I tried to get my transcript online but couldn't pass the identity verification since I don't have a mortgage, car loan, or credit card in my name yet (I'm pretty young). Is there another way to get this information?

Yes, if you can't verify your identity online, you can use Form 4506-T to request your transcripts by mail. It takes about 10 days to receive them. You can also call the IRS transcript request line at 800-908-9946 to order transcripts by phone. Another option is visiting a local IRS Taxpayer Assistance Center in person - they can provide transcripts on the spot, but you need to schedule an appointment first by calling 844-545-5640. Bring your photo ID if you go this route.

This is really good advice! My friend works for the state AG office and says they take tax preparer fraud very seriously. They can also help document the fraud for the IRS which speeds up your refund recovery.

That's a great idea! I didn't even think to check with my university. Do you know what department typically offers this kind of service? Would it be financial aid or something else?

Usually it's either through the financial aid office or the student services department. Some universities also have it through their business school or accounting program where accounting students (supervised by professors) provide tax help as part of their practical training. The best approach is to just email your university's general help desk or student services and ask if they offer tax assistance. If they don't have an in-house program, they might still know about local resources specifically for students.

This is so important! And don't forget to keep track of any home office expenses. If you dedicate a space solely to your research work, you can deduct a portion of your rent and utilities.

How exactly did you document the "worthlessness"? Did you need an independent appraisal or was your own documentation sufficient? I'm in a similar situation but don't want to spend more money on an appraiser if I don't need to.

I used a combination of internal financial statements and business records rather than paying for an expensive appraisal. I created a documentation package that included monthly P&L statements showing consistent losses, screenshots of competitor pricing that showed we couldn't compete profitably, documentation of failed attempts to sell the business (emails with potential buyers or brokers), and a formal business memo explaining the market conditions that made continuation impossible. My CPA said the key was showing I had made legitimate efforts to make the business work or sell it before declaring it worthless. We also included bank statements showing the business accounts were depleted. This approach worked for me, but situations vary - if your business had substantial physical assets rather than just a website, you might need more formal valuation. The most important thing is showing you've exhausted reasonable options before taking the tax loss.

If you're expecting lower income next year, it might make sense to delay the liquidation until January. Capital losses (which some of this likely will be) are more valuable in higher income years since they offset income. But if some qualifies as ordinary loss under Section 1244, that might be more valuable in a higher income year.

Thanks for breaking down the forms! If I do decide to file manually, does Schedule C require me to track a bunch of expenses? I literally just got paid for working shifts operating rides, no expenses or anything.

Schedule C is where you report your business income and expenses, but you don't have to have expenses to file it. If you didn't have any business expenses, you can just put $0 in those sections. You'll report your total 1099-MISC income ($940) as gross income on Schedule C, then since you have no deductions, that same amount becomes your net profit. This net profit gets transferred to your 1040 and is also used to calculate your self-employment tax on Schedule SE. Keep in mind you'll owe about 15.3% for self-employment tax (covers Social Security and Medicare) on your earnings, so set aside roughly $144 if you haven't already. The tax software would calculate this automatically, which is one advantage of using it.

Good point! What's the usual threshold for state filing requirements? I have about $1200 in freelance income and wondering if I need to worry about state.

Thanks for this perspective! I called the H&R Block office this morning and asked for the manager. At first they tried to stick with the "IRS will catch it" line, but when I mentioned their guarantee that covers preparer errors, their tone completely changed. They've scheduled me to come in tomorrow where they'll handle the amendment for me and they're giving me a document stating they'll cover any related penalties. Should I bring anything specific to the appointment?

Bring all your original tax documents (W-2s, 1099s, etc.), your payment receipt showing how much you paid, and the final tax return they prepared. If you have any emails or documentation about the error being discovered, bring those too. Also ask them to provide you with written confirmation that they'll track the amendment until completion and notify you when the refund is expected. Get the manager's direct contact information in case you need to follow up. Don't leave without copies of everything they submit on your behalf, including the 1040-X form they prepare.

The Taxpayer Advocate Service is great but they're super backed up right now. I called them last month about a similar issue and they told me they're only taking cases with financial hardship or where you're facing immediate negative action from the IRS. Did you have to prove hardship to get their help?