Has anyone dealt with this situation using TaxSlayer? I'm having the exact same Roth IRA withdrawal issue but I can't find where to enter my contribution information to offset the 1099-R. The software keeps treating my entire withdrawal as taxable.

I went through this exact situation last year and it's definitely stressful! The good news is that you're absolutely right - Roth IRA withdrawals of contributions should be tax-free. The key issue is that your tax software doesn't automatically know how much of your withdrawal was contributions versus earnings. Here's what worked for me: First, make sure you have Form 8606 Part III completed correctly. You'll need to track down your total Roth contributions from all years - this becomes your "basis." Since you contributed $15,000 total and withdrew $13,200, your entire withdrawal should be considered a return of contributions and therefore not taxable. In FreeTaxHelper, look for a section on "Retirement Account Distributions" or specifically "Form 8606." You might need to manually override what the software is calculating based on just the 1099-R. Don't panic about that $3,800 tax bill - once you properly account for your contribution basis, it should drop significantly or disappear entirely. Keep good records of all your contributions going forward, as you'll need this information for any future withdrawals. The 5498 forms are indeed just informational, but they're invaluable for tracking your basis over time.

Just to add another perspective - I've been running a mobile coffee cart for 3 years and learned this lesson the hard way. We were doing exactly what your owner is doing (using one "safe" higher rate) until we got audited last year. The auditor explained that by consistently overcharging in certain jurisdictions, we were creating a liability because we were collecting more tax than we were remitting to those specific locations. The solution that worked for us was switching to a POS system with automatic location-based tax rates, but we also had to go back and correct our previous filings. It was a pain, but much better than facing penalties. I'd strongly recommend having a conversation with your owner about getting compliant sooner rather than later - mobile food businesses are actually more likely to be audited because we operate across multiple jurisdictions. Also, don't forget about the permit side of things. Most cities require food trucks to have local permits even for one-day events, and those permits often come with specific tax reporting requirements.

This is such a timely discussion! I'm actually dealing with a similar situation with our mobile BBQ business. We operate in 4 different counties and I've been manually tracking which tax rate to use for each location, but it's been a nightmare to manage during busy festival seasons. One thing I learned from our accountant is that you should also keep detailed records of not just WHERE you made each sale, but WHEN. Some jurisdictions have different tax rates that change throughout the year (like temporary local taxes for infrastructure projects), so even the same location might have different rates depending on the date. Also, for anyone considering the GPS-based POS solutions mentioned above - make sure your system can handle situations where you're right on a city boundary. We had issues where our GPS would ping-pong between two tax rates when parked near city limits, which created some confusing receipts for customers until we figured out how to set a manual override. @Sophie Footman - I'd definitely encourage you to push back more firmly with the owner about getting compliant. The "better safe than sorry" approach of using a higher rate everywhere might seem safer, but as others have mentioned, it can actually create more problems in the long run than just doing it correctly from the start.

I'm dealing with the exact same frustrating situation - filed my FICA refund request in March 2025 and I'm now at 23 weeks with absolutely no communication from the IRS. Like you, I was counting on this money for some important expenses and the uncertainty is really stressful. Reading through all these responses has been incredibly helpful though. I had no idea that FICA refunds go through a completely different processing system than regular tax refunds, which explains why the normal tracking tools don't work. The 12-week timeline they publish is clearly just wishful thinking at this point. I'm definitely going to try calling that direct number (800-829-1040) early in the morning like others suggested, and ask specifically to be transferred to "Accounts Management" based on Dylan's advice. I'm also going to look into the Taxpayer Advocate Service since I'm well past their delay threshold. One thing I'm curious about - has anyone had success with contacting their Congressional representative's office? I've heard they sometimes have special channels to inquire about delayed government processes, though I'm not sure if that applies to tax matters. Thanks Mae for starting this thread, and thanks to everyone who shared their experiences and solutions. It's frustrating that we need to jump through all these hoops, but at least now I have a game plan instead of just sitting here wondering what's happening with my application.

