Can I ask a dumb question? If someone is in this "not collectible not due to hardship" status, does that affect their ability to get a tax refund in future years? I'm in a similar situation and finally getting back on my feet, but worried about filing this year if they'll just take my refund.

I've been in a similar situation and wanted to share some practical advice. The "currently not collectible not due to hardship" status is actually a relief in many ways - it means the IRS has essentially stepped back from active collection without you having to prove financial hardship. From my experience, this status often gets applied when the IRS determines that pursuing collection would be inefficient or unproductive. In your case, since you mentioned the letters were unopened for months, it's likely they couldn't properly serve you notices or assess your current situation, so they placed your account in this holding pattern. The key thing to remember is that while collection is paused, the clock is still ticking on that 10-year statute. For your 2014/2015 tax years, you're potentially getting close to those expiration dates. I'd strongly recommend getting a clear picture of exactly when each tax year was assessed and when the collection statute expires - this information is crucial for planning your next moves. Also, make sure the IRS has your current address so you don't miss any critical notices, but otherwise you might want to avoid taking any actions that could restart or extend the collection process until you know where you stand with those statute dates.

Anyone else notice that FreeTaxUSA acceptance times are much faster if you file early in the season? I filed in late January and got acceptance notification in like 20 hours. My brother filed last week and it took 3 days for the same notification. I think they get backed up closer to the deadline.

I'm going through the exact same thing right now! Filed with FreeTaxUSA on Tuesday night and it's Friday morning with still no acceptance notification. Coming from TurboTax where I'd get that green checkmark almost instantly, this is definitely nerve-wracking. But reading all these comments is really reassuring - sounds like 24-72 hours is totally normal for FreeTaxUSA. I'm going to check my account directly instead of waiting for the email notification since a few people mentioned that can be delayed. Thanks everyone for sharing your experiences!

Has anyone considered that the employer might actually be trying to do the right thing here? I was in a similar situation as an employer where I initially paid someone cash, but my accountant later told me I needed to properly document everyone who did work for me, even small jobs. The employer might be facing an audit or preparing taxes and realized they need to properly account for the money paid to you. While the timing is suspicious, it might not be malicious.

This is a really tough situation, and I feel for you. Based on what you've described, you're essentially caught between a rock and a hard place - the employer is trying to retroactively change the terms of your working arrangement, possibly to cover themselves. Here's what I'd recommend: Don't just ignore the W-9 request entirely. Instead, respond in writing (text or email) acknowledging that you received the request but remind them of your original verbal agreement about the work being "under the table." Ask them to clarify exactly what amount they plan to report and why they're changing the arrangement now. If they insist on issuing a 1099, make sure you have documentation of what you actually received ($8,500) versus what you were owed ($11,000). You'll want to report only the income you actually received on your tax return. Keep all your records - text messages, payment receipts, anything that shows the original agreement and actual payments. The reality is that if they're determined to issue a 1099, they can do so regardless of whether you sign the W-9. But having a paper trail of your objections and the actual payment amounts will help protect you if there are discrepancies. You might also want to consult with a tax professional who can advise you on the best way to handle this specific situation. Most importantly, don't let them intimidate you into accepting responsibility for taxes on money you never received.

Has anyone used TurboTax for this kind of situation? Their multi-state option seems expensive but wondering if it's worth it or if it even handles this kind of situation properly.

I went through almost the exact same situation last year! My wife and I were in different states (she was in Oregon, I was in Texas) for about 10 months due to work. Here's what we learned: You're absolutely right that you can file jointly for federal and separately for each state. Since California is a community property state, you'll likely need to report half of your combined income ($85k) on your CA return, even though your husband doesn't work there. Colorado isn't a community property state, so your husband will mainly report his Colorado income. For the mortgage situation - since the house is in Colorado and you're both on it, the mortgage interest deduction will generally go on the Colorado return. However, if you're itemizing on your federal joint return, make sure you're coordinating this properly between states. One thing that caught us off guard was California's disability insurance (SDI) tax - make sure you understand how that applies to your portion of the community income. Also, don't forget to look into any credits for taxes paid to other states to avoid double taxation. Given the complexity with community property rules and your rental situation, it might be worth consulting a tax professional who specializes in multi-state returns, at least for this first year. The peace of mind was worth it for us!

Just a practical tip from someone who's been running a landscaping business for 8 years - get a dedicated app to track your inventory and job costs. I use GreenThumb (not the actual name but something similar) and it's made tax time sooooo much easier. You can scan receipts, assign materials to jobs, and it generates reports showing exactly what's COGS vs regular expenses. It even tracks your leftovers at the end of the season. PLUS it has templates specifically for landscaping businesses so you're not trying to adapt some general accounting software to fit your needs.

As someone who just went through this exact same confusion with my first year of self-employment, I totally feel your pain! The COGS vs regular expense distinction was driving me crazy too. Here's what I learned after talking to my accountant: if you're buying materials that physically become part of the customer's property (plants, mulch, pavers, etc.), those are COGS. But things like your truck expenses, equipment maintenance, and general supplies are regular business expenses. For tracking leftovers, I started doing a simple inventory count at the end of each month. Just walk around your storage area and estimate what you have left. You don't need to be super precise - even rough estimates work for tax purposes. I use a simple spreadsheet with columns for "material type," "estimated quantity," and "approximate value." One thing that really helped me was setting up separate storage areas for "job-specific" materials (stuff I bought for a particular client) versus "general inventory" (bulk materials I use across multiple jobs). Makes the year-end counting much easier! The Schedule C COGS section is definitely confusing at first, but once you get the hang of the basic formula (beginning inventory + purchases - ending inventory), it becomes pretty straightforward. Good luck with your first year of taxes!