I filed on February 12, 2024, and noticed no movement on WMR until March 5. Called on March 6 and they said I needed verification. Instead of waiting for a letter, I asked if they could verify me on the call. They did, and my refund was deposited on March 15. The agent specifically mentioned they started allowing phone verification on January 29, 2024, for certain types of verification flags.

This is really helpful information! I'm currently on day 28 with no updates and have been debating whether to call or wait for a letter. Based on what you and others have shared, it sounds like calling is definitely worth it, especially since they started allowing phone verification in January 2024. Did you have to provide any specific documents or information during the call, or was it just answering verification questions about your personal details? I'm hoping my situation is similar to yours where it's just identity verification rather than income documentation.

Don't forget about state and local options too! Many states have their own payment plans with better terms than the IRS. And since you mentioned a city tax, check if they have assistance programs. I live in NYC and discovered they have a hardship program that reduced my city tax debt by 40% when I showed proof of my financial situation. Just had to fill out some paperwork and provide bank statements.

I want to echo what others have said about filing ASAP even if you can't pay - this is absolutely critical. But I also want to address the emotional side of what you're going through because I've been there. The shame and secrecy around financial struggles can make everything feel so much worse. You mentioned your girlfriend doesn't know how bad things are. While I understand wanting to protect her from worry, having someone in your corner who understands your situation can be a huge relief. You don't have to go through this alone. Beyond the practical tax advice (which is all solid), consider looking into free financial counseling through nonprofits like the National Foundation for Credit Counseling. They can help you create a realistic budget and develop strategies for managing your freelance income more predictably. Also, many areas have free tax preparation services through VITA (Volunteer Income Tax Assistance) programs. Even though you've probably already filed or are about to, they might be able to review your return to make sure you're not missing any deductions before you submit. The stress you're feeling is completely understandable, but you have more options than you realize. This situation is temporary and manageable with the right approach.

Don't forget to adjust your tax withholding for this year ASAP! Set aside 25-30% of all your contractor income or make quarterly estimated payments. The worst thing you can do is fall further behind while trying to fix past issues.

I'm so sorry you're going through this - the stress and anxiety from tax debt is absolutely crushing, and you're definitely not alone in this situation. As someone who's been there, I want you to know that there IS a way out of this. A few practical steps that helped me: 1. **Get current first** - Like others mentioned, make sure you're not digging the hole deeper. Set up automatic transfers of 30% from every contractor payment into a separate tax account. 2. **Request penalty abatement** - If you had a clean tax history before this mess, ask for First Time Penalty Abatement. This alone could save you thousands. 3. **Consider professional help** - Sometimes the cost of a tax professional who specializes in contractor issues pays for itself through the deductions and strategies they find. 4. **Don't let this define you** - You made an honest mistake that thousands of first-time contractors make. The IRS deals with this situation constantly, and they have programs specifically designed to help people in your position. The most important thing is to take action rather than letting the anxiety paralyze you. Each step forward, no matter how small, reduces that overwhelming feeling. You've got this, and your family's financial future isn't ruined - this is a temporary setback that can absolutely be resolved.

Random question but how much did you all pay for TurboTax self-employed? I'm also a programmer with 1099 income and QBI deduction, but I'm wondering if there are cheaper alternatives that still handle this correctly.

As a fellow freelance programmer, I can confirm that your work absolutely qualifies for the QBI deduction! I've been claiming it for the past few years with similar income levels. For TurboTax, "consulting" is the right category to select. The IRS doesn't have a specific programming classification, so most of us fall under professional services or consulting. What matters is that you're reporting legitimate business income from your programming work. One tip that saved me money: make sure you're tracking every business expense throughout the year. Don't just think about the obvious ones like software and equipment. Consider things like: - Portion of internet and phone bills used for business - Professional development courses or certifications - Business books or subscriptions - Home office expenses if you work from home - Even coffee meetings with clients These expenses reduce your taxable business income before the QBI calculation, so they provide double benefit. I use a simple spreadsheet to track everything monthly - makes tax time much easier! Also, keep good records of your 1099s and any business receipts. The QBI deduction can be substantial (up to 20% of your business income), so it's worth getting it right.

Has anyone dealt with the "unforeseen circumstances" exception to the 2-year rule for partial exclusion of gain? I know OP had a loss not a gain, but I'm in a similar job relocation situation except I might have a small profit and I'm wondering if I can avoid taxes on it.

I'm dealing with a somewhat similar situation and wanted to share what I learned from my tax professional. While you can't deduct the loss on your personal residence, make sure you're calculating your actual loss correctly. Your basis includes not just the purchase price but also: 1. Closing costs when you bought the home 2. Capital improvements (like your $800k renovations) 3. Some selling expenses (realtor commissions, title fees, etc.) So if you bought for $500k, spent $800k on improvements, and had $50k in selling costs, your basis would be $1.35M. If you sold for $1.03M, your actual loss would be much higher than the $320k you mentioned. While this doesn't help with deducting the loss, it's important for accurate record-keeping. Also, keep every receipt and document related to this transaction - the IRS has been known to audit large losses even if they're not deductible, just to verify the numbers are accurate. One more thing - if any part of your home was used for business (home office, etc.), that portion might have different tax treatment, though it gets complicated with mixed-use properties.