Has anyone had this issue questioned in an audit? I've been claiming 100% of input tax credits on business meals because my accountant said as long as they're with clients, they're fully eligible. Now I'm worried I've been doing it wrong for years!

This is a great question that catches a lot of business owners off guard! The short answer is yes, you can claim input tax credit on business meals, but only 50% of the GST/HST paid - not the full amount. For your $5,800 in business meals, you'd be able to claim 50% of the tax portion as input tax credits. So if you paid $348 in GST (assuming 6% rate in some provinces), you could claim $174 as ITC. The key requirements are: - Keep detailed records showing who you met with and the business purpose - Retain all receipts - Ensure the meals are genuinely for business purposes (not personal entertainment) One important note: if any of those meals were for staff events or team meetings, different rules might apply. You can sometimes claim 100% ITC for employee meals at company events, but there are limits (usually 6 events per year). Also watch out for provincial differences - in non-HST provinces like BC, you can only claim the GST portion, not the PST. The rules can get complex, so it might be worth consulting with a tax professional to make sure you're maximizing your credits while staying compliant.

One thing nobody has mentioned - check your W-2 box 2 (Federal income tax withheld) against your paystubs! I had a situation where my W-2 showed like half the federal tax that was actually withheld from my checks. Added everything up and realized my employer made a mistake on the W-2 itself. Your employer can issue a corrected W-2 (called a W-2c) if there's a legitimate error. Don't file with incorrect info if the W-2 itself is wrong!

Hey there! I completely understand your stress - I went through the exact same thing last year and was convinced I was going to get audited or something. Here's what I learned: Your Social Security tax being higher than federal withholding is actually pretty normal depending on your income level and how you filled out your W-4. Social Security is a flat percentage (6.2%) while federal withholding depends on a bunch of factors like dependents, filing status, etc. The key thing is: you MUST report exactly what's on your W-2, even if it seems wrong. The IRS matches what you report to what your employer reported, so any discrepancies there will definitely flag you. If your withholding was genuinely insufficient, that's not your fault as long as you report accurately. If you end up owing money, it's not the end of the world. File on time even if you can't pay immediately - the penalty for late filing is much worse than late payment. And like others mentioned, you can set up a payment plan if needed. For next year, definitely review your W-4 with your employer. The IRS withholding calculator on their website is really helpful for figuring out if you need to adjust it. Better to have a little too much withheld than go through this stress again!

One thing nobody has mentioned - be prepared for a LONG wait. I submitted my OIC in July last year with a very similar situation (living with non-married partner), and I'm still waiting for final determination. Got assigned an offer examiner in November who requested additional documentation, and I'm still in the "review" stage. The IRS is extremely backlogged right now. My examiner told me they're taking about 9-12 months on average to process OICs. So don't expect a quick resolution, even if you fill out everything perfectly.

I went through this exact situation about 18 months ago with my boyfriend of 3 years. The key thing to remember is that Form 433-A (OIC) is about YOUR financial reality, not your household's combined finances. Here's what I did and what worked for my successful OIC: **Income Section**: Only reported my own W-2 income and side gig earnings. Did NOT include my boyfriend's salary, even though we live together. **Expense Section**: This is where it gets tricky. I only reported the expenses I actually pay. For example: - Rent: We split it 50/50, so I only reported half - Utilities: He pays electric/gas, I pay internet/cable - so I only reported what I actually pay - Groceries: We alternate weeks, so I calculated my average monthly contribution **Assets**: Only included accounts and property in my name or jointly owned. His car, his savings account, etc. were not included. The IRS accepted my offer for $6,200 on a $38,000 debt. The key was being completely honest about what I actually pay vs. what the household pays total. Don't try to inflate your expenses by claiming full amounts when someone else covers part of them - the IRS will catch this if they audit your finances. One tip: Keep detailed records of how you split expenses. I had to provide this breakdown when my examiner asked for clarification during the review process.

Per Internal Revenue Code §36B, taxpayers who receive advance premium tax credits must reconcile those amounts using Form 8962, which requires the information from Form 1095-A. I experienced this last year and found that the quickest resolution is to immediately provide the requested documentation. While the PATH Act mandates the IRS hold refunds involving EITC/ACTC until mid-February (per IRC §6402(m)), the 1095-A issue is an independent verification requirement that will continue to delay your refund until addressed.

I'm in a similar boat as a newcomer to the US tax system! Just to add to what others have shared - I called the Healthcare Marketplace directly at 1-800-318-2596 yesterday and they were able to email me a copy of my 1095-A within 24 hours. Much faster than waiting for mail or even logging into the website (which kept timing out for me). The representative explained that the 1095-A shows the monthly premium amounts and any advance premium tax credits I received throughout the year. Without it, the IRS literally cannot verify that I calculated my Premium Tax Credit correctly on Form 8962. One thing I learned: if you received ANY advance premium tax credits (even $1), you MUST file Form 8962 and include the 1095-A. There's no way around it. The good news is once you send it, the processing usually moves pretty quickly - most people here seem to get their refunds within 3-4 weeks after submission. Hope this helps fellow newcomers navigate this confusing process! 🤞

Just wanna add that the rules are actually changing for 1099-K reporting thresholds in 2025. Payment processors used to only report if you hit $20k AND 200 transactions, but now they're reporting much smaller amounts. So the coverage for these credit card payments to attorneys is getting more comprehensive. The key thing to remember is that if you pay ANYONE via credit card, YOU don't send the 1099-NEC, regardless of whether they're an attorney, plumber, consultant, etc. The payment processor handles it.

I'm confused cause my accountant told me I should ALWAYS send 1099s to attorneys regardless of payment method? Is she wrong??