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Ask the community...

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Sofia Morales

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I had a similar situation a few years back with a temp job that lasted only three days. The key thing to remember is that even though the amounts seem tiny, the IRS computer systems will automatically flag any discrepancies between what employers report and what you file. Here's what I'd suggest: First, try logging into those employers' payroll systems online if you still have access - many companies use ADP, Paychex, or similar services where you can download your W2 electronically even after leaving. If that doesn't work, you have until the end of February to receive them by mail before you can take action. If you still don't have them by then, definitely file Form 4852 as others mentioned. The most important thing is to be as accurate as possible with your estimates. Even if you're off by a few dollars, showing good faith effort to report the income properly is what matters to the IRS. One last tip - keep records of all your attempts to get the W2s (emails, phone calls, etc.) in case you ever need to show you made reasonable efforts to obtain the proper documentation.

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Arnav Bengali

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This is really helpful advice! I'm actually dealing with something similar right now. One question though - when you say "keep records of all attempts," what exactly should I be documenting? Like should I be taking screenshots of failed login attempts to payroll systems, or is it more about having dates and times of when I called HR departments? I want to make sure I'm covering all my bases in case the IRS asks questions later.

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Ravi Patel

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Great question! For documentation, I'd recommend keeping a simple log with dates, times, and outcomes of each attempt. For example: - Phone calls: Date, time, number called, who you spoke with (or if you got voicemail), and what they told you - Emails: Save copies of any emails you send requesting W2s and any responses (or lack thereof) - Online attempts: Screenshots showing you can't access the payroll system, or notes about password reset attempts that failed - Physical mail: If you send any written requests, keep copies and use certified mail with tracking The IRS isn't looking for anything fancy - just evidence that you made reasonable, good faith efforts to get the proper documentation. A simple Word doc or even handwritten notes with dates will suffice. The key is showing a pattern of multiple attempts over time before you resort to filing Form 4852. I kept a basic spreadsheet with columns for Date, Method (phone/email/online), Contact Info, and Result. Took maybe 2 minutes each time but gave me solid documentation when I filed my substitute form.

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QuantumQuest

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Just to add another perspective - I work in payroll and can confirm that employers are legally required to send W2s by January 31st, regardless of how small the amount. If you worked even one day and were paid as a W2 employee (not 1099), you should receive one. That said, small disorganized companies sometimes mess this up. If you don't receive them by early February, definitely start the process others mentioned - contact the employer first, then the IRS if needed. One thing to keep in mind: even though the income amounts are tiny, if these employers withheld ANY federal taxes from your paychecks (which they might have done automatically), you're essentially giving the government free money by not claiming those refunds. For such small amounts, you probably had more withheld than you actually owe in taxes, so you'd likely get it all back. The good news is that filing Form 4852 is pretty straightforward if it comes to that, and the IRS is generally understanding about situations where employers fail to provide required documents.

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Harmony Love

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This is really helpful insight from someone who actually works in payroll! I'm curious - when you say small companies "mess this up," what are the most common issues you see? Is it usually that they forget to send them entirely, or do they send them to wrong addresses, or something else? Also, do you happen to know if there's a way to check if taxes were withheld without having the actual W2 or paystub? I'm in a similar boat as the original poster and honestly can't remember if they took anything out of such a small paycheck.

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Yuki Sato

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Just wanted to add my experience since I went through this exact same situation last tax season. I had a Pell Grant and was trying to maximize my refund with my two dependents, and I made the same mistake of trying to enter it under wages initially. What ended up working for me was going to the "Income" section and finding "Scholarships and Fellowships" under the less common income types. When I entered my information there, I put "SCH" as the payer and only entered the amount that exceeded my qualified education expenses (which I calculated using my 1098-T form). The really important thing I learned is that you want to be strategic about this. In my case, reporting about $3,200 of my Pell Grant as taxable income actually increased my Earned Income Tax Credit by almost $900 because it bumped me into a higher income bracket that was more favorable with my dependents. So even though I was "adding income," my overall refund was significantly higher. Make sure you run the numbers both ways - with and without reporting the excess Pell Grant - to see which scenario gives you the better refund. The tax software should help you calculate this, but it's definitely worth double-checking since the EITC calculations with dependents can be complex.

