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not sure if this helps but when i was in ur situation I actually went to my local IRS office (you need to make an appointment) and they were able to tell me exactly what the letter was about and what I needed to do. Saved weeks of waiting.
I feel your frustration! I went through something similar last year and it turned out to be an identity verification issue. A few suggestions that helped me: 1. Try calling the IRS early Monday morning right at 7 AM - I had better luck getting through then 2. Check if you can verify your identity online at irs.gov without waiting for the letter - sometimes this works 3. Look at your tax transcript for any codes like TC 570 which indicates a hold on your account The waiting is the worst part, but hang in there. Most of these verification issues get resolved once you can finally connect with someone or complete the online process. Your refund should be released pretty quickly after that! Also double-check that your address is current with the IRS - sometimes these letters go to old addresses which explains the delay.
Called them and the rep said these letters dont mean anything anymore cause theyre so backed up. might as well be using carrier pigeons at this point lmaooo
carrier pigeons might be faster tbh š
Been waiting 67 days since my review letter and finally got some movement yesterday! My transcript updated with a release date for next Friday. Hang in there everyone - they're definitely working through the backlog, just super slowly. The waiting is brutal but there's light at the end of the tunnel š
I received my first round of child tax credit payments last time without any issues. According to the official IRS newsroom (https://www.irs.gov/newsroom), they're planning to start payments in July, but they recommend ensuring your 2023 tax return is filed and processed before then. They're also planning to relaunch the Child Tax Credit Update Portal where you can check payment status, update direct deposit information, and make other changes as needed.
Welcome to the community! The July timeline is what most sources are indicating, but I'd recommend signing up for IRS email updates if you haven't already - they'll send notifications when the payment portal goes live and when the first payments are scheduled to go out. Since you mentioned being new to the US tax system, one thing to keep in mind is that the IRS typically processes these payments in batches, so even once they start in July, it might take a few weeks for everyone to receive their first payment. Make sure your direct deposit info is current on your most recent tax return to avoid any delays with paper checks.
Thanks for the welcome and the helpful advice! I hadn't thought about signing up for IRS email updates - that's a great suggestion. The batch processing info is particularly useful since I was wondering if everyone would get payments on the same day. I'll definitely make sure my direct deposit information is up to date. As someone still learning the system, I really appreciate community members like you taking the time to explain these details that might not be obvious to newcomers.
This isn't legal advice, but I'm a tax preparer and we see this question occasionally. The biological product vs service distinction is key here. The IRS has ruled in similar cases (like plasma donation) that selling biological materials is not self-employment. Look at PLR 8814010 and the Garber case for precedent. Those deal with plasma, but the principle applies to sperm donation too. To be safe, report the income on Schedule 1, Line 8 (Other Income) and include a brief description like "Biological materials donation - 1099-MISC." This clearly shows you're not trying to hide income but also aren't classifying it as self-employment.
Thanks for the specific references! That's super helpful. Just to clarify, I should write that exact description in the line on Schedule 1? And by doing this, I won't need to pay the 15.3% self-employment tax, right?
Yes, write a brief description like that in the line provided on Schedule 1. Being specific helps if there's ever a question. Correct - by reporting it as Other Income on Schedule 1, you'll only pay regular income tax on the amount, not the additional 15.3% self-employment tax that would apply if you filed Schedule C. The income still increases your tax liability, but without the extra SE tax burden.
Random question - but did they withhold any taxes from your payments? When I donated last year they didn't withhold anything and I got hit with a big tax bill because I didn't set aside money. Just a heads up to maybe make estimated tax payments if you continue donating.
They didn't withhold anything from my payments. Thanks for the warning - I definitely hadn't thought about setting aside money for taxes. Do you know approximately what percentage I should be saving from each payment to cover the taxes?
A rough rule of thumb is to set aside 25-30% of your 1099 income for taxes, but it depends on your total income and tax bracket. If you're in the 22% bracket, you'd pay 22% federal income tax plus any state taxes on that $4,200. Since it's "other income" and not self-employment (as discussed above), you won't owe the additional 15.3% SE tax, which saves you money. You can use Form 1040ES to calculate your estimated payments more precisely based on your expected total income for the year. The IRS also has a withholding calculator on their website that can help you figure out if you need to adjust your regular job's withholding or make quarterly payments.
Connor Murphy
Don't forget that many state tax agencies offer free assistance for these kinds of questions. I had a similar ITIN issue and was able to get help by visiting my state's taxpayer assistance center in person. The wait was about an hour, but they walked me through exactly how to handle the extension with a pending ITIN application. Sometimes talking to a real person who knows your state's specific requirements is the best way to go, especially for unusual situations like this one.
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Yara Haddad
ā¢Do you need an appointment for those taxpayer assistance centers? I tried going to one in my state last year and they turned me away saying I needed to book online first. By the time I found an opening, the deadline had passed.
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Connor Murphy
ā¢It depends on your state. Some states require appointments, while others allow walk-ins but with potentially long wait times. In my case (Maryland), I was able to walk in without an appointment, but I made sure to go early in the morning right when they opened. If I had gone during lunch or after work hours, the wait would have been much longer. I'd recommend checking your state tax agency's website for their office locations and whether they require appointments. If they do require appointments, book one ASAP since slots fill up quickly as the deadline approaches.
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Keisha Johnson
I just want to add that if you're feeling overwhelmed by all the different state requirements, don't panic! The key thing to remember is that filing a state extension is usually much simpler than it seems, and the penalties for getting it slightly wrong are typically much less severe than missing the deadline entirely. Since you already filed your federal return, you're ahead of the game. Most states are pretty understanding about ITIN situations since they're becoming more common. The main thing is to file SOMETHING by the deadline - even if it's not perfect, it shows good faith effort to comply. Also, keep detailed records of everything you submit. Take screenshots of online filings, keep copies of forms, and note down confirmation numbers. This documentation will be helpful if any questions come up later when you file your actual return with the completed ITIN. You've got this - the fact that you're asking these questions now instead of waiting until the last minute shows you're being responsible about the process!
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