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I work in tax prep (not an official tax pro but have been doing this for 10+ years) and from what I've seen in previous years with mid-season changes, here's what typically happens: 1. If the bill passes after filing season starts, the IRS usually puts a temporary hold on processing returns that claim the affected credits 2. Returns without those credits still process normally 3. The IRS updates their systems (usually takes 1-3 weeks) 4. Then they start processing the held returns in the order received So my advice: if you NEED that refund by a certain date, consider whether you can file without claiming CTC, get your refund faster, and then file an amended return later to claim the CTC. This strategy only makes sense if timing is more important than getting the full amount all at once.
Do you know if they ever retroactively apply new tax credits after processing? Like if I file without claiming CTC, would there be any chance they'd automatically add it later or do I HAVE to file an amended return?
In very limited situations, the IRS has automatically applied retroactive tax changes without requiring amended returns. This happened with some unemployment benefits during COVID, for example. However, this is definitely the exception rather than the rule. In most cases, they require taxpayers to file an amended return to claim additional credits that were changed after their original return was processed. I would never count on automatic adjustments - if you want the credit under the new rules, plan on filing an amended return.
I think everyone is overthinking this. Congress is so slow these days I doubt they'll actually pass anything before April. They'll debate it for months and then MAYBE pass something that takes effect for NEXT tax year. I wouldn't change my filing plans at all.
This is actually pretty accurate lol. I've been watching this CTC bill and there's still a lot of disagreement between parties. Even if it does pass, there's a good chance they'll make it effective for tax year 2025 returns (filed in 2026) rather than the current filing season to avoid implementation chaos.
Has anyone successfully filed with both W2 and 1099-NEC from the same employer WITHOUT challenging the classification? My situation is similar (W2 for main job, 1099 for weekend event work) but I actually prefer the 1099 arrangement for the side gigs because I can write off a bunch of expenses.
I did last year. Had W2 for my bartending job and 1099 for DJing special events at the same venue. Made sure to document EVERYTHING for the 1099 work - kept mileage logs, receipts for equipment, music subscriptions, etc. Filed Schedule C with all those deductions. Ended up owing less than I expected! Just make sure you're setting aside money for taxes throughout the year.
Thanks for sharing your experience! That's really helpful to know it's doable without issues. Did you use any specific tax software that handled the dual arrangement well? I've been using TurboTax but wasn't sure if it would get confused with both forms from the same employer. I'll definitely start documenting my expenses better. I have some equipment purchases and mileage that should qualify for deductions. Did you pay quarterly estimated taxes on your 1099 income or just handle it all at filing time?
Watch out if your employer is making you a 1099 contractor just for part of your work! My boss tried this last year and I later found out he was just trying to avoid paying payroll taxes. If you're doing the social media work at times your boss chooses and he's telling you exactly what to post, that's still employee work and should be on your W2!
Thanks for the warning! Yeah, the social media stuff was definitely on their schedule - they'd just tell me to "go handle the Instagram during slow periods" of my server shift. I didn't even think about the payroll tax angle. Now I'm wondering if they're just trying to save money by putting some of my work on a 1099. Not cool.
Don't overlook university tax programs! I attended the NYU Tax Controversy Forum last year and it was incredible - much more in-depth than commercial continuing education. They brought in former IRS counsel who explained exactly how they approach audits of specific issues like passive activity losses and internationally-connected businesses. Many universities with graduate tax programs offer intensive workshops that are open to practitioners. They're typically more rigorous than the standard CPE offerings, and the instructors are often doing cutting-edge research on tax issues rather than just teaching established concepts.
Are these university programs accessible to enrolled agents, or are they mainly designed for attorneys and CPAs? I'm an EA looking to expand my knowledge but have found some programs won't admit me without the legal or accounting credentials.
