Just wanted to share my timeline for anyone in a similar situation. My wages were garnished on April 7th. I finally reached the IRS on April 13th after countless attempts. I explained my hardship situation, and they released the levy on April 19th, so about 12 days total from start to finish. The agent set me up on a $150/month payment plan (much more manageable than the $800/month they were taking through garnishment). They also told me the garnishment wouldn't have happened if I had responded to their notices - but I never received them because they were sending them to my old address from two years ago!

I'm going through the exact same thing right now! The IRS started garnishing 35% of my paycheck two weeks ago for about $8,900 I owe from 2020-2021. Like you, I never got any warning notices - they must have gone to my old apartment. I've been reading all these responses and tried calling the IRS every single day. Finally got through yesterday using the early morning strategy someone mentioned (called at 7:02 AM). The wait was still 45 minutes but at least I didn't get disconnected. The agent was actually really helpful once I explained my situation. She said I qualified for economic hardship relief because the garnishment was preventing me from paying rent and utilities. I had to fax over my bank statements, pay stubs, and bills to prove my expenses. She said it should take 5-7 business days to process the hardship request and release the levy. I'm keeping my fingers crossed this actually works. The stress of not knowing if I can pay my bills is killing me. Will update if the garnishment gets released!

Has anyone here used a specific tax form or schedule to report the RSU loss? I'm trying to figure out if this goes on Schedule D or if there's another form I should be using for RSU-specific losses where I couldn't sell immediately due to company restrictions.

This is such a frustrating situation, but you're definitely not alone in dealing with this! I had a similar experience where my RSUs dropped 20% during a blackout period and I felt like I was being taxed on money that evaporated. One thing that helped me was working with my tax preparer to make sure I was tracking everything correctly. Since you're dealing with both income tax on the vesting value AND capital losses on the sale, it's important to keep detailed records of: 1. The exact vesting date and share price 2. The date restrictions were lifted 3. Your actual sale dates and proceeds 4. Any shares you're still holding Also, don't forget that if your total capital losses exceed $3,000 in a year, you can carry the excess forward to future tax years. Given how volatile some stocks have been lately, those carried-forward losses might come in handy for offsetting future gains. It really is an unfair system when you're essentially penalized for company policies you have no control over, but at least the capital loss treatment helps offset some of the pain. Hang in there!

Has anyone actually successfully gotten an Offer in Compromise accepted? I hear they reject like 60% of applications and the process takes forever.

I went through a similar situation last year with a $28k unexpected tax bill. Here's what I learned after talking to multiple tax professionals and the IRS directly: The payment plan is almost always your best bet when you have retirement funds available. The IRS considers your IRA as an asset you could access, which makes OIC approval very unlikely in your case. Even if you could qualify for an OIC, the application fee alone is $205 (non-refundable even if rejected), and the process typically takes 8-12 months during which interest and penalties continue accruing. For the payment plan, you can request up to 72 months as others mentioned. The key is to apply ASAP - the longer you wait, the more interest accumulates. You can apply online at irs.gov/payments if you owe less than $50k, which makes the process much faster. Regarding your IRA - only consider touching it as an absolute last resort. Even without early withdrawal penalties, you'd still owe income tax on any distribution, which could push you into a higher tax bracket for that year. Plus you lose all future tax-deferred growth on those funds. My advice: Set up the payment plan first, then reassess your financial situation in 6-12 months. If you find you're struggling with the payments, you can always modify the plan later or consider a partial IRA withdrawal at that point.

Whatever you do dont use Jackson Hewitt, there even worse than H&R. File yourself and save the $$

fun fact: you can file for free on the IRS website if you make under 73k

This is such a helpful thread! I'm in a very similar situation but with a twist - my husband and I both have family HDHPs through our respective employers, and we're covering different kids (from previous marriages). From what I'm reading here, it sounds like we'd each be able to contribute the full family limit ($8,300 each for 2025) since we have separate qualifying plans. But I'm worried about the IRS marriage limitation rule someone mentioned earlier. Has anyone dealt with this specific scenario where both spouses have family HDHPs covering different dependents? I want to make sure I understand the rules correctly before we max out both accounts. The last thing I want is to deal with excess contribution penalties!

This thread has been incredibly helpful! I'm a tax professional and see this exact question come up frequently with my clients. Just wanted to confirm what others have said here is correct. When spouses have separate HSA-qualified HDHPs (whether both family plans or a mix of family/individual), each spouse can contribute up to their respective plan's maximum limit. The "marriage limitation" that caps total family contributions at the family limit ($8,300 for 2025) only applies when spouses are covered under the same HDHP or when one spouse lacks qualifying coverage. One additional tip I always give clients: make sure to keep good documentation of your separate coverage throughout the year. The IRS may ask for proof that you maintained separate qualifying HDHPs if they review your HSA contributions. Also, remember that these contribution limits are annual limits, so if either of you changes jobs or coverage mid-year, you'll need to prorate based on the months of coverage under each plan type. For anyone still unsure about their specific situation, IRS Publication 969 has the detailed rules, or consider consulting with a tax professional who can review your actual plan documents.