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FreeTaxUSA is great for simple returns but if you have an HSA, just double check everything carefully. I used them last year and somehow my HSA contribution didn't get properly reported even though I swear I entered it. Ended up having to file an amendment which was annoying. Not saying don't use them, just verify all the numbers on the final PDF before submitting. Their interface for the HSA section is a little confusing with the contribution vs distribution sections.
Do they charge extra for amending returns? I know TurboTax hits you with another fee if you need to correct something after filing.
They do charge for amendments, I think it was about $15 when I did mine. Still cheaper than most other places, but definitely an extra expense I wasn't planning on. The process wasn't too difficult though - you basically just go through their amendment section, fix what was wrong, and they generate the proper 1040-X form. Just make sure to print and mail it rather than e-file, since the IRS still requires paper amendments in most cases.
I'm going against the grain here but I still use H&R Block's software (not their in-person service). Yes it's more expensive but I've had issues with state returns on the cheaper services. H&R had better guidance for my state's weird local tax rules. If ur taxes are super basic FreeTaxUSA is fine but sometimes the extra $40 is worth the peace of mind.
What state are you in? I'm in Pennsylvania and our local taxes are a nightmare with all the different municipality rates.
Another tip for Path filers - make sure you're looking at the right transcript! There are 4 different types and the Account Transcript is the one that shows refund info. I was confused at first because I kept checking the Return Transcript which doesn't show processing or refund dates. Also, if you see code 570 (additional account action pending) followed by 971 (notice issued), don't panic! That often means they're just verifying something and a release code (571) usually follows within a week or two.
What about code 846? I see that on mine with a date of 3/5/25 but WMR still shows processing. Does that mean I'm getting my refund on 3/5?
Code 846 is exactly what you want to see! That's the "refund issued" code, and the date next to it is when the IRS will release your refund. So yes, your refund should be sent on 3/5, though it might take 1-3 business days after that to show up in your bank account depending on your bank's processing time. The WMR tool often lags behind the transcript updates, so it's totally normal for your transcript to show a refund date while WMR is still on processing. Your transcript is the more accurate source.
Has anyone received their Path refund earlier than the date shown on their transcript? Mine shows 3/7 but I'm hoping it might come sooner!
I actually got mine a day earlier than the transcript date! Transcript said 2/28 but it hit my bank on 2/27. I think it depends on your bank though.
Have you checked if your employer is withholding for state taxes? I had a similar shock last year because my company (based in another state) wasn't withholding ANY state income tax for my state of residence. Check your paystubs carefully to see if there's both federal AND state withholding happening.
Just checked my paystubs and you might be onto something! I see the federal withholding but there's nothing listed for state taxes at all. My company is headquartered in TX (no state income tax) but I live and work remotely in IL. Could this be why I'm showing such a big tax bill? Do I need to make estimated tax payments to Illinois or something?
That's almost certainly your problem! Illinois definitely has state income tax (4.95% flat rate I believe), and if your company isn't withholding it because they're Texas-based, you'll owe all of that at tax time. You should immediately contact your HR department and ask them to start withholding Illinois state tax. For the amount you've already earned without withholding, you might want to make an estimated tax payment to Illinois to avoid underpayment penalties. The Illinois Department of Revenue website has forms for this.
One more thing to check - make sure you're not accidentally marked as "exempt" from withholding on your W-4. I've seen new employees check that box not understanding what it means, and then no federal tax gets withheld at all, leading to huge tax bills.
This happened to my nephew! He checked "exempt" thinking it meant exempt from filling out the complicated parts of the form. Ended up with zero withholding and a massive tax bill. Double check your W-4 and paystubs!
I just pulled up a copy of my W-4 and I definitely didn't check the exempt box. But I did notice something weird - my employer is still using the old W-4 form (the one with allowances) even though I thought that changed years ago? Could this be causing withholding issues? I claimed "0" allowances thinking that was the most conservative option, but maybe that doesn't work the same way with the new tax laws?
