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Double check it's not an advance payment on your 2025 tax refund. With two jobs, you might be having too much tax withheld if you didn't adjust your TD1 forms properly. The CRA sometimes makes adjustments mid-year if they detect significant overwithholding. Happened to a friend of mine last year!
CRA doesn't do automatic mid-year refunds for overwithholding - they only refund after you file your taxes. More likely to be a benefit payment. Source: I work in payroll.
I'd recommend checking your CRA My Account first - that's your best bet for getting a definitive answer without waiting on hold. Look under "Benefits and Credits" to see if there are any recent payments listed with explanations. The timing of starting your second job is likely relevant. When employers submit your employment information to CRA, it can trigger automatic benefit calculations. Since you mentioned it's labeled "fed-prov/terr Canada," it's almost certainly a legitimate government benefit - either GST/HST credit, Canada Workers Benefit, or a provincial supplement you qualify for. Keep the money separate until you confirm what it is, but don't stress too much. These surprise deposits are usually benefits you're actually entitled to receive based on your tax filing and current income situation.
This is really helpful advice! I'm dealing with something similar right now - got a deposit last week that I can't figure out. The CRA My Account suggestion is perfect because I keep forgetting that exists. Quick question though - when you log into My Account, how quickly do these benefit payments usually show up there? Like if I got the deposit yesterday, would it already be listed today or does it take a few days to update?
Anyone know if the tax prep software like TurboTax or H&R Block can handle this situation properly? I have a similar issue but already started my return in TurboTax.
I had this exact situation last year using TurboTax. There's actually a section where you can indicate that you're entering information from a corrected W-2 or W-2c. When you go to enter a W-2, there should be a question asking if this is a corrected form. Say yes, and it'll guide you through the process. For amending the previous year, they have a separate amendment section that walks you through the 1040-X process. You'll need to enter both the original information and the corrected information. It's pretty straightforward!
This is a really helpful thread! I'm dealing with a similar situation where my employer issued replacement W-2s but didn't mark them as corrections. Reading through all the responses, it sounds like the key points are: 1. Employers should issue W-2c forms, not just new W-2s 2. Keep documentation of both original and corrected forms 3. For amended returns, use Form 1040-X with explanation 4. Follow up with employer to ensure they file proper W-2c with SSA I'm curious though - if our employers don't cooperate and won't issue proper W-2c forms, can we still file our returns with the corrected information? Or do we need to wait for them to fix their process first? I don't want to delay my filing but also don't want to create problems with the IRS matching system. Also wondering if anyone knows how long employers have to correct their filing with the SSA once they realize they made an error?
I went through this same situation two years ago and can confirm what others have said - your current tax refund is completely safe! Unemployment benefits you receive in 2024 won't affect your 2023 tax return at all. Just want to emphasize what several people mentioned about having taxes withheld from your unemployment payments. I made the mistake of not doing this thinking I'd find work quickly, but ended up on unemployment for 8 months. Come tax time, I owed about $1,200 in federal taxes plus penalties. It was a real shock since I was used to getting refunds. Most states let you elect tax withholding right when you apply, or you can change it later through their online portal. The 10% federal withholding might seem like a lot when you're already getting reduced income, but trust me, it's way better than dealing with a massive tax bill later when you're hopefully back on your feet. Also, keep all your job search records - travel expenses, interview costs, resume services, etc. Some of these might be deductible depending on your situation. Good luck with the job hunt!
Thanks for sharing your experience! The $1,200 tax bill plus penalties sounds absolutely brutal. I'm definitely going to request the 10% withholding right when I apply - better to have a smaller unemployment check than get hit with a massive surprise later. I didn't know about being able to deduct job search expenses either, that's really good to know. I'll make sure to keep receipts for any interview travel or resume help I get. Really appreciate the detailed advice from someone who's been through this whole process!
I'm currently on unemployment and can add some perspective here. Your 2023 tax refund is completely separate from any unemployment benefits you'll receive in 2024 - they won't interact at all. The IRS processes your tax return based solely on what happened in 2023, so go ahead and file with confidence. However, I want to echo what others have said about tax withholding on unemployment benefits. When you apply, you'll likely see an option to have federal taxes withheld (usually 10%). I strongly recommend choosing this option. Unemployment benefits are fully taxable income, and if you don't have taxes withheld, you could end up owing a significant amount next April. One more tip - if your state has an online unemployment portal, you can usually change your tax withholding election even after you've started receiving benefits. So if you forget to elect it initially, you can still add it later. Better to have slightly smaller weekly payments now than a nasty surprise on your 2024 tax return!
Quick question - does anyone know if the tenants themselves could get in trouble for paying rent to someone they know isn't reporting the income? My sister is in a similar situation with her landlord who openly says he doesn't report rental income.
As someone who works in tax compliance, I want to emphasize that reporting suspected tax fraud is actually a civic duty that helps ensure everyone pays their fair share. The fact that this landlord openly admits to not reporting income and keeping things "off the books" makes this a pretty clear-cut case. One thing I'd add to the excellent advice already given - when you file Form 3949-A, be as specific as possible about dates, amounts (if known), and include copies of any evidence like those money order photos the tenants have. The more documented evidence you can provide, the stronger the case will be. Also worth noting that rental income tax evasion often involves other violations too - like not paying proper business taxes, employment taxes if they have maintenance staff, or even local occupancy taxes. The IRS investigation may uncover additional issues beyond just the unreported rental income. Don't feel bad about reporting this - tax evasion hurts everyone by shifting the burden to honest taxpayers and reducing funding for public services we all depend on.
