I went through almost the exact same situation! The "exempt" checkbox got me too - I have no memory of checking it but there it was on my W-4. For someone asking about the extra withholding amount on line 4(c), I can share what worked for me. I was making around $45k and missed about 4 months of withholding. I used the IRS withholding calculator online and it suggested adding about $150 per paycheck for the remaining pay periods to catch up. It seemed like a lot at the time, but it was way better than getting hit with a huge tax bill and penalties. The key is to run the numbers through the IRS calculator rather than guessing. It takes into account your specific income, filing status, dependents, and how much you've already had withheld (or not withheld) so far this year. Just plug in your pay stub info and it'll tell you exactly what to put on each line of the new W-4. Also, don't feel bad about the mistake - that exempt checkbox is poorly placed on the form and catches a lot of people. HR should really be reviewing these forms more carefully when new employees submit them!

I've been following this thread and wanted to share something that might help others avoid this issue in the future. When you're filling out a W-4, especially the new version, take your time and double-check every section before submitting it to HR. The exempt checkbox that caught several people here is located right near the signature line, and it's surprisingly easy to accidentally mark it when you're signing the form or if the paper shifts while you're writing. I always recommend filling out the W-4 in pencil first, reviewing it completely, then either submitting that copy or filling out a clean version in pen. Also, for anyone who discovers they have withholding issues mid-year like the original poster, don't panic about penalties. The IRS has safe harbor rules - if you owe less than $1,000 when you file, or if you've paid at least 90% of this year's tax liability through withholding and estimated payments, you generally won't face underpayment penalties. But definitely get it fixed sooner rather than later, and use that IRS withholding calculator everyone's mentioned to figure out the right adjustment amounts. One last tip: after you submit a corrected W-4, check your very next pay stub to make sure the changes took effect. Sometimes there can be delays in processing, and you want to catch any issues quickly.

Try calling your local taxpayer assistance center. Google the closest one to you. Sometimes easier to get through locally

Another option is to try calling right at 7am when they open - literally have your phone ready to dial at 6:59am. The lines fill up fast but you have better odds in those first few minutes. Also make sure you have all your documents ready (SSN, DOB, filing status, AGI from last year) because they'll ask for verification info right away. Good luck!

I went through almost the exact same nightmare with my ERC payments last year. What finally worked for me was getting everything escalated through the Treasury's Office of Inspector General (OIG), not just TIGTA. While TIGTA handles IRS issues, the Treasury OIG specifically deals with problems at the Bureau of the Fiscal Service. The key breakthrough came when I realized this wasn't just my problem - there was apparently a batch processing error that affected multiple businesses in early 2024. The Treasury OIG was already investigating similar cases and was able to fast-track my resolution once they saw the pattern. Here's what made the difference: I submitted a detailed complaint to Treasury OIG showing that the cashed checks had completely different business information but identical dollar amounts to my ERC claim. They immediately recognized this as part of their ongoing investigation into processing errors. Within 6 weeks of filing with Treasury OIG, I had replacement checks issued. The investigator explained that there was a data mapping error in their system that caused some ERC payments to be issued with correct amounts but wrong payee information from a different batch of applications. Don't just focus on TIGTA - make sure you also file with Treasury OIG since they have direct oversight over the Bureau of the Fiscal Service. The combination of both agencies investigating really seems to move things along much faster.

I'm dealing with a very similar situation and this thread has been incredibly helpful! I wanted to add one more resource that worked for me after months of getting nowhere. I ended up filing a complaint through the Treasury's Financial Management Service (FMS) - now called the Bureau of the Fiscal Service - using their online complaint portal. What's different about this approach is that it goes directly to their Check Claims Division rather than through general customer service. The portal is at fiscal.treasury.gov and you can file under "Payment Inquiry" then select "Treasury Check Issues." The key is being very specific in your complaint description. I wrote something like: "ERC check traced as cashed but endorsement shows different business name and signature. Requesting investigation of check endorsement fraud and reissuance of proper payment." Within 2 weeks, I received a call from an actual Check Claims specialist (not just a general rep) who could see the full chain of what happened with my payment. They immediately recognized it as a known processing error and initiated a formal investigation. The specialist explained that when these errors happen, they need to verify that the business who cashed the checks wasn't legitimately entitled to them before issuing replacements. But once they confirmed the endorsement was completely wrong for my account, replacement checks were processed within 3 weeks. Sometimes going directly to the source - the actual department that processes these payments - can bypass all the finger-pointing between different agencies. Worth trying alongside the other excellent suggestions in this thread!

Just went through this exact same sequence last month! The 766 code is actually a really good sign - it means they've applied a credit to your account which usually happens right before they release the refund. In my case, I got my deposit about 10 days after the 766 code showed up. The verification process definitely slows things down but you're almost there. Keep checking your transcript every few days for a 846 code which means refund issued. Hang in there!

Been dealing with the same exact codes! Had my 150 in January, then got hit with the 810 freeze, did verification, and now sitting with 766 for the past week. It's so stressful not knowing when things will actually move. Reading through these comments though - seems like a lot of people are having success with that taxr.ai tool to get better clarity on timelines. Might have to check it out since calling the IRS is basically impossible these days. Really hoping we all see our refunds soon! 🤞

One thing nobody's mentioned - if your income is only $13,500, you might actually benefit MORE from claiming your daughter yourself because of the Earned Income Credit. Depending on your situation, this could potentially be worth more than your boyfriend's tax savings from the dependent deduction.

I went through something very similar a few years ago! The key thing to remember is that this decision should be based on what saves your household the most money overall, not just who "deserves" to claim her. Given your $13,500 income, you're definitely in the sweet spot for the Earned Income Credit, which could be worth $3,600+ with one qualifying child. Combined with the $2,000 Child Tax Credit, that's potentially over $5,600 in benefits if you claim her. Your boyfriend claiming her would give him a dependent exemption and potentially Head of Household filing status, but the actual tax savings depend heavily on his income bracket. If he makes significantly more than you (sounds like he does), he might be in a higher bracket where the savings could exceed your EITC benefits. My recommendation: Use tax software or one of those calculator tools mentioned earlier to run both scenarios with your actual numbers. Input his income, your income, and see which approach gives your household the bigger refund or lower tax bill overall. The IRS doesn't care which one of you claims her as long as you meet the requirements - they just don't want you both claiming her! Also keep good records of who pays for what throughout the year. If the IRS ever questions the dependent claim, you'll want documentation showing who provided more than half of her support.