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This is exactly why I love this community - seeing everyone jump in to help decode these confusing transcripts! šŖ From what you've shared, it looks like you've been through quite the journey. That 810 freeze code from March 2023 plus the amended return (977) definitely explains why things took so long. The examination codes (420/421) show they did a thorough review but closed it in April, which is actually great news! Those credits totaling over $11k ($3,599 + $7,935) are substantial - no wonder the IRS wanted to take a closer look. With the examination closed and the refund hold removed (577 code), you're definitely in a much better position now. Keep an eye out for that 846 code everyone's mentioning - that's your golden ticket showing the refund has actually been issued with a date. Given where you are in the process, I'd expect to see movement soon. The worst part (the examination) is behind you! Stay strong - you've made it through the hardest part of this process! š
Thanks for breaking this down Emma! š As someone new to this whole transcript thing, it's really reassuring to hear that the examination being closed is good news. I was honestly panicking when I saw all those codes - thought maybe I did something wrong on my taxes. The waiting has been brutal but knowing I'm past the worst part gives me hope. Really appreciate everyone in this community taking the time to help decode all this confusing IRS language!
This is such a relief to see someone else going through the same thing! I've been dealing with a similar situation - had a refund freeze last year and just went through an examination that finally closed a few weeks ago. Looking at your codes, you're actually in a really good spot! That 421 code showing your examination closed in April is huge - mine just closed and I can tell you the relief is real. The fact that they removed your refund hold (577) right after closing the exam is a great sign. Those credits you're seeing ($3,599 + $7,935) are legitimate and were processed back in April 2023, but the freeze kept them from being released. Now that everything's cleared, you should definitely be seeing an 846 code with a DDD (direct deposit date) soon. I know the waiting is absolutely brutal - I've been checking my transcript obsessively for months. But based on what I'm seeing here, you've cleared all the major hurdles. The IRS doesn't remove refund holds unless they're satisfied with their review. Hang in there - after almost two years of this process, you're finally at the finish line! š¤āØ
This gives me so much hope! š I've been checking my transcript like every day and getting more anxious when I don't see changes. It's really helpful to hear from someone who just went through the same process. Two years feels like forever but if you made it through, maybe there's light at the end of the tunnel for me too. Did you get any advance notice before your 846 code showed up or did it just appear one day? Trying to manage my expectations here lol
@Miguel Herrera For me, it literally just appeared overnight! I was checking every morning sometimes (twice a day let s'be real š and) one Tuesday it was just there - 846 code with a DDD for that Friday. No warning, no notice beforehand. The IRS moves in mysterious ways lol. But honestly after going through this whole process, I d'say once your examination closes and the hold is removed like yours has been, it s'usually just a matter of days to maybe 2 weeks max before the 846 drops. Keep checking but try not to stress yourself out too much - you re'so close! š¤
This whole thread has been incredibly helpful! I was in the exact same situation as Diego and almost fell for the same upsell from my registered agent. They quoted me $225 for "enhanced privacy protection" when getting my EIN. Based on everything discussed here, I'm going to skip their service entirely and just file for the EIN myself through the IRS website. It's good to know that the privacy protection is essentially meaningless since my SSN will be linked to the EIN in IRS systems regardless of who files the paperwork. One quick follow-up question though - once I have my EIN, should I be using it on all business documents going forward instead of my SSN? Or are there specific situations where I'd still need to use my SSN even with an EIN?
Great question! Once you have your EIN, you should generally use it for most business-related purposes instead of your SSN. Use your EIN for things like: - Opening business bank accounts - Vendor applications and payment forms (like W-9s) - Business loan applications - Setting up merchant accounts - Filing business tax returns However, there are still some situations where you might need to provide your SSN even with an EIN: - Personal guarantee situations (like business credit cards where you're personally liable) - Background checks for certain licenses or permits - If you're filing as a sole proprietor on your personal tax return The main benefit is that having an EIN means you can avoid giving your SSN to vendors, clients, and other business contacts in most day-to-day situations. It creates that separation between your personal and business identity that everyone's been talking about.
This thread perfectly highlights why it's so important to do your research before paying for these "premium" services. I work in business formation and see clients get upsold on meaningless services all the time. The bottom line is simple: for a single-member LLC, your SSN will ALWAYS be connected to your EIN in IRS records. There's no way around this - it's a federal requirement. Any registered agent claiming they can provide "privacy protection" from the IRS is misleading you. Here's what I tell my clients: Get your EIN for free directly from IRS.gov. It takes 10-15 minutes online and you'll have your number immediately. Use that EIN for banking, vendor forms, and business transactions to avoid sharing your SSN unnecessarily. But understand that the IRS will always have both numbers linked in their system. Save your money for things that actually matter - like proper business insurance or accounting software. Don't waste hundreds of dollars on fake privacy services.