You can definitely file a report based on what you know directly - the landlord's verbal admissions about not reporting income are actually valuable evidence on their own. The IRS is experienced at investigating these cases and will know how to gather additional documentation if needed. That said, it would be even stronger if the tenants filed their own reports as well, since they have the direct financial records. You could suggest they consider reporting it too, but don't feel like your report isn't worthwhile without their participation. When multiple people report the same individual, it actually strengthens the case significantly. The IRS sees a pattern of consistent information from different sources, which adds credibility to the allegations. For your report, focus on: the specific statements you heard the landlord make about not reporting income, approximately when these conversations occurred, the landlord's full name and address, and an estimate of how many rental properties they own. Even without exact dollar amounts, this gives the IRS a solid starting point for their investigation.
Thank you for this professional perspective! I'm curious about the whistleblower award program you mentioned earlier in the thread. Since this landlord owns multiple properties and has been openly evading taxes for years, this could potentially involve significant unpaid taxes. Do you have any insight into what constitutes "significant" amounts for whistleblower awards? And is there any downside to filing Form 211 instead of just Form 3949-A if you think the case might qualify? Also, from a compliance perspective, how common is rental income tax evasion? This landlord seems to think it's normal and that "everyone does it" but I have a hard time believing that's actually true.
Jacinda Yu
You're absolutely right to be concerned about this situation - what you're describing is textbook worker misclassification. The fact that they're controlling your schedule, requiring you to work set hours without breaks, and paying a "daily rate" specifically to avoid labor law compliance are all major red flags. For anonymous reporting, Form 3949-A is your best option with the IRS. You can file it online or by mail without providing your personal information. Focus on documenting the control factors: do they set your schedule, tell you how to do the work, provide equipment, require you to be there during specific hours? These are the key tests the IRS uses. The timing actually works in your favor - three weeks is enough to observe their patterns, and the fact they haven't collected your SSN or had you complete proper contractor paperwork actually supports your case. Legitimate contractor relationships require upfront tax documentation. Don't forget about your state labor department too. They often move faster than the IRS on wage/hour violations, and the "no breaks" issue is a clear labor law violation in most states. Both agencies protect reporter anonymity. Keep documenting what you can observe naturally - schedules, supervision methods, equipment use - but don't put yourself at risk. Your safety and anonymity are more important than gathering perfect evidence. Even your testimony about the working conditions is valuable to investigators. You're protecting yourself and future workers by reporting this. These schemes hurt everyone except the business owners who are breaking the law.
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Brandon Parker
ā¢This is exactly the kind of comprehensive advice I was hoping for! I really appreciate you breaking down the specific control factors that the IRS looks at. It makes me feel more confident that what I'm observing really is problematic and worth reporting. The point about the missing SSN/tax paperwork being evidence in itself is something I hadn't considered - that actually makes me feel like my short time there isn't a weakness in my case after all. I'm definitely going to file both the IRS form and contact my state labor department. Having two agencies aware of the situation sounds like it would increase the chances of actual action being taken. Thanks for emphasizing the safety aspect too. I was getting a bit obsessed with gathering "perfect" evidence, but you're right that my observations and testimony are already valuable without putting myself at risk of discovery.
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Harper Collins
Having been through a similar situation myself, I can tell you that your instincts are absolutely correct - this is classic worker misclassification. The combination of controlled schedules, daily rates to circumvent break requirements, and the lack of proper tax documentation creates a very strong case for the IRS. Here's what I'd recommend for your anonymous report: **IRS Reporting:** File Form 3949-A online or by mail. Focus on the control factors: they set your schedule, supervise how you work, provide equipment, and require specific hours. The fact they haven't collected your SSN after 3 weeks actually strengthens your case - legitimate contractor relationships require upfront tax documentation. **State Labor Department:** Don't overlook this! The "no breaks during 9-10 hour shifts" is a clear labor law violation in most states. State agencies often move faster than the IRS and take wage theft seriously. Most have anonymous tip lines. **Documentation:** Keep notes at home about schedules, supervision, equipment use, and any conversations about the payment arrangement. Even 3 weeks of observations show the pattern investigators need. **Timing:** Report sooner rather than later. Waiting longer risks them becoming suspicious, and you've already observed enough to establish their practices. Both agencies legally protect whistleblower identities, so your anonymity should be secure. You're not just protecting yourself - you're helping future workers and ensuring tax law compliance. The family atmosphere doesn't excuse illegal business practices.
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Natalia Stone
ā¢This is incredibly thorough advice - thank you! I'm feeling much more confident about moving forward with this now. The way you've broken down the specific steps and emphasized both the IRS and state reporting makes it feel manageable rather than overwhelming. One quick follow-up question: when you went through your similar situation, did you end up facing any kind of retaliation or problems even though the reporting was supposed to be anonymous? I know legally they're supposed to protect whistleblower identities, but I'm still nervous about a small family business somehow figuring out it was me, especially since I'm planning to quit soon after reporting. Also, do you think it's better to submit the reports before I quit or after? I'm worried that quitting right around the time they get investigated might make it obvious who reported them.
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