Does anyone know if the April 15th tax filing deadline is also the deadline for paying remaining taxes on 1099 income? Im confused if we are supposed to pay all remaining taxes by January 15th or if April 15th is ok too?

This is exactly the kind of situation where having good records really pays off! I'd recommend pulling together all your documents - your Q1-Q3 payment confirmations, your October 1099 income records, and your November-December pay stubs showing withholding amounts. Here's a practical approach: Calculate 25% of your total annual 1099 income (since that's roughly what your Q4 payment should cover). Then subtract what you already paid in Q1-Q3. Whatever's left is what you'd normally owe for Q4. Now check if your W-2 withholding in Nov-Dec exceeded what you'd typically owe on just those two months of W-2 income - that excess could cover your remaining Q4 obligation. The key thing to remember is that the IRS doesn't care how you structure your payments throughout the year, as long as you end up paying the right total amount by the time you file. So if your W-2 withholding "overpaid" for Nov-Dec and covers your October 1099 taxes, you're golden. When in doubt, making a small Q4 payment is usually the safer bet than risking underpayment penalties, especially since you'll get any overpayment back as a refund.

I went through this exact same situation about 6 months ago with a 12c letter requesting my W2. Here's what I learned that might help you: First, the 6-8 week timeline is actually pretty accurate if you respond quickly and completely. Mine took about 7 weeks from when I mailed my response to when I got my refund deposited. Definitely use certified mail like others mentioned - it's worth the extra cost for peace of mind. I was paranoid about them losing my documents too, so I also made sure to write my SSN and the letter reference number on every single page I sent. One thing that helped me was calling the IRS about 4 weeks after I sent my response to confirm they had received it and that it was being processed. Yes, it's a pain to get through to them, but it was worth it to know my case was moving forward. Also, keep checking the "Where's My Refund" tool regularly. Once they start processing your documentation, you'll see the status change from "still processing" to showing an actual refund date. That's when you know you're in the home stretch. Good luck with your refund! $3,800 is definitely worth the stress of dealing with this paperwork.

I'm dealing with a 12c letter right now too and this thread has been incredibly helpful! Just wanted to add one thing I learned from my tax preparer - if your W2 shows any corrections or amendments (like a W2c), make sure to include BOTH the original W2 and the corrected version when you respond. The IRS needs to see the complete paper trail to understand any discrepancies. I almost made the mistake of just sending the corrected W2c thinking that was all they needed, but my preparer caught it and said that could have delayed my case even further. Also, if you have multiple W2s from different employers, send copies of ALL of them even if the letter only mentions one specifically. Better to give them more information than they need rather than having to go through another round of correspondence. Hope this helps someone avoid the mistakes I almost made!

I know everyone's focused on the deduction itself, but PLEASE keep good records of your business usage! I claimed 70% business use on my laptop last year and got audited. The IRS wanted a usage log showing how I came up with that percentage. Thankfully I had a spreadsheet where I tracked hours, but it was still super stressful. If I could do it again, I'd take pictures of my setup being used for business, save business-related files in clearly labeled folders, and keep a simple log of hours used for business vs personal. Just my 2 cents from someone who learned the hard way!

This is such a common situation for people with side businesses! I've been doing 1099 work for about 3 years now and went through the same laptop dilemma. One thing I'd add to the great advice already given - consider setting up a dedicated user account on your laptop just for business use. It makes tracking so much easier and gives you a clear separation between business and personal activities. I use one login for all my freelance work and another for Netflix/gaming/personal stuff. Also, don't forget you can deduct other related expenses too! If you're buying software subscriptions that you use for business (like Adobe Creative Suite, Microsoft Office, etc.), you can apply the same business-use percentage to those as well. Same goes for any laptop accessories like a business-appropriate carrying case or external hard drive for backups. The 60/40 split sounds reasonable for your situation, but I'd recommend being conservative rather than aggressive with your estimates. Better to claim 55% and be safe than claim 70% and get questioned later. The peace of mind is worth the small difference in deduction amount.

i had same issue with hubby last yr. our tax guy said easiest fix is just put "SINGLE" on w4 even tho ur married. been doing that for 2 years now and withholding is perfect!!! they take out more but no surprise tax bill in april!!

I feel your pain - I went through the exact same nightmare with my spouse's withholding! The 2020 W-4 changes really threw everyone for a loop. Here's what finally worked for us after two years of getting it wrong: Don't rely solely on the IRS calculator - it's helpful but can miss nuances. Instead, look at your previous year's tax return and calculate roughly what your tax liability should be for this year based on your expected income. For a $40,000 salary with only $212 withheld, your spouse's W-4 is definitely treating them as if they have no other household income. Make sure you check the "Multiple Jobs or Spouse Works" box in Step 2(c), but more importantly, use the worksheet that comes with the W-4 form to calculate the additional amount needed in Step 4(c). As a quick fix for this year, I'd recommend having your spouse add at least $100-150 per paycheck in additional withholding on line 4(c) to catch up. You can always adjust it down later if it's too much. Better to get a refund than owe a huge amount plus penalties! The key is coordination - both spouses need to fill out their W-4s together, not separately.

Looking at the IRS Operations Dashboard (https://www.irs.gov/newsroom/irs-operations), they're currently processing a higher volume of manual reviews than normal for this time of year. The 570/971 combination specifically indicates a refund hold pending review completion rather than an audit. If you check your transcript again in 7-10 days, you might see a Transaction Code 776 (which means they've sent a letter requesting information) or a 420 (which indicates examination/audit). The specific code will tell you much more about your situation than the general 120-day timeline.

I'm dealing with a similar situation right now - got the 570/971 codes last week and the waiting is really stressful when you have financial obligations. One thing that helped me was calling the Taxpayer Advocate Service at 877-777-4778. They can sometimes expedite reviews if you can demonstrate financial hardship, especially for medical expenses. Since you're caring for an elderly parent, that might qualify as hardship. Also, make sure to check your online account daily rather than weekly - I've seen people miss important updates because they weren't checking frequently enough. The IRS sometimes releases refunds earlier than their quoted timeframes if you stay on top of any requests for additional documentation.