This exact same thing happened to me two years ago! I was so frustrated that I ended up doing some research and found out that TurboTax uses deceptive design patterns to funnel people into paid upgrades. They'll often flag things like having more than one W-2 (if you and your spouse both work) or even basic things like claiming the Child Tax Credit as requiring their "Deluxe" version. What really bothers me is that they wait until the very end to spring this on you - after you've invested all that time entering your information. It's psychological manipulation at its finest. You're already mentally committed to finishing, so you're more likely to just pay the fee rather than start over elsewhere. I've been using the IRS Free File program ever since, and it's been genuinely free every year. The interface isn't as fancy as TurboTax, but it gets the job done without any surprise charges. The fact that TurboTax dropped out of the Free File program in 2021 tells you everything you need to know about their priorities. Sorry you had to deal with this - it's infuriating when companies pull bait-and-switch tactics during tax season when people are already stressed.

This is exactly why I switched to using FreeTaxUSA three years ago and haven't looked back. After getting hit with the same TurboTax bait-and-switch (they demanded $89 for their "Premier" version because I had some dividend income from a basic index fund), I was fed up with their deceptive practices. FreeTaxUSA has been completely transparent from the start - federal filing is always free regardless of your tax complexity, and state is a flat $15 if you need it. No surprise upgrades, no hidden fees, no psychological manipulation. The interface is straightforward and they actually explain what each section covers upfront. What really sealed the deal for me was their customer support. When I had a question about a form, I got connected to a real tax professional within minutes who walked me through it - no charge, no upsell attempts. Compare that to TurboTax's maze of chatbots and premium support fees. The tax prep industry's lobbying efforts to keep the system complicated while charging us for basic filing is truly disgusting. At least with services like FreeTaxUSA and the IRS Free File options, you can avoid feeding into TurboTax's predatory business model.

This is why I always download and save PDF copies of my returns as soon as I file! I learned this lesson years ago after dealing with TaxSlayer losing my returns. Now I have a dedicated folder on my computer AND a backup on an external hard drive. Doesn't help you now, obviously, but for future reference... never trust these tax companies to properly store your documents.

This is incredibly frustrating and unfortunately all too common with TurboTax. I had a similar experience two years ago where my entire filing history just vanished from my account. After weeks of back-and-forth with their support team (who kept asking me to verify information I'd already provided multiple times), I finally got it resolved, but it was a nightmare. A few things that might help: First, if you have your AGI (Adjusted Gross Income) from your 2023 return, you can use that to request transcripts directly from the IRS at irs.gov/get-transcript. Second, check if you saved any screenshots or took photos of your completed return before submitting - sometimes people do this without thinking about it. Third, look through your email for ANY communication from TurboTax around your filing date, even marketing emails, as these sometimes contain account references that can help their tech team locate your missing data. The social media approach mentioned by others really does work - their Twitter support team seems to have more authority than phone reps. Just be persistent and document everything. Don't let them wear you down with their incompetence.

I'm dealing with something very similar right now and this thread has been incredibly helpful! My tenant is 2 months behind on rent but just handed me some kind of "promissory note" from his "private trust" claiming it will cover all past and future rent payments. He also mentioned he's filing tax forms to "discharge the debt" which now makes perfect sense after reading about these redemption theory scams. What's really concerning me is that he's been asking for my business EIN number saying he needs it to "properly process the trust payment." After reading all these responses, I'm realizing this is probably part of the scheme to file fraudulent tax forms using my information. I'm going to follow the advice here - document everything, report to the IRS with Form 3949-A, and send certified mail notice that I'm aware of the fraudulent activity. It's scary how sophisticated these scams have become, but at least now I know I'm not alone in dealing with this and there are clear steps to take. Thank you especially to those who shared the resources like taxr.ai for understanding the tax implications and claimyr for actually getting through to the IRS. Having concrete tools to handle this situation makes it feel much less overwhelming. For any other landlords reading this - don't ignore weird paperwork or trust documents from tenants. These schemes rely on our confusion and inaction to succeed.

