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Another thing to consider - if you're misclassified, you're probably missing out on overtime pay too! If you're working until "all houses are done" with no set end time, I bet there are weeks where you go over 40 hours without getting time-and-a-half pay. When I was misclassified at my previous job, I not only filed with the IRS, but also with the Department of Labor for unpaid overtime. Ended up getting back pay for almost a year's worth of overtime they never paid! Just something else to think about.
Omg you're right - we definitely go over 40 hours some weeks when there are more houses or deep cleans scheduled. I didn't even think about the overtime angle! How did you go about filing with the Department of Labor? Was it complicated?
Filing with the Department of Labor was surprisingly simple. I went to the DOL website and filed a wage complaint through their online system. You just need to provide details about your employer, your work hours, and how you were paid. After I submitted the complaint, a DOL investigator contacted me within a couple weeks. I shared my time records (I had kept my own log of hours worked in a notebook), and copies of payment records. They handled the entire investigation and calculated what I was owed. The whole process took about 3 months, but they recovered all my unpaid overtime plus damages.
Has anyone considered that the house cleaning industry has a lot of grey areas? My mom runs a small cleaning business and she says many cleaners prefer 1099 status because they can write off mileage and other expenses. Maybe your boss thinks she's doing you a favor?
While some workers might prefer contractor status for the deductions, that's not how tax law works. The IRS has specific criteria for worker classification regardless of what either party "prefers." If a worker meets the employee criteria (like OP clearly does), classifying them as a contractor is illegal tax evasion. Also, in this case, the workers can't even claim mileage deductions since the company provides the vehicles and pays for gas! They're getting all the downsides of contractor status (higher self-employment taxes, no benefits, no protections) with none of the advantages.
Data point: Filed with TaxAct on Feb 2, accepted same day, direct deposit hit my account Feb 11. So 9 days total for me. Return was pretty simple tho - just W2, mortgage interest and property tax deduction. My sister filed Jan 29 (also direct deposit) and is STILL waiting... turns out she had education credits and earned income credit which apparently triggers more scrutiny and longer processing times.
Thanks for sharing your timeline! Was your refund status showing "approved" for a while before it hit your account, or did it change straight from "received" to "sent"?
It actually showed "approved" for about 3 days before changing to "sent." Once it switched to sent, the money was in my account the next morning. The Where's My Refund tool was pretty accurate in my case.
Filed thru H&R Block on feb 12th, got accepted same day, refund directly deposited feb 22. So exactly 10 days for me. Super straightforward return though, just W2 and student loan interest deduction. One tip - if you're using the IRS2Go app to track your refund, I noticed it updated before the website did. My app showed "sent" status a full day before the website updated with the same info.
Does the time of day matter for when refunds hit accounts? Mine's supposedly coming tomorrow but I'm wondering if it'll be midnight or sometime during business hours.
My cousin was in almost the exact same situation - 12 years of no filing as a home contractor. What eventually happened was a client listed payments to him on THEIR taxes as a business expense, which created a mismatch that triggered IRS attention. He ended up owing around $178,000 in back taxes, penalties and interest. He had to sell his vacation property and take out a second mortgage. The IRS did put him on a payment plan, but the stress caused serious health issues and contributed to his divorce. Don't let your friend wait any longer. The IRS is way more reasonable if you come forward voluntarily versus them finding you first.
Thanks for sharing that real-world example. Did your cousin face any criminal charges, or was it just the financial penalties? My friend is terrified of actually going to jail over this.
No criminal charges in his case. The IRS generally pursues criminal cases only when there's evidence of intentional fraud, hiding assets, or extremely large amounts. They're mostly interested in collecting the money. That said, he did have to deal with a revenue officer who monitored his compliance for several years, which was stressful. The biggest impact was financial - the penalties and interest nearly doubled what he would have paid if he'd filed on time. And the stress definitely took a toll on his health and marriage.
I worked for an accounting firm that specialized in tax resolution, and saw cases like this regularly. Here's what your friend should expect: 1) The IRS generally only pursues criminal charges in cases of active fraud (fake documents, hidden offshore accounts, etc.) rather than just non-filing 2) They'll typically only go back 6-7 years for assessment unless they suspect fraud 3) If he files voluntarily before being contacted by the IRS, he'll likely avoid the worst penalties 4) The initial bill will be terrifying, but an experienced tax attorney can often negotiate it down 5) Payment plans are standard and can sometimes stretch 5+ years
Can someone actually get caught up without using a lawyer or professional service? Like, are there resources to DIY this if you can't afford professional help?
Has anyone used TurboTax to handle furniture depreciation for rental properties? I'm trying to figure out if the software can track individual asset depreciation schedules or if I need something more specialized.
TurboTax does have a rental property section where you can add depreciable assets, but it's pretty basic. It doesn't handle tracking the disposal of individual furniture items well over multiple years. I switched to TaxAct which has slightly better rental property features, but still had to maintain a separate spreadsheet for tracking my furniture items.
Thanks for that info! Sounds like I might need to keep a separate tracking system regardless of which tax software I use. I'm guessing none of the consumer tax programs really handle the complexity of multiple furniture items with different depreciation schedules and disposal dates.
One thing nobody mentioned yet - if your foreign country charges any kind of property tax on the furniture itself (some countries do this separately from real estate), you might be able to claim the Foreign Tax Credit for those taxes. It's another form to file but could offset some of your US tax liability. Also, make sure you're converting all your furniture costs and depreciation calculations to USD based on the exchange rate when you purchased the items, not current rates. This tripped me up for years with my rental in Thailand!
Malik Johnson
Honestly the whole self-employment tax thing is a mess. I did food delivery for 3 months last year and made about $2000. The most important thing to know is you NEED to file Schedule C and Schedule SE even with that small amount. The $400 threshold is the key here. But don't panic too much about owing a ton. After mileage deductions, I barely owed anything. Just make sure you track your miles carefully for next time - use an app like Stride or MileIQ. I didn't track well last year and regretted it.
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Isabella Ferreira
β’Is there anyway to estimate mileage after the fact if you didn't track it? I did some driving for Uber Eats but totally forgot to log miles.
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Malik Johnson
β’Yes, you can estimate your mileage after the fact, but you need to be reasonable and have some basis for your estimate. If you have delivery history in your app, you can use that to reconstruct your mileage. Most delivery apps keep a record of your deliveries, so go through your history and map out the routes you took. Remember that you can count all business miles - driving to pickup locations, to customers, and returning to busy areas after deliveries. Just be careful not to include personal miles. If you're audited, the IRS will want to see some documentation, so create a log now with your best estimates and note that it's reconstructed. It's not ideal, but it's better than not claiming the deduction at all.
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Ravi Sharma
does anyone know if you need to keep the 1099 misc form after you file? my tax person said i do but my mom says once its filed u dont need it
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NebulaNomad
β’Keep ALL tax documents for at least 3 years after filing! That's the standard period the IRS can audit you. Some people recommend 7 years to be extra safe. Your tax person is right - don't throw them away!
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