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As a tax professional, I want to emphasize that everyone here is giving you correct advice - you absolutely do not need to report that second job on your tax return if you earned $0 from it. The IRS tax code is very clear: you only report actual income received, not potential income or employment relationships where no compensation was paid. Think of it this way - if the IRS required people to report every job they held regardless of income, millions of Americans would need to list volunteer positions, unpaid internships, and situations exactly like yours. The tax system simply doesn't work that way. Your situation is actually quite common, especially with on-call, seasonal, or gig economy positions where people get hired but may never actually work shifts. Since no money changed hands and no tax documents were issued, there's literally nothing for you or the IRS to track. Focus your energy on making sure your main W-2 is accurately entered, and you'll be in full compliance with all tax requirements.
This is exactly the kind of professional reassurance I was hoping to get! As someone new to dealing with multiple employment situations on tax returns, I really appreciate you taking the time to explain not just the "what" but also the "why" behind the rule. The comparison to volunteer work and unpaid internships really puts it in perspective - it would be impossible for the tax system to track every employment relationship where no money changes hands. Your explanation about this being common in gig economy and on-call positions also makes me feel much better about my situation. Thank you for the clear, professional guidance!
Just wanted to add my experience as someone who went through this exact situation! I had three different "jobs" last year where I completed all the paperwork and onboarding but never actually earned a penny - one was a seasonal position that never had openings, another was a delivery driver role where I never got assigned routes, and the third was similar to your on-call situation. I spent way too much time worrying about this when I was doing my taxes, but after consulting with a tax preparer and doing my own research, I learned that the IRS literally has no record of these employment relationships existing. No W-2s were issued, no income was reported by the employers, and there's no paper trail connecting me to these companies from a tax perspective. The relief I felt when I realized I was overthinking this was huge! Now I just focus on the simple rule: if there's no income and no tax documents, there's nothing to report. Your main job with the actual W-2 is all that matters for your tax return. Hope this helps ease your mind like it did mine!
Great question about international property sales! I went through something similar when I sold inherited property in Canada. A few additional points that might help: Make sure you understand the timing of when you'll owe taxes. Even though you'll receive the money this year, you won't actually pay the capital gains tax until you file your return next year (unless you need to make estimated quarterly payments). If this creates a large tax liability, you might want to set aside 20-25% of the proceeds immediately so you're not scrambling next tax season. Also, consider the impact on your overall tax situation. A large capital gain in one year might push you into a higher tax bracket for other income, or it could affect eligibility for certain tax credits or deductions. Sometimes it's worth consulting with a tax professional to see if there are any strategies to minimize the overall impact. One last thing - keep detailed records of all costs associated with the sale (legal fees, transfer taxes, real estate agent commissions, etc.) as these can typically be deducted from your capital gain, reducing your tax liability. These costs can add up to several thousand dollars and make a meaningful difference in what you owe.
This is really helpful advice about setting aside money for taxes! I hadn't thought about the timing aspect - receiving a large sum now but not paying taxes until next year could definitely create a cash flow issue if I'm not careful. The point about deductible costs is particularly valuable. I know there will be some legal fees and transfer costs, but I hadn't realized these could reduce my taxable gain. Do you know if currency conversion fees or wire transfer fees from the international transaction would also be deductible? Those can be pretty substantial for large amounts. Also, when you mention potentially being pushed into a higher tax bracket - would that affect the capital gains rate itself, or just my regular income tax rate? I'm trying to figure out if there's any benefit to timing when I actually complete the sale.
Great questions! Yes, currency conversion fees and wire transfer fees are typically deductible as costs of the sale - they're considered transaction costs directly related to disposing of the property. Keep all receipts and documentation from your bank for these fees. Regarding tax brackets and capital gains - this is where it gets a bit complex. Your capital gains rate is actually determined by your overall income level (including the capital gain). For 2024, if your total taxable income including the capital gain keeps you under $47,025 (single) or $94,050 (married filing jointly), you pay 0% on long-term capital gains. Between those thresholds and $518,900/$583,750, you pay 15%. Above that, it's 20%. So yes, a large capital gain could potentially push you from the 0% or 15% rate into the 20% bracket. However, only the portion above the threshold gets taxed at the higher rate. As for timing the sale, keep in mind you might also trigger the Net Investment Income Tax (additional 3.8%) if your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married). Sometimes spreading gains across multiple tax years can help, but since you're selling one property, that's not really an option here. I'd definitely recommend running the numbers with a tax professional to see exactly where you'll land!
