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Don't forget about state taxes too! Everyone's talking about IRS, but most states also require back tax filing and have their own statutes of limitations. I got caught up on federal but ignored state, and ended up with a nasty surprise from my state tax agency even after the IRS was satisfied.
Good point! Does each state have different rules for how far back you need to file?
I went through this exact same situation a couple years ago - the anxiety is real but you're doing the right thing by facing it! Here's what I learned from my experience: The IRS typically wants you to file the last 6 years to be considered "compliant," but like others mentioned, prioritize the last 3 years first if you think you're owed refunds. I discovered I was leaving over $4,000 on the table from 2020-2022 that I almost lost to the 3-year deadline. One thing that really helped me was requesting my "wage and income transcripts" from the IRS for each year I missed. This shows you exactly what income was reported to them (W-2s, 1099s, etc.) so you know what they already know about. It helped me realize I was missing some 1099s I had forgotten about. For someone with mainly W-2 income like you described, the returns should be pretty straightforward. I used TurboTax for prior years and it walked me through everything. The penalties weren't as scary as I thought they'd be, especially for years where I was due refunds. Start with 2021-2023, get those refunds secured, then work backward. You've got this!
Just to give you a heads up - once you start filing taxes correctly, DO NOT file a return claiming yourself if someone else has already claimed you as a dependent. This creates a red flag and both returns will likely be reviewed. Instead, file your return on paper (not electronically) and include a note explaining that someone has incorrectly claimed you. The IRS will investigate and determine who is entitled to claim you. If you haven't been claimed yet for the current tax year, file electronically ASAP and claim yourself. This will block them from e-filing with you as a dependent (their return would be rejected).
This happened to my friend and it was a MESS. His parents kept claiming him even though he was financially independent. When he filed correctly, they both got letters from the IRS and it caused huge family drama. But honestly it needed to happen, and after the initial blowup things got sorted properly.
I want to add some perspective on the Social Security aspect since it's really important and often overlooked. At $16.75/hour for 24 hours per week, you're earning about $20,904 annually. Over 15 years, that's over $313,000 in wages that haven't been reported to Social Security. To qualify for Social Security retirement benefits, you need 40 "quarters of coverage" (basically 10 years of reported earnings). Right now, you have ZERO quarters despite working for 15 years. This means you're not building toward any retirement benefits at all. Even worse, Social Security benefits are calculated based on your highest 35 years of earnings. Missing these 15 years means those will count as $0 years in your calculation, significantly reducing your eventual monthly benefits. The good news is you can still fix this by filing back tax returns. The IRS generally allows you to file returns for previous years to claim refunds (though there are time limits), and this will also report your earnings to Social Security. You're still young enough that getting into the system now and working legitimately for the next 20-30 years can still result in decent Social Security benefits. But every year you wait makes it harder to build up those credits. This isn't just about current taxes - this is about your ability to retire someday. Your relative may be "old school" but they're literally jeopardizing your future financial security.
Transcript trumps WMR. Always. DDD is confirmed. WMR updates later. No need to worry. Tax cycle complete. Money coming on 3/20. Mark your calendar. Congrats on getting through verification.
Congratulations on getting through the identity verification process! That's always a relief. Your transcript showing the 846 code with a DDD of 03/20 is definitely the most reliable indicator - transcripts are the internal IRS processing system, while WMR is more of a public-facing tool that updates on a delay. I've seen this pattern many times where transcripts update first, sometimes by 1-3 business days before WMR catches up. Since you completed verification on 03/08 and your transcript already updated, you're in good shape. Just keep an eye on your bank account around 03/20 and don't be surprised if WMR still shows "processing" even after your refund hits your account!
One more thing to consider - if you're filing the W7 because you're not eligible for a SSN, make absolutely sure that's correct. I spent months going through the W7 process only to find out later I was actually eligible for a SSN, which would have been much easier to get and use long-term. Worth double-checking with Social Security before going down the ITIN path!
Great advice in this thread! I went through the W7 process two years ago and can confirm that order absolutely matters. Here's what worked for me: 1. W7 form on top (as mentioned) 2. Supporting identity documents attached to the W7 3. Tax return (1040) underneath everything 4. Any schedules or additional forms at the bottom One thing I didn't see mentioned - if you're married filing jointly and both spouses need ITINs, you'll need separate W7 forms for each person, but you can submit them together with one tax return. Just make sure each W7 has its own set of supporting documents. Also, pro tip: write "ITIN APPLICATION" in large letters on the outside of your envelope. It helps ensure your package gets routed to the right department at the IRS processing center. My accountant recommended this and I think it helped my application move through faster. Good luck with your application! The wait is frustrating but once you get your ITIN, future tax filings become much smoother.
Kennedy Morrison
The ID verification process is standard for returns with certain risk factors. Your timeline is normal. Online verification takes 2-3 weeks to process. Paper verification takes 6-9 weeks. Phone verification takes 4-6 weeks. You did the right thing by verifying online immediately. The WMR update to "being processed" happens exactly when your return enters the normal processing queue after verification clears. Your March 27 deposit date will be accurate.
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Anastasia Fedorov
This is so helpful to read! I'm currently in week 3 of verification limbo after filing February 2nd. Found the verification requirement in my online account March 5th and completed it immediately, but my WMR still shows "still processing" with no updates. Your timeline gives me hope that I should see movement soon. The waiting is the worst part - especially when you need that refund for bills and expenses. Thanks for sharing your experience and congrats on finally getting through the system!
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