Just wanted to add another perspective as someone who works with families receiving SSI. Remember that while you CAN claim these children as dependents for tax purposes, be careful about how you use the additional tax benefits you might receive. If you're the representative payee for the children's SSI, there could be questions about how the tax benefits (like refundable credits) are spent. The Social Security Administration generally expects that money that benefits the children should be used for their care, not for the household generally. Also, make sure the children are still eligible for their full SSI benefits. In some cases, providing too much support could potentially reduce their benefit amounts since SSI is needs-based.
That's an important point I hadn't considered. I'm not their representative payee (their mom is, though she doesn't live with us), but I do provide housing, food, clothes, etc. If I receive tax benefits from claiming them, should I be documenting how I spend that money specifically on them?
Since you're not the representative payee, you have more flexibility in how you use tax benefits you receive from claiming the children. The money from tax credits like the Child Tax Credit is yours to use as you see fit - the IRS doesn't impose restrictions on how you spend it. However, it's still a good practice to document how you support the children generally, especially if there's ever a question about whether they qualify as your dependents. Keep receipts for major expenses you cover for them, document that they live with you full-time, and maintain records of any financial support you provide. This creates a clear paper trail that shows you meet the requirements to claim them.
Quick tip from someone who's been through this process - make sure you have documentation that they've lived with you all year and evidence of expenses you've covered. The IRS has been increasing scrutiny on dependent claims, especially for non-parent relatives claiming children. I'd suggest keeping: - School records showing your address for the children - Medical records showing you taking them to appointments - Receipts for clothing, school supplies, etc. - Any court/legal documents showing your care arrangement - Documentation from their mom acknowledging they live with you This saved me during an IRS review when I claimed my sister's kids who lived with me while she was deployed.
Do you need the biological parent to sign anything formally stating they're not claiming the children? I've heard conflicting things about Form 8332 being required in these situations.
Tobias Lancaster
Make sure you keep track of ALL your expenses during those two weeks! Since they misclassified you, those are potential tax deductions if you end up having to file as self-employed. Track mileage (the IRS rate is like 65.5 cents per mile for 2023), cell phone usage for work, any supplies or materials you bought. Even if you get reclassified as an employee later, having this documentation is super important. I'd suggest creating a spreadsheet with dates, mileage, purpose of trips, and any receipts for work-related expenses. Take photos of receipts before they fade too!
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Collins Angel
β’Thanks for the advice on tracking expenses. I've actually been keeping all my gas receipts and noting my mileage in my phone. It was about 480 miles total over the two weeks just for work-related driving. I also had to buy some office supplies they claimed would be provided but weren't. Do you know if I can still claim these deductions if I file the misclassification complaint? I'm worried about doing something wrong on my taxes while this is all getting sorted out.
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Tobias Lancaster
β’You can still document all these expenses while your misclassification complaint is pending. The best approach is to keep everything organized as if you will need to file Schedule C (self-employment), but hold off on actually filing until you get a determination on your status. If the IRS rules that you were misclassified as a contractor and should have been an employee, the company will be responsible for their portion of FICA taxes (the employer half of Social Security and Medicare taxes). In that case, you'd file as an employee with a W-2 that the company would be required to provide, and many of those business expenses wouldn't be deductible anymore under current tax law for W-2 employees.
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Ezra Beard
Have you checked if your contract has an arbitration clause? A lot of these shady companies include language that forces you into arbitration instead of court. Read the fine print of anything you signed! Also check if there's a class action against them already - these companies usually do this to lots of people.
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Statiia Aarssizan
β’Even with arbitration clauses, labor board complaints are still valid in most states! Companies can't contract around labor laws. Had this exact situation and still won my case through the state despite the arbitration clause.
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Ezra Beard
β’You're absolutely right! I should have been clearer about that. Labor board complaints and tax filings with the IRS are still options regardless of arbitration clauses, as these are government agencies enforcing laws rather than private litigation. What I meant was that if the OP is considering a private lawsuit for things beyond just wage claims (like potential fraud or other civil claims), that's where arbitration clauses can create hurdles. But you're 100% correct that for the core issues of misclassification and wage theft, the state labor board is still a valid path forward regardless of what the contract says.
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