I'm experiencing the exact same frustrating situation! Filed my Form 843 in late January for FICA taxes that were incorrectly withheld from my remote work as a technical writer. My client's payroll system automatically classified me as a W-2 employee when I should have been treated as an independent contractor, resulting in about $1,600 in incorrect FICA withholding. It's now been nearly 5 months with absolutely zero communication from the IRS. Like everyone else here, I've been checking my online transcripts monthly hoping to see any indication of progress, but there's literally nothing there about Form 843 processing. I've also tried calling the IRS customer service line twice but gave up after waiting on hold for over 2 hours each time. What's most frustrating is the complete lack of transparency in this process compared to regular tax refunds. At least with standard refunds you get basic status updates, but Form 843 claims just vanish into a bureaucratic black hole once submitted. Reading through everyone's experiences here has been both reassuring and concerning - reassuring to know that 6-9 month wait times are unfortunately normal right now, but concerning that there's essentially no recourse during this entire period. I'm definitely planning to contact the Taxpayer Advocate Service once I hit the 6-month mark if I haven't received any updates by then. Based on what others have shared, they seem to be our best option for getting real visibility into these claims and potentially expediting cases that have been stuck in processing limbo too long. Thanks to everyone for sharing their timelines and experiences - it really helps to know this is a widespread systemic issue rather than something specific to my case!

I'm also dealing with this same frustrating situation! Filed my Form 843 in early March for FICA taxes that were incorrectly withheld from my part-time work as a graduate research assistant. The university's payroll department made an error and didn't recognize my student exemption status, so they withheld about $1,300 in FICA taxes that I shouldn't owe. It's been about 3.5 months now with complete silence from the IRS, and like everyone else here, I've been obsessively checking my online transcripts hoping to see some progress indicator, but there's absolutely nothing. I tried calling the IRS twice but gave up after being on hold for hours without getting through to a human. Reading through all these experiences has been incredibly helpful - it's both reassuring and frustrating to see that 6-9 month processing times seem to be the unfortunate norm right now, regardless of how straightforward the case appears. The complete lack of any tracking system for Form 843 claims is really maddening compared to regular refunds where you at least get basic status updates. I'm definitely going to keep the Taxpayer Advocate Service in mind once I hit that 6-month mark. Based on everyone's shared experiences here, they seem to be our only real option for getting actual information about what's happening with these claims and potentially getting cases unstuck from processing limbo. Thanks to everyone for sharing their timelines and experiences - it really helps to know this massive delay is a systemic issue affecting so many people rather than something wrong with my specific paperwork!

This is really helpful information everyone! As someone new to the small business world, I've been wrestling with similar questions about what I can deduct for my consulting business. From reading through all these responses, it sounds like the main factors are: 1) primarily for business use, 2) wouldn't normally wear outside work, and 3) good documentation. The branded polo shirts for your music school seem like they'd clearly qualify since they serve both identification and marketing purposes during lessons and recitals. I'm curious though - for those who have been through audits, did the IRS actually ask to see photos of the clothing items themselves, or were receipts and explanations sufficient? I want to make sure I'm keeping the right kind of documentation from the start. Also @Zainab Ibrahim, have you considered getting a few different styles? Maybe some more "uniform-like" pieces (like branded polo shirts) that are clearly work attire, and then a few promotional items (like t-shirts or jackets) that you could also give to employees or use for marketing events? That might give you even stronger justification for the deduction.

This has been such a helpful discussion! I'm dealing with a similar situation for my consulting business where I have branded button-down shirts and blazers with my company logo that I wear to client meetings and conferences. One thing I've learned from my CPA is that keeping a simple log can really strengthen your case. I track when and where I wear each branded item - like "March 15: Client presentation at ABC Corp" or "March 20: Industry conference networking event." It takes maybe 30 seconds per entry but creates a clear paper trail showing business use. For those asking about audit documentation, my CPA said the IRS typically wants to see that you can demonstrate the items were purchased specifically for business use and that you actually use them that way. Photos are great, but a usage log plus receipts showing you bought multiple identical items (rather than just one shirt you might wear personally) can be even more convincing. @Zainab Ibrahim - your music school situation sounds like a textbook case for deductible clothing. The fact that you're wearing logo shirts specifically to identify yourself to parents and venue staff during recitals shows clear business necessity beyond just general marketing.

