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Has anyone tried just asking your employer for a simple letter stating how much you earned? I did this once when my employer "forgot" to send a 1099. I still reported the income correctly, attached the letter as documentation, and never had any issues. Sometimes a simple solution works best!
This is actually really smart! I've had success with this approach too. Even an email confirmation can work as documentation. The important thing is having something in writing that confirms the amount you were paid.
This is exactly why I keep meticulous records of all my side work - bank deposits, payment app screenshots, even text messages about payment amounts. Your employer is definitely breaking the law by not issuing a 1099 for $2,700, but that doesn't get you off the hook for reporting it. I'd suggest gathering whatever documentation you do have (bank statements showing deposits, any written communication about payments, etc.) and reporting the income on Schedule C. The IRS actually prefers when taxpayers are proactive about reporting income, even without official forms. You might also want to file Form SS-8 to get an official determination of whether you were actually an employee (in which case they should have been withholding taxes) or truly an independent contractor. Don't let your anxiety paralyze you - unreported income is way riskier than reporting income without perfect documentation. The IRS has gotten much better at tracking electronic payments in recent years, so there's a good chance they already know about this income anyway.
Has anyone used H&R Block's Peace of Mind Extended Service? It's their audit protection product. I'm curious if it's any better than TurboTax's version for someone with multiple income sources but nothing international.
I used it a few years ago. Costs more than TurboTax's protection but they assign you a physical person at a local office if you get audited, which I liked better than dealing with someone over the phone/email only.
I've been dealing with similar complexity in my returns for the past few years, including foreign accounts and investment income. After going through a correspondence audit in 2022 (thankfully not a full audit), I can share what I learned about audit protection services. First, definitely get protection if your returns are this complex. The peace of mind alone is worth it. I ended up going with a standalone policy through a company that specializes in international tax issues rather than the basic protection from tax software companies. Cost me about $400/year, but it covers representation for all types of audits and includes some penalty protection. One thing I wish I'd known earlier: some protection plans have waiting periods, so you can't buy coverage after you've already been selected for audit. Also, make sure whatever service you choose has experience with FBAR issues specifically - the penalties for those can be brutal and not all tax professionals are familiar with the nuances. The preventive approach mentioned with taxr.ai sounds interesting too. Catching issues before filing seems smarter than just hoping you don't get audited. Given your situation with foreign accounts and multiple income sources, I'd probably recommend both - prevention analysis before filing AND audit protection for peace of mind.
This is really helpful advice! I'm curious about the standalone policy you mentioned - do you mind sharing which company you went with? I'm finding it hard to identify services that specifically advertise expertise with international tax issues and FBAR complications. Also, when you say "penalty protection," does that mean they actually cover the financial penalties if you make a mistake, or just the cost of representation during the penalty assessment process?
Does anyone know if a 1098-C form impacts your ability to claim the standard deduction for your state taxes if state and federal filing statuses have to match? I'm in California and always confused about how federal choices affect my state return.
In California, you can actually itemize on your state return even if you take the standard deduction on your federal return. They don't have to match, which is really nice for situations exactly like this! So you could potentially take advantage of the vehicle donation deduction on your CA return while still taking the standard deduction federally. Not all states allow this though - many require you to use the same method for both.
Just wanted to add my experience since I was in almost exactly the same situation last year! I donated a 2015 Honda Civic that was worth about $3,000 and got a 1098-C form. I was also unsure about itemizing vs standard deduction. The key thing I learned is that there's absolutely zero downside to accepting the 1098-C form. I ended up taking the standard deduction because my total itemized deductions were only about $11,500 (well below the $13,850 standard). The 1098-C just sits in my tax files and doesn't affect anything. One tip though - make sure you keep good records of how you determined the car's value (like KBB screenshots, recent repair estimates, etc.) just in case. Even if you don't use the deduction this year, having proper documentation could be helpful if your situation changes or if you ever need to reference the donation for other purposes. The charity should handle all the reporting requirements on their end, so you really don't need to worry about any complications from accepting the form!
Wait im confused. What if i have to pay for parking at different client sites? Im a w2 employee but i travel to different locations for my job during the day?
That's actually a different situation! If you're a W-2 employee who travels between work locations during your workday (not just commuting from home to work), the parking expenses at those temporary client sites might be reimbursable by your employer. Your employer should be reimbursing you for these business expenses. If they don't, unfortunately, post-2017 tax law doesn't allow W-2 employees to deduct these unreimbursed business expenses on your tax return anymore. The key distinction is: parking at your regular workplace isn't deductible, and now even parking at temporary work locations isn't deductible for W-2 employees unless your employer reimburses you.
