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I'm going through something similar - filed my 2023 return in March and got stuck in "Action Required" status after ID verification in October. What helped me was calling the Taxpayer Advocate Service (1-877-777-4778) after hitting the 12-week mark. They can actually see what's causing the hold and sometimes expedite the review process. Also, try checking your IRS online account if you haven't already - sometimes there are notices posted there before they mail the physical copy. The "Action Required" message is super vague but usually means they're doing income/withholding verification or checking your Head of Household status eligibility. Don't lose hope! I know it's frustrating but most of these manual reviews do eventually clear. Keep documenting everything like Laura said - dates, reference numbers from calls, etc. You're not alone in this mess! š¤
Setting up a separate bank account for your photo sales is also super helpful for keeping things organized. Most banks offer free student checking accounts, and this way you can keep all business transactions separate from personal ones. Makes it WAY easier at tax time and helps you track your actual profits more accurately. Plus, if your mom somehow sees your regular account, there won't be any suspicious transactions to explain!
As someone who's been through this exact situation, I want to emphasize something that might not be obvious: even though you're trying to keep this private from your mom, you still need to think about how this affects your overall tax situation. If your mom currently claims you as a dependent on her tax return, your photography income could potentially affect that. Once you start earning significant income, there are rules about whether you can still be claimed as a dependent. You might want to have a conversation with her (without getting into specifics about what you're selling) about potentially filing your own return this year. Also, don't forget about estimated quarterly payments if you start making decent money. The general rule is if you'll owe more than $1,000 in taxes at the end of the year, you should be making quarterly payments to avoid penalties. You can calculate this easily once you know your approximate income. One last tip: consider opening a business savings account too, not just checking. Set aside about 25-30% of your income for taxes so you're not scrambling come tax time. Self-employment tax plus regular income tax can add up faster than you'd expect!
This is why I keep EVERYTHING. Every receipt, every mile logged, every client email. Rather be safe than sorry
must be nice being organized š„² meanwhile im over here digging through gmail trying to find old invoices
Just got through my 810 verification last month - took exactly 16 weeks from start to finish. My advice: organize everything by month and category before you even get the letter. Bank statements, 1099s, receipts, mileage logs, EVERYTHING. The IRS will ask for stuff you didn't even think mattered. Also keep copies of what you send because they "lose" documents more often than you'd think š
Has anyone used the simplified option for home office deduction? I heard you can deduct $5 per square foot up to 300 square feet instead of calculating all the percentages of utilities, mortgage, etc. Seems way easier if you qualify for the home office deduction.
I used the simplified method last year for my freelance work. It's definitely easier but might give you a smaller deduction depending on your situation. With the $5/sq ft method, I got a $1,250 deduction (250 sq ft office). When I calculated the actual expenses method this year, I got almost $1,800 for the same space.
Just wanted to share my experience as someone who went through this exact confusion last year. I'm a W-2 employee who also does some consulting work on the side, and I was completely lost about the home office rules. After doing a lot of research and talking to a tax professional, here's what I learned: The key is understanding that the home office deduction availability depends entirely on the TYPE of income you're earning, not just whether you work from home. For my W-2 job (even though I'm 100% remote): No deduction allowed on my personal return, period. This includes all the setup costs, monthly utilities, internet upgrades, etc. The Tax Cuts and Jobs Act really did eliminate this for employees. For my consulting income (reported on Schedule C): I can absolutely take the home office deduction, but only for the portion of my home office expenses that relate to the consulting work. So if I use my office 70% for W-2 work and 30% for consulting, I can only deduct 30% of the home office expenses against my consulting income. The "exclusively and regularly used for business" rule still applies - so you need a dedicated space, not just your couch or kitchen table. And as others mentioned, you can choose between the simplified method ($5/sq ft up to 300 sq ft) or the actual expense method. Hope this helps clarify things! The rules really are different depending on your income sources.
Millie Long
When I imported my W-2 into TurboTax, it automatically recognized some of the box 14 codes but had a question mark next to the backslash. Has anyone tried different tax software to see if some handle these unusual codes better than others?
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KaiEsmeralda
ā¢I've used both H&R Block and TaxAct in different years, and neither was particularly good with unusual Box 14 entries. They both basically just let you enter the information but don't actually interpret what it means. I think it's because these codes aren't standardized.
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Abigail Spencer
I had a similar issue last year with strange symbols in Box 14! In my case, it turned out the backslash was just being used as a separator between two different benefit codes that my employer lumped together in one entry. What really helped me was calling our payroll company directly (not just HR) since they're the ones who actually generate the W-2 forms. They had a reference sheet that explained all their coding conventions. The person I spoke with said the backslash isn't an official IRS symbol - it's just how their payroll software formats multiple entries in Box 14. Also worth noting that when I filed my taxes, my tax software just asked me to enter the Box 14 information as-is, including the backslash. It didn't try to interpret it or require any special handling. The IRS essentially treats most Box 14 entries as informational unless they're standard codes they recognize. Hope this helps - definitely reach out to whoever processes your company's payroll for the definitive answer!
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