Thanks for the suggestion about adjusting my withholding going forward. Do you know how I would calculate how much extra to withhold to make up for this year's shortfall? And you're right about the state taxes - I need to check those too. I was so shocked by the federal issue that I didn't even think about that.

You can use the IRS Tax Withholding Estimator on their website - it lets you input how much has been withheld so far and will calculate what you need for the remaining paychecks. Just select that you want a bigger refund and it'll tell you what number to put on your W-4. For your state taxes, each state has different rules, but if they weren't withholding federal, there's a good chance they missed state too, especially if you're in a state that bases its withholding on the federal W-4 form.

This is a really good point! OP needs to check their employment status. My neighbor thought she was a regular employee but her company had her classified as a 1099 contractor (incorrectly) and wasn't withholding anything. Led to a huge tax bill and she had to file an SS-8 form with the IRS to get it sorted out.

The transcript trick is legit. Go to irs.gov and search for "Get Transcript Online." You'll need to create an account if you don't have one (they verify your identity with credit report info). Look for the Account Transcript for 2024 once you're in. Check for codes like 846 (refund issued) or 570/971 (hold/notice).

Nope, I'm not claiming either of those. Just a standard return with W-2 income. Thanks for the suggestion though! I'm just going to be patient based on what everyone is saying. Seems like this is pretty normal even though it's frustrating.

I just checked my tax return copy and all my banking info looks correct. I've been using the same account for direct deposits from the IRS for the past 3 tax seasons without issues. The status on the Where's My Refund tool specifically says "refund approved" with the May 3 date, not that there are any problems with the deposit info. Is it possible they're just extra backed up this year? It seems weird that they'd approve it but then wait so long to actually send the money.

Yes, they are definitely more backed up this year than usual. I've been preparing taxes for family members for years, and I've noticed much longer processing times this season. The IRS has been dealing with staffing shortages and outdated computer systems. When they approve a refund but schedule it for weeks later, it's often because they're spreading out the payment processing to manage their workflow. Think of it as them putting you in a payment queue based on various factors including filing date, complexity, and even the amount of the refund.

I tried contacting the Taxpayer Advocate Service last month for a similar issue. Unfortunately, they're also extremely backed up and told me they're only taking the most severe hardship cases right now. They said unless I was facing immediate eviction or had medical treatments I couldn't receive without the money, they couldn't help with "routine" refund delays.

So does this mean I definitely have to file an amended return? I'm still waiting on my refund to come through and I'm worried this is going to create a huge mess.

Yes, you'll need to file an amended return since you claimed a deduction you weren't eligible for. Form 1040-X is what you'll need to submit. The sooner you do this, the better, as penalties and interest can accrue on any additional tax you end up owing. I would recommend not waiting for your original refund to come through before filing the amendment. The IRS is experiencing significant delays this year, and the longer you wait, the more complicated it could become. If your original refund does arrive, you'll likely need to return some portion of it when your amended return is processed.

This is good advice. I work at a financial institution, and while the April 15 deadline is generally firm, there are occasionally extenuating circumstances or specific situations where other options might be available. It's always worth asking.

Thanks for mentioning quarterly payments - I hadn't considered that! How do you determine how much to pay each quarter if your royalty income fluctuates a lot? My streaming numbers can vary wildly month to month.

Calculating quarterly payments with fluctuating royalty income can be tricky. The safest approach is using the "safe harbor" provision - if you pay at least 100% of last year's tax liability (or 110% if your AGI was over $150,000), you won't face penalties even if you end up owing more. For highly variable income, another option is the "annualized income" method where you calculate each quarterly payment based on your actual income for that period. It's more work but more accurate if your income varies significantly throughout the year. I use a spreadsheet to track monthly income and project my quarterly obligations.

An LLC doesn't change the tax timing - it's still reported on your personal return unless you elect S-Corp status. With an S-Corp, you can pay yourself a reasonable salary and take distributions, but royalty income specifically has some complicated rules. I found that out the hard way. You should really talk to an accountant who specializes in entertainment income because the self-employment tax savings could be substantial depending on your income level, but there are costs to maintaining the corporate structure too.