Has anyone calculated roughly how much you need to set aside from these 1099 payments? I just got asked to fill out W9 too for my DJ side gig and I'm trying to budget.

The key thing to understand is that you were already legally required to report and pay taxes on this income, even when it was paid in cash or Venmo. The W9 doesn't change your tax obligation - it just means the company is now going to properly report what they pay you to the IRS. You can't really refuse to fill out the W9 if you want to keep working for them. Companies are required to get this form from contractors they pay $600+ per year. If you refuse, they'll likely stop using your services or withhold 24% backup withholding from your payments. Start setting aside about 25-30% of what you earn going forward for taxes. You'll owe self-employment tax (15.3%) plus regular income tax on the net profit. But the good news is you can deduct all your legitimate business expenses - tools, materials, vehicle expenses for driving to jobs, work clothes, etc. These deductions can significantly reduce what you actually owe. Consider making quarterly estimated tax payments to avoid penalties. And definitely start keeping detailed records of all your work-related expenses from now on!

According to IRS Internal Revenue Manual 25.15.3.4.1, you may qualify for streamlined determination if your case meets certain criteria. The Tax Court ruling in Henson v. Commissioner established that knowledge of the activity causing the understatement doesn't automatically disqualify you from relief. Consider filing Form 911 (Taxpayer Advocate Service request) alongside your Form 8857 if you're experiencing financial hardship due to this offset. The Taxpayer Advocate can sometimes expedite innocent spouse claims when there's demonstrated economic burden under IRC §7811.

I went through this exact nightmare two years ago! The IRS grabbed my $3,200 refund for my ex's unpaid business taxes from when we were married. It felt like being punished for someone else's crimes while they walked free. Here's what worked for me: I filed Form 8857 immediately and included a detailed timeline showing I had zero involvement in his business decisions. The key was proving I didn't benefit from whatever caused the tax debt - I attached bank statements showing his business income went to separate accounts I never accessed. Pro tip: Don't wait on this! The 2-year deadline is real and the IRS doesn't give extensions. I also sent everything certified mail with return receipts because regular mail seems to disappear into their black hole filing system. My case took 5 months to resolve, but they released my full refund plus interest. The relief was worth more than the money - finally being free from his financial mistakes felt like escaping prison. Document everything and stay persistent!

Another tip - if your amended return involves a substantial refund, consider filing Form 911 (Taxpayer Advocate Service request) after the 20-week mark. The Taxpayer Advocate can sometimes help if you're experiencing financial hardship due to the delay. They won't help just because of a long wait, but if you can demonstrate actual financial hardship, they might be able to expedite things.

I'm going through the exact same thing! Filed my amended return in August and it's now been over 4 months with just "received" status. What's really frustrating is that the IRS changed those rules so late in the game - it feels like they should prioritize processing returns that were amended because of THEIR rule changes. Based on what everyone's sharing here, it sounds like the key is figuring out if there's a specific issue holding up your return rather than just waiting blindly. The taxr.ai tool that @Jamal Thompson mentioned sounds interesting for identifying potential problems, and the Claimyr service for actually getting through to talk to someone seems worth trying if you're past the 16-week mark. @Carmen Reyes - since you mentioned needing the refund for home repairs, you might want to look into the Taxpayer Advocate Service (Form 911) that @Fatima Al-Mazrouei suggested if you can demonstrate financial hardship. September to now is already hitting that 20+ week timeframe where they might be able to help.

Has anyone noticed that amended returns involving the Recovery Rebate Credit or Earned Income Credit seem to take way longer? My friend and I both filed amendments in February, but mine had the EIC correction and is still processing while hers was just fixing income reporting and she got her refund weeks ago.

I'm in almost the exact same situation! Filed my amended return on February 15th and still showing "received" status with no movement. It's reassuring to hear from others with similar timelines - I was starting to think something went wrong with my filing. Based on what everyone's sharing here, it sounds like 12-16 weeks is pretty normal, especially if there are any credits or complex changes involved. My amendment was for adding a missed 1099-INT, so hopefully that's straightforward enough to process soon. The batching theory makes a lot of sense - probably explains why some people filed days apart but got completely different processing times. Going to try to stop checking the tool daily since it seems like it won't update until everything is completely done anyway. Thanks for posting this question, it's helpful to know we're not alone in the waiting game!

I verified my identity last month and same thing happened. Check came right on schedule tho

This is actually pretty common - happened to me two years ago. The IRS switched my DD to check even though my bank info was perfect. Turned out they flagged my return for routine verification. The frustrating part is you really can't do anything until after that April 7 deadline they gave you. I know it sucks waiting an extra month, but the check usually arrives pretty close to the date they give you. Just keep an eye on your mailbox around March 10th and maybe a few days after. At least your return is fully processed so there's no issue with the refund itself, just the delivery method.