This happened to me too! The good news is that clicking the wrong button doesn't actually report you for identity theft - the system just has really sensitive triggers. You should be able to try again after 24 hours, but if you're still locked out after that, definitely call the verification hotline. Don't panic about having to mail a paper return - that message shows up automatically but once you get verified you can usually still e-file. Just keep all your documents handy for when you call!

Just went through this exact same thing last month! The "fraudulent tax filing" message is super scary but it's basically just the system being overly cautious. I got locked out for 24 hours, then was able to verify successfully on my second try. Pro tip: make sure you have good lighting when taking photos of your ID and double-check all the info before hitting submit. The verification process is honestly just really finicky. You'll be fine! 🙂

Anyone know how long ITINs are taking to process right now? I applied for my husband's back in January and still haven't heard anything. Getting worried since we need it for some property stuff.

I went through this exact same situation last year! You're absolutely fine to apply for your spouse's ITIN after already filing your return as Married Filing Separately. The IRS doesn't require you to have the ITIN before filing - in fact, many people do it in the order you did. Just a heads up though - make sure you have all the required original documents or certified copies from the issuing agency (not notarized copies). Since your spouse lives abroad, you'll probably want to use a Certifying Acceptance Agent or IRS office that can verify the documents so you don't have to mail originals internationally. One thing to keep in mind: once your spouse gets their ITIN, you'll have the option to file jointly next year, which could potentially save you money depending on your income levels. But for this year, you're all set with your current filing status. The ITIN application won't affect your already-submitted return at all.

Has anyone amended on FreeTaxUSA before? Just curious how long it typically takes them to enable the amendment feature after filing. I'm in a similar boat with a late 1099 and trying to figure out timing.

Based on what you've described, you'll definitely need to amend your return. The W-2 from the company you forgot about is the main concern - even though it's probably a small amount, the IRS receives copies of all W-2s and will eventually notice the discrepancy when they match documents to your return. For the health insurance documents, it depends on which forms they are. If any are 1095-A forms (from marketplace insurance), those are critical because they affect premium tax credit calculations. Forms 1095-B and 1095-C are typically just informational to show you had coverage. Since FreeTaxUSA hasn't enabled their amendment feature yet, you have a few options: wait for them to activate it (usually happens within 3-4 weeks of filing), use a different platform that offers amendments, or file Form 1040-X manually on paper. Don't stress too much about timing - you have up to 3 years to amend, and if you owe additional tax, the penalties and interest on small amounts are usually minimal. The good news is that being proactive about amending is much better than waiting for the IRS to send you a notice about the missing income. They appreciate taxpayers who correct their own mistakes!

Has anyone considered the state tax implications? I'm in California and found that the S-Corp comes with an $800 minimum franchise tax PLUS a 1.5% tax on net income. My CPA showed me that when factoring in these state-specific costs, the S-Corp advantage was much smaller than I initially calculated. Might be worth checking your state's rules - some states don't recognize S-Corps or treat them differently than the federal government does.

Great discussion everyone! As someone who made the S-Corp election last year for my web development LLC, I wanted to share some real numbers to help with the decision. I was making around $180k and after consulting with my CPA, we set my reasonable salary at $125k. This saved me about $4,200 in self-employment taxes annually. However, the additional costs were significant - $600/year for payroll service, $1,200 extra in accounting fees, and about 4-5 hours of my time quarterly dealing with payroll filings. The net benefit was still positive at around $2,400/year, but it wasn't the massive savings I initially expected. The sweet spot seems to be when you're consistently earning $200k+ where the tax savings really start to outweigh the hassle and costs. One thing I wish I'd known earlier: you can always revoke the S-Corp election if your income drops or circumstances change, but you have to wait 5 years to elect it again. So make sure you're committed to the income level that makes it worthwhile before making the switch. Also, don't forget about estimated quarterly payments - they become more complex with an S-Corp since you need to account for both payroll taxes and the pass-through income from distributions.

Don't forget you need to have a written accounting policy in place at the beginning of the tax year to use the de minimis safe harbor! It's a simple document but needs to exist. My tax person rejected some of my deductions last year because I didn't have this policy.

Great question about the written policy requirement! The IRS requires you to have a written accounting policy that states you'll treat items costing less than a certain dollar amount (up to $2,500 for businesses without applicable financial statements) as expenses rather than capital expenditures. The policy doesn't need to be complicated - it can be as simple as: "Items with a cost of $2,500 or less per item will be expensed in the year of purchase rather than capitalized and depreciated." You need to have this policy in place at the beginning of the tax year, not when you file your return. You can find sample policies in IRS Publication 946 or many accounting websites have templates. The key is dating it properly and keeping it with your tax records. I learned this lesson after my CPA had to amend some returns - definitely worth getting this simple document in place!