Don't some people create LLCs or S-Corps specifically to write off stuff though? I know a guy who has a "consulting business" but seems to write off his car, travel, meals, etc., and I'm pretty sure he only has like 2 clients a year. Is that legal?

The IRS has gotten much more sophisticated with data analytics in recent years. They use algorithms to identify patterns that suggest tax fraud, including businesses that consistently show losses while claiming large deductions against W-2 income. One thing people don't realize is that the IRS cross-references data from multiple sources. If you claim a "travel consulting business" and write off vacations, but they see no business income reported, no business bank account activity, no marketing expenses, no client communications, etc., it paints a clear picture. They also look at lifestyle vs. reported income. If someone making $50K W-2 income is writing off $20K in "business" expenses for luxury items but shows no corresponding business revenue or growth trajectory, that's an obvious audit trigger. The key is that legitimate businesses leave paper trails everywhere - bank statements, client contracts, invoices, marketing materials, business licenses, professional development, etc. Fake businesses created just for tax avoidance lack this ecosystem of supporting documentation. Beyond audits, the IRS can also impose accuracy-related penalties (20% of underpaid tax) or fraud penalties (75% of underpaid tax) plus interest. The risk-reward math just doesn't work out for these schemes.

I went through almost the identical situation with my employer last year! The "select single even though you're married" thing is unfortunately common with older payroll systems that haven't properly updated for the 2020 W-4 changes. Here's what worked for me: I printed out the official IRS W-4 form from irs.gov, filled it out correctly as "married filing jointly" and checked the box in Step 2(c) for two earners, then hand-delivered it to HR with a note saying "Please process this official IRS form as submitted." When they pushed back, I politely but firmly told them that forcing employees to select incorrect filing statuses violates IRS guidelines. The $212 withholding actually might be close to correct given your combined income. With you making $65k total and your husband making $27k, you're looking at roughly $92k household income, which puts you in a higher bracket than what standard withholding tables assume for individual jobs. Don't panic about the underwithholding so far, but definitely address it soon. I'd recommend using the IRS Tax Withholding Estimator to see exactly where you stand for the year, then either increase his withholding even more for the remaining pay periods OR make an estimated tax payment using Form 1040-ES. The next estimated payment deadline is June 15th, but you can pay anytime online through IRS Direct Pay. You've got this - it's frustrating but totally fixable!

I work in payroll for a mid-sized company and unfortunately this Target situation is more common than it should be. Many employers are still using payroll software that wasn't properly updated for the 2020 W-4 changes, so they resort to these workarounds instead of fixing their systems. The "select single when married" advice is absolutely wrong and creates ongoing tax issues. What's happening is their system is likely still using the old withholding calculations that treated "married" as if both spouses don't work, which dramatically under-withholds when you both have income. Here's my professional advice: Request a meeting with both HR and whoever handles their payroll system (often an outside company). Bring a printed W-4 filled out correctly and ask them to explain in writing why they can't process an official IRS form as submitted. Most of the time, this forces them to actually contact their payroll vendor to get it fixed properly. The $212 withholding might actually be correct or even low given your combined $92k income. I'd strongly recommend using the IRS withholding calculator to verify, because you may need even more taken out to catch up for the year. Also, document everything with HR - dates, who you spoke with, what they told you. If this creates problems at tax time, you'll want that paper trail showing you tried to submit correct information.

I work in IT and these transmission errors are often related to network congestion or packet loss. Here's a technical trick that sometimes works: change your DNS settings temporarily to use Google's DNS (8.8.8.8 and 8.8.4.4) or Cloudflare (1.1.1.1). Also try using a wired ethernet connection instead of WiFi if possible. Wireless connections can sometimes drop packets which causes secure transmissions to fail.

I had this exact same issue last year and it was driving me absolutely crazy! What finally worked for me was clearing ALL my browser data (not just cache - cookies, stored passwords, everything) and then logging back into TurboTax fresh. Also make sure you're not using any ad blockers or privacy extensions that might be interfering with the secure transmission. TurboTax uses some pretty strict security protocols that can conflict with certain browser extensions. If you're still stuck, try accessing TurboTax from a completely different device if you have one available - sometimes there are weird local computer issues that cause these transmission problems. Don't give up on e-filing yet! The paper route really will delay your refund significantly.

Just wanted to add that the deadline for amending 2022 taxes would be April 15, 2026 (three years from the original due date) and for 2023 taxes it would be April 15, 2027. So you have plenty of time, but I wouldnt wait too long since you'll want those AOTC years available when you need them.

This is exactly the kind of strategic tax planning mistake that drives me crazy! Your instincts are absolutely correct - your tax preparer should have preserved all four AOTC years for when you'd be paying the big university tuition bills. For those minimal community college expenses ($400-500), the LLC would have been the smarter choice even though it's worth less per year. The math is pretty clear: losing $500-1000 in total tax benefits on those early years to preserve $2500/year AOTC for the expensive university years is a no-brainer. You could be looking at thousands in lost tax savings over your daughter's college career. I'd definitely push your tax preparer to file those amendments at no charge since this was their planning error. Most reputable preparers will stand behind their work and fix mistakes like this. If they push back or try to charge you, that tells you everything you need to know about finding a new tax professional going forward.

This whole thread has been incredibly reassuring! I'm in almost the exact same boat - filed with an old address and have been panicking about whether I'd need to amend everything. It's such a relief to learn that Form 8822 is really all that's needed. One thing I wanted to add that might help others: if you're using tax software like TurboTax or H&R Block, they often have built-in alerts for next year that can remind you to update your address before filing. After going through this stress, I definitely set up those reminders so I don't find myself in the same situation again! Also, for anyone else reading this who's in a similar panic mode - the fact that so many tax professionals in this thread are saying this is routine and common should really put your mind at ease. Sometimes the IRS seems so intimidating that we assume any mistake is catastrophic, but address changes are genuinely no big deal to them.

I'm glad this thread helped so many people! As someone who just went through this exact situation last month, I wanted to add one more practical tip: if you're filing Form 8822 and are concerned about timing (especially if you're expecting your refund soon), consider also updating your address through the IRS online account system at irs.gov if you have one set up. While the Form 8822 is the official way to update your address, the online account can sometimes reflect changes faster for certain types of correspondence. It's not a replacement for filing the form, but it can provide some additional peace of mind while you're waiting for the paper form to be processed. Also, don't forget to update your address with your state's unclaimed property division if you've moved states - sometimes old refunds or credits end up there if they can't reach you at your old address. It's not immediately urgent like the tax stuff, but worth doing eventually to make sure you don't lose track of any money owed to you.