I'd recommend filing a report with your state's Department of Labor too. If they're reporting wages they didn't pay you, that's a serious issue. The DOL might light a fire under the company to fix this faster than you can on your own.

This is definitely a frustrating situation, but you have several good options to resolve it. Based on what you've described, it sounds like a clear payroll error since you have documentation that you stopped working in November. Here's what I'd recommend doing immediately: 1. **Document everything** - Keep all your communication attempts with the company, your final paystub from November, and any employment termination paperwork you have. 2. **Don't wait indefinitely** - You can file your taxes on time using Form 4852 (Substitute for Form W-2) if the company won't respond. Since you know you didn't work during that period, you can accurately report zero income for those dates. 3. **Try the certified letter approach** mentioned earlier, but also consider escalating to their corporate office if it's a larger company. 4. **Contact the IRS directly** - Call their business and specialty tax line at 800-829-4933 to report the incorrect W-2. They can guide you through the process and may contact the employer on your behalf. The key thing is not to let this delay your tax filing. You have legitimate recourse options, and the IRS deals with these situations regularly. If you end up needing to file an amended return later, that's totally manageable - it's better than missing the deadline while waiting for an unresponsive employer.

Has anyone had success using the free file fillable forms on the IRS website for reporting PayPal income? I'm trying to avoid paying for tax software but I'm worried I'll miss something important.

I went through this exact same situation last year! You definitely need to report that $850 even without a 1099. Here's what I learned: First, download your complete PayPal transaction history for the year - you can get this from your account settings. This will be your documentation in case the IRS ever asks for proof. You'll report this on Schedule C as self-employment income. Put your total sales on Line 1 (gross receipts), then deduct any legitimate business expenses like materials, shipping supplies, PayPal fees, etc. The net profit flows to your 1040 and you'll also need Schedule SE for self-employment tax if your net earnings are over $400. Keep detailed records of everything - the IRS requires you to report all income regardless of whether you get tax forms. PayPal's 1099-K thresholds have changed over the years, but that doesn't affect your obligation to report what you earned. One tip: separate your business transactions from personal ones going forward. It makes tracking so much easier for next year's taxes!

As someone who went through this exact situation last year, I want to share what worked for me. I was overthinking it initially, but here's the simple approach I settled on: I tracked my phone usage for just one typical work week - Monday through Sunday. Each evening, I spent 2 minutes estimating what percentage of that day's phone time was business-related. I included calls, texts, emails, GPS for business travel, and any work-related app usage. My daily percentages ranged from about 20% (weekend days) to 65% (busy workdays), and when I averaged it out, I got 42%. I decided to round down to 40% to be conservative, and that's what I've been claiming. The key insight for me was realizing that I don't need scientific precision - I just need a reasonable method I can explain. I keep a simple note in my tax folder that says "Phone deduction: 40% based on one-week usage tracking in March 2024, averaged 42% but rounded down to be conservative." This approach gave me confidence in my deduction without making it a huge project. The one week of tracking was enough to establish a pattern, and being slightly conservative means I'm not worried about defending it if questioned.

I've been handling this issue for my freelance graphic design business, and I found a middle-ground approach that works well. Instead of detailed daily tracking, I used my phone's built-in screen time analytics to get objective data about my usage patterns. Most smartphones show weekly breakdowns of app usage time. I looked at my email apps, work messaging (Slack, Teams), business-related browsing, and calling apps during typical work weeks versus personal time. This gave me hard data showing roughly 55% of my phone time was work-related. What I really like about this method is that it's based on actual phone data rather than my potentially biased estimates of usage. The phone is already tracking everything automatically, so it's just a matter of categorizing the apps as business vs personal and doing some simple math. I've been claiming 50% (rounded down from my 55% calculation) for two years now and feel very confident about it. The documentation is just screenshots of my screen time analytics with my calculations, plus a brief note explaining my methodology. Takes maybe 15 minutes once a year to update, and it's all based on objective data the phone collected automatically.

Does anyone have a recommendation for a free tax filing service that handles 1099-NEC and Schedule C well? I'm in basically the same situation as OP with a small amount of freelance income.

Just wanted to jump in as someone who went through this exact situation a couple years ago! You absolutely need to file because of the self-employment rules everyone mentioned - that $400 threshold is the key thing here, not the regular filing requirement. One thing I wish someone had told me when I was in your shoes: keep really good records of ANY expenses related to your design work. Software subscriptions, computer equipment, even a portion of your internet bill if you worked from home. These can all be legitimate business deductions that will reduce your self-employment tax. Also, don't stress too much about doing it "perfectly" on your first time filing. The IRS is actually pretty reasonable if you make an honest mistake and need to file an amended return later. The important thing is just getting it filed since you're over that $400 threshold. Good luck with your first tax return! It's not as scary as it seems once you get started.

I've been through a similar situation with tracking down payments from multiple processors! Here's what worked for me: For PayUSATax, try calling early morning (around 7:30-8:00 AM EST) - I found their phone system is less congested then and you're more likely to get through to a person. Also, if you have a business account with them, there's sometimes a separate business support line that's faster. For Pay1040, beyond the Facebook messaging that others mentioned, try their LinkedIn company page - they actually respond to professional inquiries there pretty quickly since fewer people think to use it. But honestly, given your timeline and the complexity with the missing 1040-X and mysterious $5,300 credit, I'd skip the payment processors entirely and go straight to the IRS. The key is calling the right number at the right time. Try 1-800-829-1040 (the main line) at exactly 7:00 AM when they open - you'll get through much faster than calling during peak hours. When you do reach the IRS, ask them to do a "payment history inquiry" for both your SSN and your husband's SSN for tax year 2022. They can see everything in real-time, including payments that might be sitting in processing limbo. This will be way more comprehensive than anything the payment processors can tell you. The $5,300 credit is almost certainly related to your missing amended return - payments probably got applied but the IRS doesn't know how to reconcile them without the corrected filing status.

I've been in almost the exact same situation! Here's what finally worked for me after weeks of frustration: For PayUSATax, I had success using their "Contact Us" web form rather than calling. Include your confirmation numbers and be very specific about needing "IRS reference numbers for payment reconciliation." They responded in about 5 business days with all the details I needed. For Pay1040, try emailing support@pay1040.com directly (not through their website form). I got a response in 3 days when I explained it was for IRS payment reconciliation. But honestly, given your urgent timeline with the $5,300 credit mystery, I'd recommend a two-pronged approach: 1) Contact the IRS Taxpayer Advocate Service (TAS) at 1-877-777-4778. Since you have an unexplained credit and a missing amended return, this qualifies as a "significant hardship." They can often expedite payment traces and help resolve complex account issues faster than regular IRS customer service. 2) While waiting for TAS, call the IRS at 1-800-829-0922 (payment processing line) first thing Monday morning. Ask for a "payment posting inquiry" for tax year 2022. They can see all payments regardless of processor and tell you if any were misapplied or are sitting in suspense. The $5,300 credit is likely payments that couldn't be properly applied to your account due to the missing 1040-X. Once that gets sorted, everything should fall into place!