Your coworker is likely making a mistake that could get him in trouble with the IRS. As others have confirmed, W-2 employees cannot deduct parking expenses at their regular workplace - this has been the case since the 2017 Tax Cuts and Jobs Act eliminated unreimbursed employee expense deductions. I'd suggest having a friendly conversation with your coworker about this. He might be confusing old tax rules (pre-2018), or maybe he has some 1099 income on the side that he's legitimately deducting parking for. Either way, if he's deducting regular commuting parking as a W-2 employee, he's setting himself up for potential issues if audited. Your best bet is to ask your employer about pre-tax commuter benefits if they offer them - that's the only legitimate way for W-2 employees to get tax savings on parking expenses. Don't risk taking deductions you're not entitled to!
This is really helpful advice about talking to the coworker! I'm in a similar situation where I've heard conflicting information from people at work about what can and can't be deducted. It's so easy to get confused when tax laws change and people are still following old rules or mixing up different employment situations. I think I'll also check with my HR department about whether we have any commuter benefit options - never hurts to ask and it sounds like that's the only legitimate way to get tax savings on parking as a W-2 employee.
Jacob Lewis
I just went through this same headache with my CP30 notice a few weeks ago! After trying the IRS website for hours, I ended up calling the practitioner priority line (I'm an enrolled agent) and the IRS rep confirmed the process that others have mentioned here. The key is going to irs.gov/payments, selecting "Pay Your Tax Bill," then "Direct Pay from Your Bank Account" to avoid fees. When you get to the payment details, select "Balance Due" and "Individual" as taxpayer type. Make sure the tax year matches your CP30 notice. For the "Apply Payment To" section, select "Estimated Tax" since CP30s are specifically for missed quarterly payments. Most importantly, put your full CP30 notice number in the comments field - this is crucial for proper application. One thing I learned that might help others: if you're paying close to the deadline, the IRS considers the payment submitted on the date you complete the transaction online, not when it processes from your bank account. So even if it takes 2-3 days to clear, you're covered as long as you submit before the due date on your notice. Keep your confirmation number safe! The IRS rep told me that's your proof of timely payment if there are any issues later.
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Zainab Ismail
β’This is really helpful coming from an enrolled agent! I've been stressed about making sure my payment gets applied correctly. Quick question - when you mention putting the "full CP30 notice number" in the comments, are you referring to the long number at the top of the notice, or is there a specific CP30 identifier I should be looking for? My notice has several different numbers on it and I want to make sure I'm using the right one.
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Marilyn Dixon
β’Look for the notice number that starts with "CP30" followed by a series of digits - it's usually located in the upper right corner of your notice. This is different from your SSN, the tax year, or the amount owed. It should look something like "CP30 0012345678901" or similar. That's the specific identifier the IRS uses to track your particular notice and ensure your payment gets applied to the right account and time period. If you're still not sure which number to use, you can also include multiple identifiers in the comments field just to be safe - something like "CP30 notice #[notice number] for tax year 2024 Q4 estimated tax.
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Hunter Edmunds
I've been dealing with IRS notices for years and wanted to share a few additional tips that might help. First, if you're having trouble finding your CP30 notice number that others mentioned, it's typically in the upper right corner and will say something like "Notice CP30" followed by a date code. One thing I always do is take a screenshot or photo of the confirmation page after submitting payment - don't just rely on the confirmation number. The visual proof can be helpful if there are any disputes later. Also, if you're worried about timing and your due date is really tight, consider making the payment and then calling the IRS a few days later to confirm it was applied correctly. Yes, the hold times are brutal, but it's worth the peace of mind to verify everything went through properly, especially if you're close to additional penalty deadlines. The Direct Pay option really is the way to go - no fees and it's considered submitted immediately even though it takes a few days to process from your bank account.
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AstroExplorer
β’Great advice about taking a screenshot of the confirmation page! I just made my CP30 payment yesterday and only saved the confirmation number. Going to go back and screenshot my email confirmation just to be safe. One question though - when you mention calling the IRS to verify the payment was applied correctly, do you have any tips for getting through faster? I've heard the hold times can be 2+ hours and I'm not sure I have that kind of patience. Is there a specific number that tends to have shorter wait times, or a better time of day to call?
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