has anyone else noticed that the withholding is higher at the start of the year after you hit the social security cap? my commission checks in Jan-Feb get hammered but then by November/December the take-home is way better after ive maxed out SS contributions.

This is such a helpful thread! I'm new to commission-based sales and was completely baffled by the varying withholding percentages on my checks. It's reassuring to know this is normal and not some payroll error. One thing I'm curious about - for those of you who've been doing commission sales for a while, do you have any tips for budgeting when your take-home varies so much month to month? I'm finding it hard to plan my expenses when I never know exactly what my net pay will be, especially with these changing tax withholding rates on top of the variable commission amounts.

When you say "didn't have to verify" - did you get any indication that verification was being considered? Think of your tax return like a plane ticket - sometimes you get randomly selected for additional screening, but most people just walk through. I'm wondering if there was something on your transcript that suggested you might have needed verification but ultimately didn't.

Congratulations on finally getting your transcript updated! Six weeks feels like forever when you're waiting, but it's reassuring to hear from someone with a similar timeline. I filed on February 12th as a 1099 contractor too and my transcript is still completely blank. Your post gives me hope that mine might update soon - I've been checking obsessively every day. Did you notice any pattern to when transcripts typically update during the week, or was it just random when yours appeared?

Just a heads up that whatever course you choose, make sure it's updated for the latest tax law changes. I took a course in 2022 that was still teaching outdated info from before the Tax Cuts and Jobs Act changes, and it caused me a lot of confusion when I started actually doing returns. Also, look into getting your PTIN (Preparer Tax Identification Number) from the IRS website - you'll need this if you're preparing returns for others for compensation. It's easy to get and doesn't require any special credentials.

Great question! I'd also recommend checking out the IRS's own free resources - they have Publication 4491 (Small Business/Self-Employed Virtual Tax Workshop) which covers individual tax preparation fundamentals. It's completely free and comes straight from the source. For more structured learning, Jackson Hewitt also offers a tax course similar to H&R Block's. I've heard good things about their online format and they cover all the basics you mentioned - filing statuses, standard vs itemized deductions, common credits like EITC and Child Tax Credit, etc. One thing I'd suggest is to start with whatever course you choose, but then supplement it with the IRS Volunteer Income Tax Assistance (VITA) training materials. Even if you don't volunteer, their training workbooks are excellent and available for free download. They're updated annually and very comprehensive for individual returns. Good luck with your tax prep journey! The 2025 season will be here before you know it.

Has anyone tried the Surgent Income Tax School? Their website looks good but I can't find many reviews. I'm debating between that and the H&R Block course.

Another option to consider is the Penn Foster Tax School - they offer a comprehensive online program that's self-paced and covers everything from basic individual returns to more complex scenarios. What I liked about it is that they provide real tax software training (using actual professional software, not just consumer versions) and include practice with mock client situations. The course covers all the fundamentals you mentioned - deductions, credits, filing statuses, plus things like rental property, small business income, and retirement distributions that come up frequently even in "simple" individual returns. They also keep the materials updated each tax season, which is crucial since tax laws change. The enrollment fee is reasonable (around $400-500 when I checked), and you get access to their materials for the entire tax season, so you can refer back as needed. They also offer job placement assistance if you decide to pursue seasonal work later. Might be worth looking into alongside the other suggestions here!

The key IRS principle here is the "origin of the claim" doctrine. Since your claim originated from being overcharged (not from seeking profits or damages beyond what you paid), the settlement should be non-taxable as return of capital. Document everything carefully tho - if the moving company reports the payment on a 1099, you'll need to show why it's not taxable income on your return.

Great question about a really frustrating situation! I went through something similar with a contractor who overcharged me, and I was stressed about the tax implications too. The good news is that based on what you've described, your settlement should NOT be taxable income. Since you're simply recovering money that was fraudulently taken from you (not earning new income or profits), this falls under the "return of capital" principle. You're just getting back what was rightfully yours to begin with. Regarding your legal fees - since the settlement itself isn't taxable income, you typically can't deduct those expenses against it. However, you might want to check if any portion could be deductible under other circumstances (like if this was related to business expenses). One thing to watch out for: if the moving company issues you a 1099 for the settlement amount, don't panic! You can still report it as non-taxable on your return, but you'll need to include it and then show why it's not taxable income. Keep all your documentation from the case - court records, settlement agreement, original contracts, etc. It's definitely frustrating to think about paying taxes on money that was stolen from you, but thankfully the IRS recognizes the difference between recovering your own money and actually earning new income. You should be in the clear here!