My first step would be to check your transcripts, not the account balance page. The transcripts show the actual activity on your account. If you're having trouble understanding the transcript (most people do!), I highly recommend using taxr.ai - it breaks down exactly what's happening. Saved me so much confusion when my refund was delayed last year.

This exact thing happened to me about 6 months ago! My $2,100 balance just vanished overnight with no explanation. I was panicking thinking it was some kind of system error that would come back to bite me later. After a lot of digging, I found out the IRS had automatically applied some credits I was eligible for but never claimed - turns out there were some pandemic-related adjustments they were processing in batches. The whole thing took about a month to fully resolve and I got a letter explaining everything after the fact. My advice: definitely pull your account transcripts ASAP and document everything you're seeing now. Don't just assume it's gone forever, but also don't assume it's coming back. The IRS moves in mysterious ways and their online system is notoriously unreliable for showing real-time account status. I'd also recommend calling them directly if you can get through, or at least keep checking your mail for any notices over the next few weeks. In my case, everything worked out in my favor, but I spent weeks stressed about it because I had no idea what was happening.

Something no one has mentioned yet is that this issue varies HUGELY by industry. I work in healthcare IT consulting and have found that hospitals and healthcare systems are extremely rigid about only using staffing agencies because of compliance requirements. Meanwhile, my friend who does similar work for retail companies has much better luck contracting directly through his S-corp. What industry are you in, OP? That might be a factor in how difficult this battle is going to be.

One thing I learned after 15 years as an incorporated contractor - this whole landscape changes every few years. Back in 2018-2020 companies were much more open to direct contracts with S-corps. Then AB5 happened in California, and similar legislation started popping up elsewhere, and suddenly everyone got super conservative. So just because it's difficult now doesn't mean it will stay that way. Companies tend to overreact initially and then gradually develop more nuanced policies. I suspect by 2026-2027 we'll see more companies creating specific carve-outs for incorporated contractors vs. sole proprietors.

I believe... if I'm not mistaken... that you might also want to check if TurboTax is offering to take their fee out of your refund? Sometimes they present that option on the refund delivery screen too. Just something to be aware of, as they usually charge an additional fee for that service. I'm not 100% certain if that's still the case this year, but it might be worth looking out for.

Welcome to US tax filing, Emma! 🎉 You've got the right idea - "Refund Delivery" is exactly what you think it is. Just choose how you want your refund delivered to you. Quick tip from someone who's been through this: if you go with direct deposit, TurboTax will ask you to confirm your bank info twice. Don't skip that step! I've seen people rush through and make typos that delayed their refunds by weeks. Also, since you mentioned you're new to the US tax system, heads up that the IRS will send you a letter (Notice 1444) after they process your return, even if you choose direct deposit. Don't panic when you get mail from them - it's just confirmation, not a problem! Good luck with your first US tax filing! 🍀

Don't forget about the "Deluxe" trap that both companies use. The basic version advertised at a low price usually won't cover homeowner deductions or self-employment income. You'll need at least the Deluxe version for mortgage interest and the Self-Employed version for your freelance work. If you really want to save money, the IRS has a Free File program where you can use name-brand tax software for free if your AGI is under about $73k. Worth checking that out before paying for either one.

Based on your situation with W-2 income, freelance work, and new homeownership, I'd lean toward H&R Block for 2025. Here's why: 1. **Cost**: H&R Block's Deluxe version (which you'll need for mortgage interest) is typically $20-30 cheaper than TurboTax's equivalent. 2. **Homeowner focus**: Their mortgage interest and property tax sections are really well-designed for first-time homeowners. They walk you through points deductions, PMI, and other homeowner benefits you might not know about. 3. **Freelance handling**: For $5,800 in freelance income, both platforms handle Schedule C fine, but H&R Block won't pressure you to upgrade to their most expensive tier like TurboTax often does. Just be aware that you'll definitely need their Deluxe version (not Basic) to handle both the mortgage interest and self-employment income. Don't let them upsell you beyond Deluxe unless you have more complex investments. One tip: Both companies run early-bird discounts in January, so if you can wait a few weeks into tax season, you might save another 15-20% off the regular price.

Just a heads up - if you do decide to report this income next year instead of this year, be aware that the company might issue a 1099 for the current year even though you earned the money in 2022. If that happens, you'll need to explain the situation if the IRS questions the discrepancy. Generally, it's best to report income in the year you receive it if you're a cash-basis taxpayer (which most individuals are).

As someone who's dealt with similar timing issues on contractor income, I'd recommend keeping detailed records of when you actually performed the work versus when you receive payment. The IRS generally follows the cash method for individuals, so you'll report the income when you actually receive it, not when you earned it. One thing to consider - since you're making $95k at your regular job, this additional $850 will be taxed at your marginal rate (likely 22% federal) plus the 15.3% self-employment tax, so set aside roughly $300-350 to cover the tax liability when you do receive the payment. Also, don't forget that you'll need to make quarterly estimated tax payments if this pushes your total tax liability over $1,000 for the year you receive it. The IRS gets grumpy about underpayment penalties, even on relatively small amounts.