I'm actually a subcontractor for several different contractors and many of them don't really understand how to handle the taxes. From my perspective, I receive the full payment and report it all as income on my Schedule C, paying the full self-employment tax. But the contractor definitely shouldn't be paying SE tax on money they paid to me.

Great discussion everyone! I want to add one more important point that hasn't been covered yet - timing of the deduction. Since you paid the subcontractor in the same tax year you received the payment, you can deduct it immediately. But if there's ever a situation where you receive payment in one tax year and pay the subcontractor in the next, you'd need to be careful about when you claim the deduction. Also, keep detailed records beyond just payment receipts. Document the work scope, timeline, and why you needed to subcontract the work. This helps establish the legitimate business purpose if the IRS ever questions the arrangement. I learned this the hard way during an audit - having clear documentation of the business relationship saved me a lot of headaches. One last tip: consider setting up a separate business bank account if you haven't already. It makes tracking these pass-through payments much cleaner and provides better separation between personal and business expenses.

What specifically did the email say was wrong with your return? Sometimes it's just a simple fix like an incorrect Social Security Number or a math error that you can easily correct without starting over or paying for another service.

I went through something similar last year! Before you switch to TurboTax completely, definitely check what exactly the email from eztaxreturn.com says needs to be fixed. Sometimes these "refile" notices are just for minor corrections that can be handled on the original site without starting over. If it really is a major issue and you want to switch, yes you can use TurboTax for an amended return (Form 1040-X). Just be prepared that you'll likely pay TurboTax's fees on top of what you already paid, and amended returns take much longer to process - usually 2-4 months instead of a few weeks. My advice: first try to understand what went wrong on your original return. If it's something simple like a typo or missing form, fixing it on eztaxreturn might save you time and money. If it's complicated or you really don't trust that site anymore, then switching to TurboTax for the amendment is definitely an option.

This is normal. Chime releases early. IRS actually sent it yesterday. Regular banks hold until official release date. Nothing to worry about. Your kids will recover from the scare. Happens every tax season. Chime business model relies on early releases. Perfectly legitimate transaction. Enjoy your refund!

This is such valuable data! I filed on 2/16 with similar circumstances (AGI $38,200, standard deduction, direct deposit to Chime) and got my deposit yesterday too. What's interesting is that my WMR tool still shows "processing" even though the money is already in my account. For anyone wondering about the technical side: Chime gets the ACH pre-notification from the Federal Reserve about 1-2 days before the official settlement date, and they credit your account immediately instead of waiting. Traditional banks receive the same pre-notification but hold the funds until the Treasury's official release date. It's essentially Chime giving you a short-term loan against the guaranteed incoming deposit. This is why you might see the deposit before your transcript updates with the final codes!

Just a practical observation - I think people are overlooking the fact that one partner is a foreign national who's never even been to the US. That's a much bigger complication than just the unfiled 1065s.

This is a complex situation that requires careful handling. Given the 10-year gap and foreign partner involvement, I'd strongly recommend against the "dissolve and ignore" approach - that could actually make things much worse if the IRS eventually catches up. The foreign partner issue is particularly important here. Even though they've never been to the US, they likely had US tax filing obligations for their share of the partnership income. The partnership should have been withholding taxes on the foreign partner's behalf and filing Form 8805 annually. This missing withholding could create additional compliance issues beyond just the unfiled 1065s. My suggestion would be to start with the most recent 3 years of partnership returns and work backwards. File Form 1065 for each year and ensure the foreign partner gets an ITIN and files their required US returns. The voluntary compliance approach typically works better than waiting for the IRS to find you. For penalty abatement, focus on any reasonable cause circumstances - were there health issues, natural disasters, or other qualifying events during this period? The low income amounts might help with demonstrating that this wasn't willful tax evasion. Consider consulting with a tax professional who has experience with international partnerships, as the foreign partner requirements add significant complexity to an already challenging situation.

Here's what you need to know about the Child Tax Credit and changing dependents between tax years: • The IRS tracks credits by BOTH the taxpayer ID and dependent SSN • You should answer based on whether YOU personally received the credit • If you answer "No" (which is accurate for you), you'll get the credit • Your return may be flagged for additional verification • The IRS will confirm the child isn't claimed by multiple people in the current tax year • They understand that dependents can legitimately change between years • Expect processing to take 1-2 weeks longer than usual • Keep documentation showing the child lived with you for more than half the year The system is designed to handle these situations, but be prepared for potential verification requests.

I went through this exact scenario two years ago and can share what worked for me. The key is understanding that the IRS question is specifically asking about YOUR tax situation, not the child's history. Since you didn't personally receive the Child Tax Credit last year (your oldest son did), you should answer "No" when asked if you received it. This is the truthful answer for your tax situation. The IRS systems are sophisticated enough to track that the same child was claimed by different taxpayers in different years - this happens frequently with legitimate custody changes, family financial situations, etc. A few important points: • Make sure your oldest son is NOT claiming your younger son this year • Keep documentation showing the child lived with you for more than half of 2024 • Your return might take 2-3 weeks instead of the usual processing time • You may receive a letter asking for verification, but this is routine I was worried about the same "flags" you mentioned, but my refund processed without any issues. The IRS expects these situations and has procedures in place to handle them. Just be honest in your responses and keep good records!