Has anyone calculated how much extra you might be paying in taxes because of this? Like if you're getting taxed on an extra $50 per shift that you're not actually getting, that adds up to thousands over a year!

This is a really common issue in the restaurant industry, and you're absolutely correct to be concerned. The IRS requires that tip income reported on your W-2 matches what you actually received, not what the POS system initially allocated. Your employer needs to implement a proper tip pooling adjustment in their payroll system. Many modern POS systems have tip pooling features that can handle this automatically, but if yours doesn't, they need to manually adjust the allocations before processing payroll. Here's what I'd recommend: Document everything for at least 2-3 weeks (your readings vs actual take-home), then present this to management with a clear explanation of the tax implications. If they don't understand or refuse to fix it, you can contact your state's Department of Labor or file Form SS-8 with the IRS to get an official determination on proper tip reporting procedures. Also keep in mind that if this has been going on for 8 months, you may be able to file amended tax returns to recover any overpaid taxes from previous years. The IRS allows amendments up to 3 years after the original filing date.

Since you're filing jointly, I've found it easiest to just enter everything once and let the software handle it. No need to split anything manually between you and your spouse. The tricky part is tracking everything correctly for future years. Keep separate folders for receipts that are 100% rental (like repairs only in the tenant's area) vs. shared expenses that need to be prorated. It'll save you hours next tax season!

Just wanted to add something that helped me when I was in a similar situation - make sure you're aware of the "home office" vs "rental property" distinction. Since you're renting out 40% of your home, that portion is treated as rental property (Schedule E), not a home office deduction (Form 8829). This means you can deduct things like advertising costs to find tenants, rental management fees, and even mileage for trips related to the rental property. Also, if you have any startup costs for getting the rental ready (like painting or minor repairs before the first tenant moved in), those might be deductible too. One more tip - if you're planning to do this long-term, consider opening a separate bank account just for rental income and expenses. It makes tracking so much easier and looks more professional if you ever face an audit.

This thread has been incredibly helpful! I've been in a similar situation where I witnessed what I believe to be significant tax evasion but didn't have access to the person's SSN. Reading through everyone's experiences has given me the confidence to move forward with filing Form 3949-A. What really stands out to me is how many people have successfully submitted these forms without SSNs and actually received acknowledgment from the IRS. The key seems to be providing as much detail as possible in the sections you can complete - names, addresses, specific violations, timeframes, and estimated amounts. I particularly appreciate the advice about including supporting documentation. I have some business records and communications that could help the IRS identify the individual and understand the scope of the suspected violations. It's good to know that even without the SSN, these additional materials can strengthen the report. Thanks to everyone who shared their real experiences - it's made all the difference in understanding that this is a normal part of the process, not a fatal flaw in my reporting attempt.

I've been following this thread closely because I'm in almost the exact same situation with a contractor who I'm pretty sure isn't reporting cash payments. Reading everyone's experiences has been so reassuring - I was convinced the form would be useless without an SSN. What strikes me most is how the IRS clearly designed this system expecting that regular citizens wouldn't have access to sensitive tax information like SSNs. The "if known" language on the form makes so much more sense now. I'm taking notes from all the specific advice shared here, especially about focusing on the violation description section and including estimated dollar amounts with explanations of how I arrived at those figures. I have records of several cash transactions and some photos of expensive purchases that don't align with their claimed income level. One question for those who've been through this process - should I mention in my report that I don't have the SSN but explain why my other identifying information should be sufficient? Or just leave those fields blank without explanation?

I went through a very similar situation last year with multiple stipend sources and want to share what I learned the hard way. For your $400/month volunteer stipend, the IRS looks at substance over form. Even if they call it "expense reimbursement," if you're getting a flat amount regardless of actual costs, it's likely taxable income. I made the mistake of not tracking my real expenses and assumed the whole thing was tax-free - ended up owing back taxes when audited. Here's my practical advice: Start a simple expense log immediately. Note actual mileage, meal costs, and any other volunteer-related expenses. If your real costs average less than $400/month, you'll need to report the excess as income. For those summer fellowships - definitely taxable and you'll want to make quarterly payments. I learned this lesson when I owed $4,800 in taxes plus $600 in penalties because I waited until year-end to pay. The organizations often don't send proper tax forms either, so keep your own records of every payment. One thing that really helped me was opening a separate savings account just for tax money. Every time I got a stipend payment, I immediately transferred 25% to that account and didn't touch it. Made tax season much less stressful. Also, if you're doing multiple fellowships, double-check that you're not accidentally exceeding income limits for any benefits you receive (like health insurance subsidies or student aid). I almost lost my Pell Grant eligibility because I didn't realize fellowship income counted toward those calculations.

This is such a comprehensive discussion! As someone who just started dealing with stipends myself, I wanted to add a few practical tips that might help others in similar situations. First, don't assume the organization knows the correct tax treatment just because they're established. I received conflicting advice from three different departments at my university about fellowship taxation. The financial aid office, HR, and the fellowship coordinator all gave me different answers about the same stipend program. Second, if you're applying for multiple fellowships/internships, ask upfront about their tax reporting practices during the application process. Some organizations are great about providing clear guidance and proper tax forms, while others leave you completely in the dark. This can help you plan better for tax obligations. For expense tracking with volunteer stipends, I use a simple smartphone app to log mileage and take photos of receipts immediately. It takes about 30 seconds per expense but creates a timestamped record that would hold up under scrutiny. One thing I haven't seen mentioned yet: if you have student loans, stipend income can affect your income-driven repayment calculations. I had to recertify my income mid-year when my fellowship pushed me into a higher payment bracket. Something to keep in mind for anyone with federal student loans. The key lesson I've learned is to be proactive rather than reactive with stipend taxation. It's much easier to track everything properly from the start than to try to reconstruct records later for tax filing or potential audits.

I'm dealing with this exact same issue right now! Got my 1099-R yesterday and it's showing the full distribution amount in box 1 with code 4D, but boxes 2a and 5 are completely blank. I've been contributing to this nonqualified annuity for about 6 years and know I shouldn't owe taxes on all of it. Reading through everyone's responses here has been super helpful. I think I'm going to try contacting the insurance company first to see if they'll issue a corrected form, but if that takes too long I'll calculate my own cost basis from my records. I've kept all my statements showing contributions over the years, so I should be able to figure out exactly how much I put in versus earnings. Thanks for posting this question - it's reassuring to know I'm not the only one dealing with this frustrating situation!

This is such a common and frustrating issue with nonqualified annuities! I dealt with something very similar last year and can offer some perspective from someone who's been through the whole process. First, you're absolutely correct that you shouldn't pay taxes on your principal - only on the earnings portion. The insurance company definitely dropped the ball by not filling in boxes 2a and 5 properly. Box 5 should show your total investment (cost basis) and box 2a should show only the taxable earnings portion. Here's what I'd recommend based on my experience: Start by gathering all your annuity statements and contribution records to calculate your total cost basis. Then contact the insurance company and firmly request a corrected 1099-R - don't take "no" for an answer initially. However, don't let their timeline dictate your filing deadline. If they can't get you a corrected form quickly enough, you can absolutely file using your own calculated cost basis. Most tax software will allow you to override the 1099-R when you indicate that the taxable amount wasn't calculated correctly. Just make sure to keep excellent documentation showing how you arrived at your cost basis calculation. I ended up having to file with my own calculations because my insurance company took forever, and I had no issues with the IRS. The key is having solid records to back up your numbers if ever questioned.