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Been using TaxAct for the past 3 years and honestly it's been solid. Way cheaper than TurboTax (like $25 vs $120+) and I've never had issues with accuracy. The interface isn't as flashy but it gets the job done. Also has good customer support if you get stuck on something. Might be worth adding to your comparison list!
Another helpful resource that I don't think has been mentioned is your state's tax website. Many states have specific guidance about Box 14 items that might be deductible or require special handling on your state return, even if they don't affect your federal taxes. For example, some states allow deductions for union dues, professional association fees, or certain insurance premiums that employers report in Box 14. Others have specific rules about how to handle transit benefits or parking allowances. I discovered this when I was confused about a "STD" code in my Box 14 (which turned out to be state disability insurance). My state's tax website had a whole section explaining how to handle these premiums as a potential itemized deduction. Would have never found this information just looking at federal tax resources. Your state's Department of Revenue or Treasury website usually has these guides in their individual taxpayer sections. Worth checking even if you think your Box 14 items are just informational!
This is such great advice about checking state tax websites! I had no idea that states might have different rules for Box 14 items. I just checked my state's website and found that they actually have a specific section about W-2 codes that includes several Box 14 examples. Turns out the "LTDI" code on my W-2 is for long-term disability insurance premiums, and my state allows this as an itemized deduction if I don't take the standard deduction. This could actually save me some money on my state return! It's amazing how much useful information is out there if you know where to look. Thanks for pointing out this resource - definitely something I'll bookmark for future tax seasons.
I've been following this thread and wanted to share one more approach that helped me with mysterious Box 14 codes - checking your employee benefits enrollment confirmation or summary from when you signed up for benefits at the beginning of the year (or when you were hired). Many employers send out a benefits confirmation that lists exactly what you enrolled in and the payroll codes associated with each benefit. I found mine in my email from last January and it had a table showing things like "Code: HLTH - Health Insurance Premium Share" and "Code: FSA - Flexible Spending Account Contribution." This was way more helpful than trying to decode abbreviations after the fact. It also reminded me of benefits I had completely forgotten about, like the legal services plan I signed up for that was showing as a weird three-letter code in Box 14. If you can't find your benefits confirmation email, many companies also include this information in their employee handbook or benefits guide, which might be available on your company intranet or through HR. Sometimes they even have a glossary of payroll codes in the back of these documents!
This is excellent advice about checking the benefits enrollment confirmation! I just went through my emails from when I started my job and found the benefits summary that explains all the payroll deductions. You're so right that it's much easier to understand these codes when you can see what you actually signed up for rather than trying to reverse-engineer cryptic abbreviations months later. My Box 14 had "LTD" which I now see from my enrollment paperwork is for the long-term disability coverage I elected. It's crazy how something that seemed so mysterious becomes obvious once you have the right context. I'm definitely going to save these enrollment documents in a better place for next year - maybe create a "tax season" folder so I don't have to hunt through hundreds of old emails again!
I just went through this exact same process about a month ago! The wait was nerve-wracking but honestly not as bad as I expected. Here's what worked for me: I gathered all my documents first (driver's license, last year's AGI, and W-2), then set aside about 30 minutes to do the whole verification online. The MyTax Illinois portal was pretty user-friendly. After I submitted everything, I got a confirmation email right away which was reassuring. The actual processing took about 19 days for me, and then my refund hit my account. My advice is just bite the bullet and get it done today if you can - the sooner you verify, the sooner you'll get your money! The whole fraud prevention thing is annoying but I get why they're doing it.
Thanks for sharing your experience! 19 days isn't too bad considering all the horror stories I've been hearing. I'm definitely going to tackle this today - you're right about just biting the bullet. Quick question though - when you say you got a confirmation email right away, did it give you any kind of reference number or tracking info? Just want to make sure I have everything I need to follow up if something goes wrong. Really appreciate the encouragement! š
Hey everyone! I just wanted to share my recent experience with Illinois ID verification since I see so many people stressing about it. I went through this whole process about 3 weeks ago and honestly, reading all your comments here made me feel so much better about it! The verification itself was pretty straightforward - took me about 20 minutes on the MyTax Illinois portal. I had my driver's license, previous year's AGI from my tax software, and my W-2 ready to go. The hardest part was definitely the waiting period after submitting everything. I kept checking my bank account every day lol. My refund came through exactly 21 days after I completed the verification. One tip I'd add - make sure your uploaded documents are super clear and readable. I actually had to redo my driver's license photo because the first one was too dark. Also, don't panic if you don't hear anything for a week or two - that seems to be totally normal. Good luck to everyone going through this! It's annoying but you'll get through it! šŖ
This is exactly what I needed to hear! I just got my verification letter yesterday and have been so anxious about the whole process. Your timeline of 21 days gives me hope - I was worried it would take months. Good call on making sure the documents are clear too, I'll definitely double-check that before uploading. Thanks for taking the time to share your experience, it really helps us newbies feel less overwhelmed! š
I recommend getting tax software like FreeTaxUSA or Credit Karma Tax (now Cash App Taxes) which are both free for federal filing and guide you through the process for both W-2 and 1099 income. They'll prompt you to enter your doordashing income and expenses on Schedule C and automatically calculate your self-employment tax. Even with income under the standard deduction, definitely still file a return! You might qualify for refundable credits like the Earned Income Credit depending on your situation, which could get you money back even if you don't owe income tax.
FreeTaxUSA is great but definitely not completely free - they charge for state filing. I think TurboTax has a free option for simple returns but they upcharge if you have 1099 income.
As someone who went through this exact situation last year, I can confirm what others have said - you can definitely use the standard deduction against your combined income from both sources. However, the self-employment tax part caught me off guard too! One thing I'd add is to make sure you keep track of ALL your doordashing expenses going forward, not just mileage. Things like phone accessories (car mounts, chargers), insulated bags, even a portion of your phone bill can be deductible. I wish I had known this during my first year of gig work. Also, since you're young and this might be your first time dealing with self-employment income, consider setting aside about 15-20% of your 1099 earnings for taxes throughout the year if you continue doordashing. The self-employment tax plus any income tax can add up, and you don't want to be surprised next filing season. Good luck with everything - you've got this!
This is such helpful advice! I had no idea about being able to deduct phone accessories and insulated bags. I definitely have some of those expenses from last year that I completely forgot about. The tip about setting aside 15-20% for taxes is really smart too - I've been spending all my doordash money without thinking about the tax implications. Quick question though - when you say "a portion of your phone bill," how do you figure out what percentage is deductible? Do you just estimate based on how much you use it for work vs personal stuff?
Tom Maxon
To all those having trouble reaching a human at the IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/wMf29SmRU-I
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Amara Adeyemi
Yes, you should still get your on 3/2/2021! The 846 code shows your federal issue date, and the 898 code is just showing the state tax offset that will be deducted from your total amount. The IRS will send you whatever's left after the offset on the 846 date. So if your original was $5000 and the state offset is $1000, you'd get $4000 on 3/2. The different dates just show when each action is processed in their system, but your net should still come on the 846 date.
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Connor Rupert
ā¢This is super helpful! I'm new here and dealing with a similar situation. Just to clarify - does the offset always get processed on the date shown in the 898 code, or could it happen earlier? I'm trying to figure out exactly how much I'll receive and when. Thanks for breaking this down so clearly!
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