Welcome to the wonderful world of IRS codes! 😅 Code 766 is actually good news - it means you have a credit on your account. That $1000 is money the IRS owes YOU, not the other way around. It's typically from refundable credits like the Child Tax Credit, Earned Income Credit, or American Opportunity Tax Credit. As for your amended return timeline, I filed mine electronically in February and just got it processed last week - took about 18 weeks total. The "Where's My Amended Return" tool was my best friend during this process, though it only updates once a week (usually Fridays). Pro tip: Make sure your current address is on file with the IRS! I've heard horror stories of people getting their refunds sent to old addresses. Also, don't worry if the tracking tool doesn't show movement for weeks - that's totally normal with amended returns. Hang in there!

Hey there! I totally understand the confusion - navigating the IRS system can feel like learning a foreign language! 😊 To clarify what others have mentioned: Code 766 (not "form 766") is actually great news for you! It means you have a $1000 credit on your account - essentially money the IRS is giving you. This could be from various refundable credits like the Child Tax Credit, Earned Income Credit, or American Opportunity Tax Credit depending on your situation. For your amended return timeline, I filed mine electronically in January and it took about 17 weeks to process. The official timeline is 16 weeks, but in reality most people are seeing 18-24 weeks. The "Where's My Amended Return" tool on IRS.gov is your best friend here - it updates weekly (usually Fridays) and will show you exactly where your return is in the process. One thing I learned the hard way: make absolutely sure your current address is on file with the IRS! Even with direct deposit set up, some amended return refunds still get sent as paper checks, and you don't want it going to an old address. Coming from another country, I know this system can seem overwhelming, but you're on the right track asking questions here. The community is really helpful with these kinds of issues!

This might sound silly but how do you actually file late taxes? Do you just submit the regular forms or is there a special process? I also missed filing my Uber Eats income from 2023.

Don't stress too much about this! You're actually in a better position than many people because you kept track of your mileage - that's going to save you a lot of money. With $4,800 in income and 3,600 miles of deductions at 65.5 cents per mile, you're looking at about $2,358 in deductions, which brings your taxable income down to around $2,442. The self-employment tax on that would be about $374 (15.3%), plus minimal income tax since you're in a low bracket. Even with penalties, you're probably looking at less than $600 total. File as soon as possible to stop the penalties from growing - you can use the regular 2023 tax forms (1040, Schedule C, Schedule SE) and most tax software will still let you e-file for 2023. Since this is your first time missing a filing deadline, definitely look into first-time penalty abatement when you talk to the IRS. Many people qualify for this and it can reduce or eliminate failure-to-file penalties. You've got this!

2 Has anyone here used TurboTax to report this kind of transaction? I'm trying to figure out if the software can handle reporting a direct charitable contribution from a non-qualified annuity correctly or if I need to hire a tax professional this year.

I'm a bit confused about the documentation requirements everyone is mentioning. When you do a direct charitable contribution from a non-qualified annuity, what specific documentation do you need to keep? I assume you need the 1099-R from the annuity company, but what about from the charity side? Do they need to send you a special acknowledgment letter since the money came directly from the annuity company rather than from you personally? And does this affect the $250+ written acknowledgment requirement for charitable deductions?

Has anyone else noticed how some very profitable corporations seem to pay almost no taxes despite this "flat" rate? I read that Amazon paid $0 in federal taxes in 2018 despite billions in profit. How does that work if there's supposedly a flat 21% rate?

The difference also comes down to fundamental tax policy goals. Individual progressive taxation is based on the principle of "ability to pay" - someone making $50k feels the burden of taxes much more than someone making $500k, so we tax higher earners at higher rates. Corporate taxation serves different purposes. It's meant to prevent corporations from being used as tax shelters (where individuals park money in companies to avoid personal taxes) and to capture some revenue from business profits before they're distributed to shareholders. The flat rate reflects that corporations are legal entities, not people with varying needs and abilities to pay. There's also the international competition factor. Countries compete to attract businesses by offering competitive corporate tax rates. A complex graduated system makes it harder for businesses to predict their tax burden and can drive companies to relocate to countries with simpler, more predictable systems. That said, as others mentioned, many small businesses don't even pay corporate taxes because they're structured as pass-through entities, so they get the benefit of graduated rates through the individual tax system anyway.

Which tax software handles this situation best? I tried using FreeTaxUSA last year and it got confused when I tried to explain the same income on two different forms.

I had this exact same problem last year with my music publishing royalties! What made it even more confusing was that the timing didn't match up perfectly - some payments showed up on my 1099-MISC in December but the corresponding 1099-K entry was dated in January when the payment actually cleared through PayPal. The key thing I learned is to track by the actual payment reference numbers or transaction IDs when possible, not just dates and amounts. Most payment processors include some kind of reference number that you can match back to the original royalty payment. Also, don't forget that if you're getting royalties through these platforms, you might be able to deduct the platform fees (like Venmo's processing fees) as business expenses. Just make sure to document everything clearly since the IRS is definitely paying more attention to 1099-K reporting now that the threshold is lower.