This is such a comprehensive discussion! I wanted to add one more consideration that might be relevant - the potential impact on your Net Investment Income Tax (NIIT) that was briefly mentioned earlier. Since you're looking at $120k-180k in proceeds, and depending on your other income, you might trigger the 3.8% NIIT on top of your regular capital gains tax. This kicks in when your modified adjusted gross income exceeds $200k for single filers or $250k for married filing jointly. Also, something I learned the hard way - make sure to notify your bank in advance about the incoming large international wire transfer. Even though it's legitimate, I've seen cases where banks temporarily freeze accounts when large unexpected international transfers arrive, especially if it's not typical activity for your account. A simple call to your bank's wire department beforehand explaining the expected transfer can save you potential headaches. Lastly, consider opening a separate savings account specifically for setting aside the tax money as soon as the funds arrive. With current interest rates, you can at least earn something on the money you'll eventually owe to the IRS rather than letting it sit in checking. Just make sure it's easily accessible for when you need to pay quarterly estimated taxes or your final tax bill. You're being very smart to plan this out in advance - most people don't think about these implications until after they've already received the money!
This is excellent advice about the NIIT - I hadn't even considered that additional 3.8% tax! Given that my property sale could put me right at or above those thresholds, this could be a significant additional cost I need to factor in. The tip about notifying the bank in advance is really smart too. I can imagine how a large unexpected international wire could look suspicious from their perspective, even though it's completely legitimate. I'll definitely call them before the transfer happens to give them a heads up. The separate savings account idea is brilliant - with the time gap between receiving the money and actually paying taxes, I might as well earn some interest on funds that are earmarked for the IRS. Do you have any recommendations for high-yield savings accounts that would be good for this kind of short-term tax savings? I want something that's FDIC insured and easily accessible but with decent rates. One more question - you mentioned quarterly estimated taxes. Since this will likely be my only major capital gain this year and I normally just get W-2 income, would I need to start making quarterly payments, or could I just pay it all when I file my return next year?
Just went through this exact process last month! Everyone here is right - 800-830-5084 is the correct number and it's the same nationwide. One thing I'd add is to make sure you're calling from the phone number that matches what's on your tax return if possible. They sometimes verify that too. Also, if you get disconnected (which happened to me twice), don't hang up immediately - sometimes they'll call you back within 15 minutes. The whole process took about 20 minutes once I got through, and they were actually pretty helpful. Your refund should process within 6-9 weeks after successful verification. Hang in there!
This is really helpful advice! I didn't know they might verify your phone number too. Quick question - when you say they call you back within 15 minutes if you get disconnected, do they automatically call back or do you need to stay on the line for a callback option? I'm worried about missing their call if I step away from my phone.
I went through this same identity verification process about 6 months ago and can confirm what everyone is saying - 800-830-5084 is definitely the right number and it's nationwide. One tip that really helped me: when you call, have a pen and paper ready because they'll give you a confirmation number at the end of the call. Write it down! I almost forgot to do this and had to call back just to get that number for my records. Also, don't be surprised if they ask you questions about credit accounts or loans you might have had years ago - they pull this info from credit bureaus to verify it's really you. The questions caught me off guard at first but it's totally normal. The agent I spoke with was actually pretty patient and walked me through everything step by step. Your refund timing might be delayed, but at least you'll know your return is being processed securely. Good luck!
Thank you for mentioning the confirmation number tip! I would have definitely forgotten to write that down. Quick question - when they asked you about old credit accounts, were these accounts you currently have or did they ask about closed accounts too? I'm trying to prepare mentally for what kind of questions they might throw at me. Also, did they ask for any specific information from your tax return during the call, or was it mostly the credit-based verification questions?
