Def a scam but ngl this is kinda hilarious. Usually they try harder with the whole 'youre going to jail' routine

Classic scam call! The IRS will NEVER call you without sending official mail first. Real IRS communications are always formal and documented. That "keep on" message is probably some confused scammer who doesn't even know what they're supposed to be saying lol. Just ignore it and don't give out any personal info if they call back. Your refund status can be checked on the official IRS website - much safer than random phone calls!

I'm in a similar situation with my roofing business. Has anyone compared how much more you save with Section 179 vs just regular depreciation? Is it worth the hassle?

Great question! I went through this exact same decision last year with my HVAC business. Here's what I learned: the Section 179 deduction is essentially a timing difference, not necessarily more total savings. With your $65k F-250 and roughly $110k profit, you're probably looking at being in the 24% federal bracket. That Section 179 deduction could save you around $15,600 in federal taxes this year, plus state taxes depending on where you are. The key consideration is cash flow - do you need that tax savings NOW to reinvest in your business, or would you prefer to spread it out? If your business is growing and you expect to be in higher tax brackets in future years, taking it all now makes sense. One thing to watch out for: make sure you have enough business income to absorb the full deduction. Section 179 is limited to your business's taxable income for the year. With $110k profit, you should be fine for the $65k truck. Also keep detailed records of business use percentage. The IRS scrutinizes vehicle deductions heavily, especially for trucks that could be used personally. Even if you say 100% business use now, document everything with a mileage log. I ended up taking Section 179 and it was the right call for my cash flow situation. Just make sure you're prepared for potential recapture if you sell early.

These scammers really out here trying to catch us slipping during tax season smh 🤦‍♂️

Always trust your gut when something feels off! As a general rule, legitimate tax services like TurboTax will never ask you to click links in emails for sensitive info. When in doubt, go directly to their official website by typing it in yourself. Better safe than sorry - these scammers are getting more sophisticated every year 🛡️

Guys, I think there's some confusion about the forms. The 1099-MISC doesn't even have Box 7 for nonemployee compensation anymore - that was moved to the 1099-NEC a few years ago. So if you're getting self-employment income, it's probably coming on a 1099-NEC now, not a 1099-MISC. The 1099-MISC Box 3 is usually for things like prizes, awards, or other random payments that aren't for services you provided as part of a business. That's why it's not subject to self-employment tax.

Thanks everyone for all the detailed explanations! This has been super helpful. I was definitely mixing up the self-employment tax with regular income tax, and I had no idea about the form changes either. Just to make sure I understand correctly: my Box 3 income from the 1099-MISC will just be added to my other income and taxed at whatever bracket I end up in based on my total income for the year, right? So if I'm in the 22% bracket, that's what I'll pay on this income too? And @Cameron Black, thanks for mentioning the AGI impact - I hadn't thought about that at all. I should probably look into increasing my IRA contribution this year to help offset some of it. This community is amazing for breaking down confusing tax stuff!

has anyone actually gotten a refund after fixing this error? I made the exact same mistake but Im worried if I call the IRS theyre just going to audit me or something. my additional medicare tax was like $1,300 and thats exactly what my refund was short. so frustrating!!!

I had this EXACT same problem last year! Put my Additional Medicare Tax withholding on line 25c instead of line 26 and the IRS adjusted my refund down by that exact amount. It's such a common mistake because the Form 8959 instructions aren't super clear about where the withholding amount goes on the 1040. The good news is that once you understand what happened, it's usually fixable. Like others mentioned, the withholding from Form 8959 line 24 should go on line 26 with your other federal tax withholding, not on line 25c. The IRS computer system catches this and moves it to the correct line, which is why your refund calculation changed. If you haven't heard back from them yet with a correction notice, you might want to call and explain that you misreported the withholding location. Most agents understand this is a common filing error and can help you get it sorted out. Don't stress too much - you're definitely not the first person to make this mistake!