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next year im avoiding tax prep fees completely and going strait to a CPA. This middle man stuff is for the birds fr
FAX NO PRINTER šÆ
I feel your pain! SBTPG had mine for 3 business days last month. What helped me was setting up account alerts with my bank so I'd get notified the second it hit instead of constantly checking. Also their website updates around 6pm EST each day if you want to track the status. Hang in there - it should come through soon! šŖ
I'm dealing with a very similar situation right now! Got my PayPal 1099-K showing about $67K in transactions, mostly from DraftKings and some peer-to-peer transfers for betting pools with friends. One thing I learned from my preliminary research is that you absolutely need to keep the friend transactions separate from your actual gambling activity. The IRS doesn't care about money that just flows through your account - they only want to tax actual gambling winnings. I'd definitely lean toward finding a CPA with gambling tax experience. I called around to a few tax preparers and was shocked at how many weren't familiar with the new 1099-K reporting requirements or how to properly handle online gambling situations. Also, start gathering your documentation now if you haven't already. Most sportsbooks let you download your complete betting history, which makes creating that detailed record much easier. Don't wait until tax season when you're stressed and rushing to get everything together. The good news is that if you truly had net losses for the year, you shouldn't owe tax on gambling income - but you still need to report everything correctly to avoid any red flags with the IRS.
This is exactly the kind of guidance I was looking for! I'm in a very similar boat with around $92K showing on my PayPal 1099-K. Your point about starting the documentation process early really resonates - I've been putting it off but realize I need to get organized before meeting with a CPA. Quick question: when you called around to tax preparers, what specific questions did you ask to gauge their experience with gambling taxes and 1099-K issues? I want to make sure I find someone who really knows this area rather than someone who's just going to wing it. Also, did you end up using any of the tools others mentioned here (like the AI transaction categorization services) or did you go the manual spreadsheet route? I'm trying to decide if it's worth investing in software to help organize everything or if I should just buckle down and do it myself. Thanks for sharing your experience - it's reassuring to know I'm not the only one dealing with this mess!
I'm in almost the exact same situation with my PayPal 1099-K! Just got mine showing $78K in transactions, mostly from FanDuel and BetMGM deposits/withdrawals, plus some money I handled for my cousin who doesn't have his own PayPal account. Reading through all these responses has been super helpful - I had no idea about the itemized deduction requirement for gambling losses. That's definitely going to change my approach since I usually take the standard deduction. One thing I'm still confused about though - if I had net gambling losses for the year but also received some promotional bonuses and free bets that I cashed out, how do those factor in? Are the promotional winnings considered taxable income even if my overall gambling activity resulted in losses? I think I'm going to follow the advice here and find a CPA who specifically handles gambling taxes rather than trying to figure this out myself. The peace of mind will be worth the extra cost, especially with the IRS being so strict about 1099-K reporting now.
Anybody know if its different for people claiming EIC?
EIC claims usually take a bit longer due to additional verification, but transcript timeline is about the same
Been dealing with the same thing since I filed on 1/30! Super frustrating when you're waiting on that refund. From what I've learned lurking here, it seems like the account transcript showing up is basically the IRS saying "yep, we're officially processing your return now." The wage transcript appearing first just means they've matched your W2s to your return, which is a good sign. Hang tight - sounds like most people are seeing their account transcripts pop up within 2 weeks of filing based on the comments here.
Same here! Filed 2/1 and seeing the exact same pattern - wage transcript is there but still waiting on that account transcript to show up. It's reassuring to hear that this is normal timing. Really appreciate everyone sharing their experiences and timelines, makes the waiting game a lot less stressful when you know you're not alone! š
If your bill is exactly $14k, you might qualify for the IRS "short-term payment plan" where you can get up to 180 days to pay in full without having to pay the setup fee for a regular installment plan. You'll still pay interest but it might save you a little money if you can pull together the full amount within 6 months.
I went through almost the exact same situation two years ago - owed $13,500 due to a payroll system glitch that stopped withholding federal taxes for several months. The panic is totally understandable, but you have more options than you think! First, definitely file your return on time even if you can't pay the full amount. The failure-to-file penalty is much worse than the failure-to-pay penalty. You can set up an installment agreement online at irs.gov - it's actually pretty straightforward for amounts under $50k. One thing that really helped me was documenting everything about the withholding error. I gathered all my pay stubs, my W-4 forms, and emails with HR. While the IRS won't reduce what you owe because of the error, having this documentation helped when I requested penalty abatement later using Form 843 for "reasonable cause." Also check if you qualify for any credits or deductions you might have missed - I found I was eligible for some education credits that reduced my bill by about $800. Don't let the stress overwhelm you - the IRS deals with this stuff all the time and they'd rather work with you than chase you down!
This is really helpful advice! I'm curious about the penalty abatement process you mentioned with Form 843. How long did it take to get a response from the IRS, and were you able to get most of the penalties removed? I'm dealing with a similar employer error situation and wondering if it's worth the effort to request abatement or if I should just focus on setting up the payment plan.
Miguel Castro
Just an FYI for anyone filing Form 8379 - make sure you're keeping really good records showing which spouse earned what income and had what withholding. My husband and I filed injured spouse last year and even though we submitted everything correctly, the IRS still needed additional documentation from us to prove which withholdings were mine vs his. Delayed our refund by 2 months!
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Liam Fitzgerald
ā¢That's really helpful advice, thanks! Did you need to submit anything beyond your W-2s to show the separate withholdings? I'm worried because I had some 1099 work this year in addition to my W-2 job, and my husband has only W-2 income.
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Miguel Castro
ā¢For W-2s, those were sufficient since they clearly show whose income is whose. For your 1099 work, make sure you have documentation showing you're the one who performed the services - contracts with your name, invoices you sent, etc. The biggest issue we ran into was with joint bank accounts where taxes were withheld (like on interest or dividends). For those, we needed to show whose money was originally deposited that earned the interest. Bank statements showing deposits from each person's employer helped prove this.
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Mateusius Townsend
I'm dealing with the exact same Form 8379 delay! Really appreciate everyone sharing their experiences here. I called the IRS myself last week (after waiting 3 hours on hold) and the agent confirmed this is happening across all tax software platforms, not just TurboTax. She mentioned that the delay is specifically because they're implementing new fraud prevention measures for injured spouse claims. Apparently there were issues last year with people incorrectly claiming injured spouse status to avoid offsets they were legitimately responsible for. The agent also told me that once filing opens up after March 17th, injured spouse returns will actually be processed slightly faster than previous years because of the system improvements they're making during this delay period. So hopefully the wait will be worth it in the end! One tip she gave me: make sure your Form 8379 allocation percentages add up to exactly 100% between you and your spouse. Even small rounding errors can trigger manual review and delay your refund by several additional weeks.
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