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I moved to Alabama from Michigan two years ago and this was such a culture shock! In Michigan, I'd get my state refund within 3-4 weeks consistently. Filed my Alabama return in February this year and I'm STILL waiting here in late June - that's almost 5 months! The most infuriating part is how they expect us to file and pay on time with penalties if we're late, but then they can sit on our money for half the year with zero consequences. The hypocrisy is unreal. And don't even get me started on that useless "processing" status that never updates. At this point I've just accepted that Alabama's tax department operates in a parallel universe where time moves at 25% speed. I'm definitely adjusting my withholding for next year - lesson learned about giving this state an interest-free loan! Thanks for posting this - it's oddly comforting to know we're all suffering through this together š
Five months is absolutely insane! I'm dealing with the same thing coming from out of state - filed in March and still nothing. What really gets me is how they can't even provide a basic timeline or queue position. Like, how hard would it be to say "currently processing returns filed in January" or something? Instead we get that meaningless "processing" status for months on end. The double standard you mentioned is so true - they want their money immediately but can sit on ours indefinitely. I'm definitely looking into that withholding adjustment too. Why stress about this every year when we can just avoid the whole mess?
I'm going through the EXACT same thing! Filed my Alabama return in mid-March and here we are in late June still stuck on that useless "processing" status. Meanwhile my federal refund was deposited in 8 days! What's really frustrating is reading all these stories and realizing this isn't some anomaly - it's just how Alabama operates. I'm originally from Ohio where state refunds took maybe 4-6 weeks tops, so this 3+ month waiting game is absolutely mind-blowing to me. The worst part is that complete lack of communication. That "processing" message might as well say "we'll get to it whenever we feel like it." No timeline, no queue position, nothing. Meanwhile if WE filed late, they'd hit us with penalties immediately. I think I'm done playing this game - definitely adjusting my withholding next year so I don't give Alabama an interest-free loan that takes them half a year to pay back. Thanks for posting this thread, it's been oddly therapeutic reading everyone's similar experiences! At least we're all suffering through Alabama's stone-age tax system together š
I'm right there with you! Also from out of state (moved here from Pennsylvania) and this whole experience has been such a shock. In PA I'd have my state refund within a month, but I filed in Alabama back in February and I'm STILL waiting here in late June - that's over 4 months now! The "processing" status is like psychological torture at this point. I keep checking hoping for literally ANY update, but it never changes. It's wild that the federal government can handle millions more returns and get refunds out in 2-3 weeks, but Alabama takes forever with a fraction of the volume. Really shows how outdated their systems must be. Your point about the withholding adjustment is spot on - I'm definitely doing that for next year. Why stress about this waiting game every tax season when we can just get our money throughout the year instead? This thread has been so helpful knowing we're not alone in this Alabama tax purgatory! š¤
This thread has been incredibly helpful for understanding DBA tax requirements! I'm just starting my own DBA for freelance social media management and was completely lost about the tax implications. One thing I wanted to add that I learned from my research - make sure to keep detailed records of any professional development expenses! Things like online courses, industry certifications, books, and conference attendance are all deductible business expenses that can help reduce your tax burden. I just spent $800 on a social media marketing certification and was relieved to learn this counts as a legitimate business expense. Also, regarding estimated quarterly payments - I found the IRS's online estimated tax payment system (EFTPS) to be really user-friendly once you get set up. You can schedule payments in advance and it sends email reminders, which has been a lifesaver for staying on top of the quarterly deadlines. For anyone just getting started, don't let the tax complexity discourage you from pursuing your DBA business! The learning curve feels steep at first, but once you understand the basics (you're still a sole proprietor, use Schedule C, save 25-30% for taxes, track everything), it becomes much more manageable. The freedom of running your own business under a professional name is totally worth the extra tax paperwork!
This is such great advice about professional development expenses! I'm just starting my own DBA for graphic design (similar to the original poster) and hadn't even thought about tracking course costs and certifications as business expenses. That $800 certification you mentioned could save you a significant amount on taxes depending on your bracket. The EFTPS tip is really valuable too - I've been dreading the quarterly payment process but having automated reminders sounds like it would take a lot of the stress out of it. Do you know if there are any fees for using the EFTPS system, or is it free to use? I completely agree about not letting the tax complexity discourage anyone from starting a DBA! Reading through this entire thread has made me feel so much more confident about managing the tax side of things. It's encouraging to see how many people have successfully navigated this process and are willing to share their real-world experiences. The business freedom really does seem worth the extra paperwork once you get the systems in place.
