Thanks for mentioning this! My AGI was definitely under the threshold (around $27,500 that year), so I should have gotten the full amount. I don't have any dependents though. When filing the amended return, do I need to provide any proof that I didn't receive the payments?

You usually don't need to provide direct proof that you didn't receive the payments. The IRS can check their records to see if payments were issued to you. However, it helps to include a brief statement explaining that you never received the payments and are now claiming the Recovery Rebate Credit you were eligible for. If the IRS believes they already sent you the payments, they might reject your amended return. In that case, you would need to request a payment trace to determine what happened to those payments. But start with the amended return first since their records will likely show no payments were made.

This happened to me too! The IRS tried to deposit to my old bank account, it bounced, then they mailed a check to my old address. By the time I figured it all out, it was too late to request a trace. I had to claim it on my taxes.

I did move in late 2020, but I thought I updated my address with the IRS when I filed my 2020 taxes. Maybe the second or third payment got sent to my old place? The mail forwarding probably would have expired by then too. I'm definitely going to check out both the tax amendment option and trying to call the IRS directly to see what happened. This whole process is so frustrating!

Doesn't filing by paper take forever to process though? I heard the IRS has like a 10-month backlog on paper returns rn

Yes, paper filing is significantly slower these days. Current processing times are around 6-8 weeks minimum for paper returns, but can definitely stretch longer during peak filing season. It's definitely not ideal if you're expecting a refund you need quickly. The extension is usually the better option as it gives you time to properly retrieve your IP PIN while still protecting you from late filing penalties. Just remember that an extension to file is not an extension to pay, so estimate and pay any taxes due by the regular deadline.

Wait seriously?? I'm about to enroll but didn't realize it's permanent. Is there ANY way to opt out later if I need to??

That's a good point - I did file a mail forwarding request with USPS but maybe the IRS notice didn't get forwarded correctly. I'm friendly with the new tenants so I could ask them to check if anything came for me. Any idea what these verification notices usually look like so I can tell them what to look for? And if they don't find anything, is there a way to request a copy of whatever notice was sent?

The identity verification letters are usually pretty obvious - they come in IRS envelopes and typically have "Action Required" or something similar printed on them. They're letter 5071C, 5747C, or 5447C usually. If your new tenants can't find it, you can request a copy of the notice by calling the IRS or checking your online account. If it's an identity verification issue, you might be able to complete the verification online through the Identity Verification Service without the original letter. Just go to the IRS website and search for ID verify. You'll need info from previous tax returns, so have that handy!

This actually works! My brother had a similar issue and after contacting his congressman's office, his refund was processed within 3 weeks. They have special liaisons that work directly with the IRS.

Thanks for this! Would I just list "temp worker" as my business on the Schedule C? And for the home office, do I need to have a dedicated room or can it be like a desk in my bedroom? I'm worried about getting audited if I claim too much.

You can list "Telecommunications Contractor" or something similar as your business. For home office, the IRS prefers a dedicated space, but it doesn't have to be an entire room - a dedicated desk area that's used regularly and exclusively for work can qualify. Just measure that specific area for your deduction calculation. Don't worry too much about an audit if you're claiming legitimate expenses. Just keep good records of your expenses and be reasonable with your deductions. For example, don't claim 100% of your internet if you also use it for personal stuff - 30-50% is more reasonable depending on how much you use it for work.

This is such important advice! I learned this the hard way too. The IRS expects you to pay as you earn throughout the year. I got hit with penalties my first year as a contractor because I didn't know about quarterly payments.

Thanks for the suggestion, but isn't the 83(b) election only available for restricted stock, not RSUs? From what I've read, it doesn't apply to standard RSUs because there's no actual ownership until vesting. But I'd love to be wrong about this if it could help with future grants!

You're absolutely right, and I apologize for the confusion. The 83(b) election typically doesn't apply to standard RSUs because, as you correctly noted, there's no actual ownership until vesting. It's more applicable for restricted stock awards (RSAs) where you have immediate ownership with restrictions. For standard RSUs, tax planning is more about timing your sales after vesting to manage capital gains. Some companies offer programs where they automatically sell enough shares at vesting to cover tax obligations, which might be worth looking into for future grants.

I had the opposite experience! TurboTax Premier handled my RSUs perfectly but H&R Block kept giving me errors. Maybe it depends on the specific company's reporting format?