I'm wondering if the situation might be even worse than what's apparent. If your boss is reporting 495 hours but only paying you for 412, that's 83 hours of labor they're claiming for tax purposes without actually paying you. Some shady businesses do this to inflate their business expenses (your labor cost) to reduce their taxable business income, while simultaneously not actually paying out those wages. It's a form of tax fraud that unfortunately happens in cash-heavy businesses. The big question is: is your employer paying taxes on the full $8,925 they reported to the IRS, or only on the $7,416 they actually paid you? Either way, something's not right, and you deserve to have this straightened out.

This situation is definitely not normal or acceptable. As someone who's dealt with payroll issues before, I want to emphasize that your employer is legally required to provide you with pay stubs showing gross wages, all deductions (including taxes), and net pay - regardless of whether you're paid in cash, check, or direct deposit. The fact that your boss "guessed" at your hours and over-reported by 83 hours is a major red flag. This means you're potentially paying income tax on $1,494 you never actually received (83 hours × $18/hour). That's money coming out of your pocket because of his sloppy record-keeping. You should immediately request: 1. Detailed pay stubs for all pay periods going forward 2. Written documentation showing exactly how much was withheld for federal, state, and FICA taxes 3. Proof that these tax payments were actually made to the appropriate agencies Don't let the "flexible time off" arrangement cloud your judgment here. A legitimate employer can be flexible AND follow proper payroll procedures. The two aren't mutually exclusive. You've been patient for 9 years, but this issue could affect your tax liability and credit if not resolved properly.

Have you checked which specific credit was disallowed on your previous return? Did the notice mention if it was the Earned Income Credit, Child Tax Credit, or education credits? The form requirements differ slightly depending on which credit you're recertifying for, wouldn't you agree?

I totally understand the overwhelming feeling when you first get that notice! Form 8862 is basically the IRS asking you to re-verify your eligibility for certain tax credits after they've been questioned or disallowed. Since you mentioned working remotely for 14 months, it's possible this relates to the Earned Income Credit or another credit you claimed. The key things to remember: • This isn't an audit - it's more like a verification checkpoint • Look at your notice carefully to see which specific credit triggered this requirement • You'll need to file this form WITH your 2024 return (can't file separately) • Gather any supporting documents that prove you qualify for the credit in question Don't panic! Most people who file Form 8862 get through the process just fine once they provide the requested information. The hardest part is usually just figuring out what documentation you need, but the form itself walks you through it step by step.

Just wanted to add another perspective on this vehicle depreciation question. I've been driving for gig apps for about 3 years now and have dealt with this exact situation. The key thing to understand is that the $20,200 first-year limit for 2025 is indeed a combined ceiling - you can't exceed it regardless of how you split between Section 179 and bonus depreciation. However, there's a strategic consideration most people miss: if your business income is lower in a given year, Section 179 might be limited by your taxable income, while bonus depreciation generally isn't. For your $52,000 vehicle, assuming 100% business use, you'd be looking at that $20,200 maximum for year one. The remaining $31,800 would be depreciated over the following years using regular MACRS depreciation. One thing I learned the hard way - keep meticulous records of your business vs personal mileage from day one. I use a simple spreadsheet where I log my odometer reading at the start and end of each work session. Takes 30 seconds but saved me during a correspondence audit last year. Also, consider talking to a tax professional who specializes in gig work. The vehicle depreciation rules are complex, and getting it wrong can be costly. The peace of mind is worth the consultation fee.

This is such a timely question! I just went through this exact scenario with my tax preparer for my 2024 return using a vehicle I bought for my delivery work. One thing that really helped me understand the limits was realizing that the IRS treats passenger vehicles (under 6,000 pounds) differently than heavier commercial vehicles. The annual depreciation limits exist specifically to prevent people from taking huge deductions on luxury cars used partially for business. For your $52,000 vehicle, the math would work like this for 2025: You can take a maximum of $20,200 in the first year (this is the combined limit for Section 179 + bonus depreciation). You could structure this as $12,200 Section 179 plus $8,000 bonus depreciation, or any other combination that doesn't exceed $20,200 total. The remaining $31,800 ($52,000 - $20,200) gets depreciated over the next 4 years using the annual limits, which are much smaller amounts each year. One strategy my tax preparer suggested was to elect out of bonus depreciation entirely if I expect higher income in future years, since it would allow me to spread the deductions more evenly. But for most gig workers wanting maximum deductions upfront, taking the full $20,200 first-year limit makes sense. Definitely keep detailed mileage logs from day one - that business use percentage is crucial for all these calculations!

