FYI - I used TurboTax for a similar situation and it specifically asked if I maintained a home for a qualifying person, not just a dependent. The software correctly determined I could use QSS status even though my daughter made too much to be claimed as a dependent. Just make sure whoever does the amended return understands this distinction. Some tax preparers get confused and think QSS requires a dependent, but it actually requires a qualifying person who lives in the home.

This is a great discussion! I just wanted to add one more important point that might help with your decision-making process. When calculating whether your brother provided more than half the cost of maintaining the home for QSS purposes, make sure to include ALL qualifying household expenses for the entire year. This includes mortgage payments (principal and interest), property taxes, homeowners insurance, utilities (electric, gas, water, trash), home repairs and maintenance, and food consumed at home. Don't forget about things like HOA fees if applicable, or heating oil/propane if you use those. For 2023 specifically, since your niece earned $6.2k, you'll want to subtract any amount she contributed toward these household expenses from your brother's total. If she paid for groceries, utilities, or any home maintenance costs, those reduce the amount your brother can claim he provided. The good news is that if your brother is paying the entire mortgage and most utilities, he's likely well over the 50% threshold even with her income. Just document everything carefully in case the IRS asks for support during processing.

I just want to echo what everyone else has said here - this is almost certainly a scam! The fact that they're directing you to a non-.gov website is the biggest red flag. I fell for something similar a few years ago and learned the hard way. One thing I haven't seen mentioned yet is that you can actually check if you owe the IRS any money for FREE by creating an account on the official IRS website (irs.gov) and looking at your "Tax Account" section. It will show you exactly what you owe, if anything, and any payments you've made. This way you'll know for sure if there's a legitimate debt before you even call them. Also, keep that fake letter as evidence when you report it to the IRS fraud department. They use these samples to help identify and shut down scam operations. Stay safe out there!

I'm dealing with something very similar right now! Got a letter yesterday with a CP503 notice code claiming I owe $3,247 from my 2022 return. Like yours, it had a suspicious website (irs-taxresolution.net) instead of the official irs.gov site. The letterhead looked convincing but something felt off about the whole thing. After reading through all these responses, I'm definitely not going to that website or calling their number. Going straight to the official IRS website to create an account and check my actual tax records. It's so frustrating that scammers are getting this sophisticated - they're really preying on people's fear of the IRS. Thanks to everyone who shared their experiences and tips here. This thread is going to save a lot of people from falling for these scams!

I think you're in pretty good shape compared to some situations I've seen. The community wisdom around here is that PATH Act returns with changing as-of dates but stable processing dates are usually just working through the system normally. In my experience (and I've filed PATH Act returns for 6 years now), the pattern you're describing typically resolves with a deposit 1-2 weeks after your last as-of date change. The real red flags would be if you saw a 570 code without a 571 resolution, or if your processing date started moving backward, or if you got a 9001 code (verification needed).

I completely understand the anxiety around filing changes after a divorce - you're definitely not alone in that feeling! As someone who went through a similar situation a few years back, I can tell you that the IRS system does take extra time when you're switching from married filing jointly to head of household, especially with custody-related credits. The pattern you're describing (accepted 1/16, as-of date moving but processing date stable at 2/17) is actually really common for PATH Act filers with new HOH status. I tracked my own return obsessively that first year and saw the exact same thing - as-of date jumped from 2/14 to 2/21 to 2/28 before I finally got my 846 code. One thing that helped me sleep better was understanding that the IRS automated systems are actually pretty good at catching legitimate returns versus fraudulent ones. Your return moving through the system with regular updates is a good sign that everything is processing normally, just slowly. Hang in there - based on what you've shared, you should see that 846 code soon!

Just a heads up - if your kids are under 18 and it's a sole proprietorship, having them as W-2 employees can save you both from paying Social Security and Medicare taxes on their wages. That's a 15.3% savings right there! My accountant saved me a ton by setting this up correctly last year.

One thing I haven't seen mentioned yet is documentation. Regardless of whether you go the W-2 or 1099 route, make sure you keep detailed records of the work your kids performed, hours worked (if applicable), and how you determined their pay. For seasonal work like yours, document what specific tasks they did - was it general labor following your direction, or more specialized independent work? Did they work set hours you assigned, or flexible schedules they controlled? These details matter a lot for proper classification. Also, consider having them fill out timesheets or work logs, even if they end up as contractors. It shows you're taking the classification seriously and helps protect you if there are ever questions. The IRS loves good documentation, especially with family business arrangements where they're naturally more suspicious. Since you mentioned this is your first time doing this, it might be worth consulting with a local tax professional who can look at your specific business structure and work arrangements. The potential penalties for misclassification often cost more than getting proper advice upfront.

I've been self-employed for about 5 years now, and I've tried almost all the tax software options. Here's my two cents: TurboTax Self-Employed is good but expensive. It does handle Schedule C well and provides good guidance, but you're paying a premium for the brand name. H&R Block Self-Employed is similar in quality and price to TurboTax. TaxAct and TaxSlayer both handle Schedule C for significantly less money. FreeTaxUSA is my personal favorite - it handles Schedule C perfectly well, the interface is clean, and it's WAY cheaper than TurboTax. If your situation is truly simple as you describe (just income, standard deduction, QBI, and SE tax), any of these will work fine. The difference mainly comes down to how much guidance you want and how much you're willing to pay for it.

One thing no one mentioned yet - if your self-employment income is below a certain threshold (I believe it's around $73,000 for 2024), you can use the IRS Free File program to file for free, including Schedule C. Different companies participate in this program, including some versions of TurboTax, TaxSlayer, etc. Just go through the IRS Free File portal rather than directly to the tax software websites, otherwise they'll try to upsell you. This is different from the "free" versions advertised on their websites, which typically don't support Schedule C filing.