I checked my W-2 and there's $212 in Box 2! So that means I'll get all of that back? That would be amazing, I could really use that right now. And thanks for mentioning that I might not be required to file. I wasn't sure about that, but I figured I should do it anyway just to be safe. Plus learning how to do this stuff now will probably help me in the future.

Yes, you'll get that entire $212 back as a refund! Since your income is below the standard deduction, you don't owe any federal income tax, so everything that was withheld gets returned to you. You're making a smart move by filing even though you might not be required to. It's good practice, and getting that refund is definitely worth the effort. Plus, as you mentioned, it's a valuable learning experience that will make things easier in future years when your tax situation might become more complex.

This is really important advice! When I was in college I messed this up and ended up having to file an amended return. OP, if your parents can claim you as a dependent, your standard deduction is limited.

Oh shoot, I didn't even think about that. My parents do claim me as a dependent since I'm still living at home and they provide more than half my support. Does that change things dramatically? FreeTaxUSA asked if I was a dependent and I selected yes, so I think it's calculating everything correctly, but now I'm worried.

Thanks for the tip about the state refund! I didn't even think about that. I'm expecting about $700 back from my state, so that would definitely help reduce what I need to finance. Based on everyone's advice, I think I'll make a payment now of whatever I can afford and then set up a short-term payment plan. Seems like the consensus is not to wait until April 15th!

You're welcome! Yes, using your state refund toward your federal tax debt is a smart move. And definitely don't wait until April - not only will the phone lines be jammed, but you'll be accruing interest on the full amount in the meantime. One more tip: if you set up a payment plan but then find you can pay it off faster than expected, there's no penalty for paying early. I ended up getting a small bonus at work and was able to clear my tax debt in 3 months instead of the 6 I had planned for.

Offers in Compromise are pretty hard to get approved. The IRS only accepts them if they genuinely believe they cannot collect the full amount from you either now or in the foreseeable future. You have to provide extensive documentation of your assets, income, expenses, etc. For a tax debt of $7,420 like the OP has, it's unlikely to be worth pursuing unless they're facing severe financial hardship. The application fee alone is $205 (though it can be waived for low-income taxpayers), and you have to submit a significant payment with your offer.

Thanks for sharing your experience. Did they tell you upfront how much of your refund you'd get as an advance? I'm trying to figure out if I can count on getting a specific amount or if it's just whatever they decide to give you.

They didn't tell me the advance amount until after they'd prepared my taxes and I was basically ready to file. That's part of what felt deceptive - by that point I'd already spent an hour in their office and felt pressured to just go with it. From what I've gathered since then, most of these companies only advance between 25-50% of your expected refund. The exact amount seems to depend on your refund size, filing status, and probably some internal risk assessment they do. Definitely ask upfront about their typical advance percentages before committing to anything.

Credit Karma Tax (Cash App Taxes) isn't offering refund advances this year from what I can see on their website. I think TurboTax still has one though. Has anyone used TurboTax's refund advance?

You're right - I just checked and it seems Cash App Taxes discontinued their advance program. TurboTax is still offering advances through a partnership with First Century Bank, but you have to pay for one of their paid versions to qualify. Another option worth considering is filing early without taking an advance, then setting up direct deposit for your refund. The IRS typically processes e-filed returns with direct deposit within 21 days, sometimes faster. While not as immediate as an advance, it's free and you get your full refund amount without fees.

19 I second this. I found a great tax attorney through my accountant. One thing I'd add is to make sure they have experience specifically with the type of issue you're dealing with. My first attorney was good with business tax but not so much with innocent spouse relief, which is what I needed.

3 Absolutely true. Tax attorneys often develop niche specialties within tax law. Some focus primarily on offshore reporting issues, others on employment tax, and some specifically on innocent spouse relief or offer in compromise cases. When interviewing potential attorneys, ask them what percentage of their practice involves innocent spouse cases specifically. If it's less than 15-20%, keep looking. Also, ask if they've handled cases with the specific IRS service center that will be processing your case, as procedures can vary slightly between locations.

4 Most of those national tax resolution firms that advertise heavily make unrealistic promises. The "pennies on the dollar" settlements (called Offers in Compromise) are quite rare and have very specific qualifying criteria - most people don't qualify. These companies often charge large upfront fees ($5,000+) and then do very little actual work. Many employ salespeople rather than tax professionals for initial consultations, and they're incentivized to tell you what you want to hear. I've had many clients come to me after wasting thousands with these services.

What if my plan administrator doesn't provide that kind of detailed statement? My quarterly statements don't clearly separate the after-tax contributions from the growth. Is there another way to figure out my basis?

You can request a specialized basis statement from your 401k administrator - most have a specific form for this purpose. If they truly can't provide it (which would be unusual), you can reconstruct your basis by adding up all the after-tax contributions from your pay stubs or by looking at your W-2s. Box 12 of your W-2s won't include after-tax contributions (only pre-tax), so the difference between your total contributions and what's reported in Box 12 can help establish your after-tax amount. I'd also recommend calling the administrator directly. Sometimes the regular customer service reps don't know about these specialized reports, but if you ask specifically for a "basis statement" or "after-tax contribution history," they'll direct you to the right department.

100% agree!! I spent like 6 hours trying to figure this out for my mega backdoor last year. And then my tax software wanted to charge me an extra $50 just to unlock the forms I needed to do it right. The whole system is designed to make us mess up so they can collect penalties.