Question for anyone who knows - I use a tip tracking app on my phone. Is there a way to use that instead of Form 4070? My manager said they'd accept reports from the app but I don't know if that's actually okay with the IRS.

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.

In our case, the trust paid the taxes before distributing to beneficiaries. Our accountant said it depends on whether the trust is a "simple" or "complex" trust for tax purposes. For us it was complex since it had the option to accumulate income. Ur trust might be different tho. The accountant said the $200k was technically a capital gain to the trust since it was essentially selling its right to the property. They said the trust's basis in the property was the important part in calculating how much of that $200k was actually taxable gain.

This is a really complex situation that highlights why trust taxation can be so tricky! Based on what you've described, there are several key factors that will determine the tax treatment: 1. **Trust Classification**: Whether your trust is "simple" (must distribute all income annually) or "complex" (can accumulate income) will largely determine who pays the tax. 2. **Nature of the Settlement**: Since this was malpractice insurance compensating for a lost property interest, it's likely treated as a capital transaction rather than ordinary income. The tax calculation would compare the settlement amount to your trust's basis in the lost 21% property interest. 3. **Trust Document Language**: The specific provisions in your trust document about how settlements and capital transactions are allocated between income and principal will be crucial. Given the $200,000 amount and complexity involved, I'd strongly recommend getting professional guidance from a CPA who specializes in trust taxation before making any distributions. They can review your trust document, determine the trust's basis in the lost property, and calculate the proper tax treatment. The good news is that if it's determined to be a recovery of basis (rather than a gain above basis), the tax impact could be minimal. But you definitely want to get this right before distributing the funds!

Does anyone know if the tax treatment is different for RSUs vs stock options? My company gives us both and I'm completely lost about how to handle either of them on my taxes.

@Liam Sullivan - I went through this exact same confusion last year! Here's what I learned the hard way: First, your RSU income should definitely be on your W-2 in Box 1, combined with your regular salary. It won't be listed separately, which is why you might have missed it. When RSUs vest, they're treated as regular compensation income, not as a special type of income. The process is actually simpler than it seems: 1. The fair market value of your RSUs when they vested gets included in your W-2 Box 1 (wages) 2. Any taxes withheld appear in Box 2 (federal income tax withheld) 3. You report this on your 1040 just like regular wages - no special forms needed for the vesting event itself If you're absolutely certain the RSU income isn't on your W-2, that's a red flag. Your employer is required to include it. I'd recommend calling your payroll department again and specifically asking them to walk you through where the RSU income appears on your W-2. Also check if you received any supplemental documents from your company or brokerage that show the vesting details - these can help you verify the amounts even if they're combined on your W-2. The good news is once you locate it on your W-2, reporting it is straightforward since it's just regular income!

I've dealt with similar IRS refund delays, and here's what worked for me: First, definitely try the Taxpayer Advocate Service as others mentioned - they're your best bet for cases like this where the refund is approved but stuck in limbo. However, before you go that route, I'd strongly recommend getting your tax transcript online and looking for specific codes. The fact that the IRS calculated a higher refund than you filed for ($6,300 vs $4,200) suggests they made an adjustment, which often triggers additional verification steps even after "approval." When you call the TAS, be very specific about your timeline and the fact that you were told the refund was processed and ready for release. Use the exact phrase "my refund has been approved but is pending release without explanation" - this helps them categorize your case properly. Also, document everything: dates of calls, names of representatives you spoke with, and reference numbers if they gave you any. The TAS will want this information, and it shows you've made good faith efforts to resolve this through normal channels. One last tip: if you're experiencing any financial hardship because of this delay (can't pay bills, etc.), make sure to mention that to TAS - they can often expedite cases involving hardship.

I went through almost the exact same situation last year - refund approved but stuck in "pending release" limbo for over 4 months. The phone loop you described is infuriating and unfortunately very common. Here's what finally worked for me: Contact the Taxpayer Advocate Service directly at 1-877-777-4778, but before you do, gather a few key pieces of information. Get your tax transcript online (irs.gov) and look for transaction codes - specifically any 570 codes (account freeze) and whether there's a corresponding 571 (release code). The fact that the IRS adjusted your refund upward from $4,200 to $6,300 is actually a red flag for why this is taking so long. When they make adjustments in the taxpayer's favor, it often triggers additional verification procedures even after the refund is technically "approved." When you call TAS, use these exact phrases: "My refund was approved and is pending release without explanation" and "I've exhausted normal IRS channels without resolution." This helps them categorize your case properly and shows you meet their criteria for assistance. Also document everything going forward - dates, representative names, reference numbers. TAS will want this information and it demonstrates you've made good faith efforts to resolve this. The congressional office suggestion mentioned earlier is also solid - they can make inquiries on your behalf if TAS doesn't move quickly enough. Don't give up, you'll get your money eventually but it unfortunately requires persistence with the right channels.

I've been a freelance developer for 8 years, and the SSTB classification has always been confusing. My accountant told me the key factor is what your clients are actually paying you for. If they're paying for a finished software product or implementation, you're generally not an SSTB. If they're paying primarily for your expertise and advice, that leans toward consulting. In my business, I make it very clear in contracts that clients are paying for development and implementation of software solutions. Any planning or advisory components are presented as necessary steps in the development process, not separate consulting services.

I went through this exact situation last year as a freelance developer making around $150k. After consulting with a CPA who specializes in tech businesses, here's what I learned: Software development itself is generally NOT considered an SSTB, but the devil is in the details of how you structure and describe your services. The IRS looks at the "principal purpose" of your business. If you're primarily creating software products, building applications, or implementing technical solutions, you're likely in the clear. However, be careful about how you market yourself and structure your contracts. Avoid terms like "consultant" or "advisory services" if possible. Instead, focus on language like "custom software development," "application implementation," or "technical solutions delivery." One thing that really helped me was keeping detailed time logs showing what percentage of my work was actual coding/development versus strategic planning or advice-giving. This documentation could be crucial if you're ever audited. At your income level of $145k, you're still well under the phase-out thresholds anyway, so even if some portion were considered SSTB, you'd likely still get most of the QBI benefits. But it's definitely worth getting this classification right for future years as your income grows.