I kinda want to point out what nobody else has mentioned - the 55/45 split seems super high for the company portion! Most places I've worked take 10-15% max for "house fees" on tips. Might be worth checking if this arrangement is even legal in your state. Some states have strict rules about how much of tips can go to non-tipped staff/management.

This is a really concerning situation from a tax perspective. The fact that you're handling business tips through personal payment accounts creates a lot of potential IRS issues. First, you're absolutely right to be worried about the 1099-K reporting. Payment apps will likely report all those transactions as your personal income, even though you're just acting as a pass-through. This could trigger an audit or at minimum require you to file complex paperwork to show the money wasn't actually yours. Second, your employer is essentially making you their unpaid financial agent without proper documentation or protection. They should either: 1. Set up business accounts for digital tips 2. Provide you with written authorization stating you're collecting tips on their behalf 3. Take responsibility for any tax complications that arise The 55% company cut also seems unusually high - most legitimate tip pools take much less. I'd strongly recommend documenting everything you can (screenshots, spreadsheets, dates/amounts) and consider consulting with a tax professional who can help you understand your liability. Don't let your employer put their tax compliance responsibilities on you. This arrangement benefits them while putting you at financial risk.

Do you know if your tax preparer used a Refund Transfer product or similar service? That makes a big difference. If they did, your refund first went to a temporary bank account they set up, then they transferred your refund minus their fees to you. That temporary account is likely closed now, so any CTC payments sent there will definitely bounce back.

UPDATE: The IRS just announced yesterday that the Child Tax Credit Update Portal will be available starting June 21st, 2024, according to their latest press release. They're specifically urging people who had refunds processed through tax preparer bank accounts to update their information ASAP. The first monthly payments are scheduled for July 15th, and they recommend making any banking changes at least two weeks before that date to ensure proper processing. Here's the link to the official IRS page with instructions: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments

Does FreeTaxUSA allow you to file with an ITIN instead of a Social Security Number? My spouse is waiting on their SSN but we need to file soon.

I made the switch to FreeTaxUSA last year after using TurboTax for almost a decade, and I completely agree with your assessment! The lack of constant upselling was such a breath of fresh air. What really sold me was when I realized I was paying $120+ with TurboTax for features I didn't even need, while FreeTaxUSA handled my situation (W-2, some dividend income, and standard deductions) perfectly for just the small state filing fee. One thing I appreciated was their interview process - it asks the right questions without being condescending or overly simplified. They also have a really useful side-by-side comparison feature where you can see how your current year compares to previous years, which helped me catch a couple of things I might have missed otherwise. The only minor downside I found was that their mobile interface isn't quite as polished as some competitors, but honestly, for the savings and straightforward experience, it's a non-issue. Already planning to use them again this year!

Make sure you're filing as "deceased" correctly. The tax return should have "DECEASED" written across the top with the date of death. The signature line should be signed by the executor as "Personal Representative for [brother's name]." Also, you might need to file Form 56 to notify the IRS of fiduciary relationship. And don't forget that your brother's standard deduction amount doesn't change just because he didn't live the full year - he's entitled to the full amount.

I'm so sorry for your loss, Sarah. Dealing with uncooperative employers during an already difficult time is incredibly frustrating. Here's something that might help - you can also try contacting your state's Department of Labor or Wage and Hour Division. They often have authority over employers who fail to provide required tax documents and can sometimes get faster results than going through the IRS alone. Additionally, if your brother had direct deposit, his bank statements showing the exact deposit amounts and dates can be very helpful for the IRS. They can often match this up with what the employer actually reported (or should have reported) to verify the accuracy of your estimates. One more thing - make sure you're keeping detailed records of every attempt you've made to get the W-2. Document dates, who you spoke with, what they said, etc. This documentation will be valuable if the IRS has any questions later and shows you made good-faith efforts to get the correct information. You're doing a great job helping your family through this difficult process. Don't let this employer's lack of cooperation add unnecessary stress - you have options and the IRS understands these situations happen.

Can anyone explain what the rules are for inactive accounts? My mom has an old 401k that she hasn't touched in like 15 years, and now I'm worried they could just send her a check someday and mess up her retirement plans.

This is exactly why it's so important to keep your contact information updated with all financial institutions, even on "set it and forget it" accounts. I'm sorry this happened to you - it's incredibly frustrating when a brokerage takes such drastic action without proper notice. One thing to add to the great advice already given: when you do close your remaining accounts with Bridgeway, make absolutely sure to request direct trustee-to-trustee transfers to your new institution rather than receiving checks. This avoids any possibility of triggering taxable events or missing rollover deadlines. Also, for future reference, it's worth setting calendar reminders to log into retirement accounts at least once a year, even if you're not making changes. This simple action usually resets any "inactivity" timers and ensures you receive important communications. Some people also set up small automatic contributions (even $25/month) to keep accounts clearly active. The silver lining is that you found a way to use the education expense exception - that's going to save you significant money on penalties. Make sure to keep detailed records of your daughter's qualified education expenses to support that exception if the IRS ever asks.