I've been following this thread as someone who went through this exact situation last year. All the advice here is spot-on - you definitely need to report this as rental income on Schedule E, even though it started as just helping a friend. One thing I haven't seen mentioned yet is the importance of keeping track of when the arrangement actually began for tax purposes. Since you mentioned your friend has been there "since last summer" but started paying in a more regular pattern later, make sure you're only reporting income from when the consistent payments actually started. The IRS cares about when the rental relationship was established, not just when someone started staying there. Also, regarding the deductions - don't forget you can include things like a proportional share of property taxes and even home depreciation if you're itemizing everything properly. In my case, these additional deductions made a significant difference in reducing my taxable rental income. The key is being thorough with your documentation now. Even though this wasn't planned as a rental business, treat the record-keeping like it was. Bank statements, utility bills, insurance payments, maintenance receipts - organize everything by month so you can clearly show the IRS exactly how you calculated both your income and deductions. One last thought: consider whether you want to establish a more formal month-to-month agreement going forward. It doesn't have to be complicated, but having something in writing can help clarify expectations for both of you and make future tax seasons much easier to handle.

I've been in a very similar situation and can relate to the stress you're feeling about this! My roommate situation also started as "temporary help" but ended up lasting almost a year, with regular payments that definitely qualified as rental income. The consensus in this thread is absolutely correct - you'll need to report the $4,500 as rental income on Schedule E. The "rent" memo lines your friend has been writing essentially establish this as a rental arrangement in the IRS's view, regardless of your original intentions. But here's the encouraging part: after calculating legitimate deductions, your actual tax burden will likely be much smaller than you're imagining. Since you're charging $650 when market rate is $900-1000, you're not making much profit to begin with. Then when you factor in proportional deductions for utilities, insurance, maintenance, and mortgage interest based on the room's square footage, you might be surprised how little taxable income remains. Start gathering your documentation now - bank statements showing deposits, utility bills, insurance statements, any maintenance receipts from the past 7 months. Creating a month-by-month spreadsheet of income versus deductible expenses will make filing much easier and help you see the real numbers. One piece of advice from experience: have that conversation with your friend about timeline and expectations sooner rather than later. These "temporary" arrangements have a way of becoming indefinite without clear boundaries, and it's better to address that now while you're also getting the tax situation sorted out. You're handling this responsibly by researching it now rather than ignoring it. Being transparent with the IRS and taking proper deductions is always better than trying to avoid reporting legitimate rental income.

This thread has been incredibly helpful! I'm dealing with a similar situation where my former employer (a small tech startup) suddenly shut down and I can't get my W-2. One thing I wanted to add that hasn't been mentioned yet is checking with your state's Department of Employment Security or Workforce Development agency. Since employers are required to report new hires to the state, they maintain a database that includes business EINs for tracking purposes. I was able to call my state's new hire reporting division, explain that I was trying to locate my former employer's EIN for tax purposes, and they were able to verify the information after I provided my SSN and the company name. Also, if the business had any employees who were eligible for unemployment benefits when it closed, the state unemployment agency would have records of the employer's EIN since that's how they track which businesses owe unemployment taxes. This might be especially relevant for restaurant workers since many would likely have filed for unemployment after the sudden closure. One more tip - if you remember the business ever posting job openings online (Indeed, Monster, etc.), sometimes those old job postings are still cached in search engines and might contain contact information or business details that could lead you to the EIN. It's worth doing a Google search for "Coastal Flavors LLC jobs" or similar terms to see what comes up.

This thread has been absolutely incredible - so many creative solutions I never would have thought of! I wanted to add one more angle that might help: check with any business insurance companies that might have covered the restaurant. Most restaurants are required to carry general liability insurance, and when they close suddenly, there are often outstanding claims or policy cancellations. If you can remember seeing any insurance company stickers on windows or doors (many insurers require businesses to display proof of coverage), or if you recall any workplace safety training that mentioned specific insurance providers, try contacting those companies. They would have the business EIN on file for all policy documentation. Also, if the restaurant ever had any promotional partnerships with local businesses, food suppliers, or participated in community events, those partner organizations might have business records that include the EIN. I'm thinking things like local food festivals, charity events, or supplier agreements - all of these typically require proper business documentation. One last thought - if you still have any former managers' or owners' contact information (even if their main numbers are disconnected), try searching for them on social media or professional networks. Sometimes people maintain personal profiles even when their businesses fail, and they might be willing to provide the EIN if contacted directly about helping former employees with tax issues. The collective wisdom in this thread should definitely help you track down that EIN! Keep us posted on what works.

