Have you considered filing Form SS-8 with the IRS? It's the "Determination of Worker Status" form. Based on what you described, you're almost certainly misclassified. Your employer is saving a ton of money by not paying their share of your taxes. The downside is that filing this form can create tension with your employer, but it could save you thousands. The IRS will make an official determination on whether you should be classified as an employee.

I went through something very similar last year! Making around $30k as a "contractor" but working exclusively in their office - my tax bill was shocking too. Here's what helped me: First, definitely look into the misclassification issue others mentioned. The IRS has a 20-factor test, and working only at their location with no remote work option is a big red flag for employee status. Second, even if you stay classified as a contractor for now, make sure you're claiming every legitimate business expense. Things like: - Portion of your cell phone bill used for work - Any work-related supplies you purchased - Mileage if you drive anywhere for work - Professional development or training costs Third, consider setting up quarterly estimated payments for next year so you don't get hit with this massive bill again. You can calculate roughly 25-30% of your gross income and pay that quarterly. The medical expenses are frustrating - at your income level, they'd need to exceed about $2,400 (7.5% of $32k) before you could even start deducting them, and then only if itemizing beats the standard deduction. Definitely talk to that tax professional, but don't panic - there are options to address both this year's bill and prevent this situation next year.

Another option is to try calling the general IRS customer service line at 1-800-829-1040 and asking them to transfer you to ID verification. Sometimes you can get through faster that way than calling the direct ID verify line. Also, if you have a local Taxpayer Assistance Center (TAC) near you, you can make an appointment and they can help verify your identity in person - might be faster than waiting on the phone!

Check if your local library has any free tax help programs too! A lot of them have VITA volunteers who are familiar with IRS verification issues and might be able to help you figure out next steps. Also worth trying the IRS2Go mobile app - sometimes it shows notices that don't appear on the website. Good luck! 🤞

The community wisdom on identity verification seems to be: 1. It's probably legitimate, but the agent was incorrect that "everyone" has to verify 2. You might, possibly, be able to verify before receiving your letter if you speak to the right agent 3. The timeline they gave you is somewhat accurate, though perhaps a bit pessimistic 4. It may be worth trying to call again to see if a different agent gives you different options 5. Once verified, it typically takes about 9 weeks, give or take, for processing to complete In my experience, it's generally best to follow the official process, but it doesn't hurt to try calling again for more information.

I'm going through something very similar right now! Filed January 28th and got the same runaround about needing ID verification. The part about "everyone eventually needing to verify" definitely sounds wrong based on what others are saying here. I've been checking my IRS online account daily and still no verification notice posted there. Did they give you a specific reason for the verification requirement, or was it just a generic "fraud prevention" explanation? I'm debating whether to call back and try to get a different agent like some people mentioned, or just wait it out. The April timeline they gave you seems excessive compared to what others have experienced.

Has anyone used TurboTax for this? I'm filing for the first time too and wondering if it asks for exact days or gives you some kinda calculator to figure it out.

I went through this exact same situation last year! For my irregular retail schedule, I ended up creating a simple spreadsheet where I listed each month and estimated how many days I typically worked based on what I could remember. I looked at my bank account to see when I got paid (usually every two weeks) and worked backwards from there. Like if I got paid on the 15th and 30th, I knew I probably worked most days in the two weeks leading up to each payday. Also check if your employer has an online portal or app - mine had all my old schedules going back months that I completely forgot about! Even if you can't find exact records, the IRS accepts reasonable estimates as long as you're making a good faith effort. Don't stress too much about being off by a few days here and there.

Just wanted to point out something nobody's mentioned: mortgage interest and property taxes are ALREADY deductible on your personal return if you itemize deductions, even without an LLC. Setting up this complex structure won't give you any additional benefit for those specific expenses. The only potential tax advantage is writing off depreciation and renovation costs, but as others have pointed out, most renovations would be capital improvements depreciated over 27.5 years - not immediate deductions. Also, mortgage lenders almost certainly won't give you a residential mortgage rate for an LLC purchase. You'd likely need a commercial loan at 1-2% higher interest, which would immediately negate many tax benefits.

As someone who's been through a similar analysis, I'd strongly recommend against the LLC approach for your situation. The math just doesn't work out favorably when you factor in all the additional costs and complications. Here's what you should consider instead: Since you're planning to live there as your primary residence, focus on the HELOC strategy mentioned earlier. You'll get immediate interest deductions on funds used for substantial improvements, and it's much simpler administratively. For the renovations, document everything meticulously. While you can't deduct them as a homeowner, they'll increase your cost basis when you sell, which reduces any potential capital gains. Given that you expect only modest appreciation, this could actually eliminate most or all taxable gains. Also consider timing your purchase and renovations strategically. If you're expecting higher income years during your 5-year ownership period, concentrate the major improvement projects (and corresponding HELOC interest deductions) in those years to maximize the tax benefit. The LLC structure would cost you thousands in additional fees, higher mortgage rates, lost homestead exemption, and preparation costs while providing minimal actual tax benefit. Sometimes the simplest approach is the best one.