prove the business connection of the expenses.
Omar Hassan
ā¢This is really helpful, thank you! I've been stressing about this for weeks. One quick follow-up question - do I need to worry about anything if the total reimbursements show up anywhere on my W-2? My payroll department mentioned they track all reimbursements but I'm not sure if that means they'll be reported as income or just for their internal records.
Join the conversation
Maya Lewis
This has been such an informative thread! As a newcomer to energy tax credits, I really appreciate everyone sharing their real experiences with solar skylights and the various credit categories. One thing I wanted to add that might help others - I work in renewable energy consulting and see this confusion about "solar" products constantly. The key distinction that several people have mentioned is absolutely correct: it's not about whether something uses solar technology, but whether that solar component generates electricity for your home's use. For most residential "solar skylights" on the market (Velux, FAKRO, etc.), the solar panel is essentially just a battery replacement for the motor that opens/closes the skylight. It's still an energy-efficient improvement, but it falls under Section 25C with the $3,200 annual limit and the $600 skylights sublimit. True solar skylights that generate electricity for home use do exist, but they're typically custom installations that cost significantly more. Companies like SunTunnel and some Tesla products offer these, but you're looking at much higher upfront costs. The manufacturer documentation advice is spot-on. Most reputable manufacturers now provide tax credit guidance specifically because this question comes up so frequently. Always get that documentation before purchasing - it'll save you headaches at tax time!
Emma Morales
ā¢Thank you so much for adding your professional perspective, Maya! It's really reassuring to hear from someone in the renewable energy field that this confusion is common - I was starting to feel like I should have understood these distinctions better from the start. Your point about the solar panel essentially being a "battery replacement" for the skylight motor is such a clear way to think about it. That really helps me understand why these products fall under the energy efficiency credit rather than the solar electric credit, even though they technically use solar technology. I'm curious - in your consulting work, do you see many homeowners who end up choosing the true electricity-generating solar skylights despite the higher cost? I'm trying to decide if the unlimited credit potential makes the premium worth it, or if it's usually better to go with regular solar-powered skylights and use the cost savings for other qualifying improvements. Also, when you mention that reputable manufacturers provide tax credit guidance, do they typically specify which IRS form line items their products qualify for? That level of detail would be incredibly helpful for tax planning and filing accuracy. Thanks again for sharing your expertise - it's exactly the kind of professional insight that makes this community so valuable!
Sofia Gomez
ā¢In my experience, most homeowners stick with the regular solar-powered skylights rather than investing in the true electricity-generating versions. The cost difference is usually 3-5x higher for the electricity-generating models, and even with the unlimited credit, the payback period often doesn't make financial sense unless you're already planning a comprehensive solar installation. The sweet spot I typically recommend is using the cost savings from choosing regular solar skylights to fund other qualifying improvements - maybe a heat pump, insulation upgrades, or energy-efficient windows - to maximize that $3,200 annual credit across multiple categories. Regarding manufacturer documentation, the better companies (Velux is excellent at this) provide specific IRS form guidance. They'll tell you exactly which Form 5695 section applies and often include sample tax preparation notes. Velux actually has a "Tax Credit Guide" PDF that specifies their solar-powered skylights go on Form 5695, Part I, Line 5a as "qualified exterior windows, doors, and skylights" subject to the $600 sublimit. Having that level of detail from the manufacturer makes tax filing much more straightforward and gives you solid documentation if the IRS ever questions your categorization. Always worth asking for when you're making your purchase decision!
This entire thread has been absolutely invaluable! As someone completely new to energy tax credits, I was initially overwhelmed trying to understand all the different categories and limits. Reading everyone's real experiences has given me such clarity on what seemed like impossibly complex IRS regulations. The key insight I'm taking away is that the word "solar" in product names can be really misleading when it comes to tax credits. Most "solar skylights" are actually energy-efficient skylights with solar-powered operation, not electricity-generating solar systems. That distinction completely changes which credit applies and the annual limits you're working with. I'm particularly grateful for learning about the sublimits within Section 25C - I had no idea there was a separate $600 cap specifically for skylights and windows within the overall $3,200 limit. This is crucial for planning multiple improvements across tax years. The advice about contacting manufacturers directly for tax credit documentation is brilliant. I would never have thought to ask for specific IRS form guidance when purchasing home improvement products, but it makes perfect sense that companies like Velux would have this information readily available since they probably get these questions constantly. I'm now planning to carefully research and document everything before making any purchases, and I'll definitely be spreading my improvements across multiple tax years to maximize the credits. Thank you all for sharing your knowledge and experiences - this community is amazing!