I just went through this process myself a few months ago after having my EIC disallowed in 2022. The advice here is spot on - Form 8862 definitely needs to be attached to your Form 1040 and mailed together to your state's processing center address (you can find this in the Form 1040 instructions). I was really anxious about the whole thing, but it worked out fine in the end. A few tips from my experience: make sure you answer every question on Form 8862 completely, even the ones that seem obvious, and double-check that all your supporting documents match what you're claiming on the form. I also recommend making copies of absolutely everything before you mail it. The processing time was longer than usual - took about 10 weeks total for me - but I did eventually get my full refund. One thing that helped ease my anxiety was tracking the certified mail delivery, so I knew for sure the IRS received my package. Good luck with your recertification!

I'm new to this whole EIC recertification process and feeling pretty overwhelmed, but reading through everyone's experiences here has been incredibly helpful! It sounds like the consensus is crystal clear: Form 8862 must be attached to Form 1040 and mailed together to your state's regular processing address. I'm definitely planning to send mine certified mail for tracking purposes. One thing I'm curious about - has anyone had issues with specific sections of Form 8862 that tend to trip people up? I want to make sure I don't make any mistakes that could delay processing even further. Also, for those who have been through this successfully, did you include a cover letter explaining the situation, or just let the forms speak for themselves? Thanks to everyone sharing their real-world experiences - it's so much more helpful than trying to decipher the IRS instructions alone!

This is really concerning and unfortunately more common than it should be. The CP40 is serious - it's the IRS's final notice before they start seizing assets, so you need to act quickly. First, verify this is legitimate by calling the IRS directly at 1-800-829-1040 (from their official website, not the number on the notice). Have your Social Security number and a copy of your 2021 tax return ready. Most likely what happened is the IRS sent previous notices (CP14, CP501, CP503, CP504) to an incorrect address. This could be due to: - Address changes not properly updated in their system - Mail delivery issues - The IRS using an old address from a previous return Your immediate next steps: 1. File Form 12153 (Request for Collection Due Process Hearing) within 30 days of the notice date. This stops all collection actions while you resolve this. 2. Request your account transcript online at irs.gov or by filing Form 4506-T to see what notices they claim to have sent and when. 3. If you've moved since filing your 2021 return, file Form 8822 to update your address. Don't panic, but don't delay either. The Collection Due Process hearing will give you time to sort this out without worrying about frozen bank accounts or wage garnishment. Many people successfully resolve these situations once they can actually communicate with the IRS.

I had almost the exact same situation happen to me in 2022! Got a CP40 for my 2019 taxes with zero prior notices. Turns out the IRS had been using an address from when I was 19 and living in a dorm, even though I'd been filing with my correct address for years. The key thing that saved me was immediately filing Form 12153 for a Collection Due Process hearing - this bought me time to figure out what went wrong without having my accounts frozen. During the hearing, I was able to prove that I never received the prior notices due to the address mix-up. One thing I learned that might help you: when you call the IRS, specifically ask them to read back ALL the addresses they have associated with your SSN across all years. Sometimes they have multiple addresses in their system and use the wrong one for notices even when your tax returns show the correct current address. Also, definitely get your account transcript ASAP - it'll show you exactly what they think happened and when they claim to have sent each notice. In my case, the transcript clearly showed notices going to an address I hadn't lived at in over 5 years, which made my case much stronger. The whole process took about 4 months to fully resolve, but the Collection Due Process protection meant I could sleep at night while sorting it out. Don't let this stress you out too much - it's fixable, you just need to act quickly on that 30-day deadline for Form 12153.