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You might also be dealing with a misclassification issue. Some small construction companies incorrectly treat employees as independent contractors. Did you get paystubs with tax withholdings or just straight cash payments? If they didn't withhold taxes, they might be trying to issue some weird hybrid form that doesn't make sense.
Make sure you file on time even if this isn't resolved! You can file Form 4852 as a substitute W-2 based on your best records of what you earned. If you have paystubs, bank deposits, or even a written record of hours worked Ć your hourly rate, use that to calculate your income. Then file an amended return later if needed when you get the correct W-2. Don't let their mistake cause you to miss the filing deadline!
Don't stress OP, I didn't file my first tax return until I was 24! The good news is that if you've had taxes withheld from your paychecks (which you probably have), you're most likely owed money back. That's what a tax refund is. The easiest way to start is to use a free tax filing service like FreeTaxUSA or Cash App Taxes (used to be Credit Karma Tax). You literally just input the info from your W-2 forms and answer some basic questions. Grab those forms from your drawer and get started! For past years, you'll need to file separately for each year you missed. The tax software will have options for filing prior year returns.
Wait so I should use different software for the current year vs previous years? I'm trying to understand the process of catching up.
You can use the same software for all years, but you'll need to file each year separately. Most tax software has options for filing prior years. You'll just need to make sure you're using the correct forms for each tax year. When you start the process, you'll usually see an option like "File 2024 taxes" or "File for a previous year." You would need to go through the whole process once for each year (2022, 2023, 2024). Just make sure you have the W-2 forms for each corresponding year since the numbers will be different.
The normal deadline is April 15th each year for the previous year's taxes (so April 15, 2025 for your 2024 taxes). But if you're owed a refund, you actually have 3 years to file before you lose the money. So right now in 2025, you could still file for 2022, 2023, and 2024. If you owe money instead of getting a refund, then filing late can result in penalties. But since you're just starting out and probably don't make a ton of money, it's very likely you'll get refunds.
A word of caution - I was in almost exactly your situation in 2023 and I made a mistake with my dual-status filing. I incorrectly reported some foreign income I received during my NRA period and ended up getting a CP2000 notice from the IRS requiring additional tax plus interest. Double-check everything and consider using a tax professional who specializes in international taxation. The rules for dual-status aliens are super complicated, especially regarding things like foreign tax credits and treaty benefits. Definitely not something I'd recommend doing yourself unless you're 100% confident.
Has anyone successfully e-filed a dual-status return? I tried last year and every tax software I used (even the "premium" versions) said I had to print and mail it. Seems ridiculous in 2024 that we still have to mail these returns.
Just make sure your side hustle qualifies as a business and not a hobby. If the IRS determines it's a hobby, you can't deduct losses against your regular income. You need to show that you're trying to make a profit and not just doing it for fun. Keep good records of everything - advertising efforts, business plans, time spent working on it, etc.
That's a good point! What specific things should I document to show I'm running this as a legitimate business? I definitely want to turn a profit, but it's taking time to build up my designs and customer base.
You should keep track of how many hours you spend working on the business each week, have a separate business bank account, maintain professional records of income and expenses, create a business plan with profit projections, and document your marketing efforts. Also consider getting business cards, a business website or professional social media presence, and perhaps even form an LLC if you're serious about it long-term. The key is demonstrating that you're approaching this in a businesslike manner with the intention to make profit, even if you haven't gotten there yet. The IRS typically looks for profitability in 3 out of 5 years, but showing these business practices helps even if you're still in the early stages.
For the computer depreciation specifically, since you use it primarily for business, you can typically use the Modified Accelerated Cost Recovery System (MACRS) to depreciate it over 5 years, OR use Section 179 to deduct the full amount this year. Since your business had a loss, you might actually be better off with regular depreciation to spread the deduction over future years when you might have more income to offset.
Lucas Parker
Another possibility - could this be related to an ex-spouse or business partner? I had a similar situation where my ex-husband's accountant kept making estimated tax payments under my SSN for a business I was no longer part of after our divorce. Took years to untangle because nobody at the IRS could figure out where the payments were coming from. Make sure you check with any past business associates or family members who might have your SSN on file for some legitimate reason. Sometimes these mysteries have simple explanations.
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Logan Stewart
ā¢I honestly hadn't considered that angle! I was briefly part of a small partnership about 6 years ago that dissolved, but we remained on good terms. I never thought they might still be using my info for something, but I'll definitely reach out to my former partner to check. That said, I'd still expect the IRS to be able to tell me who's making these payments. It's bizarre that they claim they can't see the source when it's their own payment system.
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Lucas Parker
ā¢Glad I could suggest something helpful! The IRS systems are surprisingly disconnected from each other. The department that processes payments often doesn't have access to the details of who submitted them, especially for third-party payments. When you talk to your former partner, ask specifically if their accountant might be making these payments. In my case, the accountant had set up an automated system years earlier and nobody thought to update it after our business relationship ended. Definitely check on that possibility before going through all the hassle with the IRS.
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Donna Cline
dont cash those refund checks!!! my cousin did something similar and got hit with penalties later when they fixed the system error. the irs will eventually figure it out and want all that money back with interest. just keep all the letters they send you and maybe talk to a CPA not just the regular irs people on the phone. sometimes the irs computer systems dont talk to each other and the right hand doesn't know what the left is doing.
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Harper Collins
ā¢This is good advice. I work in tax preparation, and I've seen several cases where the IRS corrected errors years later and then demanded repayment with interest and penalties. Document everything and maybe consider putting those refund amounts into a separate savings account so you have the money available if they ever come asking for it.
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