This is exactly the kind of straightforward advice I was looking for! As someone new to business formation, it's really helpful to hear from someone in the industry confirming what everyone else has been saying. I was getting overwhelmed by all the different "premium" services my registered agent was trying to sell me - privacy protection, expedited processing, compliance monitoring, etc. It sounds like most of these are just ways to extract extra money from people who don't know better. I'm definitely going to file for my EIN myself through the IRS website. One last question though - is there anything I should be careful about when doing it myself? Like common mistakes to avoid or specific information I need to have ready before starting the application?
3 One thing nobody mentioned yet - make sure the EIN or SSN on the trust account is correct. I had a similar situation and Fidelity had my trust's old EIN on file instead of my SSN, which caused a mismatch when I tried to report the income. Took months to straighten out with the IRS!
1 That's a really good point, thanks! Should I be using my personal SSN for the trust accounts, or should I have gotten a separate EIN when we set up the trust? The attorney who helped us set it up didn't really explain the tax side very well.
3 For most revocable living trusts, you can use either your SSN or get an EIN - it's generally a matter of preference. Many people just use their SSN to keep things simple, but some prefer an EIN for privacy or organizational reasons. I'd check with Vanguard to confirm what identifier they're using for your trust accounts. If they're using your SSN, that's perfectly fine. If they issued an EIN when the trust was created, make sure that's what Vanguard has on file to avoid mismatches.
22 Does anyone know if the tax treatment changes if the trust becomes irrevocable after one spouse dies? We set up our trust that way and I'm trying to plan ahead.
18 Yes, it changes significantly. When a revocable trust becomes irrevocable after death, it generally becomes a separate taxpaying entity that requires its own tax return (Form 1041). The trust would pay taxes on income retained in the trust, while income distributed to beneficiaries would be reported on a K-1 and taxed to the beneficiaries.
That's exactly right. When one spouse dies and the trust becomes irrevocable, it's a major tax shift. The surviving spouse portion might remain revocable (and still flow through to their personal return), but the deceased spouse's portion typically becomes irrevocable and needs its own EIN and annual Form 1041 filing. The trust will also need to issue K-1s to beneficiaries for any distributions. It's definitely worth discussing this transition with a tax professional before it happens so you're prepared for the additional compliance requirements.
Question for anyone who's dealt with this before - does having streaming income (even if it's a loss) affect my eligibility for any tax credits? I'm worried about losing my earned income credit since I hear self-employment income can change things.
Since we've established that Twitch royalties typically go on Schedule E (not Schedule C), they don't count as earned income for the Earned Income Tax Credit. This means they won't help you qualify for the EITC, but they also won't mess up your EITC calculation from your W-2 job. However, if some of your streaming income comes from other sources (like direct donations or merchandise) that would go on Schedule C, that portion could potentially affect your EITC - though in your case with an overall loss, it probably wouldn't negatively impact your credits.
This is a great discussion! I'm dealing with something similar but with YouTube AdSense revenue. I got a 1099-NEC (not MISC) for about $1,200 from YouTube, and I'm wondering if the same Schedule E vs Schedule C rules apply? My understanding is that 1099-NEC income typically goes on Schedule C and is subject to self-employment tax, unlike the 1099-MISC royalties you're dealing with. But I'm also just doing this as a hobby alongside my regular job, so I'm not sure if the "hobby vs business" distinction matters for tax purposes. Has anyone here dealt with YouTube income specifically, or know if there's a different treatment compared to Twitch royalties?
Connor Murphy
Can anyone recommend good tax software that would make it easier to DIY instead of hiring someone? I've been using TurboTax but wondering if there's something better for someone with a small side business and regular W-2 job.
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Connor Murphy
ā¢Thanks for the suggestion! I've never heard of FreeTaxUSA before. Does it walk you through the self-employment stuff step by step like TurboTax does? My side gig isn't complicated but I'm always afraid of missing something important.
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Alejandro Castro
ā¢Yes, FreeTaxUSA does a great job walking you through self-employment income step by step! It asks about business expenses, home office deductions, and mileage just like TurboTax does, but without the constant upselling. The interface is clean and they have good help articles if you get stuck. For a simple side business, it's definitely worth trying - you'll save money and get the same results.
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Ryder Greene
Just wanted to add my experience - I've been using a tax preparer with PTIN/EFIN (no CPA) for 3 years now and she's been fantastic. What matters most is finding someone who specializes in situations like yours and stays current with tax law changes. My preparer does continuing education even though she's not required to as much as a CPA would be. Before hiring anyone, ask them specific questions about your situation - like what deductions they typically find for people with your income sources, how they handle W-4 optimization, etc. A good preparer will give you detailed answers regardless of their certification level. Also ask for references from clients with similar tax situations to yours. The fact that your person is working toward CPA certification actually shows they're committed to advancing their knowledge, which is a good sign in my book.
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