But they did withhold Social Security and Medicare - just not federal income tax. Does Form 8919 still apply in my situation?

You're right - Form 8919 wouldn't apply in your situation since your employer did properly withhold Social Security and Medicare taxes. I misunderstood your original post. For federal income tax withholding issues, there unfortunately isn't an equivalent form. Since you correctly filled out your W-4, this is definitely the employer's mistake, but as others have mentioned, the IRS still considers the tax liability yours. Your best options are still to speak with management about potential compensation and set up a payment plan with the IRS for any amount you can't pay immediately.

This! I had a similar situation and got the penalties removed. You still have to pay the base tax but it saved me a few hundred in penalties. The IRS form to request this is pretty straightforward.

That's a great tip about insurance discounts! I hadn't even thought about that angle. Do you remember what documentation you needed to provide to your insurance company to get the discount?

I just needed to provide a copy of the installation certificate and proof of purchase. They sent an adjuster out to verify it was properly installed and connected to our natural gas line. The whole process was pretty simple - took about 2 weeks to get approved and the discount was applied to my next bill. Some companies might also want to see that it's been inspected by your local municipality, so make sure you have those permits in order too.

That's correct! If the primary purpose of the generator is to power medically necessary equipment, it can potentially qualify as a medical expense deduction. You'd need documentation from a doctor stating the medical necessity, and the expense would need to exceed 7.5% of your AGI when combined with other medical expenses. My mother has a similar situation with her CPAP machine and was able to deduct part of her generator purchase.

I've filed with Form 8960 for the past three years and haven't been audited. It's not a red flag by itself - lots of people pay NIIT. What matters more is large discrepancies between what you report and what the IRS already knows from your 1099s and other information returns. Just make sure all your investment income is properly reported, and the Form 8960 calculations are correct. And yes, put the amount from line 21 on Schedule 2, Part II, line 11 as everyone has said.

Thanks for the reassurance! That's helpful to know it's not automatically going to trigger extra scrutiny. I'll make sure all my 1099s match up with what I report.

This is such a good point! I was using the free version of [tax software] and kept looking for Form 8960 but couldn't find it anywhere. Ended up having to upgrade to the "premium" version which cost $70 more just to access this one form. Feels like a scam but I guess that's how they make their money.

This is so incredibly helpful and encouraging! I've been worried that my deafness would be a major obstacle, but you've made me see how it could actually be structured as an advantage. Would you mind sharing what transcription app you use for those video calls? And did you mention your hearing status upfront in your marketing or just your communication preferences?

I use Otter.ai for most transcription needs - it works really well for video calls and integrates with Zoom. I've also had good experiences with Microsoft's transcription tools which are built into Teams if your clients prefer that platform. I don't explicitly mention being hard of hearing in my initial marketing materials. Instead, I focus on the benefits of my communication style - "comprehensive written documentation," "efficient digital workflows," and "secure client portal communications." However, I am open about it once I'm in direct communication with potential clients. I frame it positively: "I've developed a streamlined communication system that ensures nothing gets missed and all advice is documented for your records." Most clients actually appreciate this approach, especially when they realize they can send questions at 10pm and get a thoughtful written response instead of playing phone tag.

Do most self-employed CPAs offer payment plans for clients? I'm wondering if that's something I should build into my business model from the start.

Oh yeah, I did get the forms to my contractors back in mid-January, so that part's covered at least. Just messed up on the IRS submission deadline. Thanks for the reminder though!

That's good! One less thing to worry about. A lot of people don't realize there are two separate requirements with the same deadline - giving forms to recipients and filing with the IRS. At least you're half compliant!

You're mixing up two different things. If you RECEIVED 1099 income as a contractor, you report that on your personal tax return due April 15th. If you PAID contractors and need to ISSUE 1099-NEC forms (like the original poster), those forms must be filed with the IRS by January 31st. This earlier deadline exists because the IRS needs this information to verify what contractors report on their April returns.