So if your place automatically reports a percentage, and it's lower than your actual tips, are you still legally required to report the difference? Or is whatever the system reports good enough?

This is so true! My friend who's been serving for years tried to buy a house and couldn't qualify for the mortgage because her reported income was way less than what she actually makes. They wouldn't count her "actual" income, only what was on her tax returns. She was kicking herself for years of underreporting.

Thanks for mentioning this! Do you know how long it typically takes for paper checks to arrive after the IRS approves the refund? Also, is there any way to check if they're sending it as a check vs direct deposit?

Paper checks typically take about 1-2 weeks to arrive after the IRS approves the refund, so you're looking at potentially 6-10 weeks total from filing if they go this route. You can check whether they're sending a direct deposit or paper check by using the "Where's My Refund" tool on the IRS website. Once your return is approved, it should tell you which method they're using for your refund. If it shows they're mailing a check when you requested direct deposit, it's usually because of their security protocols for older returns or when there's a long gap between filing seasons.

Amended returns unfortunately take much longer to process than original returns, even when filed electronically. The current processing time for amended returns (Form 1040-X) is running about 20+ weeks according to the IRS.

Thanks for the info! 20 weeks is a long time to wait. I'm guessing it's even worse since I filed right on the deadline day when they're probably overwhelmed with submissions. Wish I had realized those missed deductions sooner.

I hadn't even thought about that! Did you end up owing money back on those subsidies? Were you still better off filing jointly even with having to repay some benefits?

Yes, we did have to repay about $780 of premium tax credits that my wife had received based on her individual income. However, we still came out about $1,450 ahead overall by filing jointly due to the lower tax brackets, student loan interest deduction, and a higher standard deduction. It's definitely worth doing the math both ways before amending. In most cases, MFJ is better financially, but there are situations where the loss of income-based benefits can offset the tax advantages. I used a tax calculator to compare both scenarios before submitting our amendment.

Unfortunately amendments changing filing status from single to MFJ still need to be paper filed in most cases. I worked as a tax preparer and we had to paper file all of these types of amendments last year. The IRS is slowly expanding what can be e-filed for amendments, but filing status changes especially when adding a whole new person to the return typically require paper filing.

This is actually incorrect information. Traveling from your home to ANY client is considered commuting by the IRS and isn't deductible - even if you have a home office. The only exception is if your home office is your principal place of business AND you're traveling to a temporary work location.

Thanks for the reference! I'll definitely check out Publication 463. I'm trying to understand all the rules before I file my 2025 taxes and want to make sure I'm claiming everything I'm legitimately entitled to without raising any red flags.

I do have email correspondence outlining the scope of work and agreed payment terms, but not a formal signed contract. She sent me spreadsheets tracking which returns I completed and amounts owed, which I've saved. Would these be sufficient documentation for a small claims case? I'm in Texas, which I believe doesn't have a specific tax preparer regulatory board, but I'll definitely look into state-specific options.

Email correspondence can absolutely serve as documentation of your agreement, especially if it clearly outlines the work to be done and the payment terms. Those spreadsheets tracking completed returns will be particularly valuable evidence. For small claims court in Texas, you'd want to compile all communications about the work, evidence that you completed the work (like submission confirmations or acknowledgments from her that she received the completed forms), and documentation of any partial payments already made. Texas small claims (Justice Court) has a limit of $20,000, so your claim would fit well within their jurisdiction.

Really good point. Maybe OP should start by sending a message formally stating they still have access to all these sensitive business details through the shared drive and requesting guidance on proper deletion once payment is received? That creates a paper trail showing they're trying to handle the info responsibly.