Most university tax programs I've attended are absolutely open to enrolled agents. The NYU program specifically had a mix of CPAs, attorneys, and EAs. They care more about your professional involvement in tax work than your specific credentials. The only exception I've found is some specialized legal-focused tax workshops that require a JD, but those are clearly marked. For technical tax knowledge, which is what you're asking about, EAs are welcome at all the major university programs I've experienced.
I'm surprised nobody has mentioned the Tax Update and Practice Workship from Spidell! They offer both in-person and online options, and their materials are incredibly practical. What sets them apart is they focus on implementation rather than just theory - they provide actual worksheets, client letters, and procedural checklists that you can implement immediately.
I've heard of Spidell but they seem to be California-focused. Are their workshops applicable for practitioners in other states? I'm in Illinois and need resources that address both federal and midwest-specific tax issues.
Realtor here with 15 years experience. A strategy I've used successfully: separate your "must have" deductions from your "nice to have" ones. Expenses like license renewal, E&O insurance, and MLS fees are expected on a realtor's Schedule C. Skipping those might raise flags. But you can skip things like home office, some vehicle expenses, cell phone percentage, etc. Also, talk to your lender about using alternative verification methods like a "bank statement loan" where they look at deposits rather than tax returns. These usually have slightly higher rates but might work better for your situation.
What about using a tax professional who specializes in real estate? I've heard they can help optimize both deductions and loan qualification. Any experience with that?
Absolutely! Working with a tax professional who specializes in real estate is one of the best investments you can make. They understand both sides of this equation. I've worked with the same CPA for a decade, and she's saved many of my clients who are also realtors from making mistakes with their deductions. A good real estate tax specialist will help you categorize expenses as either "ordinary and necessary" (which the IRS expects to see) versus discretionary deductions. They can also help document your income in ways that make sense to mortgage underwriters. The fee you'll pay them is typically far less than what you'll save either in tax benefits or loan qualification improvements.
This is honestly why I hate being self-employed sometimes. W-2 employees don't have to make these ridiculous decisions between paying more taxes and qualifying for loans. Has anyone used Fannie Mae's new self-employed income calculation worksheet? My lender mentioned it but wasn't very familiar with it.
Yes! That worksheet is a game-changer. It has specific lines for adding back certain business expenses when calculating your qualifying income. Ask your lender specifically about Form 1084 (the self-employed income analysis form). It standardizes how they look at Schedule C income and gives you a clearer picture of what they'll actually count.
Aisha Khan
I would be very careful about StopIRSDebt or any of these tax resolution companies that advertise heavily. My brother used them last year for a similar situation (5 years unfiled) and ended up paying WAY more than the initial quote. They kept finding "complications" that required additional fees. Look for a local Enrolled Agent instead - they typically charge less than CPAs but are still licensed to represent you before the IRS. Mine charged me $350 per year for relatively simple returns, which sounds like it would be much less than either quote you received.
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Ethan Taylor
β’Can I ask how you found a reliable Enrolled Agent? I've been looking for someone to help with my tax situation but everyone I find online seems sketchy or has terrible reviews. Did you just Google local EAs or is there a better way to find them?
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Aisha Khan
β’I found my EA through the National Association of Enrolled Agents website (naea.org) - they have a directory where you can search by location. I interviewed three before choosing one, asking specifically about their experience with unfiled returns and payment plans. Another good option is the IRS's own Directory of Federal Tax Return Preparers with Credentials, which lists all certified professionals. Some EAs specialize in exactly the kind of resolution work you need, and their credentials mean they're authorized to represent you in all matters before the IRS.
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Yuki Ito
Has anyone actual used StopIRSDebt though? That was the original question and nobody has answered it directly. I'm considering them too for about 10 years of unfiled taxes (yes I know I'm screwed lol).
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Carmen Lopez
β’I used them 2 years ago. They were ok but not great. They did prepare all my returns but their communication was terrible - I'd go weeks without updates. Their initial quote was $3200 for 8 years but ended up at $4100 after "additional complexities." The work got done though and I'm back in compliance with the IRS now.
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