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Wait a minute - I don't think anyone has addressed the potential drawbacks here. If you give your SSN and they file a 1099-NEC for work that was clearly W-2 employee work (set schedule, supervised work, etc.), YOU could end up paying both halves of FICA taxes (15.3% instead of 7.65%). Before providing anything, I'd send a text saying "Can you explain what tax form you're planning to issue and why?" Document everything. If they say 1099, but you were clearly an employee by IRS standards, you might want to consult with a tax professional. The IRS has specific tests to determine worker classification.
This is such a good point that nobody else mentioned! I got hit with this exact situation and ended up owing like $3,500 in self-employment taxes I wasn't expecting. Is there a way for OP to dispute misclassification without creating a huge problem with the employer?
You can file Form SS-8 with the IRS to request an official determination of worker classification, but that process can take 6+ months. A faster option is to file Form 8919 with your tax return, which lets you pay only the employee portion of FICA taxes while indicating you believe you were misclassified. You'd check the box for "reason code G" (worker received Form 1099-MISC or 1099-NEC but believes they should have received Form W-2). This way you're not ignoring the income, but you're also not accepting the higher tax burden of being incorrectly classified as an independent contractor. The employer would still be responsible for their portion of employment taxes. Just make sure to keep documentation showing you were treated as an employee (set schedule, supervised work, used their equipment, etc.).
I'd be very cautious about this situation. The timing is suspicious - why wait 8+ months after you stopped working to suddenly request your SSN? A legitimate business would have collected this information when you started working, not months after you left. Before providing any personal information, I'd strongly recommend asking your former employer to provide a written explanation (via text or email) of exactly why they need your SSN and what they plan to do with it. Ask them to specify what tax form they're filing and for which tax year. If they claim they need to issue a 1099 for last year's income, that's potentially legitimate - but they should have done this by January 31st. Late filing suggests poor record-keeping at best, or something more concerning at worst. Also consider that even if they have legitimate tax reasons, you're under no legal obligation to make their life easier after they failed to handle this properly when you were employed. You could simply respond that since no official employment paperwork was ever completed during your time there, you're not comfortable providing personal information now. Remember, you're still required to report this income on your taxes regardless of whether they issue you any forms. But protecting your personal information should be your priority here.
This is why I use cash lol. No electronic trail. But if you're stuck with Zelle, there's actually an exception that applies here that nobody has mentioned. If your friend is paying DIRECTLY for medical expenses, there's a complete exemption from gift tax reporting. So if these payments are going straight to medical bills, your friend wouldn't even need to file a gift tax return regardless of amount.
Is that true even if the money goes to the person first and then they pay the medical bills? Or does it have to go directly to the hospital/doctor?
Good question! The medical expense exemption only applies when payments go directly to the medical provider (hospital, doctor, etc.). If the money goes to you first and then you pay the bills, it's treated as a regular gift subject to the annual exclusion limits. So your friend would still need to file Form 709 if they're giving you more than $19,000 per year, even if you're using it all for medical expenses. The direct payment route is definitely the way to go if you want to avoid the gift tax reporting requirements entirely.
Just to add another perspective - I went through something similar when my mom was helping me with rent payments via Venmo. What really helped me was keeping detailed records of WHY the money was being sent. I saved all our text conversations where she explicitly said it was a gift to help during my job transition, plus I kept receipts showing what I used the money for. The IRS cares a lot about intent and documentation. Since your friend is helping with medical expenses, I'd suggest keeping records of your medical bills, any insurance communications, and especially any messages between you and your friend that show this is genuinely gift money with no strings attached. If these payments ever get questioned, having that paper trail will be invaluable. Also worth noting - if your friend wants to avoid the gift tax reporting entirely, they could consider paying some of your medical providers directly instead of sending money to you. That way it falls under the medical payment exemption that someone mentioned earlier.
20 Does anyone know if you can look up whether someone has a valid PTIN or EFIN? I'm now wondering about my own tax preparer and whether I should be checking their credentials before letting them file my taxes.
