I just went through this exact same ID.me hell about two weeks ago! The "device not recognized" loop is absolutely infuriating. Here's what finally worked for me after trying everything else: I had to use my work laptop (different device) connected to my phone's hotspot (different network) and switch to a backup phone number for verification codes. Apparently ID.me flags your usual setup after too many failed attempts. Also try logging in super early in the morning like 6am - their servers seem less overwhelmed then. If you're completely stuck, the congressional office route someone mentioned actually works - my friend's mom did that and got a callback from the IRS within 48 hours. It shouldn't be this hard to access our own tax information, but at least there are workarounds. Don't give up!

I've been dealing with this same ID.me nightmare for the past month! What finally broke me out of the loop was using a completely fresh approach: I borrowed my neighbor's tablet, connected it to the coffee shop wifi down the street, and created a brand new ID.me account with my old college email address. The key was using a phone number I'd never used with ID.me before (my work cell). The whole verification process went smoothly since their system didn't have any failed attempt flags on that combination. Took about 20 minutes total and I finally got access to my transcripts. Sometimes you just have to outsmart their security system by starting completely clean. Also learned that if you've failed too many times from the same device/network combo, you're basically blacklisted for a while. Hope this helps someone else avoid the weeks of frustration I went through!

Everyone's talking about adjusting allowances, but FYI the W4 form completely changed in 2020. It doesn't use allowances anymore. Now you fill out different steps about multiple jobs, dependents, and other adjustments. You'll need to fill out the new form which asks for dollar amounts in some sections rather than the old allowance numbers. The IRS calculator should give you instructions based on the new form format.

I was in almost the exact same situation last year - new job after unemployment and accidentally claimed 0 allowances on my W4. The stress is real when you see those huge tax withholdings! Here's what I learned: You're absolutely allowed to adjust your withholding to reflect your actual tax situation. The key point everyone's making about being unemployed for half the year is spot-on - your total annual income will be much lower than what payroll assumes when they see your current salary. I ended up using the IRS withholding calculator just like you did, and it suggested a similar adjustment. Changed my W4 from 0 to 4 allowances (this was before the new form) and it worked out perfectly. Got a small refund instead of the massive one I was heading toward. Don't stress about the legal aspect - adjusting your W4 for legitimate reasons like unemployment periods is exactly what the system is designed for. The IRS wants you to pay the right amount throughout the year, not massively overpay. Just make sure to use their official calculator and you'll be fine.

Percentage-based fees used to be more common years ago, but they're now considered unethical by professional organizations like the NAEA (National Association of Enrolled Agents). There are still some preparers who do this though, especially in communities where people aren't familiar with standard industry practices. It's not technically illegal in most states, but it's definitely a warning sign of a preparer who might bend rules to inflate refunds.

Your instincts are absolutely right to be concerned. I've been doing taxes professionally for over 15 years, and percentage-based fees are a major red flag in our industry. It's one of the first things we learn NOT to do in legitimate tax preparation courses. The biggest issue is that it creates what we call a "perverse incentive" - the preparer makes more money by inflating your refund, regardless of whether those inflated deductions are actually legitimate. I've seen too many cases where clients got audited years later and had to pay back thousands in incorrect refunds, plus penalties that sometimes doubled the original amount owed. If your cousin is serious about this field, encourage him to look into proper certification like becoming an Enrolled Agent or getting training through the IRS Volunteer Income Tax Assistance (VITA) program. These programs emphasize ethical practices and would teach him legitimate fee structures - either flat fees based on form complexity or hourly rates. That's how he can build a sustainable, ethical practice that actually helps people instead of putting them at risk.

Has anyone used the S Corporation basis worksheet from Form 1120-S instructions? It's really helpful for tracking your basis from year to year and would answer your question immediately about whether distributions exceed basis. I'm an enrolled agent and see this issue all the time. Clients think they're getting capital gain treatment when actually they've been calculating their basis incorrectly for years.

This is exactly the kind of confusion I had when I first started dealing with S-corp distributions! After reading through all these responses, I want to emphasize something that might help clarify things for you. The key insight is that there are really two separate tax events happening with S-corporations: 1) The business profits flow through to you personally and are taxed as ordinary income on your K-1, regardless of whether you actually take any money out of the business. This happens every year the business is profitable. 2) When you take distributions, those are generally tax-free up to your basis (which includes your initial investment plus all those profits you already paid tax on). Only distributions ABOVE your basis get capital gains treatment. So you're not getting "double taxed" - you pay ordinary income rates on the business profits, then if you distribute more than your total basis, that excess gets the more favorable capital gains treatment. The confusion often comes from mixing up these two separate events. I'd definitely recommend using that S Corporation basis worksheet that Mateo mentioned to get a clear picture of where you stand. And yes, the reasonable compensation issue Nia brought up is super important - the IRS definitely scrutinizes S-corps that pay minimal salaries with large distributions.

I work in payroll and just want to confirm what others have said - income counts when it's paid, not when it's earned. Your 1/3/2025 check will be reported on your 2025 W-2, even though some of those days were worked in 2024.

Just to add another perspective - I went through something similar with a scholarship that had income limits. The key thing that helped me was getting everything in writing from both my employer's HR department and the grant/scholarship office about their specific income calculation methods. Even though the general tax rule is that income counts when received (not when earned), some grant programs have their own definitions. For example, my scholarship looked at "income earned" during the calendar year rather than "income received." It's rare, but it does happen. I'd recommend emailing your grant administrator with your specific situation - mentioning that you'll have December work days paid in January - and asking them to confirm in writing how they handle this scenario. That way you have documentation if any questions come up later. Most grant offices are pretty responsive to these kinds of clarification requests, especially when you explain the stakes involved. Better to spend a few minutes getting official confirmation than to risk losing thousands in grant money over a misunderstanding!