Lol welcome to the club. Been waiting 6 months with this stupid code 😤

Ugh I feel your pain! Just went through this exact same thing last month. The 810 code basically means they think someone might be trying to steal your identity or file a fake return with your info. It's super frustrating but here's what worked for me: 1. Don't waste time calling the regular IRS line - they can't help with this 2. Call 800-830-5084 (the ID verification line) early morning or try the callback option 3. Have ALL your docs ready: driver's license, Social Security card, W-2s, last year's return 4. You might also get a letter (5071C) asking you to verify online at ID.me The whole process took about 8 weeks for me after I verified my identity. I know it sucks when you need that refund money but hang in there! Also seconding what others said about taxr.ai - I used it too and it actually explained why I got flagged (apparently filing early + moving states triggered their system 🙄). Worth the five bucks for peace of mind honestly.

Has anyone here actually used FreeTaxUSA for their LLC taxes? I'm considering switching from TurboTax because of the cost but worried it might miss something important for my photography business.

I've been using FreeTaxUSA for my consulting LLC for 2 years now and it's worked well for me. The key thing to understand is that it DOES handle all the necessary forms for single-member LLCs - it just processes some of them behind the scenes. When you complete Schedule C in FreeTaxUSA, it automatically calculates your self-employment tax (Schedule SE) and includes it in your return. You won't see a separate SE form, but if you look at your final tax summary, you'll see the SE tax amount listed. Same thing happens with most other tax software. For your situation, you filed correctly! You don't need Form 1120S unless you specifically elected S-Corporation status (which requires filing Form 2553 with the IRS). The YouTube videos you watched were probably covering different LLC scenarios. One tip: FreeTaxUSA's business expense interview could be more thorough, so make sure you're claiming all eligible deductions. Keep good records of home office expenses, equipment purchases, travel, and client entertainment - these can add up to significant savings for video production work. The anxiety is totally normal - LLC taxation seems way more complicated than it actually is when you're doing it for the first time!

I completely understand your frustration - this same thing happened to me when I transferred from a different fulfillment center and my income jumped! The shock of expecting one amount and getting something totally different is real. One thing I'd add to all the great advice here is to also check if Amazon changed how they're handling your shift differentials or peak season pay. When I moved from nights to days, I lost the shift differential but didn't realize how that affected my withholding calculations throughout the year. Same thing can happen if you were getting peak pay last year that you didn't get this year, or vice versa. Also, if you're like me and were really counting on that refund money, consider setting up a separate savings account and having Amazon direct deposit a small amount from each paycheck into it. I do $35 per check and it basically recreates that "windfall" feeling when I need it for big expenses, except I'm earning a tiny bit of interest on it instead of giving the government a free loan. The hardest part is adjusting your mental budgeting, but once you realize you've actually been getting more money all year long, it starts to feel less like you got ripped off and more like the system is finally working better for you!

Hey @Fernanda Marquez, I totally get how frustrating this must be! I went through almost the exact same situation last year when my Amazon income jumped from around $38k to $51k. My refund went from about $850 to just $65 and I was SO confused and honestly pretty angry about it. What everyone else is saying here is absolutely right - the smaller refund actually means Amazon's payroll system got better at calculating your withholding. You've been getting more money in each paycheck throughout the year instead of overpaying taxes and waiting for the government to give it back to you without interest. I know it doesn't help the immediate disappointment, especially if you were counting on that money for something specific. But here's what helped me feel better about it: I went back and looked at my pay stubs from both years and realized I actually had been taking home more money each pay period. It was just spread out so I didn't notice it as much as one big lump sum. If you want that bigger refund feeling back, you can definitely adjust your W-4 to have more withheld (like others mentioned with line 4c), but honestly the automatic savings approach that folks are suggesting might be even better. You'd earn a little interest and have access to the money if you need it before tax season. Hang in there - once you wrap your head around how this all works, you'll probably realize you actually came out ahead this year even though it doesn't feel like it right now!

11 Your sister may be in for a surprise. Venmo is owned by PayPal, and they've been cracking down on business transactions labeled as personal. They're getting better at detecting patterns that look like business activity even when marked as "friends and family." For 2025 taxes (covering 2024 income), payment apps are supposed to report to the IRS when someone receives over $600 in business transactions, not the old $20,000 threshold. So she might actually get a 1099-K even if she thinks she's flying under the radar.

Your sister is playing with fire here. I've seen this exact scenario play out badly for several people in my tax practice. The "friends and family" labeling on Venmo doesn't magically make business income disappear - it's still taxable regardless of how it's categorized or whether she receives a 1099. With $44k total income ($35k Venmo + $9k Rover), she's looking at roughly $6,200 in self-employment taxes alone, plus regular income tax on top of that. If she's in the 12% tax bracket, her total tax liability could easily be $8,000-10,000. The scariest part? Since she hasn't been making quarterly payments, she'll likely face underpayment penalties too. The IRS expects self-employed people to pay as they go, not wait until April. She needs to start setting aside money immediately and consider filing an amended return or voluntary disclosure if this has been going on for multiple years. The longer she waits, the worse the penalties get. I'd strongly recommend she consult with a tax professional ASAP - this isn't a DIY situation anymore.

Maybe I'm overthinking this but I still don't understand how this all works out correctly. If I issue a 1099 for $1350 but my contractor only received $1309, doesn't that mean the IRS thinks they got $41 more than they actually did? Won't they be taxed on money they never received??

This is exactly the kind of confusion that trips up so many small business owners! I went through the same thing when I started paying contractors through PayPal. The key thing to remember is that you're essentially making two separate transactions: paying your contractor AND paying PayPal for their service. One thing that helped me keep this straight was setting up a simple tracking system. I created a spreadsheet with columns for: Date, Contractor Name, Gross Payment, PayPal Fee, Net to Contractor. This made it crystal clear when tax time came around - I could easily see that I paid $1,350 total ($1,309 to contractor + $41 to PayPal), so both amounts get reported as business expenses on my Schedule C. Also worth noting: make sure you're consistent with this approach across all your payment methods. If you use Venmo, Stripe, or other processors, the same principle applies. The 1099 should always reflect the gross amount before fees, and you deduct the processing fees separately as a business expense.