H&R Block missed my W-2 from Dollar Tree! What should I do now?

How long do I have to fix this before the IRS comes after me? It's been about 2 years since that tax return. And will I definitely owe money back, or is there a chance the withheld taxes from Dollar Tree might cover what I owe?

The IRS generally has 3 years from the filing date to assess additional taxes, so you still have time, but it's better to address this sooner rather than later. The clock starts from when you actually filed, not the tax year itself. There's absolutely a chance the withholdings from Dollar Tree could cover what you owe. Since you mentioned about $2300 was withheld from those paychecks, that might be enough to offset the additional tax liability from reporting the higher income. When you file the amended return, these withholdings will be credited to you, potentially minimizing or eliminating what you owe.

Does this actually work for amended returns? My situation is a bit different (missed some crypto transactions) but I'm trying to figure out if I need to amend for the last two years.

I'm skeptical about these AI tax tools... how is this different from just going back to H&R Block and making them fix their mistake? They should do it for free since they screwed up, right?

It absolutely works for amended returns! I uploaded both my original return and the missing documents, and it showed me exactly what would change on my 1040-X. It even highlighted which lines would be affected on the form. For crypto issues like yours, it has specific features to help with that too. The biggest difference from going back to H&R Block is that you get to see and understand everything yourself first. I still ended up having H&R Block fix their mistake, but I went in knowing exactly what needed to be corrected and what the financial impact would be, so they couldn't downplay their error. It gives you the knowledge to advocate for yourself, whether you ultimately file yourself or go back to the preparer.

How exactly does this work? Do they somehow have a priority line to the IRS or something? Seems too good to be true if the wait times are as bad as everyone says.

Yeah right, like some third party service can magically get through to the IRS faster than anyone else. This sounds like a scam to me. The IRS phone system is totally backed up - what's their secret sauce exactly?

It doesn't use any priority line or special access. Their system basically automates the waiting process. They have technology that waits on hold for you and monitors the line. When a human IRS agent finally answers, their system immediately calls your phone and connects you directly to that agent. You literally pick up your phone and there's an IRS representative ready to talk. There's no magic to skipping the line - you're still "waiting" the same amount of time as everyone else, but the difference is you're not physically stuck listening to hold music for hours. You can go about your day, and your phone only rings when there's actually someone to talk to. That's why I found it so valuable - not having to waste half a day sitting around waiting.

THIS!!! My sister had almost the same situation with Jackson Hewitt missing a W-2. When she went back, the first person tried to charge her for the amendment. She asked for a manager who immediately waived all fees and even covered the interest because it was their mistake. Definitely stand your ground OP!

Thank you for the insider perspective! Would you recommend I gather any other documentation before going in? I have the original Dollar Tree W-2 and my tax return paperwork from that year. Should I call and make an appointment specifically about this issue?

I would definitely recommend calling ahead for an appointment and specifically mentioning that you're coming in about a preparer error that requires an amendment. This helps ensure you get scheduled with someone more experienced rather than a seasonal preparer. Bring absolutely everything from that tax year - all W-2s (including the missed one), your full tax return packet, and any other tax documents like 1099s or interest statements. If you have any emails or receipts from your original preparation, bring those too as they might show what you paid for and what guarantees were included.

Good question! The Recovery Rebate Credits (stimulus payments) from 2021 started phasing out at $75,000 for single filers and $150,000 for married filing jointly. Based on OP's description (adding about $26K to a previous $13K), their total income of roughly $39K would still be well below the phase-out threshold. So they likely wouldn't have to repay any stimulus money. The Earned Income Tax Credit is a different story though - that would almost certainly be recalculated based on the higher income, which might reduce the credit amount they received.