This thread has been such a comprehensive resource for DBA tax questions! I'm setting up my DBA for freelance consulting and was initially overwhelmed by all the tax implications, but reading through everyone's experiences has been incredibly reassuring. One thing I'd like to add that I discovered during my research - if you're working from home with your DBA, don't overlook the simplified home office deduction option. Instead of calculating actual expenses for utilities, mortgage interest, etc., you can use the simplified method which allows you to deduct $5 per square foot of your home office space, up to 300 square feet (max $1,500 deduction). For someone just starting out, this can be much easier to calculate and document than tracking all the actual home expenses. Also wanted to echo what others said about keeping meticulous records from day one. I set up a simple filing system with folders for receipts, bank statements, contracts, and tax documents. It seems like overkill when you're just starting, but I can already tell it's going to save me hours of stress during tax season. The information about the QBI deduction that Andre mentioned is gold - I had no idea about that potential 20% deduction! For anyone making modest income with their DBA, that could be substantial tax savings that many people probably miss out on simply because they don't know it exists.
Just sharing what worked for me in a similar situation. My payroll company issued two W-2s (original and corrected) but reported both to the IRS. 1. I gathered my final paystub for the year showing my actual total earnings 2. Used TurboTax to file using the CORRECT W-2 information only 3. Included a brief statement explaining the duplicate W-2 situation 4. Attached copies of both W-2s with the incorrect one clearly marked "DUPLICATE - DO NOT USE" 5. Also included a copy of my final paystub as proof of actual earnings I did get a letter from the IRS about 3 months later questioning the "missing income," but I just had to call and explain. Since I had already documented everything in my original filing, they resolved it pretty quickly. The key is keeping good records and being able to prove your actual income!
This is super helpful, thank you! I'm going to follow these steps. Did you mail in your return instead of e-filing to include all those attachments? Or is there a way to add explanation docs with e-filing?
I ended up mailing in my return because at the time (2019) there wasn't a great way to attach all that documentation with e-filing. However, many tax software programs now allow you to upload PDF attachments with your e-filed return. If you're using software like TurboTax or H&R Block, look for an option like "Add an Explanation" or "Upload Supporting Documents" in the filing section. If that's not available, you might need to mail in your return with all the documentation. It's a bit more work, but worth it to avoid headaches later. The most important thing is documenting everything clearly so when the IRS automated system flags the discrepancy (which it probably will), you've already provided a clear explanation.
I went through this exact situation two years ago and it was definitely stressful at first, but it got resolved without any major issues. Here's what I learned: The IRS actually deals with duplicate W-2 reporting more often than you'd think, so don't panic about triggering an audit. The key is being proactive and documenting everything. I'd recommend calling the IRS taxpayer assistance line (1-800-829-1040) first to explain the situation and ask them to put a note in your file. When you call, have both W-2s ready and be clear about which one shows your actual correct income. They can flag your account so when their automated systems see the discrepancy, there's already an explanation on file. For your tax filing, use only the CORRECT W-2 (the $68,000 one) and keep detailed records of all your attempts to contact your former employer about fixing their mistake. Screenshot emails, keep notes of phone calls with dates and times, etc. If your former employer continues to be unresponsive, you might need to file Form 4852 (Substitute for Form W-2) along with whatever documentation you have of your actual wages - final paystub, bank deposit records, etc. The good news is that since you're reporting the higher income amount anyway, you're not trying to avoid paying taxes you owe, which makes the IRS much more willing to work with you on resolving the clerical error.
This is really reassuring to hear from someone who actually went through it! I'm definitely going to call that IRS number you mentioned. Quick question - when you called, did you need any specific information besides just having both W-2s handy? Like did they ask for your employer's EIN or anything like that? And about how long did the whole resolution process take from start to finish? I'm trying to set realistic expectations for myself since tax season is coming up fast.
