This is such a common concern during PATH processing! That "Information Not Available" message is basically the IRS's way of saying "we're still working on your return" - nothing more, nothing less. The system automatically shows that generic adjustment language whenever a return is in active processing, even though you didn't actually request any adjustments. Your transcript showing $0.00 for 2021-2023 is actually really reassuring - it means your account history is solid and this is just temporary processing status. I know the waiting is brutal when you're expecting your refund, but this INFO notice is completely normal for returns caught up in PATH verification. Should clear up within the next couple weeks once they finish their review! 💪

I'm going through the exact same thing right now and this thread has been such a huge help! 😊 I've been checking my transcript multiple times a day and seeing that "Information Not Available" message for 2024 had me convinced something was wrong. But reading everyone's experiences here really put my mind at ease. It's honestly ridiculous how the IRS phrases things - using words like "adjustment" when they really just mean "we're still processing your return." The fact that you can see clean $0.00 balances for your previous years is definitely a good sign that your account is in good standing. I'm trying to be patient but this PATH waiting period is seriously testing my nerves! At least now I know this is totally normal and not something to panic about. Thanks for posting this question - clearly a lot of us needed the reassurance! 🙏

As a newcomer to this community, I'm really grateful for this comprehensive discussion! I'm in the exact same boat as the original poster - first-time US tax filer completely confused about negative number formatting. After reading through all these detailed responses, I feel much more confident about my approach. The consensus is crystal clear: use parentheses like ($500) consistently throughout the entire return, and avoid mixing different formatting styles. What really helped me was seeing the practical experiences from people who've actually filed returns, rather than just trying to interpret the sometimes contradictory official guidance. I particularly appreciated learning about the differences between what you see during data entry in tax software versus the final formatted PDF - that would have definitely caught me off guard! The advice about K-1 forms and Schedule C losses was also invaluable since I have both situations to navigate. One question I still have: for someone filing both federal and state returns, should I use the same parentheses formatting for negative numbers on state forms, or do different states have their own preferences? I want to make sure I'm being consistent across all my filings. Thanks again to everyone who shared their expertise - this thread has been incredibly helpful for understanding something that seemed so confusing at first!

As a newcomer to this community, I want to thank everyone for this incredibly thorough discussion! I'm also a first-time US tax filer and was completely lost about negative number formatting until I found this thread. After reading through all the responses, I'm confident that using parentheses like ($500) consistently throughout my return is the right approach. What really helped me understand this was seeing how many experienced filers emphasized consistency over any specific format - the IRS can handle different formats, but mixing them within the same return creates problems. I particularly found the discussion about tax software helpful. Knowing that the software might display negatives differently during data entry versus the final PDF would have definitely confused me without this warning! I'm planning to e-file, so it's reassuring to know the software handles the proper formatting automatically. One thing I'm still wondering about - if I need to mail in additional documentation with my e-filed return, should I format any negative numbers in those supporting documents using the same parentheses format to match my return? I want to make sure everything is consistent if an IRS agent is reviewing both the electronic return and the paper documents together. Thanks again to everyone who shared their real-world experiences. This community is such a valuable resource for navigating these confusing tax situations!

I'm so incredibly sorry for your loss, PaulineW. Losing a child is every parent's worst nightmare, and my heart goes out to you during this devastating time. I wanted to share something that might help with your immediate financial stress. Since you mentioned the medical bills are piling up and you're unable to work right now, you should know that many states have emergency assistance programs specifically for families dealing with infant loss. These programs can sometimes help with medical bills, funeral costs, and even temporary living expenses. Also, if you haven't already, please contact the hospital's billing department and explain your situation. Most hospitals are required by law to offer charity care or payment assistance programs, especially in cases of infant loss. They may be able to significantly reduce or even eliminate some of your bills. Don't let them send you to collections without first exploring these options - you have rights as a patient. Regarding the Child Tax Credit, everyone here has given you excellent advice. Just know that you absolutely deserve every benefit available to you, and claiming these benefits honors your son's brief but meaningful life. Please be gentle with yourself. There's no timeline for grief, and handling practical matters like taxes when you can is perfectly okay. Your son's life mattered, no matter how brief, and the system recognizes that too.

