I'm going through something similar and this thread has been incredibly helpful! I had a $47 underpayment penalty show up in TurboTax and was equally frustrated about paying for software that didn't prevent this. After reading everyone's advice, I'm definitely going to try calling the IRS about the first-time penalty abatement. My situation sounds exactly like @Nolan Carter's - just regular W-2 income, never had penalties before, and TurboTax never warned me this could happen. One thing I'm curious about - for those who successfully got the penalty removed, how long did it take for the IRS to actually process the abatement? I want to make sure I don't accidentally pay the penalty while waiting for their decision. Also, has anyone tried updating their W-4 withholding mid-year to prevent this from happening again? I'm wondering if I should increase my withholding now for 2025 or wait until I talk to the IRS agent.

This whole thread has been a goldmine of information! I'm dealing with a $38 underpayment penalty from TurboTax and was ready to just pay it out of frustration, but now I'm definitely going to try the first-time penalty abatement route first. What really gets me is that I've been using TurboTax for 5 years and this is the first time this has happened. You'd think after all that data they have on my filing patterns, they could have given me some kind of heads up during last year's filing that I might be cutting it close on withholding. I'm also planning to use that IRS withholding calculator someone mentioned to adjust my W-4. Better to have them take a little extra each paycheck than deal with this surprise penalty nonsense again next year. Thanks everyone for sharing your experiences - especially about the Claimyr service for actually getting through to the IRS. Those hold times are absolutely brutal!

One thing nobody has mentioned yet - make sure you check if you qualify for any tax credits for those years you didn't file, especially if you had a lower income. The Earned Income Tax Credit can be substantial if you qualify. You could be leaving a lot of money on the table beyond just your withholding refunds.

Don't beat yourself up about this - you're definitely not alone! I went through something similar a few years back and it felt overwhelming at first, but it's really not as complicated as it seems. One tip that helped me: when you're gathering your documents, also check if you made any estimated tax payments during those years (like if you did any freelance work or had other income). Those payments can add to your refund too, but they're easy to forget about. Also, if you're worried about the process, you might want to start with just one year to get comfortable with how it works before tackling all of them. Many people find that once they do the first return, the rest feel much more manageable. The important thing is you're taking action now. That's what matters most!

Your probably gonna see it next week or the week after. 05 usually means everything else is straight and their just finishing up. Unless you got other codes that need to clear first

Congrats on getting the 05 cycle! That's definitely progress. From what I've seen in this community, most people with 05 cycles see their 846 code within 2-3 weeks, but it really depends on if you have any other issues on your account. Check your transcript Friday mornings since that's when the weekly updates typically post. Fingers crossed you see that 846 soon! 🤞

For anyone still struggling with this, I recorded a quick walkthrough of how to enter stock transactions in FreeTaxUSA: 1. Go to the Federal section 2. Click on Income 3. Scroll down to "Investments" 4. Select "Stocks, Bonds, etc. (Schedule D and Form 8949)" 5. Choose the correct Form 8949 type (usually Box A or B for most brokerage accounts) 6. Enter each transaction individually For meme stock losses specifically, make sure you're tracking your basis correctly. If you bought in multiple batches at different prices, each purchase needs to be tracked separately. Good luck to everyone dealing with their losing meme stocks! At least the tax deduction takes some of the sting out...

Great thread everyone! As someone who also got caught up in the meme stock craze, I can relate to the confusion about reporting these losses. One thing I'd add is to double-check that you're not accidentally mixing up short-term and long-term capital losses in FreeTaxUSA. Most meme stock trades were probably held for less than a year (short-term), so they should go in the short-term section of Schedule D. Short-term losses first offset short-term gains, then long-term gains, and finally up to $3,000 can be deducted against ordinary income. Also, keep good records of everything you enter - screenshot your completed forms before submitting. If you get audited later (unlikely but possible), you'll want to be able to show exactly how you calculated everything. The IRS loves documentation!

Just FYI, since your income is so low, you might not even be required to file taxes at all. But you should definitely still file because if you had ANY taxes withheld from your paychecks you'll get all of that back as a refund since you won't owe any taxes. Look at your W-2 form in box 2 - if there's any amount there, that's money you'll get back!

Be careful with claiming the standard deduction if anyone can claim you as a dependent! If your parents are claiming you on their taxes, the rules are different. Are you a dependent on someone else's return?