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.

I just went through this same process for my SaaS platform last month, and I can definitely confirm that "Service" is the right choice. What really helped me understand the distinction was thinking about it this way: when customers pay you, are they buying something they own, or are they paying for ongoing access to something you continue to own and maintain? With SaaS, your customers never own the software - they're paying for the service of accessing it. You're responsible for hosting, maintaining, updating, and supporting the platform. That's fundamentally different from selling a product where ownership transfers to the buyer. I also found it helpful to look at how established SaaS companies like Salesforce, Zoom, and others are classified - they're all considered service businesses. The IRS has been pretty consistent about this classification for cloud-based software companies. One practical tip: when you fill out Form SS-4, make sure your business description also reflects the service nature of your business. Something like "providing software as a service platform" rather than "software sales" helps maintain consistency with your category selection.

I went through this exact same process about 8 months ago for my SaaS business, and after consulting with both a tax professional and doing extensive research, I can confirm that "Service" is absolutely the correct classification. The way I think about it is this: your customers are essentially renting access to your software platform. They're paying for your ongoing service of hosting, maintaining, securing, and updating the software. They never actually own the code or have the right to resell it - they're purchasing access to your service infrastructure. This is fundamentally different from traditional software sales where customers buy a license and own a copy of the software. With SaaS, if they stop paying, they lose access entirely because what they're paying for is the ongoing service, not ownership of anything tangible. One thing that really helped clarify this for me was looking at my revenue streams - subscription fees for platform access, implementation services, customer support - all of these are clearly service-based activities rather than product sales. The IRS classification aligns perfectly with how SaaS businesses actually operate and generate revenue.

This is exactly the kind of confusion I was hoping to avoid! I've been getting the monthly payments too and was worried about the same double-dipping scenario you described. From what I've gathered reading through all these responses, the key thing is that the monthly payments are only for HALF of the expanded credit amount. So for your child under 6, you're getting $2,250 over 6 months ($375 x 6), not the full $4,500. You'll still claim the remaining $2,250 when you file your 2025 taxes. The tricky part is that your W-4 was probably set up assuming you'd get the old $2,000 credit at filing time. Since you're now getting some credit in advance, you might need to adjust your withholding to avoid owing money next April. I'm planning to use one of those tools mentioned above to figure out exactly how much to adjust my W-4. Better safe than sorry when it comes to avoiding a surprise tax bill!

This thread has been incredibly helpful! I was in the exact same boat as the original poster - getting those $375 monthly payments and panicking about whether I'd owe money at tax time. After reading through everyone's experiences, I decided to take action on my W-4. I calculated that since I'm receiving $2,250 in advance payments (6 months × $375), but my current W-4 was already reducing my withholding by assuming I'd get a $2,000 credit at filing time, I needed to increase my additional withholding. I ended up adding $190 per month to line 4(c) on my W-4 to account for this. The math was basically: the $2,000 my W-4 was already accounting for, divided by 12 pay periods, equals about $167 per month that was being under-withheld. Plus a little extra buffer for safety. My advice to anyone in this situation: don't wait until tax season to figure this out. Review your most recent pay stub, look at your year-to-date withholding, and consider whether you need to submit a new W-4. It's much better to adjust now than face a big tax bill in April!