Welcome to the community, Jace! Your summary really captures how confusing these energy tax credits can be at first - I went through the same learning curve when I started researching this topic. You've hit on all the key points that took me forever to figure out: the misleading "solar" terminology, the importance of sublimits within Section 25C, and how crucial manufacturer documentation is for proper tax filing. It's refreshing to see someone else recognize how valuable this real-world advice is compared to trying to decipher IRS publications alone. Your plan to spread improvements across multiple tax years is smart. I'm doing the same thing - maximizing that $3,200 annual limit by timing purchases strategically rather than trying to do everything at once and potentially losing out on credits. One additional tip from my recent experience: when you're getting that manufacturer documentation, also ask if they have any recommended tax professionals or CPAs who specialize in energy credits. Some of the larger manufacturers maintain referral lists of tax preparers who are particularly knowledgeable about these credits and can help ensure you're maximizing your benefits correctly. Good luck with your home improvements, and thanks for joining the discussion! This community really is a goldmine for practical advice.
Atticus Domingo
Just to add another perspective - I've been running a mobile coffee cart for 3 years and learned this lesson the hard way. We were doing exactly what your owner is doing (using one "safe" higher rate) until we got audited last year. The auditor explained that by consistently overcharging in certain jurisdictions, we were creating a liability because we were collecting more tax than we were remitting to those specific locations. The solution that worked for us was switching to a POS system with automatic location-based tax rates, but we also had to go back and correct our previous filings. It was a pain, but much better than facing penalties. I'd strongly recommend having a conversation with your owner about getting compliant sooner rather than later - mobile food businesses are actually more likely to be audited because we operate across multiple jurisdictions. Also, don't forget about the permit side of things. Most cities require food trucks to have local permits even for one-day events, and those permits often come with specific tax reporting requirements.
0 coins
Liam Sullivan
ā¢This is really helpful insight about the audit experience! I'm curious - when you had to go back and correct previous filings, did you have to pay penalties or interest on the differences? And how far back did the audit cover? I'm trying to understand what we might be facing if we don't get this sorted out soon. Also, do you know if there are any red flags that trigger audits for mobile businesses specifically?
0 coins
Mei Wong
ā¢Great question! In our case, we did have to pay some interest on the underpayments to certain jurisdictions, but the penalties were waived because we voluntarily corrected the filings before they caught the discrepancies. The audit covered 3 years back, which is pretty standard. As for red flags - the auditor mentioned that mobile businesses often get flagged when there are inconsistencies in location-based reporting, or when sales volumes don't match up with permit applications in different cities. Also, if you're filing in multiple jurisdictions but your tax rates don't reflect the local rates, that can trigger scrutiny. Customer complaints about incorrect tax charges can also lead to investigations. My advice would be to get ahead of this now - most tax authorities are more lenient if you proactively correct issues rather than waiting for them to find problems during an audit.
0 coins
Oliver Brown
This is such a timely discussion! I'm actually dealing with a similar situation with our mobile BBQ business. We operate in 4 different counties and I've been manually tracking which tax rate to use for each location, but it's been a nightmare to manage during busy festival seasons. One thing I learned from our accountant is that you should also keep detailed records of not just WHERE you made each sale, but WHEN. Some jurisdictions have different tax rates that change throughout the year (like temporary local taxes for infrastructure projects), so even the same location might have different rates depending on the date. Also, for anyone considering the GPS-based POS solutions mentioned above - make sure your system can handle situations where you're right on a city boundary. We had issues where our GPS would ping-pong between two tax rates when parked near city limits, which created some confusing receipts for customers until we figured out how to set a manual override. @Sophie Footman - I'd definitely encourage you to push back more firmly with the owner about getting compliant. The "better safe than sorry" approach of using a higher rate everywhere might seem safer, but as others have mentioned, it can actually create more problems in the long run than just doing it correctly from the start.
0 coins
Mateo Hernandez
ā¢@Oliver Brown That s'a really good point about the GPS ping-ponging issue! I hadn t'thought about that potential problem. For someone just starting to tackle this tax compliance issue, do you have any recommendations for POS systems that handle the boundary situations better? Also, regarding the time-based tax rate changes you mentioned - how do you stay on top of those updates? Is there a reliable way to get notified when local tax rates change, or do you just have to manually check each jurisdiction periodically? With 4 counties, that sounds like it could be a lot to track! @Sophie Footman - I m in'a similar boat as you with being relatively new to handling the books for a mobile business. This whole thread has been eye-opening about how complex the tax situation can get!
0 coins