One thing I'd add that hasn't been mentioned yet - keep track of your total tax liability throughout the year, not just the 1099 portion. Since you'll have both W-2 and 1099 income, your combined income might push you into a higher tax bracket than you're used to. I learned this the hard way when my side gig income pushed me from the 22% bracket into 24%. The extra withholding I calculated based on my old bracket wasn't enough. Now I use the IRS withholding calculator whenever my income situation changes to make sure I'm on track. It's free on their website and accounts for multiple income sources. Also, don't forget that if your 1099 work involves any business expenses (equipment, supplies, mileage, etc.), those deductions can really add up and reduce your self-employment tax burden. Just make sure everything is legitimate and well-documented!
This is really helpful advice about the tax brackets! I hadn't considered that my combined income might push me into a higher bracket. Quick question - when you use the IRS withholding calculator, do you enter your estimated 1099 income for the full year even if you're just starting the side work partway through? And does it account for the self-employment tax portion automatically, or do you need to add that separately when figuring out how much extra to withhold from your W-2?
For the IRS withholding calculator, you should enter your estimated 1099 income for just the remaining portion of the year when you'll actually be earning it, not the full year amount. So if you're starting in July, estimate what you'll earn July through December. The calculator does account for self-employment tax automatically when you indicate you have self-employment income. It's pretty smart about calculating the combined effect of both your W-2 and 1099 income, including the additional 15.3% SE tax burden. Just make sure to update your entries as "other income" or "self-employment income" rather than trying to lump it all together as regular wages. I usually run the calculator every quarter to adjust my withholding if my 1099 income is fluctuating, which it often does with side gig work!
One important detail that hasn't been mentioned - make sure you understand the difference between being an actual independent contractor versus being misclassified as one. The IRS has specific criteria (like whether you control how/when you do the work, provide your own tools, have other clients, etc.) that determine true contractor status. If you're really more like an employee but getting a 1099, that's misclassification and you could end up paying more taxes than you should. True contractors have more control and flexibility, but also bear the full tax burden. If the company is treating you like an employee (set schedule, their equipment, direct supervision), you might want to push back on the 1099 classification. Also, don't forget to set aside money immediately from each 1099 payment - I recommend 25-30% in a separate savings account. It's way easier to save as you go rather than scrambling to find thousands of dollars at tax time!
This is such an important point about misclassification! I've seen so many people get stuck paying way more in taxes because they didn't realize they were essentially employees being treated as contractors. The automatic savings approach is brilliant too - I wish I'd done that from the start instead of trying to calculate and save manually. Having that 25-30% automatically separated would have saved me so much stress. Do you just set up a separate checking account for this, or do you use a high-yield savings account to at least earn some interest while the money sits there waiting for tax time?
Ella Lewis
Has anyone tried printing the PDF from FreeTaxUSA and mailing it? I'm in the same boat for 2022 taxes and wondering how long the refund actually took to arrive.
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Andrew Pinnock
ā¢I mailed my 2021 return last year after missing the e-file window. Took about 7 weeks to get my refund. Make sure you use certified mail so you can track it! And don't forget to sign it - my brother's return got rejected because he forgot to sign.
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Luca Ferrari
I was in this exact situation last year with my 2021 return! The e-file cutoff is definitely frustrating when you've already done all the work. I ended up paper filing and it took about 6 weeks to get my refund, which wasn't too bad considering. One thing I learned - make absolutely sure you include ALL required attachments when you mail it. The IRS will send it back if anything is missing, which just delays everything further. Double-check that you've included copies of all W-2s, 1099s, and any other income statements. Also make sure to sign and date everything in the right places. I used certified mail with return receipt requested so I could confirm they received it. Cost a few extra dollars but gave me peace of mind. The tracking showed it was delivered, and then I could roughly estimate when to expect processing based on the typical 6-8 week timeframe. Paper filing isn't ideal, but at least FreeTaxUSA did all the calculations for you, so the hard part is done!
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Vincent Bimbach
ā¢This is really helpful advice! I'm definitely going to use certified mail - I never would have thought of that but it makes total sense to have proof of delivery. Quick question: when you say "sign and date everything in the right places," are there multiple signature spots on a typical return? I want to make sure I don't miss any before I mail mine out.
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