Setting up a separate bank account for your photo sales is also super helpful for keeping things organized. Most banks offer free student checking accounts, and this way you can keep all business transactions separate from personal ones. Makes it WAY easier at tax time and helps you track your actual profits more accurately. Plus, if your mom somehow sees your regular account, there won't be any suspicious transactions to explain!

As someone who's been through this exact situation, I want to emphasize something that might not be obvious: even though you're trying to keep this private from your mom, you still need to think about how this affects your overall tax situation. If your mom currently claims you as a dependent on her tax return, your photography income could potentially affect that. Once you start earning significant income, there are rules about whether you can still be claimed as a dependent. You might want to have a conversation with her (without getting into specifics about what you're selling) about potentially filing your own return this year. Also, don't forget about estimated quarterly payments if you start making decent money. The general rule is if you'll owe more than $1,000 in taxes at the end of the year, you should be making quarterly payments to avoid penalties. You can calculate this easily once you know your approximate income. One last tip: consider opening a business savings account too, not just checking. Set aside about 25-30% of your income for taxes so you're not scrambling come tax time. Self-employment tax plus regular income tax can add up faster than you'd expect!

Been dealing with this exact same situation! Filed my 2023 return in April and got the "Action Required" status after ID verification in November. What finally worked for me was getting my account transcript from the IRS website - it showed specific transaction codes that explained what they were actually reviewing (in my case it was income verification from a W-2 mismatch). The key thing to understand is that "Action Required" doesn't always mean YOU need to do something right away. Sometimes it just means they're waiting for their internal systems to complete cross-referencing your info with third-party sources like employers or banks. I'd recommend ordering your 2023 Account Transcript online if you can access your IRS account - look for any 400+ codes which indicate what type of review they're doing. If you see codes like 424 (income verification) or 430 (dependent verification), that gives you a clearer picture than the vague WMR message. After 10 weeks I finally called and they told me the review was actually complete but hadn't updated in their system yet. Got my refund 2 weeks later. Hang in there - I know it's super stressful but most of these do resolve eventually! 💪

Just went through this exact same nightmare! Filed my 2023 return in February and got stuck in "Action Required" limbo for 11 weeks after ID verification. What finally broke things loose for me was calling the main IRS line (1-800-829-1040) and asking to speak with someone about my refund status - not just the automated system. The rep was able to see that my return was actually cleared for processing but there was a system glitch preventing the refund from being issued. She manually pushed it through and I got my direct deposit 5 days later. Sometimes these "Action Required" cases just get stuck in the system and need a human to actually look at the account. Pro tip: Call first thing Monday morning around 7am when they open - way shorter wait times than later in the week. Have your SSN, filing status, and exact refund amount ready. Don't give up! The system is definitely broken but there are real people who can help unstick these cases. Fingers crossed you get some movement soon! 🤞

Has anyone used the simplified option for home office deduction? I heard you can deduct $5 per square foot up to 300 square feet instead of calculating all the percentages of utilities, mortgage, etc. Seems way easier if you qualify for the home office deduction.

Just wanted to share my experience as someone who went through this exact confusion last year. I'm a W-2 employee who also does some consulting work on the side, and I was completely lost about the home office rules. After doing a lot of research and talking to a tax professional, here's what I learned: The key is understanding that the home office deduction availability depends entirely on the TYPE of income you're earning, not just whether you work from home. For my W-2 job (even though I'm 100% remote): No deduction allowed on my personal return, period. This includes all the setup costs, monthly utilities, internet upgrades, etc. The Tax Cuts and Jobs Act really did eliminate this for employees. For my consulting income (reported on Schedule C): I can absolutely take the home office deduction, but only for the portion of my home office expenses that relate to the consulting work. So if I use my office 70% for W-2 work and 30% for consulting, I can only deduct 30% of the home office expenses against my consulting income. The "exclusively and regularly used for business" rule still applies - so you need a dedicated space, not just your couch or kitchen table. And as others mentioned, you can choose between the simplified method ($5/sq ft up to 300 sq ft) or the actual expense method. Hope this helps clarify things! The rules really are different depending on your income sources.

This is why I keep EVERYTHING. Every receipt, every mile logged, every client email. Rather be safe than sorry

Just got through my 810 verification last month - took exactly 16 weeks from start to finish. My advice: organize everything by month and category before you even get the letter. Bank statements, 1099s, receipts, mileage logs, EVERYTHING. The IRS will ask for stuff you didn't even think mattered. Also keep copies of what you send because they "lose" documents more often than you'd think 🙄

Just a quick tip - make sure you keep EVERY document related to this transaction. The county's initial offer letter, any negotiation correspondence, closing documents, receipts for any expenses related to the transaction, and especially documentation showing the original purchase price of your property. I went through this last year and created a complete file with all these documents which saved me when the IRS questioned my capital gains calculation. Also take photos documenting exactly what portion of your property is being taken before any work begins!

As someone who recently went through a partial property taking for a utility easement, I want to emphasize the importance of understanding the timing rules for capital gains. Since this is an involuntary conversion due to eminent domain, you actually have some special options that might help reduce your tax burden. Under IRC Section 1033, you may be able to defer the capital gains by reinvesting the proceeds into "like-kind" property within a specific timeframe (usually 2-3 years from the end of the tax year you received the compensation). This could be particularly beneficial given that your gain ($66,300 as calculated above) would likely exceed the prorated Section 121 exclusion. Also, don't forget that you can add any legal fees, appraisal costs, and other expenses related to fighting or negotiating the taking to your cost basis, which would reduce your taxable gain. I ended up saving about $3,000 in taxes by properly documenting these additional costs. Given the complexity and the significant dollar amount involved, I'd strongly recommend consulting with a tax professional who has experience with eminent domain cases before filing. The potential tax savings from getting this right could easily justify the consultation fee.