Has your sister filed taxes in previous years? If she only made $8,700 last year, she might not even be required to file a return depending on her filing status. That could actually help your case for next year if she doesn't file as independent this year (though as others mentioned, you still wouldn't qualify for this year).

One thing to keep in mind for next year - even if your sister qualifies as a dependent, make sure she doesn't accidentally file as independent if she does end up getting a job. That's a common mistake that can mess up your dependent claim. You might want to coordinate with her on tax planning if she starts working again, especially around year-end. Also, if she's actively job searching, some of those expenses might be deductible for her (or you if she's your dependent), so keep track of things like resume services, interview travel costs, etc.

One thing nobody's mentioning - your state matters a LOT for withholding calculations. Different states have completely different tax structures that affect your overall tax picture. What state are you in?

Great question about state taxes! I'm in Colorado, so we do have state income tax here. I hadn't even thought about how that might affect my W4 calculations - I've been so focused on just getting the federal part right. Does the state tax situation change how I should fill out the federal W4, or is that something I handle separately? I assume Colorado has its own withholding form I'll need to complete as well? This is exactly the kind of detail that makes me nervous I'm missing something important!

dont hold ur breath. took 6 months total for me but they did eventually help. its like watching paint dry fr

Been through this process twice unfortunately. First time took about 10 weeks to get assigned, then another 6 weeks to resolve. Second time was faster - about 6 weeks total. The key is documenting everything and being persistent but polite. Also make sure you have all your paperwork ready when they do contact you because any delays on your end just restart the clock. Hang in there, they will eventually help but the timeline is definitely longer than what they initially tell you.

I'm confused about whether I need to issue a 1099 for a settlement. I own a small business and we settled a dispute with a customer for $4,500. Do I need to send them a tax form since we paid them?

Based on what you've described, the good news is that most of your $23,750 settlement is likely NOT taxable! Since this was from a car accident and the money was specifically for medical expenses and car damage, those portions generally aren't considered taxable income by the IRS. Here's the breakdown for your situation: - Medical expense reimbursement from physical injuries: NOT taxable - Car damage compensation (up to your basis in the vehicle): NOT taxable - Money sitting in your bank account from these sources: Also not taxable You should look for a 1099-MISC from the insurance company - if they didn't send you one, it's a good indicator they didn't report it as taxable income to the IRS either. The key question is whether any portion of your settlement included compensation for lost wages, pain and suffering beyond physical injuries, or punitive damages. If the settlement agreement specifically states it was only for medical expenses and property damage from physical injuries, you're in the clear. Keep all your settlement paperwork and receipts for the medical expenses and car repairs - you'll want documentation in case the IRS ever has questions. But for a straightforward car accident settlement like yours, you most likely don't need to report anything on your tax return.

21 Has anyone tried calling the IRS Taxpayer Advocate Service? I've heard they can sometimes help when you're having trouble with the regular IRS channels. Might be worth a shot if nothing else is working.

I've been dealing with the exact same issue for about two weeks now! The system outage error is so frustrating, especially when you're trying to be responsible and set up a payment plan before the deadline. One thing that worked for me was actually going to a local IRS Taxpayer Assistance Center. I know it's old school, but they can help you set up the payment plan in person if you bring all your documentation. You can find locations on the IRS website - just make sure to call ahead because some require appointments. Also, if you end up having to mail in Form 9465, make sure to send it certified mail so you have proof of delivery. That way if there are any questions about timing, you can show exactly when the IRS received your request. The whole situation is really highlighting how outdated their systems are. Hoping they get this fixed soon for everyone still dealing with it!