I think there's definitely some confusion here about the line numbers. I just completed the Jennifer Taxpayer practice exam yesterday and can confirm that in the current version, you're asked about line 2b for taxable interest, not line 15. For anyone still working on this: the $1,250 from savings account interest plus the $875 from the Capital One 1099-INT should total $2,125 and go on line 2b. Any tax-exempt municipal bond interest would go on line 2a instead. It sounds like some people might be working with an older version of the practice exam that references outdated line numbers. I'd recommend downloading the most current version from Intuit's website to avoid this confusion. The actual 2022 Form 1040 has taxable interest on line 2b, and that's what the updated practice exam should be testing.

I'm so glad I found this thread! I was having the exact same issue with the Jennifer Taxpayer practice exam and getting really frustrated. After reading through all these responses, I realize I was making two mistakes: 1) I was looking at an older version of the practice exam that referenced line 15 instead of line 2b, and 2) I was accidentally including some tax-exempt municipal bond interest in my taxable interest calculation. Just to confirm for anyone else still struggling - on the current 2022 Form 1040, taxable interest goes on line 2b (not line 15), and for Jennifer's scenario it should be $1,250 + $875 = $2,125. The tax-exempt interest from municipal bonds goes separately on line 2a. Thanks everyone for sharing your experiences with the different tools and resources too. It's really helpful to know there are options like taxr.ai and even ways to reach actual IRS agents when you get stuck on these practice scenarios.

Code 291 can be super confusing! I had the same issue last year and it drove me nuts trying to figure out what was going on. From what I learned, code 291 usually means they made an adjustment to your return - could be a math error, missing forms, or they corrected something. The key is looking at the amount column next to it. If it's a credit (positive), they owe you. If it's a debit (negative), you might owe them. Also check if there are any follow-up codes like 766 (credit to your account) or 768 (earned income credit). The IRS phone lines are absolutely terrible right now so don't feel bad about not getting through. Have you tried looking at your account transcript online? Sometimes that gives more detail than the return transcript.

Code 291 is definitely confusing! I went through this same thing a few months ago. What helped me was looking at the "amount" column next to the code 291 - if it shows a positive number, that's usually good news (they owe you), but if it's negative, you might owe them. Also look for the cycle date on that line - that tells you when the adjustment was processed. The transcript format is honestly terrible and makes no sense until someone explains it. Have you been able to find any other codes like 846 (refund issued) or 570 (additional account action pending)? Those usually appear after a 291 and give you a better picture of what's happening. Definitely don't rely on calling - I was on hold for 4 hours just to get disconnected 🙄

I just went through this exact same process a few months ago! One additional tip that really helped me - if you filed your taxes electronically and used tax software, check your software account from 2020. Many programs like TurboTax, H&R Block, etc. keep records of what you reported on your return, including whether you claimed the Recovery Rebate Credit for EIP 2. If you see that you claimed the credit on your 2020 return, that means you didn't receive the payment. If you didn't claim it, there's a good chance you did receive it (though as others mentioned, it could have been offset or sent as a card you might have missed). Also, don't forget to check if you might have received a partial payment. Some people got reduced amounts based on their 2019 vs 2020 income differences, which can make tracking even more confusing. The transcript will show the exact amount that was issued to you. One last thing - if you do end up needing to amend your return, make sure to include Form 8915-E if you took any coronavirus-related distributions from retirement accounts in 2020. I made that mistake initially and had to file a second amendment!

I had a similar situation last year and found that the most reliable method was actually to request Form 1040-X instructions from the IRS website, which includes a specific worksheet for tracking Economic Impact Payments. The worksheet walks you through exactly what to look for on your transcript and helps you calculate if you're missing any payments. One thing that helped me was also checking my 2020 tax return (Form 1040, line 30) to see if I had already claimed the Recovery Rebate Credit for EIP 2. If that line shows $600 (or more with dependents), it means I told the IRS I never received the payment when I filed. If it's blank or shows $0, I likely did receive it. Also, keep in mind that if your 2020 income was significantly higher than your 2019 income, you might not have been eligible for the full EIP 2 amount even if you got the first and third payments. The income thresholds were the same, but they used your most recently processed return at the time each payment was issued. The IRS will definitely apply any refund from an amended return to outstanding balances first, which could help with your interest situation. Just make absolutely sure you didn't receive it before amending - the penalties for incorrectly claiming a payment you already got are steep!

Just a quick tip - make sure you pay the additional tax owed from that 1099 income ASAP, even before filing the second amendment. You'll minimize any interest and penalties that way. The IRS charges interest from the original due date of the return until you pay, regardless of when you discover the error. You can make a payment online using IRS Direct Pay and select "amended return" as the reason.

As someone who's been through the multiple amendment process myself, I want to emphasize that you should definitely include a detailed cover letter with your second 1040-X explaining the entire timeline. Something like "Filed original return with W-2 from main job only → Received forgotten W-2, filed first amendment → Now received unexpected 1099-NEC, filing second amendment." The IRS processors really appreciate this clarity, especially when amendments are filed close together. Also, since you're dealing with babysitting income, make sure you understand that this is typically considered self-employment income even if it was casual work. You'll need to file Schedule SE for the self-employment tax (Social Security and Medicare taxes), which adds about 15.3% on top of your regular income tax. One more thing - consider making an estimated payment now for the additional taxes owed. Interest accrues from the original April deadline regardless of when you discovered the error, so paying early can save you money even before your amendment is processed.

This is such a common source of confusion for new employees! I remember being totally lost when I got my first real paycheck. Just to add to what others have said - FED MWT EE is your federal income tax withholding, and the amount depends on what you put on your W-4 form when you started. One thing that helped me was keeping my first few paystubs and comparing them to make sure the deductions stayed consistent. Sometimes payroll makes mistakes, especially in your first few pay periods while they're setting everything up in their system. Also, don't worry if the amount seems high - like others mentioned, if too much is being withheld, you'll get it back as a refund when you file your taxes. Better to have too much withheld than to owe a big payment in April!

As someone who works in payroll processing, I can confirm that FED MWT EE is indeed Federal Withholding Tax for the Employee portion. The confusing part is that every payroll system seems to use slightly different abbreviations - I've seen FED W/H, FIT-EE, Fed Tax, and about a dozen other variations all referring to the same thing. One thing I'd add that others haven't mentioned - if this is your first job or you recently had a major life change (got married, had a kid, bought a house, etc.), you might want to review your W-4 after a few paychecks to make sure your withholding is on track. The IRS updated the W-4 form a few years ago to be more accurate, but it can still be tricky to get right. Also, keep in mind that your federal withholding will be higher in your first few paychecks of the year and then level out once you hit the Social Security wage base limit (around $160k for 2024). Just something to be aware of so you don't panic if you see variations throughout the year!