I'm a tax professional and I want to emphasize how serious this situation is. What your tenant is doing with the 1099-A form is absolutely fraudulent - this form is specifically for reporting acquisition or abandonment of secured property by lenders, not for tenants to create fictional lending relationships with their landlords. The fact that he's listing you as the "borrower" when you've never borrowed anything from him is a clear misuse of IRS forms. This appears to be part of what's known in tax circles as a "frivolous tax position" - using official forms incorrectly to support false claims about debts, trusts, or other financial arrangements that don't actually exist. From a professional standpoint, I strongly recommend: 1) Immediately file Form 3949-A with the IRS to report suspected abusive tax avoidance 2) Keep detailed records of all rent payments (or lack thereof) to demonstrate the actual landlord-tenant relationship 3) Contact the tax preparation service that filed this form - legitimate preparers should have controls to prevent obviously fraudulent filings 4) Consider consulting with a tax attorney if the tenant continues submitting fraudulent forms Don't underestimate how these schemes can escalate. I've seen cases where tenants file multiple fraudulent forms creating complex webs of false documentation that can take significant time and money to untangle. The sooner you report this and establish a clear record that you're not participating in any scheme, the better protected you'll be. The IRS takes these frivolous filing schemes very seriously and has specific procedures for handling them. You're not just protecting yourself - you're helping combat tax fraud that costs all taxpayers.

I've been using QuickBooks for payroll with ITIN employees and it handles them just fine. You just enter the ITIN in the SSN field when setting up the employee profile. The system treats it the same as an SSN for tax calculations and reporting. One tip - make sure to double-check that the ITIN format is correct (9XX-XX-XXXX) before submitting any payroll reports. I had one instance where I accidentally transposed numbers and it caused issues with my quarterly filing. Also, keep copies of their ITIN documentation in their employee files. During my state audit last year, they specifically asked to see proof of the ITINs I had reported. Having the official IRS letters made that process much smoother. For state reporting, I haven't had issues in my state (Texas), but I've heard some states can be pickier about the format. It's worth calling your state's employer services line to confirm their requirements before your first filing.

Just wanted to add one more important point that I learned the hard way - make sure you understand the difference between expired and valid ITINs. ITINs can expire if they haven't been used for tax filing in recent years, and the IRS has been deactivating unused ITINs. If your potential employee's ITIN has expired, they'll need to renew it before you can use it for payroll purposes. You can check if an ITIN is still valid by looking at the IRS letter - it should show the issue date and any expiration information. An expired ITIN will cause problems when you try to file your quarterly reports. I had an employee whose ITIN had expired without them realizing it, and we had to hold off on their start date until they could get it renewed through the IRS. The renewal process can take several weeks, so it's worth checking this early in your hiring process. The employee will need to file Form W-7 with supporting documentation to renew an expired ITIN. This might be worth verifying with your candidate before making a final hiring decision, just so there are no surprises that could delay their employment start date.

One thing I haven't seen mentioned yet is quarterly estimated tax payments. If your cousin's total tax liability for the year (including this prize money) will be significantly higher than what's being withheld from her regular job, she might need to make estimated quarterly payments to avoid underpayment penalties. The IRS generally expects you to pay as you go, so if this $25k CAD (roughly $18-19k USD depending on exchange rates) bumps her into a higher tax bracket or creates a large tax bill, waiting until next April to pay could result in penalties and interest. She should calculate her expected total tax liability for the year including the prize money and compare it to what's already been withheld from her paychecks. If there's going to be a shortfall of more than $1,000, she'll likely need to make estimated payments by the quarterly deadlines. This is especially important since she probably didn't have any US taxes withheld from the Canadian prize money, so the entire US tax burden on those winnings will be due when she files. Better to plan ahead than get hit with surprise penalties on top of the tax bill!

Your cousin is in for quite a tax adventure! As everyone has mentioned, she definitely needs to report this to the IRS as worldwide income. Here's what I'd add to the great advice already given: Make sure she gets a clear breakdown from the Canadian production company of exactly what was withheld before she received her payment. Sometimes game shows withhold more than just income tax - they might deduct production fees, agent commissions, or other expenses that won't qualify for the foreign tax credit. Also, keep in mind that the $25,000 CAD might not all be "prize money" for tax purposes. Some game shows structure winnings as part prize, part appearance fee, or part reimbursement for expenses. Each component could have different tax implications, so she'll want to clarify this with the show's accounting department. One more thing - if she had any expenses related to participating in the show (travel, lodging, meals while in Toronto), she generally can't deduct these against the winnings since game show participation is considered a personal activity, not a business. The IRS is pretty strict about this, so don't count on offsetting any of the tax burden with trip expenses. The good news is that with proper planning and documentation, she should be able to handle this without too much drama. Just make sure she doesn't spend all the winnings before setting aside money for Uncle Sam!