Yes, I've been checking "Where's My Refund" for months for my 2022 return. It just says "Your tax return is still being processed" with no other information. I did move in late 2022, but I updated my address with USPS. Do I need to update my address directly with the IRS too?

Yes, you absolutely need to update your address directly with the IRS. The USPS mail forwarding doesn't automatically notify the IRS of your new address. This could definitely explain why you might have missed important letters about your 2022 return! You can update your address with the IRS by submitting Form 8822 (Change of Address). In the meantime, I'd recommend using one of the methods others suggested to contact the IRS directly about your 2022 return - especially now that we know you moved, there's a good chance they've been sending verification requests or other important notices to your old address.

Yes! I received my very delayed 2022 refund about 3 weeks after filing my 2023 taxes. The two systems operate independently so one doesn't affect the other. My 2022 return had some issues with education credits that needed manual review, but they eventually sorted it out without me having to call.

Isn't there a risk of getting audited if you claim too many expenses? I'm a new subcontractor and nervous about deducting too much.

There's always a small audit risk with any business deductions, but it's not about claiming "too many" expenses - it's about claiming legitimate business expenses and having proper documentation. Keep good records of everything - receipts, logs, payment statements. The IRS understands that businesses have expenses. As long as they're legitimate and you can back them up if questioned, you shouldn't be worried. It's your right to take all legal deductions you're entitled to! Just don't make things up or inflate numbers, and you'll be fine.

I've been using Stride for the past couple years. It's free and lets you track mileage with GPS plus all your other expenses. You can take photos of receipts right in the app. Really helpful at tax time because you can categorize everything properly for Schedule C.

Thanks for mentioning this! I actually did work in January 2023 very briefly before my condition worsened, but it was only about $1,200 in earnings. Is there any way that partial amount would help me qualify even though it's below the $2,500 threshold?

That $1,200 in earnings would count toward the $2,500 threshold, but unfortunately you'd still be short of the minimum needed to qualify for the refundable portion of the Child Tax Credit. You'd need to reach at least $2,500 in earned income to start qualifying. However, it's still important to file a tax return showing this income, especially if you had any withholdings that might be refundable. Plus, having filed returns consistently will help when your disability is approved, as it creates a clearer picture of your work history and the onset of your inability to work.

This is actually not great advice for someone with zero income. Non-refundable credits can only reduce tax liability, and with no income there's no tax liability to reduce. So the Credit for Other Dependents wouldn't help in this specific situation.

Does it matter if some of the unfiled years included illegal income? Not asking for a friend...seriously wondering how that affects the process.

Regarding income from illegal activities, it technically should be reported on tax returns (yes, seriously - the IRS requires reporting of all income regardless of source). However, in practice, most people in this situation report it as "other income" without specifying the source. The Fifth Amendment can protect you from having to disclose the specific illegal source, but not from paying taxes on the income itself. That said, this is definitely an area where having professional representation is crucial - ideally an attorney with tax expertise who can maintain attorney-client privilege.

I used it after being behind 7 years. It helped me avoid some penalties, but you have to file all required returns first before you can access most of the benefits. The installment agreements were surprisingly reasonable tho.

I'm not entirely sure of their business structure, but that's definitely something I'll look into. How complicated was the paperwork for this approach? Did you need specialized legal help?

The paperwork is definitely more complex than a straightforward asset purchase. We needed both our tax attorney and accountant involved to structure it properly. The election itself is made on Form 8023, but the agreement needs very specific language to support it. The biggest challenge was agreeing on the asset allocation with the seller since this impacts the tax consequences for both sides. We ended up allocating more value to assets that gave us better depreciation/amortization treatment while minimizing their gain recognition. It took about 6 weeks to finalize all the details, but the tax savings made it worthwhile.

Great point. If bankruptcy is filed within 90 days of any payment or transfer, it could potentially be clawed back as a preferential transfer. I'd recommend doing a solvency analysis as part of your due diligence.