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.

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.

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.

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.

Make sure you get EVERYTHING in writing from the startup! I got burned badly last year when I did development work for equity and the company changed terms on me after 8 months of work. Had already deducted $3k in equipment on my taxes and then had nothing to show for it.

Benjamin, you're asking all the right questions! A few key points to add to the excellent advice already given: 1. **Documentation is crucial** - Keep detailed records of your equity agreement, work hours, business purpose, and all expenses. The IRS will want to see this is a legitimate business activity, not a hobby. 2. **Consider forming an LLC** - Since you're doing significant startup work, you might want to structure this properly. An LLC can provide liability protection and may make your business deductions cleaner. 3. **Track everything separately** - Keep your startup work completely separate from your W2 job. Separate bank accounts, time tracking, expense records, etc. This will help if you ever get audited. 4. **Quarterly estimated taxes** - Even though you're not getting cash now, if the startup starts generating income or your equity becomes valuable, you'll need to make quarterly payments. Plan ahead. The MacBook deduction is legitimate business expense that goes on Schedule C. Just make sure you can prove it's used primarily for the business (keep usage logs if needed). Good luck with the startup!

I'm in the exact same situation! Filed our 941-X for 2020 Q2 and Q3 back in September 2021 and still nothing. We're a small restaurant that kept 8 employees on payroll even when we were only doing takeout orders during the lockdowns. The credit would be around $42,000 for us. I've been following this thread closely and just wanted to say thank you to everyone sharing their experiences and suggestions. It's reassuring to know we're not alone in this endless waiting game, even though it's frustrating that so many small businesses are still stuck in limbo. Based on what I'm reading here, it sounds like persistence is key - whether that's through the phone services mentioned, document review tools, or just keeping detailed records for follow-up letters. Has anyone had success with congressional inquiries? I've heard mixed things about whether local representatives can actually help with IRS issues like this.

This thread has been incredibly helpful - thank you all for sharing your experiences! I'm in a similar situation with our 2020 ERC claim filed via 941-X in late 2021, still waiting. Reading through everyone's updates, it seems like there are really three main approaches that have worked: 1) Using tools like taxr.ai to identify and fix potential errors in your filing, 2) Getting through to the IRS via services like Claimyr to get actual status updates, and 3) Being persistent with follow-up documentation and inquiry letters. What strikes me is how many of you discovered errors or missing documentation that was causing delays - makes me wonder if I should review my own filing more carefully. The IRS clearly isn't going to tell you what's wrong; you have to figure it out yourself. For those still waiting like me, it's frustrating but somewhat comforting to know this isn't unusual. Emma Wilson's 26-month timeline gives me hope that these claims are still being processed, just very slowly. I think I'll try the document review approach first, then maybe the phone service if I can't identify any obvious issues with my filing. Has anyone here had their claim outright denied, or have most of you who waited long enough eventually received payment?