I went through this exact same process about a year ago and can confirm what others have said - you absolutely do not need to have your trade name/DBA figured out before applying for your EIN. The EIN is tied to your LLC's legal name from your formation documents, not any trade name you might use. I was in the same boat as you, spending way too much time trying to come up with the perfect business name before submitting my EIN application. Finally realized I was just delaying the inevitable and submitted the application with the trade name field left blank. Got my EIN approved within 48 hours. Six months later when I finally settled on a DBA name I liked, I registered it with my county clerk's office (requirements vary by state/locality). The whole process took about 15 minutes and cost $75. Never had to contact the IRS about it - they only care about your LLC's legal name for tax purposes. My advice: submit your EIN application now without the trade name. You need that EIN for so many other business setup tasks like opening bank accounts, getting business licenses, setting up payment processing, etc. Don't let the perfect business name decision hold up your entire business launch timeline. You can always add the DBA later when inspiration strikes!

I've been running my own single-member LLC for about 3 years now and went through this exact confusion when I first started. The trade name field on the EIN application is definitely optional - I left it blank on mine and never had any issues. What I learned is that your EIN is permanently tied to your LLC's legal name (the one filed with your state when you formed the LLC). The trade name/DBA is just an additional layer you can add later for marketing and business purposes, but it doesn't affect your tax ID at all. I actually didn't decide on my DBA until almost a year after getting my EIN, and the process was straightforward - just filed the paperwork with my state's business registration office and started using it. Your tax returns will always use your LLC's legal name and EIN regardless of what trade name you operate under. My recommendation: get your EIN now so you can move forward with opening business bank accounts and handling other setup tasks that require it. The perfect business name will come to you eventually, and when it does, adding the DBA is a simple administrative step that won't affect any of your existing tax or banking setup.

One important thing to keep in mind for future years - consider doing a backdoor Roth conversion instead of direct Roth IRA contributions if your income is close to or over the limits. Since you're married filing jointly and exceeded the 2023 Roth IRA income limits, you likely will again in future years. With a backdoor Roth, you'd contribute to a traditional IRA (no income limits for contributions, though you won't get a deduction) and then convert it to Roth. Just make sure you don't have any other traditional IRA balances that would complicate the pro-rata rule calculations. Also, for your current situation, double-check that your IRA provider reported the excess contribution withdrawal correctly on the 1099-R they'll send you for 2025. The distribution code should indicate it was an excess contribution return, which affects how it's taxed. This will be important when you file your 2025 return next year.

I went through almost the exact same situation last year! Here's what I learned from my experience that might help clarify things for you: For the "Name of Individual subject to additional tax" question - definitely use just your name since you're the owner of the Roth IRA. Even though you filed jointly, the Form 5329 penalty is specific to the individual account holder. You're absolutely correct about needing separate forms for both 2023 and 2024. Since the excess contribution sat in your account during both tax years, you'll owe the 6% penalty for each year. So that's $390 for 2023 and another $390 for 2024 (assuming the full $6,500 stayed in the account for both complete years). One thing to double-check - when you withdrew the $6,500 in January 2025, did your IRA provider also calculate and withdraw any earnings attributable to that excess contribution? This is important because those earnings (if any) would be taxable income on your 2025 return, and the IRS can be particular about this calculation. Also, make sure you're using the correct year's version of Form 5329 for each filing - use the 2023 form for the 2023 penalty and the 2024 form for the 2024 penalty. The forms do get updated yearly and line numbers can change. You can definitely mail both forms together in one envelope with separate checks (if paying by mail) or pay both penalties online and mail the forms separately. Just include a brief cover letter explaining what you're submitting.

Just wanted to share another perspective on this - I made the same mistake when I first started my business thinking I could deduct gift card purchases immediately. The IRS audited me two years later and made it very clear that gift cards are treated like cash advances, not business expenses until actually used. What saved me was keeping meticulous records of exactly what I purchased with each gift card and when. I had a simple spreadsheet with columns for: gift card purchase date, amount, vendor, actual use date, what was purchased, and business purpose. This made it easy to match up the gift card purchases with the legitimate business expenses when they actually occurred. One tip that helped me - when you do use the gift cards, take photos of both the gift card transaction AND the items you're purchasing. This creates a clear paper trail showing the business purpose of each expense. My accountant said this level of documentation is exactly what you need if the IRS ever has questions about your deductions.

