This is such a common issue this year! I'm a tax preparer and I've seen dozens of clients with the exact same situation - people who always got state refunds suddenly owing hundreds or even over $1000. The main culprits are usually: 1) State withholding table changes (which many states implemented without much fanfare), 2) Your freelance income pushing you into a higher state tax bracket or affecting credits, and 3) Loss of state tax credits due to income thresholds. For your $2,500 freelance income, you'll need to pay California state income tax on that amount (likely around 6-9% depending on your total income), plus it might have pushed you out of certain state credits or into a higher bracket for some of your other income. My advice: Pull up your prior year California return and compare it line-by-line with this year's. Look specifically at your state withholding amounts, any credits you claimed last year vs this year, and your effective tax rate. This will show you exactly where the difference is coming from. Also submit a new DE-4 form to your employer to increase your California withholding for next year - better to get a smaller refund than owe $780 again!

I'm dealing with this exact same situation! I'm in Texas and suddenly owe $520 to the state when I've gotten refunds for the past 4 years. Like you, nothing major changed - same job, same filing status. The only difference is I started doing some part-time tutoring that brought in about $1,800 throughout the year. What's really frustrating is that I compared my paystubs and my state withholding did seem slightly lower this year, but I just assumed it was because of some minor payroll system update. Now I'm wondering if Texas also changed their withholding tables like some of the other states mentioned here. I'm definitely going to try that line-by-line comparison suggestion from the tax preparer above. It's so annoying that these changes happen without clear communication to employees. Thanks for posting this - at least now I know I'm not the only one going through this!

I've been dealing with partnership returns for several years and want to add some clarity here. The negative balance on Schedule M-2 line 9 should absolutely be reported as-is - don't try to manipulate it with artificial income entries. What's crucial is understanding WHY you have the negative balance. In your case, it sounds like legitimate business losses and equipment investments that didn't work out. This is actually a common scenario for growing partnerships. A few practical tips: 1. Make sure you've properly tracked all partner contributions throughout the year (cash, property, services) 2. Verify that distributions to partners are correctly recorded 3. Double-check that any partner loans to the partnership are properly classified as debt, not capital 4. Consider attaching a brief statement explaining the business circumstances that led to the negative capital The IRS sees negative capital accounts regularly - they're not automatically red flags. What they don't like is when the numbers don't make sense or when there are unexplained changes from year to year. As long as your books accurately reflect the partnership's actual financial position, you should be fine. Don't stress too much about this - focus on accuracy over trying to make the numbers "look better.

I've been through this exact situation with our partnership and want to echo what others have said - definitely report the negative balance accurately on Schedule M-2 line 9. Don't try to create artificial income to offset it. One thing I haven't seen mentioned yet is the importance of checking your Schedule K-1s to make sure they're consistent with your M-2 reporting. The negative capital balance will flow through to your partners' individual K-1s, and you want to make sure those numbers tie out properly. Also, since you mentioned this is your first year filing without an accountant, I'd strongly recommend having a CPA review your completed return before filing, even if you're doing most of the work yourself. Partnership returns are complex and the penalties for errors can be steep (especially the new partnership audit rules under Section 6221). The cost of a review is usually much less than the cost of fixing problems later. Your negative balance sounds completely legitimate given the business circumstances you described. Equipment investments and expansion costs that don't immediately pay off are exactly the kind of thing that creates negative capital in partnerships. Just make sure you have good documentation of all the transactions that led to this position.

I'm sorry to hear about this stressful situation! Unfortunately, everyone here is giving you accurate information - Chime will almost certainly reject your boyfriend's tax refund since the names don't match. I've seen this happen countless times in our community, and the outcome is pretty predictable. The rejection usually happens within 24-48 hours of when the IRS attempts the deposit. After that, you're looking at 4-6 weeks for a paper check to arrive. Since you mentioned needing the money for rent next month, I'd strongly suggest starting to explore backup options now rather than waiting to see what happens. A few practical steps: - Have your boyfriend verify his current address is on file with the IRS - Sign up for USPS Informed Delivery to track the paper check - Consider reaching out to family or friends about a short-term loan - Look into local rental assistance programs if available I know it's frustrating that there's no way to prevent this, but at least you'll eventually get the refund. The silver lining is that rejected direct deposits usually process faster than other types of refund delays. Hang in there, and definitely learn from this for next tax season!

I'm really sorry you're going through this stress! Based on everything I've read here and my own experience, Chime will definitely reject the deposit - their system is completely automated when it comes to name matching on government payments. There's unfortunately no way to override this or prevent it from happening. Here's what I'd recommend doing right now to minimize the headache: 1. Accept that the rejection will happen and start planning accordingly - don't waste time hoping for a miracle 2. Have your boyfriend log into his IRS online account immediately to verify his current mailing address is correct 3. Sign up for USPS Informed Delivery so you can track when the paper check is actually coming 4. Start exploring backup options for rent NOW - talk to family, look into local assistance programs, consider picking up extra work The paper check will eventually come (usually 4-6 weeks after rejection), but that timing clearly won't work for your rent situation. The sooner you accept this reality and pivot to backup plans, the less stressful this whole situation will be. I know it sucks to learn this lesson the hard way, but for future reference, always use an account that matches the name on the tax return. The IRS is very clear about this requirement, even though it's tempting to try workarounds when you're in a tight spot financially. You'll get through this! Just focus on solutions rather than trying to prevent the inevitable rejection.

