One thing that helped me when I was starting out was understanding the concept of "realization" in tax law. The IRS only cares about transactions where you've actually realized a gain or loss - meaning money has changed hands. Just holding stocks that go up or down in value is like having a baseball card collection that becomes more valuable over time. You don't owe taxes on your baseball cards getting more expensive until you actually sell them to someone else. The same principle applies to your brokerage account. Your $10k paper gain is just that - on paper. Until you click "sell" and receive actual cash proceeds, it's not a taxable event. This is why people talk about "tax-loss harvesting" - strategically selling losing positions to offset gains, because you control when to realize those losses. Keep doing what you're doing - buy and hold is not only a solid investment strategy, but it's also very tax-efficient!

Just to add another perspective that might be helpful - I work as a tax preparer and see this confusion all the time with new investors. The key thing to remember is that the U.S. tax system is based on "realization," not "appreciation." Think of it this way: if you bought a house for $200k and it's now worth $300k, you don't pay taxes on that $100k increase until you actually sell the house. Stocks work exactly the same way. Your brokerage will automatically send you the appropriate tax forms when there's actually something to report. So if you only bought stocks in 2024 and didn't sell any, you won't receive a 1099-B for that tax year. When you do eventually sell in future years, that's when you'll get the 1099-B showing your proceeds, and that's when you'll report it on Schedule D. The only time you might need to think about taxes before selling is if you're doing strategic tax planning (like tax-loss harvesting near year-end), but that's an advanced strategy you don't need to worry about as a beginner. Keep good records of your purchases, but don't stress about reporting anything until you actually sell!

Made $98k this year with 2 kids (ages 8 and 10) and was having the same anxiety! Just got my refund estimate and it's $7,400. The Child Tax Credit is definitely your friend here - that's $6k guaranteed with your 3 kids. Plus if you've been having taxes withheld all year like you did at lower income, you're probably in good shape. I wouldn't stress too much about hitting that $100k mark, especially with dependents. The tax brackets aren't as scary as they seem when you factor in all the credits you qualify for!

Don't worry! I'm in a very similar situation - made $102k this year with 3 kids (ages 6, 9, and 11). I was freaking out about the same thing but just ran the numbers and I'm still getting back around $9k. The Child Tax Credit is huge - that's $6k right there for your 3 kids. Plus if you didn't adjust your withholding when your income went up, you probably had more taxes taken out than needed. The key thing is that tax credits reduce your tax liability dollar-for-dollar, so even if you're in a higher bracket, those credits still pack a punch. You'll probably be pleasantly surprised!

As a CPA who works with a lot of small craft businesses, I wanted to chime in with some official guidance that might help clarify things! For your situation with expected revenue of $6-8k, starting as a sole proprietorship (self-employed) is definitely the right move. The LLC decision can wait until you're more established. A few key points that haven't been fully covered: **Regarding those mobile payment fees:** Yes, they're 100% deductible as business expenses on Schedule C, Line 10 (fees and commissions). Keep good records of all processing fees - they add up quickly! **Self-employment tax reality check:** Remember you'll owe both regular income tax AND self-employment tax (15.3%) on your net profit. So if you profit $6k, expect roughly $918 in SE tax alone, plus regular income tax at your bracket rate. **Quarterly payments:** The $1,000 threshold mentioned earlier is correct, but there's a safe harbor rule - if you pay 100% of last year's tax liability through withholding/quarterlies, you won't owe penalties even if you underpay the current year. **Business bank account:** Even as sole proprietor, get a separate business checking account. Makes record-keeping infinitely easier and looks more professional to the IRS if you're ever audited. The tax situation really isn't as scary as it seems once you get organized. Focus on good record-keeping from day one - that's 90% of the battle!

Just wanted to add my experience as someone who made the jump from self-employed to LLC after year two - the transition really wasn't as complicated as I feared! When I started my candle-making business, I went the self-employed route based on advice similar to what's been shared here. It was definitely the right call for getting started quickly and keeping things simple. The LLC conversion process involved getting an EIN (took 5 minutes online), opening a new business bank account, and updating my business registration with the state. The biggest "gotcha" was that I had to be more careful about keeping business and personal expenses completely separate once I became an LLC. One thing I wish someone had told me earlier - even as self-employed, start treating your business like a real business from day one. Use that separate bank account, track every expense, and keep digital copies of all receipts. When I eventually did switch to LLC, I had clean records that made the transition smooth. Also, don't underestimate the psychological benefit of having an LLC when you start approaching wholesale buyers or higher-end craft shows. It does add credibility, but only pursue it when the numbers make sense for your situation. For someone expecting $6-8k revenue in year one, definitely start self-employed and focus on building your customer base. The business structure decision will become clearer as you grow!

I been using Chime for 2 years now. no issues with taxes or direct deposits ever. just make sure ur account info is 100% correct when u file

I've been using Chime for my refunds for the past 3 years and honestly it's been pretty reliable. Usually get my money 1-2 days early like they advertise. The key is making sure your routing/account numbers are exactly right when you file - any typo will cause delays. No hidden fees on my end, but definitely keep some backup plan just in case there are processing hiccups.

One thing I'd add to all the great advice here - make sure you're tracking your "basis" in the S Corp properly. When you leave profits in the business like that $135k, it increases your basis in the company. This becomes important later if you ever take out more than the accumulated earnings or if you sell the business. Your basis starts with what you initially invested in the company, then increases with your share of profits (even if left in the business) and decreases with distributions you actually take. Keeping good records of this will save you headaches down the road, especially if you ever need to take large distributions or loans from the company. Most people don't think about basis tracking until they need it, but it's much easier to maintain these records as you go rather than trying to reconstruct them years later.

One more consideration that might be relevant - if you're planning to keep that $135k in the business for a while, make sure you're at least earning some interest on it. Since you'll be paying taxes on those profits this year regardless, you might as well put that money to work in a high-yield business savings account or short-term CDs. Also, don't forget that keeping cash reserves in the business can actually be smart for cash flow management and unexpected expenses. Just make sure your "reasonable salary" is truly reasonable for your industry and role - the IRS scrutinizes S Corps where owners take very low salaries but leave large amounts as retained earnings, since it can look like you're trying to avoid payroll taxes. The good news is that S Corp taxation is generally more straightforward than people think once you understand the pass-through concept. You're essentially paying individual tax rates on business profits, but you get to avoid the double taxation that C Corps face.