Can't reach IRS? Claimyr calls for you, so you don't have to wait on hold.
Claimyr is a pay-as-you-go service. We do not charge a recurring subscription.
Using Claimyr will:
- Connect you to a human agent at the IRS
- Skip the long phone menu
- Call the correct department
- Redial until on hold
- Forward a call to your phone with reduced hold time
- Give you free callbacks if the IRS drops your call
Ask the community...
- DO post questions about your issues.
- DO answer questions and support each other.
- DO post tips & tricks to help folks.
- DO NOT post call problems here - there is a support tab at the top for that :)
Join the conversation
Join the conversation
Just to add some extra info: even if your 1099-C has errors or is missing some elements, you still need to report it. If you don't and the IRS gets a copy (which they will), you'll get a notice asking about the discrepancy. Better to report it and attach an explanation if needed. I went through this last year when my student loan servicer sent a 1099-C with the wrong box checked. I reported it as issued, then included a statement explaining the error. Saved me from getting one of those scary IRS letters months later.
If I get a 1099-C for a debt that was actually paid, not canceled, what's the process for disputing it? Do I still report it?
Yes, you should still report it even if you plan to dispute it. The best approach is to include the 1099-C information on your return, then attach Form 8275 (Disclosure Statement) explaining why you believe the debt wasn't actually cancelled. The key is to immediately contact the issuer in writing requesting a corrected form. Keep detailed documentation of all communications. If they agree it was an error, they should issue a corrected 1099-C showing zero cancellation amount. Once you receive that, you can file an amended return if needed. This approach shows good faith compliance while you're resolving the dispute.
FYI banks don't always get these right. My credit union sent out 1099-Cs to everyone who closed accounts last year by mistake lmao. They had to send out a mass email saying to ignore them. If ur bank sent a bunch out "accidentally" maybe check if they made a system error?
Wow, that's wild! Did they send corrected forms or just tell people to ignore them? Seems like the IRS would still have the incorrect info.
Join the conversation
Just a data point - I did exactly this last year for my 2022 taxes. Contributed the max to my HSA in March 2023 (for tax year 2022) and immediately withdrew it to cover medical expenses I'd already paid out of pocket. Worked perfectly and saved me about $900 in taxes. My tax software (TurboTax) handled it well, but make sure you get Form 5498-SA from your HSA provider showing the contribution was designated for 2023, and keep your medical receipts organized. I created a simple spreadsheet tracking each expense, date, amount, and payment method that I keep with digital copies of all receipts.
Did you have to get any special form from your doctors or hospitals for the expenses, or just your regular receipts? My hospital bills don't specifically say "qualified medical expense" on them.
Don't forget that you'll need to fill out Form 8889 with your tax return to report both the contribution and distribution. It's pretty straightforward but the instructions can be confusing. Line 2 is where you'll put your $3,850 contribution for 2023. Line 14a is where you'll report the distribution amount. Line 15 is where you'll report that the entire distribution was used for qualified medical expenses. Your HSA provider will send you Form 5498-SA showing your contributions and Form 1099-SA showing your distributions. Make sure the contribution is coded properly as a 2023 contribution.
Join the conversation
Something nobody's mentioned yet - if you're really concerned about this from a legal perspective, you might want to consider forming an LLC. It's pretty simple and inexpensive in most states. That would make the distinction clearer since you'd be an LLC rather than a sole proprietor, but you could still be an independent contractor in terms of your relationship with clients. For tax purposes, a single-member LLC is typically treated as a "disregarded entity" and you'd still file Schedule C unless you elect different tax treatment.
That's an interesting suggestion! Would forming an LLC change anything about how I file taxes or would I still use Schedule C? And would there be any benefits for someone making such a small amount ($3k-ish per year) from this work?
You would still use Schedule C with a single-member LLC unless you elect to be taxed as an S-Corporation or C-Corporation. The LLC doesn't change your tax filing method by default - it's considered a "disregarded entity" for tax purposes when it has just one member. For someone making only around $3,000 annually from this work, an LLC probably isn't worth the administrative costs and annual fees unless you have significant liability concerns. The main benefit of an LLC is limiting your personal liability, but for patient advocacy work with minimal income, the protection may not justify the expenses. Some states have annual LLC fees of $800+ (California), while others are much cheaper ($50-100).
Has anyone used TurboTax for this kind of situation? Does it automatically put you on the right forms? I'm starting to do some freelance work this year and trying to figure out if I should use software or hire someone.
I use TurboTax Self-Employed and it works great for this. It asks if you have self-employment income and then automatically puts you on Schedule C. It doesn't really distinguish between "independent contractor" and "sole proprietor" either - it just asks about your business income and expenses. The software walks you through all the deductions you might qualify for too.
Join the conversation
Here's another factor I haven't seen mentioned yet - timing matters with these decisions. If you take the refund as cash, you get the money now. If you invest that money for a year before you need to make your next state tax payment, you could earn additional returns that offset any tax difference. Just another angle to consider in your decision.
But don't you have to pay quarterly estimated taxes if you're anticipating a tax bill? So you couldn't really wait a full year to make that payment, right?
You're right that you might need to make quarterly estimated payments - it depends on your total expected tax liability and other withholdings. If you have sufficient withholding from other sources (W-2 job, etc.), you might not need to make estimated payments. Even with quarterly payments though, you still have the benefit of having the money available to you for some period of time versus having it immediately applied to next year's taxes. You could potentially use it for higher priority needs before making those estimated payments when they're actually due.
One other thing to consider - some states give interest on refunds if you take them as cash rather than applying forward. My state gave me 3% interest on my refund last year because of processing delays. That's another reason taking the cash might be better than applying forward!
I don't think most states pay interest unless they're really late with the refund processing though. Did you have to wait an unusually long time?
Sofía Rodríguez
You might want to check with your state's Department of Labor. In some states, employers have legal obligations regarding proper withholding. Save copies of your W-4 form if you still have it, along with all your pay stubs showing the lack of federal withholding. Also, ask your coworkers discreetly if they experienced the same issue. If your employer did this to multiple people, that strengthens your case that this was a systemic problem, not just a one-off error.
0 coins
Abigail bergen
•That's a good point about checking with coworkers. I'm friendly with a couple other people who started around the same time as me. I'll ask them to check their W-2s too. Do you know how I would go about filing a complaint with the Department of Labor if it turns out this happened to others too?
0 coins
Sofía Rodríguez
•Most state Department of Labor websites have an online complaint form specifically for wage and hour violations, which would include improper withholding issues. Look for sections labeled "wage complaints" or "workplace rights" on your state DOL website. Before filing, gather all your documentation: your original W-4 showing you selected single with zero dependents, several pay stubs showing no federal withholding, your W-2 confirming zero withholding for the year, and any written communication with your employer about the issue. If coworkers had the same experience, ask if they'd be willing to be mentioned in your complaint.
0 coins
Aiden O'Connor
Your situation sucks but employers actually aren't legally responsible for paying taxes they failed to withhold. I've been a payroll manager for 12 years and have seen this happen before. Your best option is to: 1) File your taxes on time even if you can't pay 2) Set up a payment plan with the IRS 3) Adjust your W-4 for extra withholding this year to prevent a repeat Your HR person was totally wrong about college students not owing taxes though. That's complete nonsense.
0 coins
Zoe Papadopoulos
•Wait, so employers can just "accidentally" not withhold taxes and face zero consequences? That seems like a system ripe for abuse. Couldn't companies just "forget" to withhold as a way to effectively pay employees more without actually increasing their stated wages?
0 coins