What's the 941-X form? My payroll company said they'd handle everything but now I'm worried they might miss something.

Form 941-X is the Adjusted Employer's Quarterly Federal Tax Return that you need to file to claim the ERC retroactively. It's essentially an amendment to your original quarterly tax filings. Most payroll companies are good with regular payroll processing but many don't have specialized experience with ERC claims on the 941-X. The form requires specific line items to be completed in a certain way to properly claim the credit. I'd recommend asking your payroll company specifically about their experience processing ERC claims via 941-X and what their success rate has been. If they seem vague or uncertain, you might want to consider a specialist firm instead.

I heard they resumed processing in January 2024 but they're going through claims much more slowly and with more scrutiny. Has anyone had an ERC claim processed successfully this year?

Thanks for this suggestion! I checked and sadly freetaxusa doesn't have direct API integration with Robinhood for crypto yet. I did contact Robinhood support about the missing info, and they said that if my crypto activity didn't meet certain thresholds, it wouldn't be included on the 1099 but I'm still required to report it. Super annoying! Do you know if requesting the corrected 1099 takes a long time? I'm trying to file soon.

Requesting a corrected 1099 can definitely take some time, usually 2-3 weeks in my experience. But honestly, it might not help in your situation. If your crypto activity didn't meet their reporting thresholds, they're technically not required to include it on a 1099, so a "corrected" form would likely be identical. Your best bet is probably to download the transaction history yourself and manually calculate everything, or use one of the crypto tax services mentioned by others. If you're in a rush to file, you could also consider filing for an extension to give yourself more time to sort this out properly. Just remember an extension gives you more time to file, not more time to pay any taxes due.

This is terrible advice. ALL crypto transactions need to be reported regardless of amount. The IRS has been cracking down on crypto specifically and the question about virtual currency is right on the front page of Form 1040. Ignoring it is literally asking for an audit.

I had no idea about these caps! I'll definitely look into that for our state. Do you know if these exemptions are something we can apply for retroactively? We bought in 2022 but never filed for any exemptions because we didn't know about them.

In most places, you can apply for exemptions like homestead retroactively, but usually only for the current tax year and maybe the previous year. It varies by location though. When you call your assessor's office, specifically ask about retroactive applications for exemptions. Also, if this is your primary residence and you've lived there since you purchased in 2022, make sure the county knows that. Sometimes they assess at a higher rate if they think it's a rental or second home. Just having the property correctly classified can make a big difference in your tax bill.

Good point. When I bought my house, the previous owner was a veteran with a disability exemption. My taxes were way higher than what they had been paying, but there was nothing wrong with the assessment itself. Just the exemptions changing.

That's really interesting and something I hadn't considered. The previous owners were an older couple who had lived there for about 15 years, so they might have had some exemptions we don't qualify for. I'll definitely ask about this when I contact the assessor's office!

Wouldn't advertising and marketing expenses be deductible in the year incurred regardless of how long the videos stay online? I thought Section 197 was more for purchased intangible assets, not self-created content?

You're right that most marketing expenses are deductible in the year incurred. Section 197 generally applies to acquired intangibles, not self-created marketing assets like your YouTube videos. Even though your videos have a useful life beyond the current year, the IRS typically allows immediate deduction of advertising and marketing costs. This is different from capital expenditures like equipment purchases, which would need to be depreciated. Your video production costs would generally qualify as ordinary business expenses deductible in the current year.

I do something similar for my small business. My accountant had me keep track of time spent on the educational vs. entertainment portions and pro-rate the expenses. So if 70% of my video is business-related content and 30% is just entertainment, I deduct 70% of the production costs.

Thanks for this suggestion! Do you know how I would contact them or what qualifies as "financial hardship"? I'm definitely struggling financially because of this whole mess.

You can contact the Taxpayer Advocate Service by calling 877-777-4778 or by filling out Form 911 (Request for Taxpayer Advocate Service Assistance). Financial hardship can include things like being unable to pay basic living expenses, facing imminent eviction, or having utilities shut off due to inability to pay. In your specific situation with the earned income ban, if losing the Earned Income Tax Credit means you can't afford necessities, that would likely qualify. The TAS is particularly helpful in cases where normal IRS channels haven't resolved the issue or where there's an urgent need. They can sometimes expedite the appeals process too.

The IRS communication system is absolutely broken. I recommend requesting a detailed explanation by calling the number on your notice and specifically asking for the "examination report" that led to the determination. This usually contains more specifics than the initial notice.

Thanks for the tip! I'll tell my brother to ask for the examination report. Really appreciate it because we've been completely lost trying to figure out how to address something when we don't even understand what rules were supposedly broken.