Another thing to check - if you've recently moved, make sure your address matches what the IRS has on file. Sometimes address mismatches can trigger name/SSN verification issues too. You can verify your address with the IRS by calling their automated line at 1-800-829-1040. Also, if you're using tax software, try filing again with your full legal name exactly as it appears on your SS card - character for character, including any punctuation.

Had this exact same issue last month! Turned out I had been using "Jr." on my tax return but my actual SS card doesn't have the suffix on it. The IRS system is super picky about matching character-for-character. Also worth noting - if you've been married/divorced recently and haven't updated your name with SSA yet, you'll need to do that first and wait about 2 weeks before the IRS system updates. You can also try calling the IRS Practitioner Priority Service at 1-866-860-4259 to verify what name they have on file for your SSN.

Anyone know if TaxAct has a way to see if it was actually transmitted to the IRS beyond just the email? I'm in the same boat, filed 2 weeks ago and still pending!

I went through this exact same worry last month! Filed with TaxAct and it stayed "pending" for almost 2 weeks. What really helped calm my nerves was understanding that "pending" doesn't mean there's a problem - it just means the IRS hasn't finished processing yet. The key thing to remember is that your filing date is locked in when you hit submit in TaxAct, not when the IRS finishes processing. So even if it's still pending after May 17th, you're not late as long as you submitted before the deadline. I'd suggest checking the IRS "Where's My Refund" tool - it often shows acceptance before the tax software updates. And definitely don't file a paper copy unless you get an actual rejection notice. Duplicate filings can create way more headaches than just waiting for the electronic processing to finish. Hang in there - the waiting is the worst part, but TaxAct is reliable and your return is almost certainly fine!

Got through this exact situation. Filed February 3rd. Return stuck for verification. Former employer never sent W-2 info to SSA. Called IRS April 12th. Submitted Form 4852 with final paystub. Refund received May 9th. Total 95 days. Worth the wait.

Based on my experience helping clients through similar situations, I'd recommend taking a proactive approach while you wait. First, gather all supporting documentation - final paystubs, direct deposit records, offer letter, anything that shows the wage amounts on your W-2 are accurate. This will be crucial if the IRS needs additional verification. Second, consider preparing Form 4852 (Substitute for Form W-2) as a backup plan, though don't file it yet since you have the actual W-2. The IRS often resolves these cases faster when they can see comprehensive documentation that supports the reported wages. Also, keep calling periodically (every 2-3 weeks) to check status - sometimes cases move through the system faster than the quoted timeframes, especially if the employer eventually does submit their data. The 120-day timeline is worst-case scenario, not typical resolution time.

One thing to consider that I haven't seen mentioned - Public Law 86-272 provides some protection from state income taxes for certain businesses, but it typically doesn't apply to service businesses like digital agencies. It only protects sellers of tangible personal property. This caught me by surprise last year when my accountant explained why my SaaS business couldn't use this protection despite having no physical presence in many states where we had customers.

This thread has been incredibly helpful! As someone who just started expanding my freelance digital consulting business beyond my home state, I had no idea the complexity I was walking into. I've been putting off addressing this because it seemed so overwhelming, but reading everyone's experiences makes it clear I need to tackle this sooner rather than later. The voluntary disclosure programs mentioned sound like a lifeline for those of us who may have inadvertently created nexus already. One question I haven't seen addressed - for those of you who went through the multi-state compliance process, how did you handle ongoing compliance? Are you now filing quarterly estimates in multiple states, or do most states allow annual filings for smaller service businesses? The administrative burden of maintaining compliance in multiple jurisdictions seems almost as daunting as figuring out the initial requirements.

You definitely need to report that $6,500 as income on your tax return! The payment method doesn't change your tax obligations - whether you received payment through Zelle, cash, check, or any other method, income from your freelance graphic design work is taxable. Since you didn't receive 1099 forms, don't worry - individual clients aren't required to send them unless they paid you $600+ AND you're not incorporated. But the absence of a 1099 doesn't make your income tax-free. You'll need to report this on Schedule C as self-employment income, which means you'll owe both regular income tax AND self-employment tax (about 15.3% for Social Security and Medicare). I'd recommend setting aside 25-30% of future freelance payments for taxes. The good news is you can deduct legitimate business expenses like design software subscriptions, computer equipment, portion of your home internet used for work, etc. Make sure to keep receipts and records. Going forward, if you expect similar income levels, consider making quarterly estimated tax payments to avoid underpayment penalties. The IRS expects taxes to be paid throughout the year, not just at filing time. Don't stress too much - this is a very common situation for freelancers. Just make sure to report it properly and keep good records of both income and business expenses!

Hey Lauren! You absolutely need to report that $6,500 as income on your tax return. The payment method doesn't matter at all - whether you got paid through Zelle, PayPal, Venmo, cash, or check, income from your freelance work is taxable from dollar one. Don't worry about not getting 1099 forms - individual clients aren't required to send them unless they paid you $600+ AND you're not incorporated. But that doesn't make the income any less taxable! You'll report this on Schedule C as self-employment income, which means you'll owe both regular income tax AND self-employment tax (about 15.3%). I'd suggest setting aside 25-30% of future freelance payments for taxes. The good news is you can deduct business expenses like design software subscriptions, computer equipment, portion of home internet used for work, etc. Keep those receipts! Since you made a decent amount, you might also want to look into quarterly estimated tax payments for this year to avoid underpayment penalties if you expect similar income. Bottom line - report it all, but don't forget to claim your legitimate business deductions to reduce what you owe!