This is a really complex situation that touches on several areas - entity separation, tax compliance, and banking regulations. From what I've seen in similar cases, the key is to act quickly to clean this up before it becomes a bigger problem. First, I'd strongly recommend getting that bank account ownership updated to your corporation ASAP. Most banks will let you do this with the right paperwork (corporate resolution, new signature cards, etc.). This eliminates the appearance that your sole prop is still operating. Second, you need to be very careful about how you're documenting any transfers between accounts. The IRS will want to see clear business purposes for any money movement between entities. If it looks like you're just using them interchangeably, that could jeopardize your corporate status. One thing I haven't seen mentioned yet - make sure you're not accidentally triggering any state franchise tax or minimum tax requirements by keeping the sole prop "active" through bank activity. Some states consider any business banking activity as evidence the entity is still operating, which could create ongoing tax obligations you don't need. I'd also suggest talking to a CPA who specializes in entity transitions. They can help you figure out if you need to file any forms with the IRS to properly document the transfer of assets from your sole prop to the corporation. Getting this documented properly now could save you major headaches if you ever get audited.

This is exactly why I always recommend getting a proper business attorney involved when transitioning between entity types. The banking situation you're describing could create what's called "alter ego" liability - where the IRS or creditors could argue that your corporation isn't really a separate entity from your sole proprietorship because you're treating the finances as interchangeable. Beyond the tax issues everyone's mentioned, you also need to think about liability protection. One of the main reasons people incorporate is to protect personal assets, but if you're commingling funds between the old sole prop and new corp, you could be "piercing the corporate veil" and losing that protection entirely. My recommendation would be to: 1) Update that bank account to the corporation immediately 2) Create formal documentation (loan agreements, service contracts, etc.) for any past transfers between accounts 3) File the proper asset transfer forms with both the IRS and your state 4) Make sure you're not accidentally keeping the sole prop "alive" in states where you do business The "complicated situation" you mentioned that's taking over a year to resolve - whatever that is, it's probably not worth risking your corporate status and potential tax penalties. Sometimes you just have to bite the bullet and deal with short-term pain to avoid long-term disaster. Also, definitely keep detailed records of everything. If you do get audited, having clear documentation of business purposes for all transactions will be your lifeline.

@Morita Montoya - You're definitely not too late! I'm a tax professional and can confirm that as a US citizen, you were eligible for all three Economic Impact Payments regardless of where you lived during the pandemic. Here's your action plan: **For 2020 payments (1st: $1,200, 2nd: $600)** - File a 2020 tax return claiming $1,800 in Recovery Rebate Credit - Deadline is April 15, 2024 - so you need to move FAST - Will likely need to paper file (e-filing may no longer be available) - Current processing time for paper returns: 8-12 months **For 2021 payment (3rd: $1,400)** - File a 2021 tax return claiming $1,400 in Recovery Rebate Credit - Deadline is April 15, 2025 - you have more time - Can still e-file through most tax software including FreeTaxUSA - Processing time: 6-8 weeks typically Since you had no US income during those years, you'll just report $0 income and claim the credits directly on line 30 of Form 1040 for each year. No complex calculations needed. **Important:** Don't let the 2020 deadline slip by - that's $1,800 you'd lose forever. Focus on getting that 2020 return filed immediately, even if you tackle 2021 later. Send any paper returns certified mail for proof of timely filing. Total potential recovery: $3,200. Definitely worth pursuing!

@Morita Montoya - As someone who works with expat tax issues, I want to emphasize a few additional considerations for your situation: **Foreign Bank Account Reporting**: Even though you're filing just to claim stimulus payments, be aware that if you had foreign bank accounts with aggregate balances over $10,000 at any time during 2020 or 2021, you may need to file FinCEN Form 114 (FBAR) separately. This has its own deadlines and requirements. **State Tax Considerations**: Depending on which state you're establishing residency in now, you may also need to consider whether you need to file state returns for those years. Most states don't have their own stimulus credits, but it's worth checking. **Documentation for Future**: Keep detailed records of your filing for these years, including proof of your foreign residence during 2020-2021. This could be helpful if you ever face questions about your residency status or tax obligations during that period. **Professional Help**: Given the complexity of your situation (citizen abroad, never filed before, claiming retroactive credits), you might want to consider consulting with a tax professional, especially for the 2020 return given the tight deadline. Many offer reasonable rates for straightforward returns like yours. The good news is you're absolutely entitled to these payments as a US citizen. Just make sure you handle the filing correctly to avoid any delays or complications!