This is super frustrating but totally normal! I went through the exact same thing last year. The "review" message showed up for about 3 weeks, then completely vanished and my status reset to the beginning. I was convinced something went wrong, but my refund actually hit my account just 5 days after the message disappeared. The IRS systems are notorious for these confusing status changes. When that review message disappears, it usually means they've finished whatever internal process they were doing and your return is moving forward in the queue. The fact that it reset to the first stage is actually pretty common - their system architecture is ancient and doesn't handle transitions between departments very smoothly. Since you haven't received any letters asking for additional documentation, you're probably in the clear. Just keep an eye on your bank account over the next week or two. The $3400 should show up soon!

Don't panic! This exact scenario happened to me in 2023. The "We're reviewing your tax return" message appeared for about 3 weeks, then vanished completely and the status bar reset like yours did. I was convinced something had gone horribly wrong, but it turned out to be totally normal. What's likely happening is your return moved from one IRS processing center to another, or from the review department back to regular processing. Their ancient computer systems don't communicate well with each other, so the WMR tool gets confused and resets. Since you haven't received any CP letters in the mail requesting additional information, you're probably fine. In my case, I got my refund about 10 days after the message disappeared. The reset status bar is misleading - your return is still being processed, just not where the WMR tool can track it properly. I'd suggest checking your bank account regularly over the next 1-2 weeks. Your $3400 should hopefully show up soon! The IRS systems are frustrating but they usually get there in the end.

Has anyone used TurboTax Self-Employed for handling all the vehicle and equipment deductions? I've been using it for my lawn care business but not sure if it covers all these contractor-specific deductions properly.

Just wanted to add my perspective as someone who went through this exact decision last year. I was doing 1099 work in construction and had similar big equipment purchases coming up. The key thing I learned is that the tax deductions are identical between sole prop and single-member LLC - you'll file Schedule C either way. The LLC really is mainly for liability protection, which became important for me once I started bringing in subcontractors occasionally (sounds like you do this too). For your truck and equipment, you can absolutely write these off even if they create a loss. I used Section 179 to deduct my truck and most equipment purchases in year one rather than depreciating over time. Just make sure you can document the business use percentage if you use the truck for any personal driving. One practical tip: if you're planning to show a loss this year due to equipment purchases, make sure you have good records showing this is a legitimate business operation and not a hobby. The IRS looks more closely at businesses showing losses in early years. Keep contracts, business plans, marketing materials, anything that demonstrates profit intent. The liability protection of an LLC became worth it for me once I realized how much exposure I had with expensive equipment and occasional subcontractors. The annual fees vary by state but for me it was worth the peace of mind.

Quick question - I'm in a similar situation but I used a regular credit card (not 0% financing). Do I still deduct the full cost in year 1 even though I'm carrying some of the balance to next year? And what about the interest on the credit card - is that separately deductible?

This thread has been incredibly helpful! I'm dealing with a similar situation but with a different twist - I financed a desktop computer setup (monitor, tower, peripherals) through Best Buy's 0% financing for 18 months. The total was around $3,200 and it's 100% business use for my consulting work. Reading through all the responses, it sounds like I can take Section 179 for the full amount in year 1 even though I'm making monthly payments. But I'm wondering - since this was multiple items purchased together as a "bundle," do I need to depreciate each component separately or can I treat the whole setup as one business equipment purchase? The receipt shows individual prices for each item but they were all financed together under one agreement. Also, @Hannah White mentioned keeping good documentation - would the financing agreement and receipts showing the business purpose be sufficient, or should I be doing something additional to prove exclusive business use?

Just want to add about the Box 13 checkbox - it's super important for your overall tax situation! If that box isn't checked and you're actually covered by a retirement plan, you could accidentally claim deductions for traditional IRA contributions when you're not eligible. That can result in penalties later if the IRS catches it. I learned this the hard way a few years ago when my S Corp made SEP contributions but my accountant didn't communicate it to my payroll provider. The box wasn't checked, I contributed to a traditional IRA and took the deduction, and ended up having to file an amended return and pay penalties.

This is such a helpful discussion! I'm in a similar boat with my S Corp and was getting confused by all the different rules. One thing I'd add that helped me understand the loss situation better - think of the SEP contribution as just another payroll expense, like your regular salary. The fact that your business shows a loss doesn't prevent you from paying yourself wages, and it doesn't prevent you from making retirement contributions based on those wages either. The loss might actually be partially due to the salary and SEP contribution expenses themselves! For what it's worth, I've been making SEP contributions for three years now, including one year where my S Corp had a small loss, and never had any issues with the IRS. The key is just making sure you have the cash flow to support it and that your contribution doesn't exceed 25% of your W-2 wages. Your math on the $13,500 salary and $3,375 contribution looks spot on. Just make sure to coordinate with your payroll company about that Box 13 - it really does matter for your personal tax situation down the road.

Has anyone gone through a similar situation where they went exempt for a short period? Did you end up getting hit with penalties too or just the amount you didn't pay during the exempt period?

I went through almost the exact same situation last year! Went exempt for about 3 weeks in July when I had some unexpected medical bills, then switched back to normal withholding. Ended up owing around $480 at tax time. The confusing part for me was also that the IRS website didn't show anything initially - it took about 3 weeks after filing for my account to update and show the balance. That "adjustment" message is just their way of saying they're still processing your return. Your $650 amount sounds totally reasonable for a month of exempt status, especially if you're in a higher tax bracket. The good news is you shouldn't face any penalties since it's under $1,000. I'd recommend double-checking your tax return to make sure all your W-2 info and deductions are correct, but honestly it sounds like your preparer did everything right. Going exempt doesn't make the taxes disappear - you still owe them, you just didn't pay them upfront through payroll deduction.