1 Does the 5-year compliance thing mean I can't have ANY issues with taxes for 5 years? What if I file on time but can't pay everything that year? Would they bring back all my old debt too??

5 The compliance requirement means you need to file all required returns on time and pay any new tax obligations when they're due. If you can't pay a new tax bill in full, you need to work with the IRS immediately on a payment arrangement. If you violate the terms, then yes, the IRS can potentially revoke your OIC and reinstate the original tax debt, minus whatever payments you've made. They don't do this for minor issues, but it's a serious consideration - you're essentially promising to be a model taxpayer for those 5 years.

19 I used one of those companies and it was a complete waste of money. Paid them $4,000 up front and all they did was put me on an installment plan I could have set up myself for free on the IRS website. They promised they'd get me an OIC but after taking my money they said I "didn't qualify" - something they should have known from the beginning.

12 Wow thanks for the warning! Sounds like these companies are just preying on desperate people. I'll steer clear and either try to handle it myself or find a reputable local tax professional instead.

Thank you so much for this explanation! So basically I should just bypass the depreciation question in TaxAct somehow? Would selecting "straight line" be the safest if I have to choose something, or should I go back and re-enter it differently to avoid that question entirely? The truck is 100% business use if that matters for the inclusion amount you mentioned.

If TaxAct won't let you proceed without selecting a depreciation method, I'd recommend going back and re-entering the vehicle information but categorize it as a leased vehicle expense rather than an asset to be depreciated. Most tax software has a specific section for business vehicle expenses where you can indicate it's leased rather than owned. If you absolutely have to choose a depreciation method as a workaround, straight-line would be the most conservative choice, but it's not technically correct since you don't depreciate leased assets. The 100% business use is great - it means you can deduct 100% of the lease payments (minus any inclusion amount). The inclusion amount is based on the fair market value of the vehicle and lease term - for a 3-year lease on a heavy vehicle, it's often minimal.

Does this same "no depreciation for leases" rule apply to regular lighter vehicles too? I've been doing it wrong for years if so...

So would I put "Head of Household" on the W4 and then just "1" for my son on Step 3? Does the Head of Household selection automatically adjust things for me?

Yes, you would check "Head of Household" in Step 1(c) and then put "1" for your son in Step 3. The Head of Household selection automatically adjusts your withholding calculations to account for the higher standard deduction and more favorable tax brackets that come with that filing status. This combination (HOH status + claiming your qualifying child) should help ensure your withholding is more accurate. If you want a slightly larger refund, you can add a small additional amount in Step 4(c) - maybe $25-50 per paycheck depending on your comfort level.

It's still $2,000 per qualifying child for 2024 (for 2025 filing season). Congress didn't extend the temporary increase that was in place during 2021. Children must be under 17 at the end of the year to qualify for the full credit.

I did check both parts, and all of our kids were qualifying children under 17, so we didn't have any "other dependents" to claim. And we didn't receive any advance payments in 2021 that would affect the 2022 return - we actually opted out of those. What's confusing me is that with 4 kids, we should have gotten the full $8,000 ($2,000 × 4), but when I look at the actual credit amount on our Form 1040, it's significantly less. I'm wondering if maybe our tax software or preparer made a calculation error on Form 8812.

In that case, I would recommend looking specifically at the calculations on Form 8812, particularly around the refundable portion. For 2022, the refundable portion was limited to 15% of your earned income above $2,500. So if somehow your "earned income" was calculated incorrectly (which is different from AGI), that could limit the refundable portion. Another thing to check is if you had any other non-refundable credits that used up your tax liability, potentially limiting how much of the non-refundable portion of the CTC you could use.

I used TurboTax to amend my 2022 return specifically for Form 8812 issues. It was pretty simple - they walk you through which forms need to be changed and calculate everything for you. Just make sure you have a copy of your original return handy because you'll need to enter some of the original information first before making changes.

I hadn't considered a Certified Acceptance Agent. Is there any downside to using one compared to submitting directly? Does it take longer to process when going through an agent?

There's really no downside in terms of processing time - in fact, it can be faster because CAAs reduce the likelihood of rejections due to documentation errors. The IRS processes the application the same way regardless of submission method. The only real downside is the cost. Most CAAs charge between $200-300 for their service, which includes document verification and submission. But considering the hassle of potentially having to resubmit if something goes wrong (plus the risk of sending original documents through the mail), many find it worthwhile. In my experience, using a CAA actually shaved weeks off the process because everything was submitted correctly the first time.

From my understanding, you need the current year's Form 1098, not the previous year's. That's what my tax preparer told me. Maybe that's why it was rejected?

You actually need the most recently issued Form 1098, which would typically be from the previous tax year. When applying early in the year (like now for 2025 filing season), you'd use the 2024 mortgage interest statement since the 2025 one wouldn't be available yet. The IRS specifically wants to see that you have an ongoing mortgage interest situation that creates a tax need. If you're applying mid-year, you might also include recent mortgage statements showing continued interest payments. The key point is demonstrating a continued tax purpose for needing the ITIN, not just a one-time situation.