I've been following this thread and wanted to add something that might help with the transcript confusion - the IRS actually has a pretty detailed publication (Pub 5307) that explains how to read wage and income transcripts. It maps out exactly what each code means and which boxes on your W-2 they correspond to. What really helped me when I was in a similar situation was printing out both the transcript and this publication, then going line by line to make sure I understood what each entry meant before entering anything on my tax forms. The transcript codes can be really confusing (like "WH-FIT" for federal income tax withheld), but once you have the decoder it becomes much clearer. You can download Pub 5307 directly from the IRS website. It's only about 6 pages long but it saved me from making some costly mistakes when I was trying to file with just my transcript. Just thought this might be useful for anyone else dealing with transcript interpretation issues!

As someone who's dealt with this exact situation multiple times, I want to emphasize that you're definitely on the right track with the wage and income transcript - it's completely acceptable for federal filing and contains all the key information the IRS needs. One thing I haven't seen mentioned yet is that if you're really pressed for time and can't get your state withholding information sorted out, you might want to consider filing your federal return first using the transcript data, then handling your state return separately once you track down that information. Many states have later deadlines than the federal April 15th deadline anyway. Also, for future reference, I'd highly recommend setting up an online account with your state's tax agency if they offer one. Many states now provide digital access to your withholding information similar to how the IRS provides transcripts. It's one of those things that seems obvious in hindsight but can really save you in situations like this. The main thing is don't panic - you have several good options here and the IRS understands that sometimes documents get lost. The transcript route is legitimate and widely used by tax professionals when clients are missing their W-2s.

I went through this exact same nightmare about a year ago! My business partner and I made the same mistake - checked "corporation" instead of "LLC taxed as partnership" when applying for our EIN. The conflicting advice from IRS representatives is incredibly frustrating, but don't lose hope. Form 8832 is absolutely the correct solution here. Since you're well within the 3 years and 75 days timeframe, you can definitely request retroactive classification to your original formation date. Make sure to check the box for late relief under Rev. Proc. 2009-41. For your reasonable cause statement, keep it simple but thorough: explain that the incorrect classification was an inadvertent error made during the EIN application process, that your LLC was always intended to be taxed as a partnership from formation, and that you've been diligently trying to correct this since discovering the mistake. Include these supporting documents with your Form 8832: - Copy of your state LLC articles of organization - Copy of your LLC operating agreement (if you have one) - Copy of the EIN assignment letter showing the incorrect classification - A brief cover letter explaining the situation Send everything via certified mail with return receipt to the address specified in the Form 8832 instructions. This creates a paper trail and proof of filing date. The IRS processed mine in about 8 weeks once they had the complete package. Whatever you do, don't apply for a new EIN - that would create way more complications. Stick with Form 8832 and you should be able to get this resolved retroactively without penalties.

I went through this exact same situation last year and completely understand your frustration! The conflicting advice from different IRS representatives is maddening, but you're definitely on the right track with Form 8832. Since you're still well within the 3 years and 75 days window for retroactive relief, you can absolutely request classification back to your original LLC formation date. Make sure to check the box for late relief under Rev. Proc. 2009-41 when you file. Here's what I learned from my experience: 1. **Include a comprehensive reasonable cause statement** - Explain that the incorrect classification was an honest mistake during EIN application, that your LLC was always intended for partnership taxation, and that you've been actively trying to resolve this (mention that 7-month-old letter). 2. **Attach strong supporting documentation**: - Your state LLC formation documents - Operating agreement (if it mentions partnership taxation, even better) - Copy of your CP 575 notice showing the incorrect classification - Brief cover letter summarizing the situation 3. **Send via certified mail** with return receipt to create a paper trail and proof of filing date. The IRS processed my Form 8832 in about 6-8 weeks once they received the complete package. Don't let that third representative's advice about getting a new EIN throw you off - that would create way more complications than it would solve. You've got this! The mistake is more common than you think and the IRS has a clear process to fix it. Just make sure your Form 8832 submission is thorough and complete to avoid any back-and-forth requests for additional information.

I'm experiencing the exact same delays with my NJ refund! Filed on February 28th and still stuck in processing after 6+ weeks. What's really frustrating is that I called the NJ Division of Taxation yesterday and after a 75-minute hold, the representative told me they're implementing "enhanced fraud detection protocols" this year that are causing massive backlogs even for simple returns. The rep mentioned that they're manually reviewing returns that would normally be processed automatically, which explains why even straightforward W-2 filers are seeing 8-10 week delays. She couldn't give me a specific timeline but said to expect at least 2-3 more weeks minimum. I'm definitely going to try the assemblyman contact approach that others have mentioned here - it sounds like that might be our best shot at getting real pressure on the Division of Taxation to address this systematic problem. At this point, the collective frustration from all of us dealing with these delays needs to translate into actual accountability from the state agency responsible for this mess. Thanks for creating this thread - it's oddly comforting to know I'm not alone in this waiting game, even though the situation itself is incredibly frustrating! 🤦‍♀️

