Great question! I went through the exact same confusion when I started contract work. You're getting mixed info because tax software like TurboTax handles this automatically when you e-file - you don't physically mail anything to the IRS. Here's the breakdown of your 1099-NEC copies: - Copy B ("For Recipient"): This is for your personal records. Keep it safe but don't send it anywhere. - Copy 2 ("To be filed with recipient's state income tax return"): Only send this with your state return if your state specifically requires it. Many states now receive this info electronically. The reason you're seeing conflicting advice is that some older guides still reference paper filing requirements. When you e-file your federal return, the income from your 1099-NEC gets reported on Schedule C, and the IRS computer systems automatically match it against Copy A that your client already sent them. Pro tip: Since this is your first year as a contractor, make sure you're also prepared for self-employment tax (Schedule SE) - that was the biggest surprise for me! It's an additional 15.3% on top of regular income tax that catches a lot of new contractors off guard.

I just went through this exact same situation! As a new contractor, I was so confused about which 1099-NEC copies to send where. After doing some research and calling the IRS (which took forever), I can confirm what others have said - you absolutely do NOT need to send any physical copies of your 1099-NEC to the IRS with your federal return. Here's what I learned: Your client already sent Copy A directly to the IRS, so they have the information. Copy B is for your records, and Copy 2 is potentially for your state return (though most states get this electronically now too). When you e-file your federal return, you just enter the income amount on Schedule C and the system matches it automatically. One thing that really helped me was creating a simple filing system for all my tax documents. I keep Copy B with my other tax records in a dedicated folder, and I scan everything to have digital backups. Since we're both new to this contractor life, I'd also recommend starting to track your business expenses right away - every mile driven for work, any equipment purchases, portion of home internet/phone bills used for business, etc. These deductions on Schedule C can really help offset that self-employment tax hit! Don't stress too much - TurboTax will guide you through the whole process and it's more straightforward than it initially seems.

As another newcomer to this community, I just wanted to say how valuable this entire discussion has been! I actually found this thread while searching for information about employee benefits requirements for small businesses, and it's been incredibly enlightening. What strikes me most is how this confusion probably happens to countless small business owners who get well-intentioned but poorly communicated advice from their professional service providers. The distinction between "this would be beneficial" and "this is required" is huge when you're a small business owner trying to stay compliant while managing costs. I especially appreciate how multiple people shared practical resources and real-world experiences. The progression from initial confusion to clear understanding really demonstrates the value of community knowledge-sharing. For @LunarLegend and anyone else in similar situations - it seems like the key takeaway is to always ask for clarification when something sounds urgent but unclear. Questions like "Is this legally required or recommended?" and "What are the specific consequences of not implementing this?" can save a lot of unnecessary stress. Thanks to everyone who contributed their expertise here. This is exactly the kind of supportive, informative discussion that makes joining professional communities worthwhile!

As a newcomer to this community, I'm really impressed by how thoroughly this discussion has addressed what started as a confusing situation about Cafeteria Plan requirements. Reading through all the responses, it's clear that @LunarLegend's original question touched on a very common source of confusion for small businesses. What I find particularly valuable is how the conversation evolved from the initial "is this required?" question to identifying the most likely explanations for the accountant's advice. The consensus seems to be that there's no IRS requirement for Cafeteria Plans, but several related scenarios could have been misinterpreted: - Premium Only Plans being recommended for pre-tax health insurance deductions - COBRA compliance requirements for companies with 20+ employees - New payroll providers flagging missing pre-tax elections - General recommendations for tax optimization being presented as requirements The resources people have shared here - particularly the services for getting direct IRS clarification - seem genuinely useful for situations where you need authoritative answers rather than internet speculation. This thread is a perfect example of why community knowledge-sharing is so valuable. Instead of a stressed business owner trying to decode conflicting online information, we now have a clear breakdown of what's actually required vs. what's simply beneficial. Great collaborative problem-solving, everyone!

I'm currently dealing with this exact situation! I was on an F-1 visa during 2020-2022 and just discovered that my employer was incorrectly withholding FICA taxes for almost two full years. I had no idea I was exempt until a friend mentioned it recently. Reading through all these responses is super helpful - it sounds like Form 843 is definitely the way to go. I'm leaning toward doing it myself rather than using a service since several people have had success with the DIY approach. One question I have: if I worked part-time during school and then full-time during summer breaks, does that affect my eligibility at all? I was always maintaining my F-1 status and was definitely under the 5-year rule for non-resident aliens. Also, did anyone here have issues with employers who initially refused to provide employment verification letters? Thanks for all the detailed advice - this thread is exactly what I needed to get started on my refund claim!

