Update: Thank you all for the amazing advice! I've been able to track down so much more documentation than I thought possible. The Home Depot records were a goldmine - found about $12K in materials purchases. My contractor for the kitchen remodel had old emails with quotes and plans. I even found the building permits for the bathroom addition in county records online! I've put together a detailed document for each improvement with photos, whatever payment evidence I could find, contractor statements, and permits where applicable. Between everything, I've documented about $73K in legitimate improvements that should reduce my capital gains significantly. I'm actually feeling confident about this now instead of panicked. Thanks again for all the suggestions!

That's fantastic news! You've done exactly what tax professionals recommend - creating a comprehensive documentation package that tells a complete story. The combination of Home Depot records, contractor correspondence, building permits, and photos creates what the IRS calls "adequate records" even without original receipts. For future reference, you might want to scan and digitally store all this documentation. Create a simple spreadsheet summarizing each improvement with dates, amounts, and what supporting evidence you have. This will make things much easier if you're ever questioned about it. $73K in documented improvements is substantial and should definitely make a meaningful difference in your tax bill. You should be proud of the detective work you did to reconstruct all this information! This is a perfect example of why it's worth the effort to dig deep for supporting documentation rather than just giving up when receipts are missing.

One thing no one is mentioning - check your STATE tax too! Federal tax is just part of it. In California, you'd owe another 13.3% on top of federal taxes. But in Texas, Florida, Wyoming and a few others, there's ZERO state income tax. Where you live matters HUGE!

This is a really complex situation for someone in high school! One important thing to consider is that you might want to consult with your parents or guardians about this too, since winning a prize this large could potentially affect their tax situation if you're still claimed as a dependent on their return. Also, beyond just the immediate tax implications, think about the ongoing costs - classic cars often require special insurance, storage, and maintenance that can be expensive. If you do win, you might want to connect with classic car communities or appraisers to get a realistic sense of what these specific cars might actually sell for, since that could be quite different from the stated prize value. The payment plan option with the IRS is real, but they do charge interest and penalties, so it's not free money. Given your age and income level, this could be a great learning opportunity about taxes and financial planning, but make sure you have adult guidance to help navigate it all!

I'm dealing with this exact situation right now with three different clients who just received their 2020 ERC refunds! It's such a relief to see this thread confirming the 60-day rule - I was really panicking about being outside the normal amendment window. One thing I wanted to add for anyone else in this boat: make sure you're also considering the impact on any state credits or deductions that were based on the original wage amounts. In my state (Illinois), we have some workforce development credits that are calculated based on wages paid, so the reduced wage expense from the ERC could affect those calculations too. Also, I've found it helpful to prepare a simple timeline document for each client showing: original return filed date, ERC claim filed date, ERC refund received date, and amendment filing date. This makes it crystal clear to the IRS that we're within the proper timeframe and helps support the correlative adjustment argument. Has anyone encountered situations where the client received partial ERC refunds over multiple dates? I have one client who got their 2020 ERC in two separate payments about a month apart, and I'm wondering if the 60-day clock starts from the first payment or if each payment gets its own 60-day window.

This thread has been incredibly helpful! I'm currently facing this same nightmare scenario with two of my S-corp clients who just received their 2020 ERC refunds - one for $28k and another for $51k. I've been losing sleep over this thinking we were completely out of luck with the 3-year amendment deadline having passed. The 60-day correlative adjustment rule is news to me, and honestly a huge relief. I'm definitely going to file the amended 1120-S and corresponding 1040-X returns ASAP. One additional consideration I wanted to mention - make sure to check if your client has any outstanding installment agreements or payment plans with the IRS. I had a situation last year where filing an amended return that increased tax liability affected an existing payment plan, and we had to contact the IRS to modify the agreement terms. Also, for anyone dealing with this, I'd recommend calculating the additional tax liability before filing so your client isn't surprised. The reduction in wage deduction flows through as additional taxable income on the K-1, which could push them into higher tax brackets or affect other deductions. Better to prepare them for the tax impact upfront than have an unhappy client later! Thanks everyone for sharing your experiences - this community is such a lifesaver for situations like these!

Make sure you're tracking ALL your business expenses! I'm in construction and these are the categories I deduct: - Materials & supplies - Subcontractor labor - Tools & equipment - Vehicle expenses/mileage - Business insurance - Software subscriptions - Phone & internet (business %) - Home office (if you have one) - Professional services (accounting, legal) Without a 1099-K, you still report the full income on Schedule C line 1 as "Gross receipts or sales" then deduct all expenses. You only pay tax on the net profit. Don't leave money on the table by missing deductions!

i run a small biz and stripe didnt give me a 1099k either. its normal. the 200 transaction rule is why. u still gotta report ALL income even without forms. the irs can see ur bank deposits so dont try to hide it lol i use quickbooks self employed. it connects to stripe and categorizes everything automatically. then export to turbotax. super easy. sounds like ur not entering expenses right in turbotax if ur paying tax on the full 215k. theres no way u should be paying that much!!

For your situation with just $1,900 in income and being claimed as a dependent, you'll likely want to claim exempt from federal withholding. Here's why: As a dependent, your standard deduction would be $2,300 ($1,900 earned income + $400), which is more than your total income. This means you'd owe $0 in federal income tax for the year. If you claim 0 allowances, they'll withhold federal tax from each paycheck that you'll just have to get refunded when you file. If you write "Exempt" on line 7 of your W-4, no federal income tax will be withheld, giving you more money in each paycheck. Just remember: 1) You can only claim exempt if you had no tax liability last year AND expect none this year, 2) Social Security and Medicare taxes (7.65%) will still be withheld regardless, and 3) You may still need to file a tax return depending on your total income situation. Since this is temporary work and such a small amount, claiming exempt is probably your best bet to avoid the hassle of filing just to get a small refund back.

Just want to add one more perspective here - since you're only working for 2 weeks, you might also want to consider the timing of when you'll receive your paychecks. If you're getting paid weekly, you might only get 2-3 paychecks total depending on when you start and when the pay periods fall. With such a short work period, claiming exempt makes even more sense because you won't have to wait until next tax season to get back what would probably be a very small amount of withholding anyway. Plus, if you need the money for school expenses or other immediate needs, having your full gross pay (minus FICA) in your paychecks will be more helpful than getting a tiny refund months later. Also, don't forget to keep track of your earnings for when you do file - even though you likely won't owe any tax, you'll still need to report the income accurately. Your employer should provide you with a W-2 by the end of January 2026.