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Has anyone else noticed that TurboTax seems to be having more technical issues this year? This is the first time I've had problems with them in years of filing.
I'm experiencing the exact same issue! Filed through TurboTax on Tuesday and it's now Friday with no acceptance notice. Reading through these comments has been really helpful - sounds like this is much more common this year than in previous filing seasons. I'm going to wait the full 5 days before taking any action, but it's reassuring to know that the transmission confirmation from TurboTax is the important first step. The information about new IRS fraud detection systems causing delays makes a lot of sense too. Thanks everyone for sharing your experiences!
Great breakdown of the pricing differences! I went through a similar comparison last year and was shocked at how much I was overpaying with the big-name services. One thing I'd add is to watch out for the upselling tactics during the filing process. H&R Block and TurboTax are notorious for starting you on their "free" tier and then gradually pushing you toward premium features you probably don't need. FreeTaxUSA is much more upfront about what costs extra, and their base paid tier covers most situations without the constant upgrade prompts. The only scenario where I might consider paying more is if you have a really complex tax situation with multiple rental properties, foreign income, or complicated business structures. But for the vast majority of people filing standard W-2s with some basic investments and deductions, you're absolutely making the smart choice going with the cheaper option.
This is exactly what happened to me with TurboTax two years ago! Started with their "free" version and by the end they had upsold me to like $120 for features I didn't even understand. The constant pop-ups asking if I wanted "maximum refund guarantee" and "audit defense" were so annoying. I switched to FreeTaxUSA last year after reading posts like this and it was refreshing to just see the actual costs upfront. No surprise fees at the end or pressure to upgrade every few screens. For my situation (W-2, some 1099 income, and mortgage interest), it handled everything perfectly for under $20 total. The upselling thing is such a scam - they prey on people's fear that they're missing out on money or protection they need.
Completely agree with your choice! I made the same switch two years ago and haven't looked back. The price difference is absolutely ridiculous for what you get. One thing I learned is that most of these tax software companies are literally using the same underlying tax calculation engines - they're all just different interfaces wrapped around the same IRS forms and tax code. So you're essentially paying $80+ extra for flashier graphics and brand recognition. I also appreciate that FreeTaxUSA doesn't bombard you with constant upsells during the filing process. With H&R Block, I felt like I was being pitched something new every other screen - "premium support," "maximum refund review," "audit protection" - most of which are unnecessary for straightforward returns like yours. The only people I know who still use the expensive services are either those with very complex business situations or folks who just haven't realized there are better alternatives. For standard W-2 employees with basic investments and deductions, FreeTaxUSA is definitely the way to go.
This is so helpful to hear! I'm new to filing my own taxes (just graduated college) and was completely overwhelmed by all the different options and pricing tiers. I was leaning toward H&R Block because it's what my parents always used, but after reading through this thread I'm definitely going to try FreeTaxUSA instead. The part about the underlying tax engines being the same really puts it in perspective - I had no idea I was potentially paying extra just for fancier branding. My situation is pretty straightforward (just a W-2 from my new job and some student loan interest), so it sounds like FreeTaxUSA should handle everything I need without breaking the bank. Thanks everyone for sharing your experiences - this community has been incredibly helpful for a tax newbie like me!
My brother is a contractor and I can tell you exactly what's happening here. They're probably reporting much less income than they actually make, and 1099s make that harder to do. That's why they're pushing back so hard. Send a final written notice (certified mail) stating that you'll be filing the 1099s for the full amount as legally required, whether or not they provide W-9s. Include IRS Form W-9 and a prepaid return envelope. State clearly that failure to provide the information may result in them being subject to backup withholding on future payments. Keep copies of everything. If they still don't provide the W-9s, file the 1099s with whatever information you have (name, address, etc.) and indicate they refused to provide their taxpayer ID. The IRS will handle it from there.
Thank you for this insight! This makes so much sense. I sent certified letters yesterday with the W-9 forms and return envelopes. I made it clear that I'll be filing the 1099s regardless. I'm documenting everything carefully. It's frustrating because they did good work, but I can't jeopardize my business by failing to comply with tax laws. I appreciate everyone's advice!
You're doing exactly the right thing. Document everything and proceed with filing. The IRS understands that some contractors try to avoid providing this information. As long as you can show you made proper attempts to collect it, you've fulfilled your obligation. The contractors will likely get notices from the IRS requesting verification of the income. That's their problem to deal with, not yours. Stick to your guns - you're in the right here.
