When I won on a Canadian game show (different one, smaller prize), they actually withheld Canadian taxes first, then I had to report it in the US. But I got a foreign tax credit for the Canadian taxes paid, so I didn't end up paying double. Make sure your cousin keeps ALL documentation they gave her. Also, if this aired on TV, keep a copy of the episode if possible as proof if ever questioned.

Your cousin should also be prepared for this to potentially affect her state taxes in Massachusetts. Game show winnings are typically subject to state income tax as well, so she'll need to report the $25,000 on her Massachusetts return too. One more thing - if the show hasn't aired yet, she might want to consider making quarterly estimated tax payments now rather than waiting until next year's filing deadline. Owing $25k worth of additional taxable income could result in a significant tax bill, and the IRS charges underpayment penalties if you don't pay enough throughout the year. She can calculate roughly what she'll owe using her current tax bracket and make payments using Form 1040ES. The safe harbor rule is to pay at least 90% of this year's tax liability or 100% of last year's (110% if her previous year's AGI was over $150k). Since this is unexpected income, making an estimated payment could save her from penalties later.

Did you claim any credits like EIC or Child Tax Credit? Those automatically get extra scrutiny and slow down processing.

I'm in a very similar situation - filed on March 8th and still getting that same "processing delayed" message with Tax Topic 152. My transcript has been completely blank for 7 weeks now. What's really frustrating is that I had a simple return too - just W2 income, standard deduction, no credits or complications. I've been checking the WMR tool almost daily and it's maddening to see the same message over and over. Like you, I'm starting to wonder if something went wrong or if my return got lost in the system somehow. The fact that the transcript shows absolutely nothing is what worries me most. Reading through these comments has been really helpful though - especially learning about ERS (Error Resolution System) from the former IRS employee. At least now I understand this is unfortunately normal for this filing season, even though it's incredibly stressful when you're waiting on your refund. I think I'm going to wait until I hit the 8-week mark before trying to call, based on the advice here. The phone situation sounds absolutely brutal right now. Has anyone had success getting through recently, or is it still basically impossible?

Mine also had Topic 151 but with Ref 1242 and it took EXACTLY 77 days from acceptance to deposit. The WMR tool never updated beyond first bar - it went straight from "processing" to "sent" when the money hit my account. So frustating but hang in there!!

I'm dealing with the exact same situation - Topic 151 and Ref 1242 for about 9 weeks now. Filed in early February with EIC and CTC claims, and like you, everything was legitimate. The waiting is absolutely brutal, especially when you're counting on that money for essential expenses. From what I've learned lurking in these forums, Topic 151 with Ref 1242 typically indicates your return is in manual review queue specifically for refundable credits verification. It's not an audit per se, but they're double-checking your EIC and Child Tax Credit claims against their databases. Unfortunately, this process seems to take anywhere from 60-120 days regardless of how straightforward your return is. The most frustrating part is the complete lack of communication from the IRS. No letters, no updates, nothing - just that same stalled progress bar on WMR. I've seen multiple people report their refunds suddenly appearing with zero warning after 10-16 weeks of radio silence. Hang in there - based on the patterns I've observed, you should hopefully see movement in the next few weeks. Your situation sounds identical to many others who eventually got their full refunds, it just takes an unreasonably long time.

Quick tip from someone who dealt with this last year - you can use Schedule H with your personal tax return to report household employment taxes instead of filing quarterly business tax forms. Makes it a bit simpler. I used TurboTax Home & Business which has a household employee section that walks you through everything. Also, don't forget state requirements! Some states have additional paperwork for household employers. In my state, I had to register with the state workforce agency and pay state unemployment insurance. The requirements vary by state so check your state's department of labor website.

As someone who just went through this exact situation with my grandmother's caregivers, I can't stress enough how important it is to get this sorted out properly. The IRS doesn't mess around with household employment taxes. From what you've described - setting specific times, showing them how your mom likes things done - these sound like household employees, not independent contractors. The fact that they told you "not to worry" is a red flag. Many caregivers don't understand the tax implications either. Here's what I learned the hard way: if you're paying someone $2,400+ per year to provide care in your home and you control when/how they work, you're legally their employer. That means you need to: - Get an EIN from the IRS - Have them complete Form W-4 and I-9 - Start withholding Social Security and Medicare taxes (7.65% total) - Pay your matching employer portion - Provide W-2s by January 31st I ended up owing back taxes and penalties because I waited too long to get compliant. Don't make the same mistake - start the paperwork now even if it seems overwhelming. The IRS household employer hotline (1-800-829-1040) can walk you through the process if you can get through to them. Your peace of mind and your mom's care are worth doing this right!

I'm confused about the timing. Can I still make a backdoor Roth contribution for 2024 right now in August 2024, or do I have to wait until Jan 2025 to do it?

Great question! Yes, backdoor Roth IRAs are definitely still allowed for 2024. At your income level of $168k, you're correct that you're above the direct Roth IRA contribution limits ($153k-$168k phaseout range for 2024), so the backdoor method is your best option. Since you mentioned you don't have existing traditional IRA balances, you're in a perfect position - no pro-rata rule complications to worry about! The process is straightforward: contribute $7,000 (2024 limit) to a non-deductible traditional IRA, then convert it to a Roth IRA shortly after. For tax reporting, you'll need Form 8606 to report the non-deductible contribution and the conversion. The conversion itself isn't taxable since you're converting after-tax dollars. Just make sure to keep good records of the contribution date and conversion date. One tip: consider doing this early in the year so any small gains between contribution and conversion are minimal. The strategy has been around for years and Congress hasn't moved to eliminate it despite various tax reform discussions.