I work at a tax prep office and we see these 826 codes fairly regularly. One thing nobody's mentioned yet - check if you have any past due state income taxes. The Treasury Offset Program doesn't just collect federal tax debts, they also collect state tax debts, which would still show up as code 826. Also, the 10-year statute of limitations on tax debt collection is about to expire for 2013 tax returns, which might explain why they're suddenly collecting now. The IRS often gets more aggressive about collection when the statute is about to run out.

I went through almost the exact same thing last year! The 826 code with that specific format (201312) definitely indicates a federal tax debt from December 2013. What helped me was requesting my Account Transcript for tax year 2013 directly from the IRS website - it'll show you exactly what happened that year. In my case, there was an automated adjustment made to my 2013 return that I never knew about because the notice went to an old address. The IRS had corrected something on my original return (I think it was related to education credits) and I apparently owed additional tax plus penalties and interest that had been growing for 10+ years. The good news is that if this is truly the first time you're hearing about this debt, you may have grounds to request penalty abatement for "reasonable cause" since you were never properly notified. I was able to get about 40% of my offset refunded by filing Form 843 and explaining the situation. Definitely get that 2013 Account Transcript first though - it'll give you the full picture of what triggered this debt originally.

I'm really sorry for your losses - losing puppies is heartbreaking, and I can only imagine how difficult it must be to deal with the financial implications on top of the emotional toll. As a small business owner (not in breeding, but I've dealt with similar inventory loss situations), I wanted to confirm what others have said here. Those puppy losses don't require any special reporting or deductions on your Schedule C. Your business expenses remained the same, but your income was lower than projected - that's exactly how business losses naturally get reflected in your tax filing. What impressed me reading your post is how professionally you're approaching this. You've been tracking expenses meticulously, you understand the investment phase vs. income-generating phase of your business, and you're asking the right questions. This kind of documentation and business-like approach is exactly what protects you if the IRS ever questions whether you're running a legitimate business versus an expensive hobby. The advice about keeping detailed records of the losses (vet records, documentation of what the puppies would have sold for, etc.) is spot-on. You don't need it for a specific tax deduction, but it's great supporting documentation for your overall business records. Keep up the professional approach - it sounds like you're building something sustainable despite this setback. Wishing you better luck with future litters!

I'm so sorry for your puppy losses - that's always devastating, both emotionally and financially. As a tax professional who works with several breeding operations, I can confirm what others have said here about how to handle these losses. The puppy losses you experienced are considered ordinary business losses, not something that requires special reporting. Your Schedule C will naturally reflect this situation - you incurred all the breeding expenses (stud fees, whelping supplies, initial puppy care, etc.) but had fewer puppies to sell than anticipated. This automatically results in a lower profit margin or potentially an overall business loss for the year. What's most important is maintaining excellent documentation. Keep detailed records of all puppies born, veterinary records related to the losses, projected versus actual sales, and all associated expenses. While you don't report these losses as a separate line item, having this documentation is crucial if you're ever audited. Given that you mentioned this was your first year generating significant income after 3 years of investment, make sure you're prepared to demonstrate business intent versus hobby activity. The IRS scrutinizes breeding operations closely, especially those with multiple years of losses. Keep a written business plan, maintain separate business accounts, and document any operational changes you make to improve profitability going forward. Your meticulous expense tracking shows you're already approaching this professionally - that's exactly what you need to continue doing.

PSA for everyone: Save your last paystub of the year ALWAYS!!! I learned this the hard way. If you have your last December paystub, you'll have almost all the info you need if your W-2 gets lost or is super late. Also, check if your company has an online payroll portal like ADP, Workday, UKG, etc. Sometimes W-2s are available electronically there before they arrive in the mail. My company never even mailed mine last year, they just expected everyone to download it from the portal.

Just wanted to chime in as someone who's been through this exact situation! I started a job in late November a few years back and was super worried about the same thing. Your employer is absolutely required to send you a W-2 regardless of when you started - even if you only worked one day in 2024, you'd still get one. Since you made $8,500, that's definitely reportable income and your employer will face penalties if they don't provide your W-2 by January 31st. I'd suggest checking if your company has an online payroll system first (like the others mentioned) - that's often the fastest way to get it. Don't stress too much yet since we're still in January, but definitely keep that last pay stub from December handy just in case. The IRS takes missing W-2s seriously, so if your employer is being unresponsive after the deadline, you'll have recourse. Good luck with your first "real job" tax season!

I tried FreeTaxUSA this year after using turbotax forever and the interface is definitely different but i saved like $75 and got the same refund amount. the only thing i miss is being able to import my W2 automatically but honestly it took me like 5 extra minutes to just type it in manually so no big deal. their customer service was actually pretty good too when i had a question about reporting my crypto.

I made the switch from TurboTax to FreeTaxUSA last year and haven't looked back. For your situation with W-2 income, mortgage interest, and basic deductions, FreeTaxUSA will handle everything perfectly fine. The interface is clean and asks all the right questions to make sure you don't miss anything. The main trade-offs are: 1) You'll need to manually enter your W-2 info instead of importing it automatically, but this literally takes 2-3 minutes, 2) The interface isn't as flashy as TurboTax but it's actually more straightforward in my opinion, and 3) Customer service isn't available 24/7 like some bigger services, but when I needed help they were knowledgeable and responsive. I saved about $80 compared to what I was paying TurboTax and got the exact same refund. For simple to moderately complex returns, there's really no reason to pay the premium prices anymore. The federal filing is completely free and state is only $15. Just make the jump - you won't regret it!

Just wanted to add another perspective on this - if you're still unsure about the standard deduction eligibility, you might want to look into getting a Private Letter Ruling (PLR) from the IRS for your specific situation. I know it sounds like overkill, but given the potential tax savings you mentioned (thousands of dollars), it might be worth the cost and time investment. A PLR would give you definitive IRS guidance on whether you can take the standard deduction while your NRA spouse files separately. The process typically takes 6-9 months and costs around $10,000, but if you're looking at significant tax savings year after year (especially if your wife remains an NRA for several more years), it could provide valuable certainty. Plus, you'd have official IRS documentation to support your position if you're ever audited. Just another option to consider alongside the excellent advice already given in this thread!

I've been following this discussion and want to emphasize how crucial it is to get this right. I made a similar mistake a few years ago when my husband was on an H1B visa - I incorrectly itemized because I thought we both had to use the same deduction method. The key distinction that several people have mentioned is absolutely correct: the "matching deduction" rule only applies when BOTH spouses are filing U.S. tax returns. Since your wife is filing as an NRA, you're not bound by her deduction limitations. One thing I'd add is to keep excellent documentation of your decision-making process. Save screenshots of the relevant sections from Publication 519, and if you do speak with an IRS agent (whether through the services mentioned or on your own), document that conversation with dates and reference numbers. This will be invaluable if you're ever questioned about your filing decisions. Also, double-check that your wife's $8k in U.S. income doesn't push her into any unexpected filing requirements or make her subject to different rules than you're anticipating. Sometimes small details can have big implications in international tax situations.