Be careful... a friend of mine ignored a missing W-2 and got a CP2000 notice from the IRS about 8 months later. They calculated what he owed PLUS interest AND a 20% accuracy penalty. Ended up being WAY more expensive than just filing the amendment would have been. Just pay your tax guy or use one of the options others suggested. Not worth the stress of waiting for the IRS to catch it.

You absolutely need to file that amendment - don't even think about ignoring it! The IRS gets copies of all W-2s directly from employers, so they WILL catch this discrepancy eventually. It's not a matter of if, but when. I work in tax preparation and see this situation all the time. When clients try to "wait it out," they almost always end up paying more in penalties and interest than they would have spent on just filing the amendment properly. The IRS has automated systems that match W-2s to tax returns, and a $2,800 discrepancy will definitely trigger a notice. Here's what you need to know: File Form 1040-X as soon as possible. You'll likely owe additional tax on that $2,800 (probably around $300-600 depending on your tax bracket), plus you'll need to pay back part of your refund. But if you file the amendment before the IRS catches it, you'll avoid the hefty accuracy-related penalties that can be 20% of the underpayment. If $175 seems steep for your tax preparer, you can definitely do this yourself or use some of the tools others mentioned. The 1040-X form has pretty clear instructions, and since you're just adding income, it's relatively straightforward. Don't let the cost of fixing it now turn into a much bigger problem later!

Just fyi my accountant told me the income limit for qualifying relatives for 2025 filing season is actually $4,850 not $4,700 like someone said above. the numbers go up a little each year. but still sounds like your mil makes too much to qualify at $135/week.

I went through something very similar with my grandmother last year. The key thing that tripped me up was understanding that ANY money you give her counts as income, even if it's just a "thank you" or help with expenses. What ended up working for us was keeping the cash payments under $93/week (which keeps her under the $4,850 annual limit for 2025) and then covering more of her direct expenses instead. So instead of giving her extra cash, we started paying for things like her prescriptions, clothing, personal care items, and even set up a small monthly allowance on a prepaid card for incidentals. We were able to claim her as a dependent and got a nice tax break. The documentation was key though - we kept receipts for everything we paid for her to prove we provided more than half her support. It's definitely worth restructuring if you can make the numbers work!

Just a heads up - the tax year matters more than you might think! I made a mistake with my LLC's tax year and filed some quarterly reports on the wrong schedule. Ended up with penalties that took months to sort out.

Hey there! As someone who's been through the LLC setup process myself, I totally get the confusion about tax years. One thing that might help is to check if you saved any screenshots or emails from when you applied for your EIN online. The IRS system usually shows a confirmation screen with your selections before you submit. Also, if you're planning to keep things simple as a single-member LLC (which it sounds like you are), you're almost certainly on a calendar year basis. The IRS defaults to this for most small LLCs unless you specifically request something different. For future reference, it's worth knowing that if you ever need to change your tax year later, you'd need to file Form 1128, but that's pretty rare for simple LLCs. The calendar year setup actually makes things easier since it aligns with your personal tax return!

Has anyone used those tax refund advance cards that some places offer? Are they any better than getting a Christmas loan? I'm thinking about using one next year but don't want to get stuck in the same situation.

I'm really glad to see you got this sorted out and didn't try to file twice! That could have been a nightmare with the IRS. Your experience is a perfect example of why it's so important to read all the fine print on these advance loan products. For anyone else reading this thread - these Christmas loans and refund advances can seem like easy money, but they almost always come with strings attached. The tax prep companies use them as a way to lock you into using their services, and the fees can really add up. Sometimes it's better to just wait for your regular refund rather than paying all those extra costs for the convenience of getting money a few weeks earlier. Thanks for sharing your story - it'll definitely help other people avoid the same mistake!

Just throwing this out there - I'm a retired mortgage banker and this happens more often than you'd think with properties in trusts. One workaround while you're fighting with the servicer: ask them to provide a yearly interest statement or payment history on company letterhead. It's not a 1098, but it contains the same information and can be used to substantiate your tax deduction. The IRS cares about verification of how much interest you paid, not specifically whether it's on form 1098. Many accountants and tax preparers are familiar with this situation, particularly with high-net-worth clients who often have properties in trusts.

I'm dealing with almost the exact same situation! My property is in our revocable living trust and the new servicer after our refinance keeps insisting they can't provide a 1098. It's so frustrating because like you said, we're still the ones making all the payments from our personal accounts. What I've learned from my research is that the IRS actually has specific guidance on this in Publication 936. The key factor isn't who owns the property, but who is legally liable for the debt and actually making the payments. Since you're personally liable for the mortgage and making the payments, you should absolutely be getting that 1098. I'm planning to try the CFPB complaint route that Gemma mentioned - seems like that might be the most effective way to get their attention. Have you considered reaching out to your state's banking commissioner as well? Sometimes state regulators can put additional pressure on these companies when they're not following proper procedures. Keep fighting this - you're absolutely in the right here!