I completely agree with the advice to avoid claiming exempt in your situation. Having $1,200 in tax liability last year means you don't meet the qualification requirements, and at $48k you'll still have taxable income even with your new deductions. One thing I'd add - when you're filling out the new W-4, be conservative with your estimates on line 4(b). It's better to slightly over-withhold and get a small refund than to under-withhold and face penalties. You can always adjust your W-4 again later in the year if you find your withholding is still too high. Also, keep track of your deductions throughout the year. Things like mortgage interest and property taxes can vary, and you want to make sure your withholding adjustments are based on realistic numbers. The IRS withholding calculator (on their website) can help you run different scenarios as your situation changes. Remember, the goal is to get closer to breaking even at tax time, not necessarily to owe nothing. A small refund of a few hundred dollars is actually ideal - it means you got most of your money throughout the year but didn't underpay.

I'm glad to see everyone steering you away from claiming exempt - that would definitely be a mistake in your situation. With $1,200 in tax liability last year, you don't qualify for exempt status regardless of your income change. Here's a practical approach for your W-4 adjustment: Start by calculating your expected deductions above the standard deduction ($14,600 for 2025). Your mortgage interest, property taxes, and student loan interest could easily add up to several thousand dollars. Let's say they total $8,000 - you'd enter that amount on line 4(b). For line 4(c), you might want to reduce withholding by an additional $50-100 per paycheck to account for your lower income bracket, but be conservative here. You can always submit a new W-4 later if you're still getting too much withheld. The key is finding the balance between better cash flow and avoiding penalties. Given your tight budget, even a small underpayment penalty would hurt, so err on the side of caution. You might still get a refund, but it should be much smaller than the $3,800 you got last year. Consider keeping track of your year-to-date withholding on your pay stubs and run the IRS calculator every few months to make sure you're on track.

I'm going through an almost identical situation right now and this thread has been incredibly reassuring! Filed my original return in early February, got the 570 code in mid-March, and just had my amended return accepted last week. Still waiting for the 971/977 codes to appear, but reading everyone's experiences here has given me such a better understanding of what to expect. What I find most helpful is learning that these scary-looking codes are actually just tracking markers in the IRS system rather than red flags. The progression from 570 → 971/977 seems to be the standard path, which is comforting for those of us dealing with this for the first time. The practical tips everyone has shared are gold - especially checking transcripts on Wednesdays, watching the "as of" date for signs of active processing, and understanding that the 16-20 week timeline is realistic but some cases move faster. I've stopped my daily transcript checking obsession and switched to weekly checks to preserve my mental health! 😅 For anyone else just entering this process: the waiting is brutal, but it's clearly normal based on all the similar experiences shared here. The professional insights from tax preparers in this thread have been particularly valuable in understanding why some amendments process faster than others. Thanks to @Romeo Quest for starting this discussion and to everyone sharing their timelines and insights. This has become such a valuable resource for understanding what's actually a standard (if slow) process! 🙏

This entire thread has been incredibly educational for those of us navigating amended returns! I'm currently about 8 weeks into the process after my 977 code appeared, and it's so helpful to see the consistent experiences everyone is sharing. One thing I wanted to add that I learned from calling the IRS: if you have Direct Deposit set up and your amended return results in an additional refund, they'll use the same banking information from your original return. However, if your amendment results in owing money, they'll send a notice with payment instructions rather than automatically debiting your account. Also, I've noticed that my transcript updates seem to happen overnight between Tuesday and Wednesday, confirming the Wednesday checking pattern several people have mentioned. It's saved me from obsessively checking daily! For anyone worried about the timeline - I'm seeing more movement in my "as of" dates now at week 8, so the 12-16 week estimates shared here seem realistic. The patience is definitely the hardest part, but this community has made the waiting so much more manageable by sharing real experiences rather than just generic IRS guidance. Thanks to everyone contributing to this wealth of practical knowledge! 🙏

Has anyone used TurboTax for filling out Schedule C with contractor payments? I'm wondering if it walks you through categorizing these kinds of expenses or if I need to know exactly where everything goes beforehand.

Based on the discussion here, it sounds like you're on the right track with categorizing contractor payments under Line 11 (Contract Labor). I had a similar situation last year where I hired freelancers for various projects and was confused about the categorization. One thing I learned the hard way is to keep detailed records not just of the payments, but also of what each contractor specifically did. The IRS likes to see clear documentation that shows these were legitimate business expenses for services rendered to your business. Since your promotional game serves as advertising for your main business, you might also want to document that purpose clearly in case of any questions later. I keep a simple spreadsheet with contractor name, amount paid, date, and a brief description of the work performed - it's saved me headaches during tax prep. Also, double-check that you've properly calculated any backup withholding requirements if applicable. Most people don't realize this can be an issue with contractor payments in certain situations.

Has anyone tried using Credit Karma Tax (now called Cash App Taxes) for previous years? I know they're free for the current year, but I'm not sure if they offer past years or what they charge.

I just went through this exact situation a few months ago! Had to file my 2018 and 2019 returns for a mortgage application. Here's what I learned: For H&R Block, yes they do prior year returns but their online service for old years is around $70-80 per return, which adds up fast. I ended up going with FreeTaxUSA like someone mentioned - it was only $15 for federal and worked perfectly for both years. One tip nobody mentioned: if you're really pressed for time, you can request a "Record of Account" transcript from the IRS online at irs.gov. This shows your filing history and is often accepted as proof of non-filing if you need to show you haven't filed yet. Takes about 5 minutes to get it online versus waiting weeks for mailed returns to process. Also, don't stress too much about the old tax law changes between those years - most tax software handles the year-specific rules automatically. The main thing that changed between 2018-2019 was some small adjustments to tax brackets and standard deduction amounts, but the software calculates all that for you. Good luck getting it sorted out!

To all those having trouble reaching a human at IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/_kiP6q8DX5c

Code 977 is definitely good news! It means your amended return has been accepted and is being processed. The fact that it showed up in just 8 days is actually really fast - most people wait weeks to see any movement. From what I've seen, after 977 you're typically looking at 2-4 more weeks before you see code 846 (refund issued) if you're getting money back. Just keep checking your transcript weekly and you should see progress soon. The electronic filing definitely helped speed things up compared to paper amendments!