You should talk to your boss about making you legitimate. Just mention that you need proper documentation for apartment applications and loans, not even mentioning taxes. Many small business owners will switch you to proper payroll when they realize it matters to you for housing. Worked for me! My landscaping boss switched me from cash to proper payroll once I told him I was trying to get approved for a car loan.

I was in almost the exact same situation last year with a roofing company. Here's what I learned after going through this process: First, don't stress too much about "getting your boss in trouble." The IRS processes millions of Schedule C filings every year and they're not actively cross-referencing every one to hunt down employers. They're way more interested in collecting taxes owed than playing detective. For your immediate apartment need, bank statements showing consistent deposits should work fine. But for taxes, you'll definitely want to file Schedule C and pay self-employment taxes on what you've earned. One thing nobody mentioned - if you've been doing this since April, you might want to make an estimated tax payment for Q4 (due January 15th) to avoid underpayment penalties. The IRS expects you to pay taxes throughout the year, not just at filing time. Also, keep track of ANY work-related expenses - gas, tools, work clothes, phone usage for work calls. As a self-employed person, these become deductions that can significantly reduce what you owe. The whole situation is more common than you think, and the IRS has seen it all before. Just be honest about your income and pay what you owe - that's really all they care about.

This exact same thing happened to me about 6 months ago and I completely freaked out! Seeing that duplicate $4,200 charge sitting in my account was terrifying. I spent hours on the phone trying to reach the IRS and my bank. What everyone here is telling you is absolutely correct - it's almost certainly just a pre-authorization hold that will disappear. In my case, it took exactly 4 business days for the duplicate to drop off. The way I understood it from my bank rep is that the IRS payment system does a "test ping" to your account first to make sure the funds are available, then processes the real payment, but both can show up temporarily. One thing that helped me stay calm was setting a calendar reminder for day 6 - that way I wasn't obsessively checking my account every few hours. I told myself if it was still there after 6 business days, then I'd take action. Sure enough, it was gone by day 4. The most frustrating part is that there's no warning about this when you make the payment! They really should add a notice saying "you may see a temporary duplicate charge that will resolve automatically." Would save people a lot of stress. Hang in there - everything will be fine!

This is such a common issue with IRS Direct Pay that I'm surprised they don't put a warning on their website! I've seen this happen to so many people, including myself twice now. What you're experiencing is definitely a pre-authorization hold. The IRS payment system essentially "reserves" the funds first to make sure your account can cover the payment, then processes the actual transaction. Most banks will show both the hold and the actual payment as separate line items temporarily, which is why it looks like you've been charged twice. Here's what I'd recommend: Don't panic and definitely don't dispute it with your bank yet. Check your bank account in about 3-4 business days and the duplicate should be gone. In my experience, it usually disappears between day 3 and day 5. If you want peace of mind, you can also call your bank's customer service line (much easier to reach than the IRS!) and ask them to explain what they're showing. They'll be able to tell you which charge is the authorization hold and which is the actual payment. Also, if you haven't already, consider setting up an IRS online account at irs.gov. You'll be able to see your actual payment history there, and it should only show the one legitimate payment you made. Really helpful for situations like this! The good news is this will resolve itself automatically - no action needed on your part. Just try not to stress about it over the weekend!

I setup an LLC with my brother last year and wish I'd gotten better advice from the start! Make sure they file for an EIN immediately if they haven't already. Also very important - make sure they have a proper operating agreement that spells out profit sharing, voting rights, what happens if someone wants to leave, etc. This has tax implications too!

Great advice from everyone here! As someone who's helped several young entrepreneurs navigate LLC taxation, I'd add one more consideration: make sure your daughter and her partner discuss what happens with estimated quarterly tax payments. Since they'll likely owe self-employment tax on their profits (whether they take draws or not with partnership taxation), they may need to make quarterly estimated payments to avoid penalties. The IRS generally requires quarterly payments if you'll owe $1,000 or more in taxes. For their social media consulting business, income might be irregular - some months might be great while others are slower. I'd recommend they set aside about 25-30% of their profits in a separate tax savings account to cover both income tax and self-employment tax obligations. This habit will serve them well regardless of which taxation method they ultimately choose. Also seconding the advice about getting that operating agreement in place ASAP - it should specify how profits and losses are allocated, which directly impacts their individual tax situations!

Has anyone used TurboTax for this situation? I'm wondering if it correctly handles Roth IRA withdrawals for education expenses or if I need to manually override something.

One thing to be extra careful about - make sure you understand the timing rules for "qualified higher education expenses." The IRS requires that the expenses be paid in the same tax year as your withdrawal, and they must be for you, your spouse, your children, or your grandchildren who are enrolled at least half-time in an eligible institution. Also, you need to reduce your qualified education expenses by any tax-free assistance you receive - like scholarships, grants, employer tuition assistance, or even American Opportunity Tax Credit amounts. So if your tuition is $10,000 but you get a $3,000 scholarship, you can only count $7,000 as qualified expenses for the penalty exception. I learned this the hard way when I forgot to subtract my Pell Grant amount and had to amend my return. The IRS caught it during processing and sent me a notice asking for clarification. Fortunately I had kept all my documentation, but it delayed my refund by several months.

You're absolutely correct to use the 2016 assessment percentages! As someone who's helped many taxpayers through similar situations, I can confirm that Publication 527 is crystal clear on this point - the allocation must be based on values "at the time you buy it." The fluctuation in assessment percentages over the years is actually quite common and exactly why the IRS established this rule. Using purchase-year percentages ensures consistency and prevents any appearance of cherry-picking favorable ratios from different years. Here's what I recommend for your documentation: 1. Print/save the 2016 county assessment showing the exact land/building percentages 2. Create a simple calculation sheet: Purchase Price × 2016 Land % = Non-depreciable Land Value 3. Keep a copy of the relevant section from Publication 527 with your tax records 4. Note the specific percentage you used (e.g., "12% land, 88% building per 2016 county assessment") One additional tip: since you mentioned this is a condo conversion, make sure you're not overlooking any personal property items that might need separate depreciation schedules (appliances, fixtures that weren't included in the building assessment, etc.). You're being very thorough in your approach, which will serve you well if you're ever audited. The IRS appreciates taxpayers who follow the guidelines precisely and maintain good documentation!

You're definitely on the right track with using the 2016 assessment percentages! I went through this exact same process when I converted my townhouse to a rental property last year. The IRS guidance in Publication 527 is pretty straightforward - "at the time you buy it" means exactly that. What really helped me was creating a simple one-page summary that I keep with my tax documents: **Property:** [Address] **Purchase Date:** [Date] **Purchase Price:** $[Amount] **2016 County Assessment:** [X]% land, [Y]% building **Land Value (Non-depreciable):** $[Purchase Price × Land %] **Building Value (Depreciable):** $[Purchase Price × Building %] **Source:** [County Assessor Website/Records from 2016] I also printed out the actual county assessment page from 2016 showing those percentages. My CPA said this type of clear documentation with the specific year and source makes it very easy to defend the calculation if there are ever any questions. The key thing is that you're establishing your cost basis at the time of acquisition, not conversion. Since you bought it in 2016, that's the assessment that matters - not what the percentages shifted to in later years. You've got the right approach!