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.

You're absolutely on the right track with getting an EIN for privacy protection! I did the same thing when I started freelancing and it's been a game-changer for peace of mind when sharing tax info with clients. Your tax guy's concern is understandable but outdated - many accountants still think EINs are only for businesses with employees, but the IRS explicitly allows sole proprietors to get them for privacy reasons. There are zero tax complications since everything still flows through to your personal return on Schedule C. The business name issue you mentioned is crucial though. Since you left it blank on your W9s but the IRS has a name on file, you could run into problems when clients file their 1099s. I'd recommend going back to recent clients and submitting updated W9s with the exact business name from your EIN letter. It's a small hassle now but will save you major headaches during tax season. Also, make sure you're not mixing your EIN and SSN across different clients - pick one and stick with it consistently. The IRS matching system can get confused if the same person is receiving 1099s under both numbers.

You definitely made the smart choice getting an EIN for privacy protection! I've been doing contract work for years and would never go back to sharing my SSN with clients. Your accountant's advice might be technically correct about not "needing" an EIN, but protecting your identity is worth the minimal extra paperwork. The business name inconsistency is your main concern here. Since the IRS has a specific business name tied to your EIN, you really should use that exact name on all your W9 forms going forward. Leaving it blank while having a registered business name could trigger matching issues when the IRS processes 1099s from your clients. I'd suggest reaching out to any clients you've already submitted blank W9s to and providing corrected versions with your official business name. Most clients are understanding about this kind of administrative correction, especially when you explain it's for IRS compliance. Also, keep your EIN confirmation letter easily accessible - some clients' accounting departments will want to verify the business name matches before processing payments. Better to have it ready than scramble to find it later!

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! 🍀

One thing nobody has mentioned - make sure you're claiming the Earned Income Tax Credit too! With $8,500 income and two children, you should qualify for a substantial EITC which is fully refundable. This might help offset some of the disappointment from the reduced Child Tax Credit.

@Dylan Cooper makes an excellent point about the Earned Income Tax Credit! With your income of $8,500 and two qualifying children, you should definitely be eligible for EITC, which could be worth around $5,000-6,000 depending on your exact situation. This is completely separate from the Child Tax Credit and is fully refundable. Also wanted to mention - if you're planning to return to full-time work soon, you might want to consider the timing of when you do. If you can increase your earned income for this tax year (maybe through some part-time work before December 31st), it could boost both your Child Tax Credit and EITC for when you file next year. I know it's frustrating that the system seems to penalize lower incomes for the Child Tax Credit, but the EITC is specifically designed to help working families with lower incomes, so make sure you're not missing out on that significant credit!