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Mia Green

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This is exactly what I needed to hear! I've been going back and forth on whether to report my Pell Grant excess as income, and your point about running the numbers both ways is really smart. I have three kids like the original poster, so it sounds like the EITC boost could definitely make it worth reporting the taxable portion. Quick question - when you calculated your qualified education expenses against your Pell Grant, did you use the amounts shown on your 1098-T exactly, or did you have to adjust anything? My 1098-T shows scholarships received but I'm not sure if that includes all my Pell Grant money since some came in different semesters.

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Royal_GM_Mark

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I just went through this same process a few weeks ago and can confirm what others are saying - you definitely don't want to enter your Pell Grant under wages! Here's the step-by-step that worked for me in TurboTax: 1. Go to Federal Taxes β†’ Income β†’ Less Common Income 2. Look for "Scholarships and Fellowships" 3. Enter "SCH" as the payer (no employer ID needed) 4. Only enter the amount that exceeded your qualified education expenses The tricky part is calculating that excess amount correctly. I used my 1098-T form to see what I paid for tuition and fees, then added up my required textbooks and supplies. Whatever was left over from my total Pell Grant after subtracting those qualified expenses - that's what I reported as taxable income. With three dependents like you have, this could really help your EITC! In my case with two kids, reporting about $2,100 of excess Pell Grant income actually increased my refund by $750 because of how the earned income credit calculations work. One tip: make sure you keep good records of all your qualified education expenses (receipts for books, documentation of required supplies, etc.) in case the IRS ever asks. And definitely run the calculation both ways in your tax software to see which gives you the better refund before you submit!

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Mikayla Brown

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Does anyone know if there's a dollar limit for meal deductions? Last year I had a few expensive client dinners (around $300-400 each) that were definitely business related, but I'm worried they might look excessive to the IRS.

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Tami Morgan

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There's no specific dollar limit for meal deductions, but they must be "reasonable" and not "lavish or extravagant" according to IRS guidelines. What's considered reasonable depends on the circumstances and your industry. A $300-400 meal might be perfectly reasonable if you're in high-end sales, financial services, or certain consulting fields where that's normal client entertainment. The key is whether the expense is ordinary and necessary for your business. Make sure your documentation clearly shows the business purpose and who attended.

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Noah Ali

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Great discussion here! Just wanted to add one more important point about Schedule C Line 24b meal documentation. Beyond keeping receipts and noting business purpose, I've found it helpful to take photos of the business cards of people I meet with during meals. This creates an easy backup record of who attended and their business connection to you. Also, if you're using a business credit card for meals, make sure the statement description clearly shows it's a restaurant/meal expense. Some merchants code differently than you'd expect, and having clear records helps during tax prep. I learned this the hard way when my accountant questioned a "business meal" that showed up as a generic merchant code on my statement. For anyone still confused about the 50% limitation - you deduct 50% of the actual meal cost on your Schedule C. So if you spent $100 on a qualifying business meal, you can deduct $50 as a business expense.

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Amara Adeyemi

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This is really helpful advice! I never thought about taking photos of business cards - that's such a simple way to document who you met with. I've been struggling with keeping track of all the details for my meal deductions. Quick question about the 50% rule - when you say "deduct 50% of the actual meal cost," does that include tax and tip? Or just the food portion? I want to make sure I'm calculating this correctly on my Schedule C.

