Connor, based on your numbers ($6,500 in sales), you'll definitely need to file taxes if your net profit exceeds $400. The key word here is "net" - so you'll subtract all your legitimate business expenses (materials, workspace costs, etc.) from that $6,500. Here's what you'll need to do: • File Schedule C (Profit or Loss from Business) with your Form 1040 • If your net profit is over $400, also file Schedule SE for self-employment tax • Keep meticulous records of ALL business expenses - they're your friend for reducing taxable income • Consider setting up a separate business bank account to make tracking easier going forward Don't worry about not being formally registered - the IRS considers you self-employed regardless of business structure. Start gathering those receipts now and consider using accounting software like QuickBooks or even a simple spreadsheet to track everything. Better to be over-prepared than caught off guard!

Connor, you've gotten great advice here! I just wanted to add one practical tip that helped me when I started my small business - consider opening a separate business checking account even if you're not formally incorporated. It makes tracking income and expenses SO much easier come tax time, and it shows the IRS you're treating this as a legitimate business rather than a hobby. Also, since you mentioned you made $6,500 in sales, don't forget to factor in the cost of goods sold (your materials) when calculating your net profit. If you spent $3,000 on supplies and materials, your net profit would be $3,500 (minus other business expenses like workspace costs). This is important because it's the net profit that determines whether you hit that $400 self-employment tax threshold. One last thing - start saving for next year's quarterly payments now! A good rule of thumb is to set aside 25-30% of your profit in a separate savings account. Trust me, your future self will thank you when those quarterly payments are due!

Ugh, this is so relatable! I'm dealing with the exact same thing right now - filed my IL return in January and it's been stuck on "processing" for over a month. Reading all these stories makes me feel a little better knowing it's not just me, but also terrified that I might be waiting until summer for my refund! 😅 The fact that their tracking system is completely useless is so frustrating. Like, how hard is it in 2025 to have systems that actually communicate with each other? At this point I'm just going to stop checking the status page and hope for a pleasant surprise in my bank account like you got. Thanks for sharing - at least now I know what to expect (or not expect) from Illinois!

This is such a relief to hear! I'm currently in week 7 of waiting for my Illinois refund and that stupid status page has been mocking me with "processing" this whole time. I was starting to think something went wrong with my return, but reading everyone's experiences here makes me realize this is just how Illinois operates - or doesn't operate, I guess! It's honestly wild that in 2025 we have to play this guessing game with our own money. The federal system isn't perfect but at least you get some idea of what's happening. Illinois seems to just throw your return into a black hole and maybe, if you're lucky, money appears in your account months later with zero explanation. I'm definitely going to stop obsessively checking that useless tracker and just wait for the surprise deposit. Thanks for posting this - saved me from going completely insane wondering if I did something wrong!

I went through something very similar when I switched jobs mid-year and my new employer somehow set up my withholding incorrectly. The good news is that with 2 kids under 10, you have some solid tax credits working in your favor. The Child Tax Credit alone could give you up to $4,000 ($2,000 per child), and depending on your income level, a significant portion of that can be refundable even if you paid zero in withholding. The Earned Income Tax Credit could also apply if your income falls within certain ranges - with 2 qualifying children, this can be worth thousands more. Your health issues might also qualify you to file as Head of Household, which has better tax brackets and a higher standard deduction. I'd definitely recommend running your numbers through some tax software to get a realistic picture, but don't panic - families with dependents often come out better than they expect, even with withholding issues.

The EITC income limits for 2023 (filing in 2024) with 2 qualifying children are pretty generous - you can earn up to about $50,594 if filing single or $56,844 if married filing jointly and still get some credit. The maximum EITC with 2 kids is $6,164, which phases out as your income increases. Combined with the Child Tax Credit, you could potentially see a substantial refund even with zero withholding. Just make sure your kids meet the qualifying child requirements (age, relationship, residency tests) and that they have valid Social Security Numbers. Also, definitely fix your W-4 going forward to avoid potential underpayment penalties next year. Your situation with health issues and being the primary caregiver for 2 young kids sounds like it would qualify you for Head of Household status, which would give you even better tax treatment.

One thing nobody mentioned - if you're right against the deadline, consider doing an ACH transfer instead of a wire. With Schwab specifically (I have my solo 401k there too), they count the contribution based on when you initiate it, not when it settles. So even if it takes a couple days to process, as long as you start the transfer before the deadline, you're good. Just make sure to screenshot the confirmation page showing the date you initiated it, just in case there are ever any questions.

This thread has been incredibly helpful! I'm in a similar situation with my solo 401k at Fidelity. One additional point that might help others - if you're making the employer contribution after December 31st, make sure your business has enough cash flow recorded for that tax year to support the contribution amount. I learned this the hard way when the IRS questioned a large employer contribution I made in March that seemed disproportionate to my reported business income. Even though the timing was legal, I had to provide additional documentation showing the income was earned in the previous tax year but received later due to client payment delays. Also, for anyone using estimated tax payments, remember that making a large employer contribution in the following year might affect your quarterly payment calculations, so plan accordingly with your tax professional.

Just wanted to add my experience here - I had the exact same Wealthfront/FreeTaxUSA struggle last year! What finally worked for me was logging into my Wealthfront account and downloading ALL the tax documents, not just the main 1099-DIV. There's usually a "Tax Center" or "Tax Documents" section where you can find the supplemental state information that breaks down which dividends are exempt by state. Once I had that state breakdown, entering it in FreeTaxUSA was actually straightforward. In the state section (after you've entered your federal 1099-DIV info), there's a specific question about state-exempt interest and dividends. You just enter the amount that's exempt for your specific state based on that Wealthfront supplemental document. The key thing I learned is that you can't rely on just the 1099-DIV form - you really need that additional state-by-state breakdown that Wealthfront provides separately. Hope this helps save you some of the hair-pulling I went through!

This thread has been incredibly helpful! I was in the exact same boat with Wealthfront and FreeTaxUSA. After reading through everyone's experiences, I found the supplemental tax documents in my Wealthfront Tax Center (thanks @Dmitry!) and was able to locate the state-exempt dividend amounts. For anyone else struggling with this: the key is definitely getting ALL the tax documents from Wealthfront, not just the 1099-DIV. The "State Tax Supplement" document shows exactly which portions of your dividends are exempt from state taxes by state. Then in FreeTaxUSA, after you enter your 1099-DIV in the federal section, you go to your state return and look for the section about exempt interest and dividends - that's where you enter the state-exempt amounts from the supplement. It's actually pretty straightforward once you have all the right documents, but Wealthfront could definitely make this clearer for first-time users. Hope this saves someone else the headache I went through!