Thanks for all the insights everyone! This is really helpful. I'm leaning towards the 401k loan option that @Lilly Curtis mentioned instead of the hardship withdrawal. The idea of paying myself back with interest sounds way better than dealing with taxes and penalties. Quick question though - if I go the loan route, are there any restrictions on using it for education expenses? Or is it more flexible than the hardship withdrawal in terms of how I can use the funds? I'm thinking this might give me more breathing room if my daughter's financial aid situation changes or if other unexpected expenses come up. Also wondering about the repayment terms - is it usually taken out of your paycheck automatically?

Great question! I've been through this exact situation with my son's college expenses. From my experience, most 401k administrators do require the tuition documentation upfront but don't typically follow up to verify exactly how you used the funds afterward. However, you're still legally obligated to use it for the stated hardship purpose. The key thing is keeping good records - save your tuition bill, withdrawal paperwork, and any payment confirmations. While IRS audits are relatively rare, if you're selected, you'll need to prove the hardship was legitimate and the withdrawal amount was reasonable for your situation. One important point: hardship withdrawals can only be for the amount of your immediate financial need, so if you're requesting $16,000 for a $14,500 tuition bill, make sure you can justify those additional fees/expenses with documentation. Also worth considering - have you looked into a 401k loan instead? You'd pay yourself back with interest rather than facing taxes and the 10% early withdrawal penalty. The loan option is much more flexible in terms of how you can use the funds and might be better for your situation.

This whole thread is incredible! I've been dealing with Error 6001 for about 10 months and was honestly starting to lose hope until I found this discussion. The level of specific, actionable advice here is amazing - way better than the generic troubleshooting I've been getting from both IRS and ID.me support. I'm particularly interested in the name formatting issue that @Jade Lopez mentioned. I just checked and sure enough, my ID.me has my full legal name "Katherine Marie Johnson" but my tax returns have been filed as "Katherine Johnson" (no middle name). That tiny difference could totally be what's causing my authentication nightmare! Also noting down all these phone numbers and specific departments to call - the Taxpayer Advocate Service, Identity Protection Specialized Unit, and even the TIGTA complaint option. Having multiple backup plans feels so much better than just calling the main IRS line over and over. Thank you all for sharing your experiences and solutions. This community support means everything when you're stuck in government bureaucracy hell! 🙏

I've been battling Error 6001 for about 16 months now and this thread is honestly a lifesaver! The amount of detailed, actionable advice here is incredible compared to the runaround I've been getting from official channels. What really resonates with me is the pattern everyone's describing - both agencies acting like they've never heard of Error 6001 before, then immediately passing the buck to the other side. I've had at least 8 calls where IRS says "that's an ID.me authentication issue" and ID.me says "the IRS system is rejecting you." It's maddening! I'm taking notes on all the specific phone numbers and approaches mentioned here: - Taxpayer Advocate Service (1-877-777-4778) - Identity Protection Specialized Unit (800-908-4490) - The IAL2 authentication status refresh request - Checking exact name/address formatting between ID.me and tax returns - Filing Form 8822 to force a system refresh The historical data conflicts mentioned by @PrinceJoe and name formatting issues from @Jade Lopez are particularly eye-opening. I've moved 3 times and gotten married (name change) since setting up my ID.me account, so there's probably all kinds of mismatched data causing authentication chaos. Going to start with the simple formatting checks first, then work my way up through the specialized departments if needed. Thank you everyone for sharing your war stories and victories - this gives me actual hope after over a year of frustration! 🙏

Just wanted to add my experience since I went through this exact situation last year. I have a single-member LLC with an EIN and was equally confused by Venmo's limited options. I ended up selecting "Partnership" as recommended by several people here, and it worked out fine. The key thing I learned is that Venmo's internal categorization is separate from your actual tax filing status. When tax time came, I filed Schedule C as a sole proprietor (disregarded entity) just like any other single-member LLC, and there were no issues. The 1099-K I received from Venmo showed my EIN and payment amounts, but didn't specify the business type category I had selected in their system. My accountant confirmed that what matters is how you actually file with the IRS, not what box you check on a payment platform. One tip: keep a note in your business records about which category you selected on each platform and why, just in case you need to explain it later. But honestly, it's been a non-issue for me.