Great advice from everyone here! As someone who went through a similar situation with my first business credit card bonus, I want to emphasize one thing that really helped me: create a dedicated folder (physical or digital) specifically for gift card documentation. When I bought gift cards, I immediately scanned the receipt and noted the date, amount, and intended business use. Then when I actually used each card, I'd scan that receipt too and file it in the same folder with a note linking it back to the original gift card purchase. This made tax prep SO much easier because everything was connected. Also, don't forget that some business credit cards actually code certain gift card purchases differently than others. My Chase Ink card didn't give me points for Visa/Mastercard gift cards, but it did for store-specific ones like Home Depot or Amazon. Just something to keep in mind if you're trying to maximize both the signup bonus and ongoing rewards! One last tip - if you're buying a lot of gift cards at once, consider spreading the purchases across a few days rather than doing it all in one transaction. It looks more natural from a bookkeeping perspective and avoids any potential red flags if you ever get audited.

As someone who works in college admissions, I wanted to add a few money-saving tips that might help offset some of these application costs that can't be covered by 529 funds: 1. Fee waivers - Many colleges offer application fee waivers for students who qualify based on income or participation in programs like free/reduced lunch. Don't assume you won't qualify - the income thresholds are often higher than expected. 2. Apply early decision/early action where possible - Some schools waive application fees for early applicants or offer reduced fees. 3. Visit virtual campus tours first - Most schools now offer comprehensive virtual experiences that can help you narrow down which schools are worth the expense of an in-person visit. 4. Look into SAT/ACT fee waivers - Low-income students can get up to 4 free SAT attempts plus free score reports to colleges. 5. Some schools participate in "application blitzes" or have special free application periods - usually announced on their social media or websites. While it's disappointing that 529 plans can't cover these pre-enrollment costs, there are definitely ways to reduce the financial burden. Every dollar saved on applications is more money available for actual college expenses!

This thread has been incredibly informative! I'm in a similar situation with my son who's a junior, and I was definitely planning to use 529 funds for application fees before reading this. It's disappointing that these pre-enrollment costs don't qualify, but I appreciate everyone sharing their experiences and workarounds. One question I haven't seen addressed: what about test prep courses or tutoring? My son is planning to take a prep course for the SAT - would that qualify as a 529 expense since it's education-related, or does the same "pre-enrollment" rule apply? I'm assuming it doesn't qualify, but want to make sure before I budget for it separately. Also, has anyone dealt with National Merit Scholarship applications or other scholarship application fees? I'm wondering if those fall into the same non-qualified category. Thanks again to everyone who's shared their knowledge - this has saved me from making some expensive mistakes!

This is such helpful information! I've been doing Uber Eats deliveries on weekends and making about $600-800 a month, and I had no idea I needed to be paying quarterly taxes or keeping track of my mileage for deductions. Reading through all these responses has been eye-opening - especially about how payment apps like Venmo and Zelle are now required to report business transactions over $600. I'm definitely going to start keeping better records of my earnings and expenses. The advice about deducting car expenses and phone usage is something I never would have thought of. Does anyone know if I can deduct things like phone chargers or a phone mount that I bought specifically for delivery driving? Also, since I sometimes grab drinks or snacks during long delivery shifts, would any of that count as a business expense? I'm also curious about the liability insurance mentioned - is that something gig workers should really be considering? My regular car insurance probably doesn't cover commercial use, but I've never thought about what happens if I get in an accident while delivering food.

Great question! I went through this exact same situation last year with my pet sitting business. The key thing to understand is that the IRS considers you self-employed once you're regularly providing services for income, regardless of how informal it feels. Since you're making $950/month ($11,400 annually), you're definitely above the $400 self-employment threshold. Here's what you need to know: **Tax Forms You'll Need:** - Schedule C (Profit or Loss from Business) - this is where you report your dog walking income and expenses - Schedule SE (Self-Employment Tax) - for the 15.3% self-employment tax - Form 1040 - your regular tax return **Quarterly Estimated Taxes:** You should start making quarterly payments using Form 1040-ES. A good rule of thumb is to set aside 25-30% of your earnings for taxes (this covers both income tax and self-employment tax). **Deductible Business Expenses:** Track everything! Dog treats, leashes, waste bags, mileage to/from clients, pet insurance if you carry it, cleaning supplies, even a portion of your phone bill if you use it to coordinate with clients. **Record Keeping:** Those Zelle screenshots are a good start, but create a simple spreadsheet tracking dates, client names, services provided, and amounts received. The IRS loves detailed records if you're ever audited. Don't panic about not setting money aside yet - just start now! You can even set up a separate savings account and automatically transfer a percentage of each payment. Better late than never, and the IRS offers payment plans if needed.