I've been through almost the exact same situation! The IRS took about $1,200 from my expected refund last year with similar codes, and I was completely panicked at first. Here's what I learned: those transcript codes are actually pretty straightforward once you understand them. The 826 code means they applied your 2023 refund to pay a debt from 2021, and the numbers at the end (202112) refer to the tax period - so December 2021 processing cycle. The most common reasons this happens are: 1. Unreported income from 2021 (1099s, W2s, or side gig income) 2. Math errors on your original 2021 return 3. Forgotten retirement account withdrawals or distributions 4. Claimed credits you weren't eligible for Since you mentioned having a side gig, my guess is either you underreported some 1099 income from 2021, or you didn't pay enough estimated taxes that year and penalties/interest accumulated. Don't panic though - you have options! You can request a payment trace to see exactly what the debt was for, and if there was an error on the IRS's part, you can dispute it. Sometimes they make mistakes too. The key is getting your full account transcript for 2021 to see what triggered the balance. You can download it instantly from the IRS website if you can verify your identity online.

I've been helping people navigate IRS transcript codes for years, and your situation is actually more common than you might think. The 826 and 706 codes you're seeing are standard offset procedures - basically the IRS found a discrepancy in your 2021 return and applied your 2023 refund to cover it. Given that you mentioned having a side gig and cashing out a 401k in 2021, here's what likely happened: The IRS received documentation (like a 1099-R for your retirement withdrawal or a corrected 1099-MISC from a client) that didn't match what you reported. They then made an adjustment to your 2021 account, creating a balance due with penalties and interest. The good news is this isn't necessarily permanent. Here's what I'd recommend: 1. Get your complete 2021 account transcript online - look for transaction codes 290, 300, or any 30X series that show adjustments 2. Compare that against your original 2021 return to identify the discrepancy 3. If you find the IRS made an error, file Form 843 to claim a refund 4. If the adjustment is correct but you qualify for penalty relief (first-time penalty abatement, reasonable cause, etc.), you can still recover some money Don't give up - I've seen people successfully challenge these offsets when they had valid reasons or when the IRS made computational errors.

Just a heads up that the 1099-B from your broker will break everything down and should include all the wash sale adjustments properly. They'll report both to you and the IRS. You'll get it around February. When you file your taxes, you'll report all of this on Schedule D and Form 8949. Most tax software can import all this directly from major brokers and will handle the calculations correctly.

I've been through this exact situation before! The key thing to understand is that disallowed losses from wash sales don't disappear - they get added to the cost basis of your replacement shares. So while your broker might show a net gain of $66,800, the actual taxable amount could be different once all wash sale adjustments are properly calculated. Here's what I'd recommend: First, try to identify all your wash sales manually if you can - look for any stocks you sold at a loss and then repurchased within 30 days. Second, don't rely completely on your broker's current gain/loss summary until you get your official 1099-B in February, as that's when everything gets properly adjusted. If you need a more accurate estimate now for planning purposes, consider using tax software or a service that can analyze your trades and account for wash sales properly. And definitely start setting aside money for taxes - short-term gains are taxed as ordinary income, so depending on your tax bracket, you could owe 22% or more in federal taxes alone.

Has anyone tried the IRS Direct File program this year? I heard they expanded it to more states for 2025 filing season. Wondering if it works better than dealing with OLT or TurboTax.

This is exactly why I always bookmark the official IRS Free File page (https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free) at the beginning of tax season. These companies count on people going directly to their commercial websites where they can charge for "premium" features. What's really frustrating is that OLT's marketing emails don't even mention that their completely free version is still available through the IRS portal. They're deliberately steering people toward their paid service. I fell for this exact trick with H&R Block a few years ago before I learned about the Free File program. Pro tip: If you qualify for Free File (AGI under $79,000 for most providers), bookmark that IRS page and ONLY access tax software through those links during filing season. Don't trust the "free" versions on company websites.

I actually went through this exact situation last filing season! Had closed my Credit Karma account after getting a new credit monitoring service, then realized I needed it for my refund advance. Want to know what worked? I called their dedicated tax support line (not the regular customer service) and explained my situation. They were able to process a special exception that allowed the advance to be sent to my external bank account instead of requiring an active Credit Karma account. Took about 3 days longer than normal, but I got my advance without having to reopen anything. Worth asking about!

This is really helpful information from everyone! As someone who works in financial services compliance, I can add that the key issue here is that refund advances are technically short-term loans secured by your expected tax refund. When you close your Credit Karma account, you're essentially terminating the lending relationship that makes the advance possible. However, @Sofia Perez's experience with the dedicated tax support line is interesting - it suggests Credit Karma may have developed workarounds for this exact scenario since it probably happens frequently during tax season. I'd recommend trying that route first before switching to a different tax service, especially since your return is already in processing. The special exception process she mentioned sounds like it could save you from having to start over with a new provider.

Check if your state still allows these deductions! Federal eliminated them but I found out NJ still lets me deduct unreimbursed employee expenses on my state return. Saved me about $420 last year!

This is exactly why I think we need to push back on employers more systematically. Mason, your $3,500 in tools plus uniforms and repairs is a significant business expense that your company is essentially shifting to you. Have you considered documenting all these required expenses and presenting them to your employer as a formal request for either reimbursement or a tool allowance? Some companies have started offering annual tool stipends or reimbursement programs once they realize how much their employees are spending. You might also want to check with your union (if you have one) - some have negotiated tool allowances into their contracts specifically because of these tax law changes. Also worth noting: if you do any side work with those same tools (even occasional weekend jobs), you can deduct the business-use portion on Schedule C. Keep detailed records of what percentage of tool use is for side work versus your main job.