Just to add another perspective here - I'm a tax professional who works with a lot of small business owners, and this Venmo classification issue comes up constantly with my single-member LLC clients. The advice everyone's giving here is correct: select "Partnership" on Venmo when you have an EIN for your single-member LLC, even though it feels wrong. Venmo's business categories are primarily for payment processing and compliance purposes, not tax classification. What's important to understand is that your tax filing status is determined by your actual business structure and any elections you've made with the IRS, not by what category a third-party payment processor assigns you. A single-member LLC remains a "disregarded entity" for tax purposes regardless of what Venmo calls it in their system. I always tell my clients to document their reasoning for these platform selections in their business records. If there's ever a question during an audit or review, you can explain that you selected the closest available option while maintaining proper tax filing procedures. The IRS cares about your actual income reporting and business structure, not Venmo's internal categorization. One final tip: make sure you're consistent with your EIN usage across all platforms and keep detailed records of all payment processor income for accurate Schedule C reporting.

For anyone still confused about the tax implications, I went through this exact situation last year with Stake.us. The key thing to understand is that gift card redemptions ARE taxable income regardless of the amount, but the $600 threshold only determines whether the company has to send you a 1099-MISC form. I ended up reporting about $1,400 in gift card redemptions on my tax return under "Other Income" (not gambling winnings since it's technically sweepstakes). Even though Stake.us didn't send me any tax forms, I kept detailed records of all my redemptions with screenshots and dates. One thing that caught me off guard - you can't offset these winnings with your Gold Coin purchases since they operate under different parts of their business model. The IRS views the coin purchases as entertainment expenses, not gambling losses. I learned this the hard way when my tax preparer had to correct my initial attempt to deduct those purchases. My advice: keep meticulous records of every redemption, report everything as "Other Income," and don't try to get clever with deductions unless you have a tax professional who specifically understands social casino regulations.

I've been dealing with a similar situation and wanted to share what I learned from my tax professional. The $1,200 you've redeemed definitely needs to be reported as "Other Income" on your tax return, even without a 1099 form from Stake.us. Here's what's important to understand: the IRS considers any prizes or winnings taxable at fair market value, regardless of whether you receive cash or gift cards. Since Stake.us operates as a sweepstakes model rather than traditional gambling, your redemptions fall under sweepstakes winnings rules. My accountant emphasized that you should report this income even if Stake.us doesn't send tax forms. The company may still report aggregate data to the IRS, and it's better to be proactive than face potential penalties later. Unfortunately, you likely can't deduct losses against these winnings since social casinos don't qualify for traditional gambling loss deductions. The "no purchase necessary" aspect of their sweepstakes model means any Gold Coin purchases are considered separate entertainment expenses. I'd recommend keeping detailed records of all your redemptions going forward - screenshots, dates, and amounts. This documentation will be crucial if you ever need to substantiate your reported income during an audit.

Make sure u update ur W-4 after the baby is born!! I made the mistake of not doing this and was getting way less in my paychecks than I should have. The IRS has an option specifically for reporting a new baby/dependent.

Yes, you can absolutely get back more than you paid in taxes! This is totally normal and legal through refundable tax credits. The big ones for your situation are the Earned Income Tax Credit (EITC) and Child Tax Credit. With your income around $15,000 and a baby coming, you'll likely qualify for a substantial EITC - potentially around $3,995 for one child. Plus up to $1,600 from the refundable portion of the Child Tax Credit. Since your baby will be born by December 31st, you can claim them for the entire 2024 tax year. These credits were specifically designed to help working families with lower to moderate incomes, so getting back $9,000 when you only paid in $2,700 is exactly how the system is supposed to work. The IRS calculator is accurate - you're not seeing a glitch, you're seeing the safety net in action! Just make sure to keep all your documentation and file accurately. Congratulations on your upcoming arrival!