This is exactly why I always keep a backup plan during tax season! I've been using FreeTaxUSA for three years now and every April it's the same story - their servers get overwhelmed. For anyone still stuck, here's what worked for me last night: I tried logging in through an incognito/private browser window around 2AM and it went right through. Sometimes their session management gets confused with cached data from failed login attempts. Also, if you're really in a crunch and need to file by the deadline, remember you can always file for an automatic 6-month extension using Form 4868. It doesn't extend the time to pay any taxes owed, but it gives you until October to actually submit your return without penalties. Takes the pressure off these server issues! Hope everyone gets their returns submitted successfully. The good news is FreeTaxUSA usually gets these issues sorted out within 24-48 hours once they identify the bottlenecks.

I ran into the exact same issue last night around 9 PM! Kept getting that "Process Failure" message even though the homepage loaded fine. What finally worked for me was switching to a different browser entirely - I had been using Chrome but Firefox got me right in. It's definitely frustrating when you're trying to meet the deadline, but at least it seems like a temporary server capacity issue rather than anything more serious. I've noticed FreeTaxUSA tends to have these hiccups every year during the final weeks of tax season when everyone's scrambling to file. For anyone still having trouble, I'd recommend trying: 1) Different browser, 2) Clearing all cookies/cache, 3) Trying during off-peak hours (early morning seems to work best), or 4) The mobile app as others mentioned. Your data should be safe since it's just the login servers that are overwhelmed. Glad to see from your edit that you got back in around 12:45 AM! Hopefully they'll have the capacity issues sorted out soon.

Just wondering - have you considered waiting until next year to sell some of the shares? If you hold them in your brokerage account for a year before selling, wouldn't that remove any confusion about the long-term status?

Great thread! I'm going through a similar situation with my NUA distribution. One thing I'd add is to make sure your former employer properly coded the distribution on their end too. I found out the hard way that if the 401k administrator doesn't mark it correctly as an "NUA-eligible distribution," it can create problems downstream even if you do everything else right. The distribution needs to be part of a "qualifying event" (like retirement or separation from service) and needs to be a lump-sum distribution of your entire account balance within one tax year. Also, double-check that you didn't accidentally have any company stock in a Roth 401k portion - those shares don't qualify for NUA treatment and need to be handled differently. The rules are pretty strict about what qualifies, so it's worth confirming all the boxes are checked before you start selling shares. The good news is once it's done correctly, you'll have a lot more flexibility in managing your tax burden when you do decide to sell!

I went through this exact same situation last year and can confirm your software is correct! Schedule C losses absolutely can offset W-2 income - it's one of the legitimate tax benefits of running a business, even when you're starting out. The confusion you're experiencing is super common because many people think business and employment income are completely separate for tax purposes, but they're not. Your total income on your 1040 includes both your W-2 wages AND your Schedule C business income (or loss). When you have a business loss, it reduces your overall adjusted gross income. Just keep detailed records of all your business expenses and activities. The IRS wants to see that you're operating with a genuine profit motive - which it sounds like you are since you invested in equipment and were actively trying to generate revenue. Starting businesses often have losses in their early years due to startup costs, and that's completely normal and expected. Your $2.7k loss reducing your taxable income is legitimate and could save you several hundred dollars in taxes depending on your bracket. Don't worry about filing incorrectly - you're doing this right!

I'm dealing with a very similar situation and this discussion has been incredibly helpful! I started a small online tutoring business this year while working my regular teaching job. Between setting up my website, buying equipment, and getting certified in additional subjects, I spent about $3,200 but only earned $900 in revenue. I was really worried that trying to deduct this $2,300 loss would be a red flag to the IRS, but reading everyone's experiences here has given me much more confidence. It sounds like as long as I'm genuinely trying to build a profitable business (which I am - I've been actively marketing and already have several students lined up for next year), then these startup losses are completely legitimate. One thing I'm curious about - does anyone know if there are specific documentation requirements for proving business intent? I've been keeping all my receipts and tracking my time, but I want to make sure I'm covering all the bases in case of an audit. Thanks to everyone who shared their experiences - it's so valuable to hear from people who've actually been through this process!