I'm so sorry to hear about your extended wait, Mae. 20 weeks is definitely beyond the normal timeframe, and your frustration is completely understandable. After reading through all these helpful responses, I wanted to share my own experience - I waited 26 weeks for my FICA refund last year and it was absolutely maddening. What finally worked for me was a combination approach: First, I called the IRS at 800-829-1040 right when they opened (7 AM) on a Tuesday morning and specifically asked to be transferred to "Accounts Management" - this is the specialized unit that handles FICA refunds. The regular customer service reps often don't have access to the right systems. Second, I also contacted the Taxpayer Advocate Service since I was well past the 12 weeks + 30 days threshold that qualifies as an "unreasonable delay." They assigned a case worker who was able to track down exactly where my application was stuck. It turned out my refund was sitting in what they called the "correspondence review" queue because the IRS had questions about one of my supporting documents, but they never sent me a letter requesting clarification. Once the advocate's office flagged this, they expedited the review and I had my refund within 3 weeks. I'd definitely recommend trying both approaches - the direct call to get immediate information about your case status, and the Taxpayer Advocate for longer-term resolution if needed. Don't give up - these refunds do eventually come through, the system is just frustratingly slow and poorly designed for tracking. Keep all your documentation handy when you call, including your certified mail receipt if you have one. Good luck!

For breeding cats like Ragdolls and Siberians with high initial costs, you're definitely on the right track treating them as depreciable assets rather than inventory. Given your $18,000 investment in foundation cats, this will help spread that cost over their productive breeding years. One thing to consider with high-value breeding cats is that you might want to explore the Section 179 deduction option Dylan mentioned earlier. For 2024, the Section 179 limit is $1,160,000, so you could potentially deduct the full cost of your breeding cats in the year you acquired them rather than depreciating over 5-7 years. This could provide a significant tax benefit in your first profitable year. However, run the numbers both ways - sometimes spreading the deduction over multiple years through depreciation works better for your overall tax situation, especially if you expect to be in higher tax brackets in future years. Also, make sure you're tracking all those breed-specific expenses like genetic testing, specialized nutrition, and show costs if you exhibition your cats. These are often overlooked deductions that can add up significantly for high-end breeding operations. The key is maintaining detailed records of everything - sounds like you're already doing this well with your separate business account and expense tracking.

I run a small accounting practice and work with several animal breeding businesses, so I can add some clarity to your situation. First, you're absolutely correct that as an LLC taxed as a sole proprietorship, all your cattery income flows through to your personal return via Schedule C. The TurboTax advisor gave you accurate information there. Regarding the livestock classification - this is where a lot of confusion comes from. Cats are generally NOT considered livestock for IRS purposes. The IRS Publication 225 (Farmer's Tax Guide) specifically covers livestock, and domestic cats used for breeding are typically treated as regular business assets under Schedule C rather than agricultural livestock. For your breeding cats, treating them as depreciable business assets is usually the most advantageous approach. You can depreciate them over their useful breeding life (typically 5-7 years) or potentially use Section 179 to expense the full cost in the year of purchase if it makes sense for your tax situation. One important note: make sure you're prepared for self-employment tax on your net profit. Since this is Schedule C income, you'll owe both income tax and self-employment tax (Social Security/Medicare) on your cattery profits. Keep doing what you're doing with the detailed records and separate business account - that's exactly what you need for a clean tax filing. The fact that you're profitable in year one with good expense tracking puts you in a strong position.

As someone who went through this exact situation two years ago, I want to echo what others have said - your tax debt will NOT prevent your daughter from getting financial aid! My family owed about $18,000 to the IRS when I was applying for college, and I was terrified we'd be disqualified from everything. The key things that helped us: 1. We had filed our tax returns even though we couldn't pay the full amount 2. We set up a payment plan with the IRS (which you've already done) 3. We completed the FAFSA using our filed tax information I ended up receiving a full Pell Grant ($6,895 at the time) plus federal student loans. The financial aid office never even asked about our IRS debt - they only cared about our income level and the information from our filed tax returns. Don't let fear stop you from filing the FAFSA! With your income under $40k, your daughter has an excellent chance of qualifying for substantial aid. The deadline is approaching, so definitely get that application submitted. Your financial struggles don't disqualify her from pursuing her education - the system is designed to help families in situations exactly like yours.

I'm a high school counselor and I see this concern come up every year with families. I want to reassure you that your tax debt situation will absolutely NOT prevent your daughter from receiving federal financial aid! The FAFSA looks at your filed tax information to determine eligibility - it doesn't care whether you still owe money to the IRS. What matters is that you've filed your returns and are addressing your debt responsibly through a payment plan, which you're already doing. With your family income under $40k, your daughter is likely eligible for a significant Pell Grant (up to $7,395 for 2024-25). She'll also be able to access federal student loans regardless of your IRS payment plan. Please don't let this fear prevent you from completing the FAFSA! I've helped hundreds of families in similar situations, and they've all been able to secure financial aid for their children. Your daughter's academic achievements (that 3.9 GPA is fantastic!) combined with your family's income level puts her in an excellent position for aid. Complete that FAFSA as soon as possible - her college dreams are still very much within reach! 💪