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I went through this exact same waiting game last year and totally understand the stress! The move from "Fingerprints Pending" to "In Process" is actually a really positive sign - it means they've cleared your background check and are now in the final review stages. Based on my experience and what I've seen in our local tax prep community, once you hit "In Process" you're typically looking at 15-25 business days for approval. I know that seems like forever when tax season is already rolling, but you're actually still in good shape timing-wise. One thing that really helped me was setting up a daily check routine - I'd check my e-Services portal first thing in the morning with my coffee, then forget about it for the rest of the day. Checking multiple times daily just drove me crazy and didn't speed anything up! Also, make sure you're ready to act fast when approval comes. Mine showed up on a Wednesday morning and I was able to start e-filing that same afternoon because I had everything else prepared. Use this waiting time to get your software configured, create your client intake forms, and maybe even start gathering documents from existing clients. You're closer than you think - hang in there!

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Emma Morales

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This is really helpful advice about checking once daily instead of obsessing over the status! I've been guilty of refreshing the page multiple times throughout the day and it's definitely adding to my stress levels. Your coffee routine sounds much more sustainable. I'm curious about your experience when approval finally came through - did you notice the status change right away in the morning, or do they typically update these things at specific times during the day? I want to time my daily check for when updates are most likely to appear. Also, when you mention having everything ready to start e-filing the same afternoon, what specific things should I focus on preparing? I've got my software installed but I'm not sure what other setup steps I can complete ahead of time without the actual EFIN number. Any specific recommendations would be super helpful!

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QuantumQuest

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@Emma Morales Great questions! I found that status updates typically happened in the morning, usually between 8-11 AM EST. Mine actually updated around 9:30 AM on a Wednesday, so checking once in the morning with coffee is definitely the way to go. For prep work you can do now without your EFIN: get familiar with your software s'e-file setup wizard most (let you practice the setup process ,)create your client intake questionnaires and tax organizers, set up your secure document sharing system if you use one, and establish your quality review checklist. You can also contact your software provider to understand exactly what steps you ll'need once you get your EFIN - some require additional security configurations that can take a day or two. The key is having all the non-EFIN dependent pieces ready so when that number comes through, you literally just plug it in and you re'good to go. I had clients ready to file within hours of my approval!

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RaΓΊl Mora

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I'm going through this exact same process right now and your post really resonates with me! I submitted my EFIN application on January 15th and I'm still stuck on "Fingerprints Pending" status, so seeing that you've moved to "In Process" gives me hope that mine will update soon too. The sanitization delay thing is so frustrating - I had the same experience where FedEx showed my fingerprints delivered on January 20th but the IRS didn't log them as received until February 2nd. It's like they're operating in a completely different timeline! Based on what others are saying here about the "In Process" status typically taking 2-4 weeks, it sounds like you should get your approval sometime in early March, which honestly isn't too bad considering how backed up everything is right now. I've been talking to other preparers in my area and it seems like anyone who submitted in January is looking at March approvals. One question - when you call to check on your status, are you able to get through to someone easily? I've tried calling a few times but keep getting stuck in phone tree hell. Wondering if there's a better time of day to call or a specific number that works better for EFIN inquiries. Hang in there - we're all in this waiting game together!

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Emily Sanjay

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I'm in a very similar situation and completely understand the frustration with the timeline discrepancies! I submitted mine on January 8th and had the exact same experience - FedEx showed delivery on January 12th but IRS logged receipt on January 28th due to their sanitization process. Regarding calling the IRS, I've found that early morning (right when they open at 7 AM EST) or late afternoon (around 4 PM EST) seem to have better success rates for getting through. The EFIN-specific line is 866-255-0654, but honestly, even with good timing it can take dozens of attempts. One tip that helped me - if you do get through, ask them to confirm not just that they received your fingerprints, but also verify that all the information on your fingerprint cards matches exactly what's in your application. Sometimes there can be small discrepancies (like middle initial formatting) that cause delays but don't show up in the online status. You're right that we're all in this together - the waiting is definitely the worst part of the whole process! At least knowing others are experiencing the same delays makes it feel less like something is wrong with our specific applications.

