Don't forget that if you do end up owing money, the IRS interest clock is already ticking from the original due date of that return. If you're going to contest it, do it quickly and thoroughly the first time. If you eventually have to pay, look into the First Time Penalty Abatement program - if you've had a clean tax record for the past 3 years, they might waive the penalties (but not the interest).

Hey Luca, I went through something very similar with a CP2000 notice last year - it's definitely scary at first but totally manageable! The key thing to remember is that this is just a "proposed" change, not a final bill. For investment income discrepancies, the most common issue is that the IRS receives a 1099-B showing your gross proceeds from stock sales, but they don't automatically know your cost basis (what you originally paid). So if you sold $1,000 worth of stock that you bought for $700, they might think you made $1,000 in profit when you really only made $300. Since you mentioned you "barely used" that brokerage account, definitely log into your old account online (most brokerages keep records for years) or call them directly to get copies of ALL the tax documents they sent for 2022. You might have missed a 1099-B or 1099-DIV that got sent to an old address. Don't pay anything until you've thoroughly reviewed their calculations. I almost paid $1,800 I didn't owe because I panicked. Take your time, gather your documents, and respond within their deadline. You've got this!

Just FYI - eBay is changing their reporting thresholds. For 2022 tax year the threshold was $600 before they issue a 1099-K, but the IRS delayed implementing that. Just be prepared that you might get 1099s in the future for much smaller amounts of selling.

I've been dealing with similar eBay tax confusion myself. One thing that really helped me was keeping detailed records of everything - not just the sale prices, but also what I originally paid for each item, when I bought it, and any selling expenses like shipping and eBay fees. The key distinction everyone's mentioned between hobby vs business is crucial. If you're just selling personal collectibles you've owned for years (like cleaning out your collection), that's very different from regularly buying items with the intent to flip them for profit. The IRS has specific tests for this - they look at whether you're doing it regularly, if you depend on the income, and if you're putting significant time and effort into making a profit. For your $1100 net profit, definitely keep all your documentation. Even if you don't get audited, having those records makes filing much easier and gives you confidence you're reporting correctly. And like others said, you still need to report the income even without a 1099 - the IRS expects you to report all income regardless of whether you receive tax forms.

Has anybody here used the IRS withholding calculator on their website? Is it actually accurate? I'm trying to figure out how much to put in box 4(c) like mentioned above.

I went through almost the exact same thing last year - totally missed section 1c and ended up owing $900 when I was expecting a refund. It's such a gut punch when you're counting on that money! Here's what I learned: the IRS doesn't really negotiate on mistakes like this. You pretty much have to pay what you owe, but you do have options for HOW you pay. If $1,400 is a lot for you to come up with at once (it definitely was for me), you can set up a payment plan online through the IRS website. The fees are pretty reasonable - I think I paid like $30 to set up a 6-month plan. The most important thing is to fix your W-4 ASAP so this doesn't happen again. I actually had my HR department help me fill out a new one to make sure I got it right this time. Don't feel bad about asking for help - they see this stuff all the time. One silver lining: now that you know about this, you'll never make the same mistake again. And honestly, owing taxes isn't the worst thing - it means you had more money in your paycheck throughout the year instead of giving the government an interest-free loan. Try to think of it that way!

Have you tried contacting your local Taxpayer Assistance Center instead of the national number? Sometimes you can get an in-person appointment and avoid the phone system entirely. I had a similar issue with my first tax return after college.

As someone who just went through this nightmare last month, I feel your pain! Here's what actually worked for me after trying everything else: Call 800-829-1040 at exactly 7:00 AM EST on a Wednesday or Thursday. When you get to the automated menu, press 1 for English, then immediately press 2-1-3-2. Don't enter your SSN when prompted - just wait through the silence. This usually gets you to a human in about 45-60 minutes instead of the usual 2+ hours. Pro tip: Use speaker phone and do something else while you wait. I cleaned my entire apartment during one call lol. Also, since you filed in February and it's now been over 2 months, you might want to check your tax transcript online first at irs.gov. There could be a processing code that explains the delay. Sometimes they need additional verification for first-time filers, especially recent graduates. Good luck! The adult tax world is definitely a learning curve but you've got this! 💪

The community consensus on this issue is that it's almost always one of three things: 1) A math error on your return that the IRS automatically corrected, 2) A verification hold that requires additional documentation, or 3) An income phase-out that affected your eligibility. Compared to the old stimulus payment issues from 2020-2021, today's Child Tax Credit problems are usually resolved much faster. Most members here report resolution within 60 days versus the 6+ months we saw during the pandemic processing backlog.

As someone new to the US tax system, I'd recommend starting with the basics before jumping into complex procedures. First, download your tax transcript from the IRS website (irs.gov/individuals/get-transcript) - this will show exactly what payments the IRS has on record for you. The $1400 you're missing could be related to the Child Tax Credit, not the Recovery Rebate Credit, since those stimulus payments ended in 2021. Check if you have qualifying children and verify your income falls within the phase-out limits. If your transcript shows discrepancies, then you can determine whether you need Form 1040X or if there's a simpler resolution. Don't rush into filing amendments until you understand what the IRS actually processed vs. what you expected!