Wait, I'm confused about something - I have a rental property and pay people for repairs all the time. Am I supposed to be collecting W-9s from everyone? Like even the guy who mows the lawn for $50 a week? This is the first I'm hearing about this requirement...
You need to issue 1099s (and therefore collect W-9s) from non-incorporated contractors who you pay $600 or more in a calendar year. So if your lawn guy is getting $50/week and you've paid him more than $600 total for the year, yes, you should get a W-9 from him and issue a 1099. However, you don't need to issue 1099s to corporations (with some exceptions like attorneys) or for personal payments not related to your business. Since rental properties are considered a business activity, services related to them typically require 1099 reporting when over the threshold.
9 Tax preparer here. Just to add some clarity: The "under $600" confusion is one of the most common issues I see with clients. The $600 threshold only determines whether the PAYER must issue a 1099 form. It has absolutely nothing to do with whether YOU must report the income. All income from any source is legally required to be reported on your tax return, even if it's $5. The IRS computer matching system will catch discrepancies between what's reported by others using your SSN and what you report on your return, regardless of amount.
17 But realistically, would the IRS really come after someone for not reporting a tiny amount like $50 or $100? I mean, they must have bigger fish to fry, right?
9 While the IRS certainly focuses more resources on larger discrepancies, their automated matching system doesn't discriminate based on amount. I've had clients receive notices for discrepancies as small as $83. The issue isn't that they're "coming after you" for small amounts - it's that their system automatically flags mismatches. Once flagged, it can trigger notices, potential penalties, and interest on the unpaid tax. The headache of dealing with IRS correspondence typically far outweighs the small amount of tax you might owe on minor income. Plus, establishing a pattern of accurate reporting helps if you're ever selected for audit for other reasons. Better to report everything properly than risk complications over small amounts.
4 Does anyone know if this applies to stuff sold on Facebook Marketplace too? I sold some old furniture and made maybe $400 total last year. No 1099 forms or anything, just cash and Venmo. Do I seriously need to report that??
10 If you sold personal items for less than you originally paid for them (like used furniture), that's not considered taxable income - it's actually a personal loss. You only need to report income from selling things if you made a profit compared to what you originally paid. For example, if you bought a couch for $800 and sold it used for $300, that's not taxable income because you sold at a loss. But if you bought items specifically to resell them at a higher price, that would be taxable no matter the amount.
Leila Haddad
One thing to consider - if you filed amended returns through a CPA, there may have been a substantial change in your reported income or deductions that triggered additional scrutiny. The certified mail could be related to that. I had this happen with my 2018 taxes when my CPA found significant deductions I'd missed. The IRS sent certified mail requesting documentation to verify those deductions. It wasn't an audit exactly, but they wanted proof before accepting all the changes.
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Emma Johnson
ā¢This happened to me too! My certified letter was asking for documentation for some business expenses on my Schedule C that I claimed on an amended return. I sent everything they asked for and they eventually accepted it, but it took like 3 months to resolve.
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GalaxyGlider
Don't panic! Certified mail from the IRS is concerning but not necessarily catastrophic. The future date you're seeing (12/16 when today is 12/5) is actually normal - their system generates transcript entries before the physical notice is mailed. Given that this relates to your 2019 amended return and shows a $12,350 liability, this is most likely a CP2000 notice or similar correspondence about adjustments they've made based on your amendment. The $90 is probably a small penalty or interest charge. Here's what I'd recommend: First, don't stress too much until you actually receive and read the letter. Second, have all your 2019 tax documents ready along with anything your CPA filed for the amendment. Third, contact your CPA immediately when you get the letter since they're familiar with your situation. Most importantly, whatever the letter says, there are almost always options - payment plans, penalty abatements for first-time issues, or the ability to dispute if there are errors. The key is responding within the timeframe they give you (usually 30-90 days depending on the type of notice).
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Felicity Bud
ā¢This is really helpful advice! I'm in a similar situation and have been losing sleep over a certified letter that's supposed to arrive next week. The part about the future dates on transcripts being normal is especially reassuring - I was convinced there was some kind of system error that was making things worse. One question though - when you mention payment plans as an option, how flexible is the IRS typically with these? I'm worried that even if I can set something up, the monthly payments might still be too high for my budget. Are there income-based options or ways to negotiate lower monthly amounts?
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