Has anyone successfully resolved this error by creating an IRS online account? I've heard sometimes you can pull your exact AGI from their transcript system.

I had this exact same reject code last week and it was driving me crazy! After reading through all these suggestions, I ended up trying the IRS transcript approach that Carmen mentioned. Created my online account at IRS.gov and pulled up my 2023 tax transcript - turns out the AGI I had been using was off by exactly $1! Must have been a rounding error somewhere. Used the exact number from the transcript and my return was accepted within minutes. Definitely recommend checking your transcript first before trying the other methods - it's free and might save you a lot of time and stress. Thanks everyone for all the helpful advice in this thread!

Pro tip: Always make copies or scan important tax documents before sending anything to the IRS! I learned this the hard way years ago. Now I have a digital folder for each tax year with scans of all my documents.

I've been through this exact situation! Don't worry too much - the postal service will almost certainly return your envelope to you marked "postage due" or "return to sender." It usually takes about 3-7 business days depending on your location. While you're waiting for it to come back, I'd recommend taking these steps right away: 1) Contact your employer's HR or payroll department TODAY and request duplicate W-2s. Tell them it's urgent due to the tax deadline - most companies can reissue them within a few days. 2) If you have your final paystub from December, that contains most of the same information as your W-2 and can help you get started on preparing a backup return. 3) Consider switching to e-filing for this year once you get your documents sorted out. It's much safer, faster, and you get immediate confirmation that the IRS received your return. The good news is you still have time before the deadline, and this happens to more people than you'd think! Just don't wait around - start working on getting those replacement documents now so you're ready to file as soon as possible.

Great question! I went through this exact same situation when I transitioned from F-1 to H1B in 2022. The key thing to understand is that you'll file what's called a "dual-status" return for 2023. Here's what you need to do: 1. File Form 1040 with "Dual-Status Return" written across the top 2. Attach Form 1040NR as a statement (don't file it separately) 3. Include a detailed statement showing how you split your income between the two periods The tricky part is determining exactly when your status changed for tax purposes. Since your H1B started in October 2023, that's likely your residency start date. Everything before October would be treated under nonresident rules, and everything after under resident rules. A few important things to remember: - You can't e-file a dual-status return - it has to be mailed - Different deduction rules apply to each period - Make sure to check if any tax treaty benefits apply to your F-1 period - Don't forget about state taxes - they often have different rules I'd definitely recommend getting professional help or using specialized software that handles dual-status returns, as the regular tax software doesn't handle this situation well. Good luck!

One thing that hasn't been mentioned yet is timing for estimated tax payments. Since you switched from F-1 to H-1B mid-year, you might need to make estimated quarterly payments for the H-1B portion if your employer wasn't withholding enough taxes (which is common when you start mid-year). The IRS expects you to pay taxes as you earn income, so even though you're filing a dual-status return for 2023, you should have been making estimated payments for Q4 2023 if needed. For 2024, make sure you're either having enough withheld from your H-1B paychecks or making quarterly estimated payments to avoid underpayment penalties. Also, keep detailed records of everything - dates of status change, pay stubs showing withholdings for each period, any tax treaty claims, etc. The IRS might have questions about dual-status returns, and having good documentation will save you headaches later.

I'm dealing with a somewhat similar situation with Zelle - unauthorized transactions that were reversed but still showed up on a 1099-K. After reading through all these responses, it's clear the adjustment method is the way to go. One thing I'd add from my research: if you're using tax software like TurboTax or H&R Block, they might not have a straightforward way to handle this adjustment method. You might need to override their automatic calculations or switch to filling out the forms manually. I ended up having to use the "Other Income" line on Schedule 1 and then create a negative adjustment entry with a detailed explanation. Also, @Laura Lopez - since you mentioned you're being meticulous with your 2023 return preparation, make sure to save PDF copies of all your communications with Cash App. I learned this the hard way when my bank's online portal deleted old messages after 6 months, and I nearly lost crucial documentation. The consensus here seems clear: don't pay taxes on money you never received, use the proper adjustment method, document everything, and file on time rather than waiting for Cash App to resolve their investigation.

I've been following this thread closely as I'm dealing with a similar Cash App fraud situation, and the advice here has been incredibly helpful. What strikes me most is how consistent the recommendations are across multiple people who've actually dealt with this - the adjustment method seems to be the clear winner. @Laura Lopez - based on everything I've read here, I'd strongly recommend against option (a) omitting the 1099-K entirely. That's almost guaranteed to trigger an automated matching notice from the IRS. Option (b) reporting as income with a theft loss deduction is unnecessarily complicated and might not even be allowed under current tax law changes. The consensus approach of reporting the 1099-K amount but immediately offsetting it with a negative adjustment (essentially option c with modifications) seems like the safest path. The key elements seem to be: report it on Schedule 1 as "Other Income," subtract the same amount as a negative adjustment with your Cash App case number, attach a detailed statement, and keep all documentation. One practical tip I haven't seen mentioned - when you write your explanation statement, include the specific dates Cash App confirmed the fraudulent activity and terminated your account. The IRS likes to see that the payment processor themselves acknowledged the transactions were illegitimate. You're absolutely right not to just pay the $200 to avoid complications. That would essentially be rewarding criminal activity at your expense.

I've been using FreeTaxUSA for a few years now and ran into this exact same issue with K-1 forms. One thing that really helped me was creating a simple mapping between my K-1 and the software fields before I started entering data. For Box 20 Code Z, here's what I do: I lay out my K-1 next to the FreeTaxUSA screen and match each number to its corresponding field by reading the field labels carefully. The three main categories are usually pretty clear once you know what to look for - your share of business income, wages the business paid to employees, and the cost basis of business property. Also, don't stress too much about getting it perfect on the first try. FreeTaxUSA lets you go back and edit these entries multiple times, and they have a pretty good error-checking system that will flag obvious mistakes. The 199A deduction can definitely be worth several thousand dollars, so it's worth taking the time to get it right!

I went through this exact same headache last year with FreeTaxUSA and my K-1 from a rental property LLC! The Section 199A stuff is definitely confusing at first, but once you understand the basics it's not too bad. Here's what worked for me: First, ignore all the complex rules about income thresholds and SSTB classifications for now - at your income level ($95k) and with a food manufacturing business, you'll qualify for the full 20% deduction. The three numbers FreeTaxUSA is asking for are: 1) Your share of qualified business income (this should be the main number under Code Z), 2) Your allocated share of W-2 wages the business paid (multiply the total business W-2 wages by your 15% ownership), and 3) Your share of qualified property basis (again, multiply by 15%). One tip that saved me time: if any of the boxes seem to have weird numbers or don't make sense, call the business accountant directly instead of going through your brother. Most CPAs are happy to spend 5 minutes explaining what goes where, especially during tax season when they know partners are struggling with this stuff. The QBI deduction ended up saving me about $2,800 last year, so definitely worth getting right!