I am so deeply sorry for your loss, PaulineW. What you and your family are going through is heartbreaking beyond words, and please know that asking these practical questions doesn't diminish your grief or love for your son - it shows you're being responsible during an impossible time. Everyone here has given you excellent advice about the Child Tax Credit, and I want to emphasize that you absolutely qualify. Your son's life, however brief, matters and the tax code recognizes this. The IRS considers any child born alive during the tax year as eligible for the Child Tax Credit, regardless of how long they lived. I wanted to add a few additional points that might help: 1. When you apply for the posthumous Social Security Number, you can also request expedited processing by explaining your circumstances. The SSA sometimes prioritizes these cases, especially when tax deadlines are involved. 2. Consider speaking with a tax professional who has experience with these sensitive situations. Many CPAs and tax preparers have dealt with similar cases and can guide you through the process with the compassion and expertise you need. 3. If you had pregnancy complications or your son required any medical care during his brief life, all of those expenses can potentially be included in your medical deductions along with your ongoing grief counseling costs. Please take care of yourself first. The financial matters will work out, but your healing is the priority. Your son's brief presence in this world was meaningful, and claiming these benefits is simply part of honoring his life and taking care of your family during this difficult time.

This is really comprehensive advice everyone! As someone who's been through the LLC to S Corp transition myself (different industry though), I'd add one more consideration specific to insurance agents - the potential impact on professional liability insurance costs. When I was researching this for my own business, I discovered that some E&O insurance carriers have different premium structures or coverage requirements based on your business entity type. Since E&O insurance is mandatory for insurance agents and can be a significant expense, it's worth checking with your current carrier before making the S Corp election to ensure there won't be any surprises. Also, @Diego, given that your friend is brand new to the industry, he might want to focus on establishing consistent sales processes and building his client base first before getting bogged down in tax optimization strategies. The administrative burden of S Corp compliance (payroll, quarterly filings, etc.) can be a real distraction when you're trying to learn the ropes of a new business. Once he's got a solid foundation and predictable income flow, then the S Corp election becomes much more straightforward to evaluate. The $100k threshold everyone's mentioning is solid, but having consistent monthly income patterns is almost as important as hitting that dollar amount.

Great discussion everyone! I'm a CPA who specializes in small business taxation, and I've worked with quite a few insurance agents over the years. One aspect I'd add to consider is the timing of the S Corp election itself. If your friend decides to go this route, he needs to file Form 2553 within 75 days of forming the LLC (or by March 15th of the tax year he wants the election to take effect). Missing this deadline means waiting until the following tax year. Given that he's brand new, I'd actually recommend he start with the LLC and focus on understanding his business cash flows first. Insurance agents often have irregular income patterns - big commission months followed by slower periods. This irregularity makes it harder to manage the required payroll obligations that come with S Corp status. Also, since he's solo right now, he should consider whether he plans to hire employees eventually. If so, the S Corp structure might make more sense down the road when he has multiple people to manage payroll for anyway. But for a true solopreneur, the added complexity often isn't worth it until that $100k threshold that others have mentioned. The key is having enough consistent income to justify both the additional accounting costs AND the required regular salary payments to himself as an employee of his S Corp.

All these comments are helpful but I think we're missing something basic - have you talked to your parents about this? Before going to the IRS or using any tools, I'd just sit down with them and go through the actual support calculations together. Show them that you're covering your own rent, food, etc., and calculate what percentage they're actually providing. Many parents just assume they should claim their college students without actually checking the support test requirements.

This is such a common situation and I'm glad you're getting it sorted out! One thing I want to add that hasn't been mentioned much - make sure to keep detailed records of all your expenses and payments going forward. I learned this the hard way when my parents and I disagreed about who was providing more support. Having bank statements, receipts, and a simple spreadsheet showing monthly expenses like rent, groceries, utilities, etc. makes the conversation so much easier and more objective. Also, once you do establish that you're independent, don't forget to update your FAFSA for next year's financial aid. Your expected family contribution will likely be much lower when it's based on your $10k income instead of your parents' income, which could mean significantly more grant money for school. The healthcare piece is huge too - being able to get subsidies based on your own income rather than your parents' can save thousands per year. It's definitely worth having that conversation with your parents this weekend!