Will I need to pay back my stimulus check after incorrectly filing as independent?

Oh thank goodness!! That's SUCH a relief! I was seriously stressing about having to come up with that money on top of the extra taxes I'll owe. So just to be 100% clear - even though I'm changing my 2021 filing status from independent to dependent with my amendment, that won't affect the stimulus eligibility at all?

Correct! Your eligibility for the third stimulus payment was locked in based on your 2020 tax return status. The IRS used the most recent information they had at the time payments were issued, and they don't go back and recalculate eligibility when you file amendments for later years. Focus on getting your amended returns filed correctly to fix your filing status for 2021 and 2022. You'll need to pay any additional tax that results from the changes, but you absolutely do not need to worry about returning your stimulus payment.

Wait this sounds interesting. Does it actually analyze your specific situation or is it just general advice? I'm in a similar boat but also had unemployment in 2021 that was taxed wrong I think.

I'm skeptical about these tax AI tools. How does it handle complex situations? I've used TurboTax for years and even they mess up sometimes. What makes this more reliable?

It analyzes your specific documents and situation, not just general advice. You upload your tax forms and it can identify issues specific to your filing. For unemployment tax issues, it would actually be really helpful because it can spot those kinds of discrepancies. As for reliability, I was skeptical too, but what I liked is that it explains WHY it's making certain recommendations, citing the actual tax code. It's not just giving answers but showing the reasoning, which TurboTax doesn't always do. Plus when things are complicated, they have real tax pros who review the AI analysis.

How does this actually work? Do they just call the IRS for you? I've been on hold for literally 3+ hours before giving up.

This sounds like BS honestly. The IRS barely answers their own phones, how is some third party service going to get through any faster? And what about security? You're trusting some random company with your personal tax info?

They don't call the IRS for you exactly - they use an automated system to wait in the phone queue, and then when an actual IRS agent picks up, they connect that call to your phone. So you're talking directly to the IRS, not through an intermediary. I totally get the skepticism - I felt the same way! They don't need your personal tax info though. You provide your phone number, and they just connect you to the IRS when an agent is available. You handle the actual conversation yourself, so your info stays between you and the IRS. I was on hold for 2+ hours multiple times before trying this, and it really does work.

8 MONTHS?? Ugh that's so much worse than I thought. Do you know if there's any way to check the status of an amended return after you submit it?

You can check the status of your amended return using the "Where's My Amended Return" tool on the IRS website. You'll need your SSN, date of birth, and zip code. The tool will tell you if it's been received, adjusted, or completed. But honestly don't expect updates very often - mine sat on "received" for about 6 months before changing to "adjusted". The key thing is to pay whatever additional tax you calculate when you submit the amendment. That way even if it takes forever to process, you won't be racking up additional penalties and interest.

This is good advice. I set up a payment plan too after I had to amend 3 years of returns. The interest rates aren't great but way better than credit card debt. And it keeps you from getting nasty letters from the IRS.