Maya, I completely understand your dilemma! I went through something very similar last year when I was choosing between tax prep programs. From my research and talking to people in both programs, here's what I found most helpful in making the decision: **Consider your long-term goals first.** If you're planning to do this seasonally for extra income, H&R Block's faster software training might be perfect. But if you want to eventually become an EA or work at a CPA firm, that deeper foundation from Liberty's manual approach could be invaluable. **The teaching style issue is real and important.** I ended up switching programs mid-course because the instructor's approach just wasn't clicking for me. Don't underestimate how much this affects your learning - you're investing time and money, so make sure you're actually absorbing the material effectively. **Try before you fully commit.** Most H&R Block locations will let you sit in on a sample session or at least talk through their curriculum approach. Since you're already partway through Liberty, this could help you decide if it's worth switching now or finishing Liberty and potentially supplementing later. The pay difference you mentioned is definitely real in most markets, and the work environment differences Julian described are worth considering too. But remember - your success will ultimately depend on how well you master the material and serve clients, regardless of which company's name is on your certificate. Whatever you decide, don't feel bad about prioritizing what works best for your learning style and goals!

Maya, I was in almost the exact same situation as you last year! I started with Liberty Tax but felt like the teaching style wasn't a good match for how I learn best. After reading about H&R Block's more digital approach, I decided to make the switch about halfway through. Here's what I found: The transition wasn't as difficult as I expected. H&R Block was understanding about my situation and let me join their next cohort. Their software-based training was definitely more aligned with my learning style - being able to see exactly how the tax concepts played out in their actual system made everything click much better for me. The pay difference is real too. In my area, I ended up making about $15/hour at H&R Block versus the $12/hour Liberty was offering. Over a full tax season, that really adds up. That said, I don't regret starting with Liberty because I did pick up some solid foundational knowledge in those first few weeks. The manual calculations helped me understand depreciation and business expense categories in a way that I might have just glossed over in software-only training. My advice would be to trust your instincts about the teaching style. If it's not clicking now, it's probably not going to get better, and you'll end up frustrated and not retaining the information well. The most important thing is finding a program where you can actually learn effectively. Good luck with whatever you decide!

I went through this exact same situation last month! The EIC date showing up first is actually a good sign - it means they've verified your eligibility for the credit. From my experience, once you see that date, the 846 refund code typically appears within 10-14 days. I know it's frustrating when you're managing business cash flow, but try not to check your transcript daily (I know, easier said than done!). The system usually updates overnight on Fridays, so checking once a week saves you from the constant stress. Your refund is coming, just hang in there!

I completely understand your frustration! I had the exact same thing happen with my 2023 return - the EIC showed up on my transcript about 2 weeks before my actual refund date appeared. What helped me was calling the IRS automated line (1-800-829-1954) and checking my "Where's My Refund" status there too, since sometimes it updates faster than the transcript. The fact that your EIC is showing means they've processed that part of your return, which is actually progress! For small business owners like us, I know every day matters when it comes to cash flow. Try to check just once a week to save your sanity - I learned that the hard way after obsessively checking daily and stressing myself out unnecessarily.

I went through this exact same situation last year as a new US resident! The uncertainty is definitely nerve-wracking when you're still learning how the IRS system works. From my experience and what I've observed in this community, the 7-14 day window is accurate for most cases, but it can extend to 21 days during busy periods. What helped me manage the anxiety was understanding that the IRS has multiple verification queues - some for simple returns, others for complex ones. Since you mentioned needing the refund for credit history purposes, I assume your return is relatively straightforward, which typically processes faster. One tip that worked for me: instead of checking daily at 5:30 AM, try checking on Thursday or Friday mornings only, since that's when most weekly batch updates occur. The daily checking just added stress without providing useful information. Also, since you're new to the US tax system, it might be worth calling the IRS taxpayer assistance line (1-877-777-4778) around day 10-12 just to confirm your verification was properly recorded in their system. Sometimes there can be technical glitches that delay processing, and it's better to catch those early rather than wait the full 21 days. Hang in there - the process works, it's just frustratingly opaque about timing!

I completely understand your anxiety about the timeline - being new to the US tax system makes every delay feel more concerning when you're relying on that refund for important financial steps like building credit history. From what I've seen in this community, 7 days is still very much within the normal processing window. The IRS verification system doesn't operate in real-time; instead, it uses batch processing cycles that typically complete on Wednesday or Thursday nights. This means your verification could have been processed correctly, but you might not see the transcript update until the next batch cycle runs. A few things that might help while you wait: - Consider checking your transcript only on Thursday/Friday mornings instead of daily to reduce stress - The 9-14 day timeframe you researched is accurate for most straightforward returns - Since you mentioned this is for credit history after moving to the US, I assume your return is relatively simple, which typically processes faster than complex returns with multiple credits If you don't see any movement by day 12-14, it might be worth calling the IRS to confirm your verification was properly recorded in their system. Sometimes there can be technical delays between the verification call and the computer systems updating. The waiting is definitely the hardest part, especially when you're still learning how US government processes work, but the system does work - it's just frustratingly slow and opaque about specific timing.