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Sofia Torres

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I've been following this discussion closely as someone considering similar investments. What strikes me most is how the people with actual experience (Laura, Gabriel, Josef) are telling a very different story than what these promoters present in their seminars. The point about liquidity is huge - I hadn't really considered that aspect. When Neil Jesani talks about these investments, he makes them sound like you can easily exit if needed, but it sounds like that's not the reality. I'm particularly concerned about the multi-state filing requirements Laura mentioned. As a busy professional, the last thing I need is additional complexity in my tax situation, especially if the actual returns don't justify it. Has anyone here looked into conservation easements as an alternative? I've heard they can provide similar tax benefits but with potentially less complexity and risk. Though I imagine they have their own set of issues to consider. Thanks to everyone for sharing real experiences rather than just speculation. This kind of honest discussion is exactly what I needed to hear before making any decisions.

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Javier Cruz

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I'm glad you're taking the time to really dig into the details before making a decision. Regarding conservation easements as an alternative - I actually looked into those as well during my research phase. They can indeed provide substantial tax deductions, but they come with their own complexities and risks. The IRS has been particularly aggressive in auditing conservation easements lately, especially those that claim deductions significantly higher than the original purchase price of the land. There have been cases where the IRS has disallowed the entire deduction and imposed penalties. Plus, you're typically locked into maintaining the property according to the easement terms forever, which can limit your options down the road. One thing that's become clear to me from reading everyone's experiences here is that there's no magic bullet for tax planning. The strategies that sound too good to be true often are, or at least come with risks and complications that aren't fully disclosed upfront. Have you considered maxing out a defined benefit plan if you have your own practice? It's not as exciting as these alternative investments, but the deductions can be substantial (sometimes $200K+ per year) and it's a well-established strategy that the IRS doesn't typically challenge if set up properly.

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Eva St. Cyr

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I've been working in tax compliance for over 15 years and want to add some perspective on the regulatory landscape around these mineral investments that hasn't been covered yet. The IRS has significantly increased enforcement actions against what they call "micro-captive" and energy tax shelter arrangements since 2019. They've created specialized examination teams specifically for these types of investments, particularly those marketed to high-income professionals. What's particularly concerning is that many promoters of these programs have started requiring participants to sign agreements limiting their ability to share information about the investment's performance or tax outcomes. This should be a massive red flag - legitimate investments don't require secrecy clauses. I've also noticed that several of the major accounting firms have started declining to prepare returns involving certain types of mineral partnerships due to liability concerns. If the Big 4 firms are walking away from these structures, that should tell you something about the risk profile. For those considering these investments, I'd strongly recommend asking the promoter to provide: 1) A list of all investors from 2019-2020 who are willing to discuss their actual returns and tax outcomes 2) Details on any IRS examinations or challenges of the investment structure 3) Professional liability insurance coverage details for their tax opinions If they can't or won't provide this information, that's your answer right there.

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Zoe Stavros

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This is incredibly valuable insight from someone with actual compliance experience. The secrecy clauses you mention are especially concerning - I hadn't heard about that practice before, but it makes total sense that legitimate investments wouldn't require participants to keep quiet about outcomes. Your point about the Big 4 firms walking away really hits home. When the major accounting firms start declining work due to liability concerns, that's usually a strong indicator that the risk-reward equation doesn't make sense for professionals who understand the regulatory landscape. I'm curious about your mention of specialized IRS examination teams. Are there specific audit techniques or documentation requests that participants in these programs should be prepared for? And have you seen patterns in how these examinations typically resolve - are we talking about just disallowed deductions, or are penalties typically involved as well? Also, regarding the professional liability insurance question - what kind of coverage amounts should we be looking for in tax opinion letters? I imagine most people (myself included) wouldn't know what constitutes adequate coverage for opinions on complex tax strategies like these. Thank you for sharing your professional perspective. It's exactly the kind of real-world regulatory insight that helps cut through the marketing noise around these investments.

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