Yes, the company that paid you would have sent a copy of your 1099-NEC to the IRS. The IRS has automated systems that match reported income with filed tax returns, so they likely know about the discrepancy. That's why it's good you're fixing it proactively!

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.

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?

That's actually a really good point. I did pay with my credit card, so I could probably dispute the charge. Do you know what kind of documentation I'd need to provide to the credit card company? Would screenshots of my unanswered emails be enough?

Screenshots of emails, chat transcripts, and dates/times of attempted communications would be perfect documentation. Most credit card companies have a fairly straightforward dispute process - you'll typically need to fill out a form explaining that you paid for services that weren't delivered despite multiple attempts to resolve the issue. The key is demonstrating that you made reasonable efforts to work with the merchant first. Include specific details like "Sent emails on March 5, 12, and 19 with no response" and "Initiated customer service chat on March 25 which was terminated by representative without resolution." Credit card companies generally side with customers in cases where services weren't provided, especially when you have documentation showing the company was unresponsive.

That's actually genius. Do you remember which manager you contacted? I'm having similar issues with them right now.

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.

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.

Solar credits are definitely causing delays this year. Mine took 55 days to process last year. The IRS is reviewing them more carefully because there's been a lot of fraud with energy credits. Double-check you had all the proper certification documents for your installation. As long as everything was done properly, you'll get your refund - it just takes extra time.

Thanks for the info! That makes me feel better. We definitely have all the certification documents and receipts from our installer. I guess I'll just have to be patient. Did you end up having to contact the IRS directly or did your refund just show up eventually?

The "no record of return filed" on transcript usually means they haven't started processing it yet. Had this happen last year and eventually it updated. Check again in a week. Mine took 49 days total with CTC and dependent care credits.