11 Has anyone had issues with the "born alive" requirement? My twins were born December 24th, but one had complications and sadly passed away two days later. The hospital issued a birth certificate AND a death certificate. Can I still claim both as dependents for 2021?

Congratulations on your new baby! Yes, you can absolutely claim your December 21st baby as a dependent for the entire 2021 tax year. The IRS has a simple rule: if a child is born at any point during the tax year, they can be claimed as a dependent for the full year. You'll be eligible for the full $3,600 Child Tax Credit for 2021 - there's no proration based on how many days your baby was actually here. And you're correct about the $1,400 Economic Impact Payment - since your baby wasn't born when those went out, you'll claim it as the Recovery Rebate Credit on your 2021 tax return. Regarding the SSN and birth certificate timing - you'll need your baby's Social Security Number to actually file your tax return and claim her as a dependent. The good news is that the date the documents are issued doesn't matter, only her actual birth date. So even if her SSN card doesn't arrive until February 2022, you can still claim her on your 2021 taxes as long as you have the number before you file. If you're getting close to the filing deadline and still don't have the SSN, you can always file for an extension to give yourself more time. But once you have that number, you're all set to claim all the benefits for your little one!

Has anyone actually been audited over 1099-K stuff for selling personal items? I'm in a similar boat with some sports memorabilia I sold last year. My understanding is that personal items sold at a loss aren't even supposed to be reported - like if you sell your old laptop for less than you paid, that's not income or a deductible loss.

I'm dealing with a very similar situation with Pokemon cards I sold last year! Got a 1099-K for about $8K but definitely sold at a loss overall. One thing that helped me was creating a spreadsheet breaking down my collection by era and card type - I used a combination of PSA population reports and old price guides from when I originally bought the cards (many from the late 90s/early 2000s). For cards I couldn't find specific historical data on, I used the "replacement cost method" - basically what it would have cost to buy similar condition cards at the time I purchased them. I kept screenshots and printed documentation of everything I used as sources. The key thing my tax preparer told me was that the IRS expects "reasonable effort" not perfection, especially for collectibles purchased over many years. As long as you can show you made a good faith attempt to establish your basis using available data, you should be fine. Don't let the 1099-K stress you out too much - it's just a reporting document, not a tax bill!

I've been through this exact situation before! The 810 and 570 codes together usually indicate they're doing an income verification review, especially common with self-employment income and EIC claims like yours. The March 17th processing date is actually a good sign - it means they have your return scheduled for completion around then. Since you're on cycle ending in '05, your transcript will only update on Friday mornings, so don't stress checking it daily. A few things that helped me when I was in refund limbo: • Keep checking your mail for any IRS letters (CP05, 4464C, etc.) • Your refund amount is still showing as the full $12,884, which means they haven't adjusted anything yet • Most income verification reviews resolve without needing additional documents from you I know the waiting is brutal when you're counting on that money. In my case, it took about 6 weeks total but I eventually got every penny. The IRS is just being extra careful this year with larger refunds involving self-employment income. Hang in there - that March 17th date gives me hope you'll see movement soon!

I went through almost the exact same situation last year with my self-employment income and EIC claim! The 810 freeze and 570 pending codes are definitely nerve-wracking, but in most cases they resolve without you having to do anything. From what I learned during my own refund delay, the IRS often does these income verification reviews on returns with significant EIC claims and self-employment income - which is exactly your situation. The good news is that your transcript still shows the full $12,884 refund amount, meaning they haven't found any issues that would reduce your refund. That March 17th processing date is actually encouraging. When I had similar codes, my transcript showed a processing date about 6 weeks out from when the review started, and my refund was released within a few days of that date. A couple things that helped ease my anxiety during the wait: • I only checked my transcript on Friday mornings (since you're on a weekly cycle ending in 05) • I watched my mail carefully but never received any letters requesting documents • The review resolved completely on its own after about 5 weeks I know it's incredibly stressful when you're counting on that money, especially with bills piling up. But try to stay optimistic - the vast majority of these reviews end with the full refund being released. Your return looks straightforward and legitimate to me!

Question for anyone who knows - if my employer already issued the 1099-R for the excess contribution and took out withholding, can I still get them to correct the W-2 instead? Or am I stuck with the double taxation situation at this point?

I went through almost the exact same situation last year with my 401k excess contribution! The confusion around company acquisitions and payroll transitions seems to create these issues more often than you'd think. From my experience, your instincts are absolutely correct - they should be correcting your W-2 from last year rather than issuing you a 1099-R for this year. Since you discovered and reported this in February (well before the April 15th deadline), you're entitled to the "return of excess deferrals" correction method that avoids double taxation. Here's what worked for me: I had to be very persistent and specific about citing IRS regulations. When I called my 401k administrator, I specifically mentioned IRC Section 402(g) and asked for their "excess deferral correction procedure for contributions identified before April 15th." I also referenced IRS Publication 525 which covers this exact scenario. The 20% withholding they took is standard for any distribution from a qualified plan, but if they do the correction properly, you'll get credit for that withholding and they should issue you a corrected W-2 showing the reduced contribution amount added back to your taxable wages for last year. Don't let them convince you that their way is correct just because it's easier for them administratively. You have the right to the proper correction method, and it will save you from paying taxes twice on the same money. Keep escalating until you find someone who understands the retirement plan rules - many HR generalists simply aren't familiar with these specific correction procedures.

Don't forget to check if your state has a tax relief program too! I owed the feds $21k and my state another $7k. I qualified for my state's Hardship Program which actually forgave about half of what I owed them. The federal payment plan was still rough but that state relief made a huge difference. Just google "[your state] tax relief program" and see what comes up.

I'm sorry you're going through this - the stress of owing that much to the IRS is overwhelming, but you do have options. First, definitely don't ignore this or let it spiral further. One thing I haven't seen mentioned yet is requesting penalty abatement for reasonable cause. Since you mentioned you lost your job 6 months ago and are struggling financially, you might qualify to have some of the penalties removed if you can show the failure to file/pay was due to circumstances beyond your control. Also, make sure you're getting proper representation. The IRS has a Low Income Taxpayer Clinic (LITC) program that provides free or low-cost assistance to people who can't afford professional help. You can find one in your area on the IRS website. These clinics have attorneys and CPAs who specialize in tax debt resolution. Given your current income situation, you'll likely qualify for Currently Not Collectible status while you get back on your feet. Yes, interest still accrues, but it stops the immediate collection pressure and gives you breathing room to stabilize your finances. Document everything about your financial hardship - job loss, medical bills, basic living expenses. This will be crucial for any hardship-based relief programs you apply for.