H&R Block should be helping you deal with this! Their preparer gave you incorrect advice about using a pay stub instead of waiting for your W-2, and now you're dealing with the consequences. Most tax prep chains have some kind of guarantee or assistance if you get audited for a return they prepared. Call the specific H&R Block office where you had your taxes done and ask to speak to the manager. Explain the situation and that you need their help responding to the audit notice, especially since it was their advice that led to this situation in the first place.

This is unfortunately a common issue with amended returns. The IRS systems don't always communicate well between departments, so your audit was likely triggered by the original return before your amendment was fully processed. Here's what you should do immediately: 1. **Respond to the audit notice promptly** - Don't wait for your amended return to finish processing. Include a cover letter explaining that you already filed Form 1040X on February 8th to correct this exact issue. 2. **Include your amendment tracking info** - Reference that the IRS received your amended return on February 11th and include any confirmation numbers you have. 3. **Provide all requested documentation** - Even though you already sent it with your amendment, include everything they're asking for: your W-2, the amended return copy, and any other supporting docs. 4. **Call the IRS** - Use the phone number on your audit notice to speak with someone who can potentially connect your audit case with your pending amended return. This could save you weeks of back-and-forth. The good news is that you've already done the hard work of correcting the issue. Most of these cases get resolved quickly once the auditor sees you proactively fixed the problem. Your refund might be delayed while this gets sorted out, but you shouldn't face any penalties since you corrected the error promptly. Don't panic - this is more of a paperwork coordination issue than a serious tax problem.

Has anyone here used Square for tracking vending sales? I'm looking into retrofitting my older machines with card readers and their system seems to handle the tax calculations automatically. But I'm not sure if it properly separates different tax categories for food vs. non-food items.

This is such a timely question! I just went through this exact same process about 6 months ago when I started my vending business with 8 machines. The learning curve is steep but totally manageable once you understand the basics. First thing - definitely get your sales tax permit from your state's department of revenue ASAP. Most states require this before you start operating. The application process varies but usually takes 1-2 weeks. For tracking sales, I invested in digital counters for my older machines (about $50 each) and they've been worth every penny. Makes record keeping so much easier than trying to estimate from cash collections. You'll need detailed records for your quarterly filings. One thing that caught me off guard was that some locations charge a separate business license fee for vending operations, even if you already have your state permits. Check with each city/county where your machines are located. I had to get additional permits for 3 of my 8 locations. The food vs. non-food taxation is definitely tricky and varies by state. In mine, candy and soda are fully taxable, but certain packaged foods have reduced rates. I ended up creating a spreadsheet mapping each product to its tax category to avoid confusion. Good luck with your business! The tax stuff seems overwhelming at first but becomes routine once you get your systems in place.

I'm wondering if the situation might be even worse than what's apparent. If your boss is reporting 495 hours but only paying you for 412, that's 83 hours of labor they're claiming for tax purposes without actually paying you. Some shady businesses do this to inflate their business expenses (your labor cost) to reduce their taxable business income, while simultaneously not actually paying out those wages. It's a form of tax fraud that unfortunately happens in cash-heavy businesses. The big question is: is your employer paying taxes on the full $8,925 they reported to the IRS, or only on the $7,416 they actually paid you? Either way, something's not right, and you deserve to have this straightened out.

This situation is definitely not normal or acceptable. As someone who's dealt with payroll issues before, I want to emphasize that your employer is legally required to provide you with pay stubs showing gross wages, all deductions (including taxes), and net pay - regardless of whether you're paid in cash, check, or direct deposit. The fact that your boss "guessed" at your hours and over-reported by 83 hours is a major red flag. This means you're potentially paying income tax on $1,494 you never actually received (83 hours × $18/hour). That's money coming out of your pocket because of his sloppy record-keeping. You should immediately request: 1. Detailed pay stubs for all pay periods going forward 2. Written documentation showing exactly how much was withheld for federal, state, and FICA taxes 3. Proof that these tax payments were actually made to the appropriate agencies Don't let the "flexible time off" arrangement cloud your judgment here. A legitimate employer can be flexible AND follow proper payroll procedures. The two aren't mutually exclusive. You've been patient for 9 years, but this issue could affect your tax liability and credit if not resolved properly.

I went through this exact situation last year. I mailed my 8862 with my return to the Austin processing center (I'm in Texas). It took about 8 weeks total to process instead of the usual 3 weeks, but everything went through fine. Just make sure you sign and date everything properly and keep copies of all documents you send.

I went through this same situation two years ago when my EIC was disallowed. Here's what worked for me: I attached Form 8862 directly to my Form 1040 and mailed them together to my state's processing address (found in the 1040 instructions). The key things I learned: 1) Never mail Form 8862 separately - it will get lost in the system, 2) Make sure every line on the form is complete, even if some seem redundant, 3) Include all supporting documentation they originally requested, and 4) Send everything certified mail so you have proof of delivery. My processing took about 6 weeks longer than normal, but I got my full refund once they verified everything. The wait is stressful, but if you follow the process exactly, it does work out in the end.

Something that hasn't been mentioned yet is self-employment tax. This is actually a BIG difference between Schedule F and Form 4835: - Income reported on Schedule F is subject to self-employment tax (additional 15.3% for Social Security and Medicare) - Income reported on Form 4835 is NOT subject to self-employment tax This could make a huge difference in your tax liability. If you're actively farming (Schedule F), you'll pay SE tax but also build Social Security credits. If you're just a landlord getting crop share rent (Form 4835), no SE tax, but also no Social Security credits.

My tax guy explained this to me last year when I was confused. Here's a super simple way to think about it: Schedule F = You're the farmer Form 4835 = You're the landlord getting paid in crops And yes, you definitely still need Form 4562 for depreciation with either form if you have buildings, machinery, fences, etc. that you're depreciating.