17 You can verify a tax preparer's PTIN through the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications on the IRS website. However, there isn't a public database to verify EFINs. At minimum, you should ensure your preparer signs your return and includes their PTIN (required by law). Also, legitimate preparers will have you sign Form 8879 (e-file authorization) before submitting your return electronically. If they don't do these things, that's a red flag.
20 Thanks for the info! I didn't know about the IRS directory. Just checked and my preparer is listed with valid credentials. Will definitely make sure they're having me sign the right forms this year.
Based on what you've described, this situation raises several red flags. While it's technically possible to have a PTIN but be denied an EFIN, the reasons usually involve more than just criminal history. Common reasons for EFIN denial include: - Outstanding tax debts to the IRS - Previous violations of e-file regulations - Failing the suitability check (which includes credit history, tax compliance, and background verification) - Providing false information on the EFIN application - Association with previously sanctioned preparers What's particularly concerning is that using someone else's EFIN is a serious violation of IRS regulations. Each EFIN is tied to a specific business location and preparer. The niece is putting her own credentials at significant risk - if discovered, both she and the aunt could face penalties, EFIN revocation, and potential prohibition from the e-file program. If you're considering reporting this, you should know that the IRS takes credential sharing very seriously. This isn't just a technicality - it's a fundamental violation of tax preparer oversight designed to protect taxpayers.
This is really helpful - I had no idea about the suitability check being so comprehensive. The outstanding tax debts reason makes a lot of sense. If someone can't even keep their own taxes current, why would the IRS trust them to handle other people's returns electronically? I'm definitely leaning toward reporting this situation now. It sounds like both the aunt and niece could get in serious trouble, and taxpayers in our community deserve to know their returns are being handled properly. Do you happen to know if there's a specific form or process for reporting this kind of violation?
19 Surprised no one mentioned this, but double check that you put the correct filing status on your W-4. If you accidentally selected "Married filing jointly" instead of "Single or Head of Household," that could explain the zero withholding. The tax brackets for MFJ are much wider, so it would assume you need less withholding. This happened to me last year!
This is a classic multiple jobs withholding issue that catches a lot of people off guard! Each employer's payroll system calculates your withholding as if that's your only job, which means they're using the standard deduction and tax brackets for a much lower income level than what you're actually earning combined. With $102,000+ total income, you're definitely in a tax bracket where federal taxes should be withheld. The fact that you're seeing zero withholding from both jobs strongly suggests the W-4 forms weren't filled out correctly for multiple job situations. Here's what I'd recommend doing immediately: 1. Use the IRS Tax Withholding Estimator online - it's free and accounts for multiple jobs 2. Update both W-4 forms, making sure to check the box in Step 2(c) for multiple jobs 3. Consider adding a substantial additional withholding amount in Step 4(c) to catch up on what you've missed this year Don't wait on this - the longer you go without proper withholding, the bigger your tax bill will be next April. You might also want to look into making estimated quarterly payments if you're already significantly behind for this year.
Ali Anderson
Does anyone know the deadline for this BOIR thing? I think I have the same situation with my rental property LLC and I've been ignoring all the news about it thinking it didn't apply to me lol
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Zadie Patel
β’The deadline depends on when your LLC was created. If your LLC was created before January 1, 2024, the deadline is January 1, 2025. If your LLC was created in 2024, you have 90 days from the creation date to file. Set a calendar reminder now because the penalties can be steep!
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Romeo Barrett
Just wanted to add a quick clarification for anyone else reading this thread - the BOIR filing requirement is based on how your business entity was legally formed, not how it's treated for tax purposes. If you filed Articles of Organization with your state to create an LLC (even a single-member LLC), you generally need to file the BOIR, regardless of whether you're treated as a disregarded entity for taxes and file Schedule C. The sole proprietorship exemption only applies to businesses that operate under your personal name or a DBA without any formal state registration. Also, for those asking about deadlines - LLCs formed before 2024 have until January 1, 2025 to file their initial BOIR. Don't wait until the last minute because the penalties for non-compliance can be up to $500 per day!
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