As someone who's been serving for about 3 years, I totally get your confusion! I went through the exact same thing when I started. Here's what I've learned works best: First, definitely track ALL your tips - both cash and credit card. I use a simple notebook where I write down my shift date, total sales, credit card tips, and cash tips. Takes like 30 seconds at the end of each shift. For the Form 4070 question - technically yes, you're supposed to report monthly if you make over $20 in tips. But honestly, most restaurants don't make it easy. What I do is ask my manager about their preferred method. Some places have their own electronic system, others want you to use the actual Form 4070. The key thing is that you DO need to report your tips somehow - either monthly to your employer OR annually on Form 4137 when you file taxes. If you don't report monthly, you'll pay more in Social Security/Medicare taxes at the end of the year, plus potential penalties. My advice? Start tracking everything now and have a conversation with your manager about what system they prefer. Even if your coworkers are doing different things, you want to be compliant. Better to be the one person doing it right than to risk getting in trouble later! Also, keep all your tip records - the IRS can ask for them if they ever audit you.
This is really helpful advice! I'm also new to serving (just started last month) and have been stressing about this exact same thing. Quick question - when you say "ask my manager about their preferred method," what if they seem clueless about it too? My manager basically just shrugged when I asked about Form 4070 and said "just do whatever everyone else does." But like the original poster mentioned, everyone seems to be doing something different! Should I just go ahead and use the actual Form 4070 even if nobody else is? I'd rather be safe than sorry, but I also don't want to create extra work for a manager who clearly doesn't want to deal with it.
@Ingrid Larsson If your manager is being unhelpful, I d'honestly recommend just doing it the right way on your own. You can download Form 4070 directly from the IRS website and fill it out yourself each month. Just hand it to your manager by the 10th - they re'legally required to accept it even if they don t'want to deal with it. Here s'what I d'do in your situation: Keep your own tip records, fill out Form 4070 monthly, and give a copy to your manager while keeping one for yourself. If they refuse to process it properly, at least you have documentation that you tried to report correctly. That way if the IRS ever questions anything, you can show you made good faith efforts to follow the rules. The worst thing that can happen is your manager gets slightly annoyed at the extra paperwork, but that s'way better than owing back taxes and penalties later. Trust me, I ve'seen servers get hit with huge bills because they followed bad advice from managers who didn t'know the rules. Your financial safety is more important than avoiding a slightly awkward conversation! @Isabella Brown - thanks for sharing your system, that notebook approach is exactly what I was thinking of starting!
I'm in a similar situation and have been researching this extensively. Here's what I've found that might help: The confusion comes from the fact that there are multiple valid approaches, but they have different tax implications: **Option 1: Monthly reporting with Form 4070** - Report all tips to employer by 10th of following month - Employer withholds taxes throughout the year - Less paperwork at tax time, but requires consistent monthly effort **Option 2: Annual reporting with Form 4137** - Don't report to employer during the year - Report all unreported tips when filing taxes - Pay both employee AND employer portions of FICA taxes (additional 7.65%) - Potential penalties for not reporting monthly **What I'm doing:** I started using a tip tracking app (there are several free ones) to record everything daily. Then I give my manager a monthly summary using Form 4070. Even if they don't have a formal system, they're required by law to accept it and include it in payroll. The key insight is that underreporting isn't just about avoiding taxes now - it can also hurt you later when applying for loans, Social Security benefits, or unemployment, since your official income will be lower than reality. My advice: Start tracking everything now, and pick one method (preferably monthly reporting) and stick with it. Don't let peer pressure from coworkers who might be cutting corners influence your decision to follow the actual rules.
