Don't waste your time with the 1099-C as an individual. The IRS will most likely reject it since you're not a financial institution. I went down this rabbit hole last year with a tenant who bailed owing rent. The most straightforward approach is claiming a non-business bad debt deduction on Schedule D. You'll need to attach a statement explaining the nature of the debt, when it became worthless, and your efforts to collect. It gets reported as a short-term capital loss regardless of how long the debt was outstanding. One important thing - make sure you claim it in the year the debt actually became worthless. If the moving company is still technically in business, even if they're not responsive, the IRS might argue the debt hasn't become completely worthless yet.

I've been through a similar situation with a contractor who disappeared after doing subpar work. Based on my research and experience, the bad debt deduction route on Schedule D is definitely the way to go rather than trying to issue a 1099-C as an individual. The key documentation you'll need includes: the original agreement showing the movers acknowledged liability for the damage, receipts for the repair work, records of the partial payment they made, and most importantly - evidence of your collection efforts (emails, certified letters, phone call logs, etc.). Since they've made partial payment, you have strong evidence that they acknowledged the debt. For the remaining $1,075, you'll need to establish when the debt became "wholly worthless." If the company is truly defunct, gather evidence of that - check if their business license was revoked, if their phone/email bounces back, or if their office is closed. One thing to consider: you mentioned they might still file taxes this year. If there's any chance they're still operating or could pay in the future, the IRS might not consider the debt completely worthless yet. The timing of when you claim this deduction matters for audit purposes. Also remember this will be treated as a non-business bad debt, so it's limited to $3,000 per year against ordinary income, but you can carry forward any excess.

I went through this exact situation two years ago and it was incredibly stressful. Here's what worked for me: First, I'd recommend trying the online transcript method that @Lola Perez mentioned - it's honestly the fastest route if your employer actually filed the forms with the IRS. You can get your Wage & Income transcript from IRS.gov and use that to file Form 4852. If that doesn't work, I had success with calling the IRS early in the morning (right at 7am) to avoid the worst hold times. When I finally got through, the agent was actually very understanding about the situation and initiated contact with my employer within a week. One thing I wish someone had told me: keep detailed records of every attempt you make to contact your employer. The IRS agent asked me for dates, times, and methods of contact when I called. Having that documentation ready made the process much smoother. Also, don't feel bad about escalating this - employers who refuse to provide tax documents are breaking federal law. You're not being difficult by pursuing this through proper channels. Good luck, and I hope you get this resolved quickly!

I'm really sorry you're dealing with this on top of everything else from your divorce. That sounds incredibly stressful! One thing I wanted to mention that might help while you're waiting to get through to the IRS - if you have any old pay stubs from 2023, those can be really helpful for estimating your wages when you fill out Form 4852. Even if you don't have the exact withholding amounts, having a ballpark figure of your earnings will make the process smoother. Also, since you mentioned this started with a disagreement when you left - some employers get petty about these things, but they're legally required to provide your tax documents regardless of any workplace issues. Don't let them make you feel like you're asking for a favor. You earned that money and you have every right to the proper documentation. The advice about calling the IRS at 7am sharp is solid - I've found early morning calls generally have much shorter wait times. And definitely keep notes on every attempt you make to contact your employer. The IRS takes these situations seriously when they can see you've made good faith efforts to resolve it directly first. Hang in there - this will get resolved, and it's actually more common than you might think!

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.

This is exactly the kind of complex family transfer situation where getting professional guidance upfront can save you thousands later. A few additional considerations beyond what others have mentioned: 1. **Timing matters**: Since you're closing next week, make sure your parents understand they'll need to file Form 709 by April 15, 2026 if this exceeds the annual exclusion amounts. Don't wait until tax season to figure this out. 2. **Documentation is critical**: Even if this is structured as a gift, document everything clearly. Write a gift letter stating the parents' intent, keep records of the wire transfer, and make sure the deed transfer language is unambiguous about it being a gift. 3. **Consider your state's laws**: Some states have additional gift taxes or different property transfer rules that could affect your situation. 4. **Future planning**: This large gift will use up a significant portion of your parents' lifetime exemption. If they have substantial estates, this could affect future inheritance planning. Since you're so close to closing, I'd strongly recommend getting a quick consultation with a tax attorney or CPA who specializes in family transfers before finalizing the structure. The cost of an hour consultation is minimal compared to potential tax complications down the road.

One thing I haven't seen mentioned yet is the potential mortgage interest deduction implications. Since your parents are purchasing with cash and gifting you the property, you won't have a mortgage and therefore won't be able to deduct mortgage interest on your taxes. This might seem obvious, but it's worth considering the long-term tax benefits you're giving up. The mortgage interest deduction can be quite substantial, especially in the early years of a mortgage when most of your payment goes toward interest. That said, avoiding mortgage interest payments entirely will likely save you much more than the tax deduction would have been worth - just wanted to flag this as something to factor into your overall financial planning. Also, make sure you understand how this affects your homeowner's insurance. Some policies have specific requirements about how the property is titled, especially if there's any chance your parents might retain any interest in the property during the transfer process. Congratulations on the house! Your parents are incredibly generous, and it sounds like you're being very thoughtful about handling this properly.

@Mateo, you're in great shape for qualifying! At $46k, you're well within the Premium Tax Credit range. Since you're a chef, I'd definitely recommend taking the advance payments option - it'll help your monthly budget tremendously while you're waiting for employer benefits to kick in. One thing to keep in mind is that your 6-month waiting period for employer insurance actually works in your favor here. You'll qualify for the full Premium Tax Credit during those months since you won't have access to affordable employer coverage. Just make sure to cancel your Marketplace plan and transition to your employer plan once it becomes available - the PTC stops once you have access to employer insurance. The income calculations can definitely be confusing, but Healthcare.gov's application process will walk you through it step by step. They'll ask for your expected 2025 income, and based on that $46k estimate, you should get a decent credit amount. Just remember to update them if your income changes significantly throughout the year - especially important in restaurant work where you might pick up extra shifts or catering gigs. Don't stress too much about the exact calculations - focus on getting enrolled during the open enrollment period and you'll be set!

@Mateo, you're absolutely going to qualify for the Premium Tax Credit with that income! At $46k for a single person, you're well within the eligibility range (which goes up to around $58k for 2025). Since you're coming from restaurant work myself, I totally get the income uncertainty. Here's what I learned when I was in your exact situation: definitely take the advance payments (APTC) - it'll reduce your monthly premiums right away instead of waiting until tax time. This was a lifesaver for my budget during the gap period. One practical tip: when you're estimating your 2025 income on the application, consider potential variables like overtime during busy seasons, holiday bonuses, or if you might pick up catering gigs on the side. Restaurant income can fluctuate more than you expect. I'd suggest maybe estimating around $48k instead of exactly $46k to give yourself a small buffer. Also, mark your calendar for when your employer insurance kicks in (6 months from your start date). You'll need to cancel your Marketplace plan at that point since the PTC only applies when you don't have access to affordable employer coverage. The transition is pretty straightforward - Healthcare.gov will guide you through it. Don't overthink the application process - it's actually more user-friendly than the IRS website makes it seem! You've got this.