I went through this exact same process last year and wanted to share my experience! I was on an F-1 visa from 2018-2020 and discovered that my employer had been incorrectly withholding FICA taxes for the entire period. I decided to handle the Form 843 filing myself rather than using a service, and it worked out great. The key things that helped me succeed: 1. **Be extremely thorough with documentation** - I included copies of every relevant document (passport, visa, I-94, all W-2s, employment letters) 2. **Write a clear explanatory letter** - I kept it to one page explaining my F-1 status, why FICA taxes shouldn't have been withheld, and the specific refund amount I was requesting 3. **Send via certified mail** - This gave me peace of mind and proof of delivery 4. **Be patient** - The process took about 6 months total, but I eventually received a refund check for $2,847 The most challenging part was getting employment verification letters from my employers, but once I explained it was just confirming dates and job title, they were cooperative. Since you were only in your second year in 2019, you definitely qualify as a non-resident alien. The amount you could get back might surprise you - FICA taxes add up quickly! Don't let the bureaucracy discourage you, the refund is absolutely worth pursuing.

This is such a common situation for creative freelancers! You're definitely not alone in being confused about the tax obligations. The good news is that you're addressing it now rather than letting it pile up for more years. One thing I'd add to the excellent advice already given - make sure you're keeping detailed records of not just your income, but also your business expenses. Things like Adobe Creative Suite subscriptions, Wacom tablet styluses, online course fees for improving your art skills, and even a portion of your internet bill can potentially be deducted as business expenses. Since you mentioned you're getting paid through Venmo, I'd strongly recommend switching to a more business-friendly payment method like PayPal Business or Stripe for future commissions. These platforms make it much easier to track your income and provide better documentation for tax purposes. Plus, they look more professional to clients. For the income you've already earned in previous years, you might want to consider filing amended returns if the amounts were significant. The IRS is generally more lenient if you voluntarily correct past mistakes rather than waiting for them to find discrepancies.

As a digital artist who went through this exact same panic a few years ago, I can tell you that you're handling this the right way by addressing it now! The IRS actually appreciates when people come forward voluntarily rather than trying to hide income. One thing I haven't seen mentioned yet - consider setting aside 25-30% of your commission income going forward for taxes. Since you're already employed full-time, your art income will likely be taxed at your marginal rate plus self-employment tax, so it adds up quickly. I learned this lesson the hard way during my first year! Also, keep in mind that the IRS has a "hobby vs. business" test. Since you're consistently earning income and treating this seriously, you should be fine. But document your business activities - save client communications, keep a log of time spent on projects, and maintain professional practices. This helps establish that you're running a legitimate business, not just pursuing a hobby. For record-keeping, I use a simple spreadsheet with columns for date, client, project description, amount earned, and payment method. Takes 2 minutes per transaction but saves hours during tax season. You can also photograph receipts for business expenses with your phone - just make sure they're clear and organized by category. The learning curve is steep at first, but once you get systems in place, it becomes routine. You've got this!

Has anyone used TurboTax to do this amendment? Their interface keeps confusing me when I try to switch methods.

Yes, you can definitely amend your 2023 return to switch from actual expenses to standard mileage! This is actually a smart strategic move that many business owners don't realize they can make. The key rule is that you must use standard mileage in the FIRST year you place the vehicle in service for business to maintain flexibility between methods in future years. Since 2023 was your first year using this car for business, amending that return to use standard mileage will "reset" your election and give you the flexibility to choose either method going forward. You'll need to file Form 1040-X along with a revised Schedule C. Remove any depreciation, actual expenses, and Section 179 deductions you claimed for the vehicle, and replace them with the standard mileage deduction (65.5 cents per mile for 2023). Make sure you have solid documentation of your business miles for 2023 - mileage logs, calendar appointments, receipts showing business locations, etc. One important note: if you claimed any depreciation or Section 179 deductions on the vehicle, you may need to deal with depreciation recapture when switching to standard mileage. The calculation can get complex, so consider using tax software that handles amendments or consulting with a tax professional to make sure you get it right. You have until April 2027 to amend your 2023 return (three years from the original filing date), so you have plenty of time. But I'd recommend doing it sooner rather than later so you can plan your 2024 and future tax strategies accordingly.