That's a good point about checking with coworkers. I'm friendly with a couple other people who started around the same time as me. I'll ask them to check their W-2s too. Do you know how I would go about filing a complaint with the Department of Labor if it turns out this happened to others too?

Most state Department of Labor websites have an online complaint form specifically for wage and hour violations, which would include improper withholding issues. Look for sections labeled "wage complaints" or "workplace rights" on your state DOL website. Before filing, gather all your documentation: your original W-4 showing you selected single with zero dependents, several pay stubs showing no federal withholding, your W-2 confirming zero withholding for the year, and any written communication with your employer about the issue. If coworkers had the same experience, ask if they'd be willing to be mentioned in your complaint.

Wait, so employers can just "accidentally" not withhold taxes and face zero consequences? That seems like a system ripe for abuse. Couldn't companies just "forget" to withhold as a way to effectively pay employees more without actually increasing their stated wages?

If I get a 1099-C for a debt that was actually paid, not canceled, what's the process for disputing it? Do I still report it?

Yes, you should still report it even if you plan to dispute it. The best approach is to include the 1099-C information on your return, then attach Form 8275 (Disclosure Statement) explaining why you believe the debt wasn't actually cancelled. The key is to immediately contact the issuer in writing requesting a corrected form. Keep detailed documentation of all communications. If they agree it was an error, they should issue a corrected 1099-C showing zero cancellation amount. Once you receive that, you can file an amended return if needed. This approach shows good faith compliance while you're resolving the dispute.

Wow, that's wild! Did they send corrected forms or just tell people to ignore them? Seems like the IRS would still have the incorrect info.

Did you have to get any special form from your doctors or hospitals for the expenses, or just your regular receipts? My hospital bills don't specifically say "qualified medical expense" on them.

Do all employers separate these out clearly on the W-2? Mine just has a total number in Box 1 but doesn't break down what's non-taxable anywhere I can see.

Not all employers itemize the non-taxable benefits on the W-2 itself. Many just show the final taxable amount in Box 1 without the detailed breakdown. If your W-2 doesn't show the itemized non-taxable items, you can usually find this information on your final paystub of the year or in your benefits portal. Some employers also provide a separate benefits statement that shows the total value of your compensation package including both taxable and non-taxable components. If you can't find this information, your HR or payroll department should be able to provide a breakdown of what's included in your total compensation versus what appears in Box 1 of your W-2.

That could be pre-tax deductions that aren't itemized separately. Things like FSA contributions, certain work expenses, or union dues sometimes cause small discrepancies. I had a similar issue and found out it was my parking pass being deducted pre-tax but not listed separately.

Thanks for the explanation! That makes sense - I do have a dependent care FSA that's probably causing the difference. Completely forgot about that deduction since it comes out automatically. At least I know nothing's wrong with my W-2 now.

That's an interesting suggestion! Would forming an LLC change anything about how I file taxes or would I still use Schedule C? And would there be any benefits for someone making such a small amount ($3k-ish per year) from this work?

You would still use Schedule C with a single-member LLC unless you elect to be taxed as an S-Corporation or C-Corporation. The LLC doesn't change your tax filing method by default - it's considered a "disregarded entity" for tax purposes when it has just one member. For someone making only around $3,000 annually from this work, an LLC probably isn't worth the administrative costs and annual fees unless you have significant liability concerns. The main benefit of an LLC is limiting your personal liability, but for patient advocacy work with minimal income, the protection may not justify the expenses. Some states have annual LLC fees of $800+ (California), while others are much cheaper ($50-100).

I use TurboTax Self-Employed and it works great for this. It asks if you have self-employment income and then automatically puts you on Schedule C. It doesn't really distinguish between "independent contractor" and "sole proprietor" either - it just asks about your business income and expenses. The software walks you through all the deductions you might qualify for too.