I'm in the exact same situation and it's so frustrating! Filed my NJ return on February 19th and it's been stuck in "processing" for over 7 weeks now. My federal refund arrived in early March, but NJ seems to be moving at a snail's pace this year. What really annoys me is that I have a super simple return - just W-2 income from one employer and standard deductions. No business income, no complex schedules, nothing that should trigger additional scrutiny. Yet here I am waiting just like everyone else with more complicated returns. I tried calling the NJ Division of Taxation twice last week and both times I sat on hold for over an hour only to be told "your return is processing, please continue to wait." The second rep at least mentioned they're doing enhanced verification this year due to fraud concerns, but couldn't give any realistic timeline beyond "several more weeks." The timestamp tracking idea that others mentioned is brilliant - I just checked and mine has been updating every few days even though the status never changes. At least that gives me some hope that there's actual activity happening behind the scenes rather than our returns just sitting in a digital pile somewhere. I'm definitely going to reach out to my assemblyman's office this week too. If enough of us are complaining to our representatives, maybe we can finally get some real pressure on the Division of Taxation to be more transparent about their processing issues and provide realistic timelines instead of these vague responses. Thanks for starting this thread - it's oddly comforting to know I'm not the only one dealing with this mess, even though the situation itself is incredibly frustrating! Hopefully we'll all see movement soon. 🤞

This has been such an incredibly valuable discussion! I'm the original poster and honestly learned way more than I expected when I asked my initial question about tax breaks for student loan payments. The key takeaways for my situation are crystal clear now: 1. My mom won't get any tax deduction for paying my loans directly 2. The $2,500 student loan interest deduction I might get is tiny compared to my $325k balance 3. The REAL question isn't about tax breaks - it's about loan strategy I had no idea about PSLF potentially applying to medical professionals! I'm starting my residency at a nonprofit hospital system next month, so I need to immediately look into whether this qualifies. If I can get $200k+ forgiven after 10 years of qualifying payments, that completely changes the math on accepting my mom's help. @Isabella Ferreira your point about reframing the conversation with parents is brilliant. Instead of "don't help me," it's "let's help in the smartest way." I'm going to run the numbers on PSLF eligibility vs. early payoff and present both scenarios to my mom. Quick follow-up question for anyone still reading: should I get all my federal loans consolidated into Direct Loans BEFORE starting residency, or can I do that after I start making qualifying payments? I want to make sure I don't accidentally delay my PSLF eligibility timeline. Thank you all for turning what I thought was a simple tax question into a comprehensive education on medical school debt strategy!

Just want to emphasize something that got touched on but deserves more attention - the importance of timing your loan consolidation correctly if you're pursuing PSLF. I made a costly mistake early in my residency by not understanding that consolidation resets your payment count to zero. I had already made 8 months of payments on my existing federal loans before realizing I needed to consolidate some older FFEL loans to make them PSLF-eligible. When I consolidated everything together, I lost those 8 months of qualifying payments. The lesson: if you have mixed federal loan types, consolidate ALL of them before making your first qualifying payment, even if some are already Direct Loans. This way you start with a clean slate and don't lose any progress. Also, regarding the family help strategy - one approach that worked well for me was having my parents help with the "lifestyle creep" expenses during residency (reliable car, decent apartment, etc.) rather than loan payments. This kept my official income low for IDR calculations while still providing meaningful financial support. When you're working 80+ hour weeks in residency, having family help with quality of life expenses can be just as valuable as loan payments, and it doesn't interfere with your forgiveness timeline. The tax implications really are minor compared to getting your overall strategy right from day one!

16 Look, let's be real about what you're trying to do. You want to deduct expenses without issuing a 1099 because your contractor probably doesn't want to report that income. That's tax fraud for both of you, and the IRS is cracking down HARD on this exact thing. My brother-in-law tried this and got absolutely hammered with penalties, back taxes, and interest. They can match your deductions against reported 1099s. Just don't.

I've been dealing with similar contractor payment situations for my small business, and I'd recommend being extra careful about the payment processor route mentioned above. While it's true that paying through PayPal Business or credit cards can eliminate your 1099-NEC requirement, you need to make sure you're using the right type of payment. PayPal Friends & Family payments won't qualify - it has to be through their business/goods & services option where fees are charged. Same with credit cards - personal credit card payments might not always trigger 1099-K reporting depending on the processor and payment volume. The threshold for 1099-K reporting has also changed recently, so double-check current requirements. In 2023, the threshold was supposed to drop to $600 total payments, but the IRS delayed implementation. Make sure you understand what the current rules are before relying on this strategy. Bottom line: if you're going to deduct the expense, the IRS expects some form of third-party reporting to match. Whether that's a 1099-NEC from you or a 1099-K from a payment processor, there needs to be a paper trail.