Do you need to include any kind of documentation or proof of the survey income when you file? Or do you just report the total amount? I'm worried about getting audited.

You just report the total amount on your tax forms - no need to attach any documentation when filing. But you should absolutely keep records (payment screenshots, spreadsheet of earnings, withdrawal confirmations) for at least 3 years in case of an audit. Don't stress too much about audits - they're rare, especially for simple returns with modest income. The key is being honest about reporting ALL income and having reasonable documentation to back it up if ever questioned. My spreadsheet plus screenshots of payment summaries from each site has been more than sufficient for the past 5 years.

I combine all my "opinion-based" work on one Schedule C. The business code I use is 541910 for "Marketing Research and Public Opinion Polling" which covers surveys and user testing. If your activities are all related to giving opinions and testing, one Schedule C is fine. If you have very different activities (like surveys + selling crafts), then separate them.

Do you happen to have that number handy? I'm having the same issue but with TaxCut software (which I think is also H&R Block?).

I don't have the exact number saved, but you can find it at the bottom of hrblock.com under "Contact Us" or "Support." Yes, TaxCut was H&R Block's older product name - they rebranded it to H&R Block software several years ago. So if you have TaxCut, that's definitely an older version of their software. You might want to check if it's still supported for this tax year. They typically only support the current and previous year's versions, so depending on how old your TaxCut software is, you might need to upgrade.

I'm having the same issue, but mine is from Target and the site looks a bit different than what was described. Does H&R Block use multiple download sites or should they all look the same?

Thanks for the tip! I'll definitely ask for a detailed breakdown. Did you have to pay interest on top of the missing FICA taxes?

No, I didn't have to pay any interest. Since it was their error, they only collected the actual missing FICA amounts. They initially tried to include interest in their calculation, but I pushed back and pointed out that their own policy stated that administrative errors shouldn't result in additional costs to employees. I'd recommend checking your university's HR policies on payroll errors. Most have some language about how corrections should be handled, and this might give you some leverage if they try to charge interest or penalties.

Good point. When my company had a similar FICA withholding error, I adjusted my W-4 to reduce other withholding temporarily while I was paying back the FICA. You can increase your allowances slightly to offset some of the pain if needed.

You've got a good point about the total tax picture. I included sales tax in my second calculation which pushed it up to 12.54%, and I'm lucky to live in a state with relatively low income tax. California definitely hits harder with the state income tax. Do you feel like you get good value from the services your taxes provide there? I sometimes wonder if I'd be willing to pay more if I saw better infrastructure and public services where I live.

Regarding California value - it's honestly mixed. Some things are amazing like certain parks and public universities, but other infrastructure is crumbling. I think the issue isn't necessarily tax rates but efficiency of spending. Comparing to friends in Europe, they pay higher rates but seem to get more consistent services across the board. Here it feels like a patchwork where some things are world-class and others are embarrassingly bad. It's frustrating paying substantial taxes and still having to drive around potholes that have been there for years.

This is a bit misleading though. Very few people actually paid those high rates back then because there were way more loopholes and deductions. The effective tax rates weren't that different from today for most income levels. The tax code has been simplified in some ways, but the actual amount collected hasn't changed as drastically as just looking at the top rates would suggest.

That's an interesting approach I hadn't thought of. Would we need to establish actual IP value first? Our business is primarily service-based consulting, so I'm not sure what IP we'd be licensing.

Yes, you'd need to establish real IP value - it can't just be a paper arrangement. For a service-based consulting business, the IP could potentially be methodologies, frameworks, training materials, proprietary processes, or software tools used in the consulting. If your business truly doesn't have distinct intellectual property, this approach wouldn't work well. The IRS would see through an arrangement where fees are paid for nominal or non-existent IP. That's why proper valuation and documentation of the actual IP assets is critical.

This is actually what we did for our UK-based owner. The US entity pays the UK subsidiary for actual services, and our owner is a proper employee of the UK entity. Works well but you need proper substance in the foreign entity - can't just be a shell company.