This is exactly the kind of clear breakdown I needed! I've been going back and forth on this for weeks. One follow-up question - you mentioned that underreporting can hurt you with future loan applications and Social Security benefits. Can you explain how that works? I hadn't thought about the long-term implications beyond just tax issues. Also, when you say "tip tracking app," do you have any specific recommendations? I've been doing the notebook method that @Isabella Brown mentioned, but an app might be more reliable since I sometimes forget to write things down at the end of busy shifts. The point about peer pressure is really important too. It s'so easy to just follow what everyone else is doing, especially when you re'new and don t'want to stand out. But you re'absolutely right that following the actual rules is more important than fitting in with potentially risky practices.
Tate Jensen
I'm dealing with an 810 freeze right now and this thread has been incredibly helpful! Based on everyone's experiences, it seems like the Taxpayer Advocate Service at 877-777-4778 is definitely the consensus recommendation for hardship cases. What I'm gathering from all your stories: ⢠Call TAS at 7 AM sharp when they open to minimize wait times ⢠Use the specific phrase "economic burden" when explaining your situation ⢠Have Form 911 ready to submit, plus Form 433-F if they determine you qualify ⢠Document everything - dates, times, rep names, case numbers ⢠Be persistent but polite, and don't hesitate to ask for a supervisor if needed For anyone else in this situation, it sounds like the key is treating this as a systematic process rather than just hoping for the best. The fact that multiple people here got their freezes lifted in 2-4 weeks gives me hope that there's actually a clear path through this mess. Thanks everyone for sharing your real experiences - it's so much more helpful than the generic advice you find on most IRS help sites. Going to call TAS first thing Monday morning with all my documentation ready!
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Klaus Schmidt
ā¢This is such a great summary of everyone's advice! I'm actually bookmarking this thread because the collective wisdom here is amazing. As someone who's completely new to dealing with IRS issues, it's really reassuring to see that there's a proven process that multiple people have successfully used. One thing that really stands out to me is how important the timing seems to be - both in terms of calling at 7 AM and being persistent with follow-ups. It sounds like the IRS system is designed to wear people down, but if you stick to the process and use the right terminology, you can actually get results. I don't have an 810 freeze personally, but I'm definitely saving this information in case I ever need it. The step-by-step approach you've outlined based on everyone's experiences is so much clearer than anything I've seen on official IRS websites. Good luck with your call on Monday - hopefully you'll be able to add another success story to this thread soon!
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Camila Castillo
This thread has been incredibly valuable! As someone who just got hit with an 810 freeze two weeks ago, I'm feeling much more confident about tackling this after reading everyone's experiences. The consistent theme I'm seeing is that the Taxpayer Advocate Service (877-777-4778) is the key, especially when you mention "economic burden" specifically. I love that multiple people have confirmed the 7 AM call strategy works - definitely trying that tomorrow. One question for those who've been through this: when you submitted your hardship documentation, did TAS give you a specific timeline for when they'd review it, or was it more of a "we'll get back to you" situation? I'm trying to set realistic expectations for myself since I need my refund for a medical procedure scheduled next month. Also really appreciate everyone mentioning the importance of following up daily after submitting docs. Sometimes you need that reminder that being persistent isn't being annoying - it's advocating for yourself when you're in a legitimate hardship situation. Going to get my Forms 911 and 433-F ready tonight and call first thing in the morning. Fingers crossed I can add another success story to this thread in a few weeks! š¤
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Elijah Knight
ā¢@Camila Castillo When I went through this process last year, TAS was pretty good about setting expectations upfront. After I submitted my Form 911 and documentation, they told me to expect initial review within 5-7 business days, and then they d'contact me with next steps. In my case, they called me back on day 6 to request additional documentation bank (statements ,)and then gave me another timeline of 10-14 days for final decision. The whole process took about 3 weeks total. Since you have a medical procedure scheduled, definitely mention that specifically when you call - medical expenses are considered high-priority hardship cases. I d'also suggest having your procedure documentation ready appointment (confirmation, cost estimates, etc. as) they may ask for it. One tip I learned the hard way: when they give you a timeline, mark your calendar and call back if you don t'hear from them by the deadline they set. My case worker told me this was actually helpful for her to prioritize my file. The squeaky wheel really does get the grease with the IRS! Good luck with your call tomorrow! šŖ
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