Watch out about the health insurance thing! If he files independently and isn't claimed as a dependent, he might not be eligible to stay on mom's health insurance plan until 26. Some insurance companies have different rules about this. My daughter got kicked off my plan when she filed independently at 22 even tho the ACA says coverage til 26.

Just wanted to add something that might help with your decision - even if your son technically qualifies as your dependent based on the support test, you should definitely run the numbers both ways before deciding. Since he's working and paying tuition himself, he might qualify for the American Opportunity Tax Credit if he files independently, which can be worth up to $2,500. If your income is too high, you might be phased out of education credits anyway. Also, if he's low income, he could potentially qualify for the Earned Income Tax Credit filing on his own. The support test calculation can be tricky - don't forget to include the health insurance his mom pays ($1,440/year) as support provided BY the parents, not by him. And yes, you need to calculate fair market rental value for his room. Look at similar room rentals in your area. I'd suggest using a tax calculator to compare both scenarios - you claiming him vs. him filing independently - and see which gives your family the better overall tax outcome. Sometimes the student gets more benefit from filing alone than the parent saves from claiming them as a dependent.

Don't forget about mileage for post office runs! I track every trip I make to drop off Etsy orders and it added up to a nice deduction last year. The IRS rate was 65.5 cents per mile for 2023, so even short trips can add up if you're making regular post office visits.

Great question! As a fellow Etsy seller, I completely understand the confusion around shipping expense deductions. Here's what I've learned through experience: Both your shipping boxes/packaging materials ($430) and actual postage costs ($2,200) are fully deductible business expenses on Schedule C. For TurboTax specifically: - Shipping boxes, padded mailers, bubble wrap, etc. go under "Supplies" (Line 22 on Schedule C) - Actual postage fees paid to USPS, UPS, FedEx go under "Other expenses" with a description like "Shipping and postage" One tip that really helped me: Keep digital copies of all your shipping receipts and consider using a business checking account or credit card exclusively for these expenses. It makes tracking so much easier during tax time! Also, don't forget that if you're buying shipping supplies in bulk from places like Uline or Amazon, those bulk purchases are still fully deductible as supplies even if you haven't used all the materials yet by year-end. The $2,630 total you spent on shipping-related costs is a significant deduction that will definitely help reduce your taxable income from your Etsy sales!

I've been following this discussion closely as someone who's dealt with similar refund timing questions over the years. What really stands out to me is how consistent everyone's experiences have been with the 846 code timeline - it seems like the 1-5 business day window is very reliable across different banking institutions and filing situations. For those still waiting (especially @Kiara Greene with the original question), it's worth noting that your 2/22 846 code date puts you right in the expected timeframe. Even with the amended return factor you mentioned, once that code appears, you're essentially in the same processing queue as everyone else. A few additional insights based on my experience: - Monday deposits tend to be more common since banks often batch weekend ACH processing - If your deposit doesn't arrive by day 5, that's when I'd consider calling your bank first (before the IRS) to check if there were any processing issues on their end - The corrected amount showing on your transcript is actually a great sign - it means all verification steps are complete The community knowledge sharing in this thread has been fantastic. It's so much more helpful than the generic IRS guidance to have real people sharing actual timelines and outcomes. Thanks to everyone who's contributed their experiences - this is exactly the kind of practical information that helps reduce anxiety during the waiting period!

I'm new to this community but have been reading through this entire discussion with great interest since I'm in a very similar situation! My 846 code appeared on 2/24 with a DDD of 2/27, so I'm right in that anxious waiting period that so many of you have described. What's been most helpful about this thread is seeing the actual data and real experiences rather than just generic IRS information. The consistency of that 1-5 business day window across different banks, filing situations, and even amended returns is really reassuring. I had no idea about things like early morning ACH processing (2-6 AM) or that many banks don't show government deposits as pending - those are exactly the kinds of practical details you can't find anywhere else. I'm with PNC Bank and have started checking during those early morning hours as several people suggested. Based on all the experiences shared here, it sounds like I should see my deposit by early next week at the latest. One thing I wanted to add that might help others - I called my bank yesterday to ask about their ACH processing schedule, and they confirmed they typically post government deposits between 3-5 AM on business days. So for anyone else waiting, it might be worth calling your specific bank to understand their timing patterns. Thanks to everyone who has shared their experiences and data points - this community knowledge is incredibly valuable for those of us navigating this process. I'll definitely update when my deposit arrives to add another data point for future filers!

You should definitely file an amended return for the 1099-B showing the $600 loss. Here's why it's worth it: 1. **You'll likely get money back** - That $600 capital loss can reduce your taxable income by up to $600 (assuming you don't have other capital gains to offset), which could mean an additional refund of $60-150+ depending on your tax bracket. 2. **It's required by law** - The IRS expects you to report all 1099 forms you receive, even losses. Not reporting it could potentially cause issues if the IRS notices the discrepancy. 3. **You have plenty of time** - Since you just filed, you have 3 years to amend without any penalties. For the amendment, you'll need to file Form 1040-X and include Schedule D to report the capital loss. Most states will also require an amended state return if they have income tax. The amendment fee from TurboTax might sting a bit, but you'll likely come out ahead financially, plus you'll have peace of mind knowing everything is properly reported to the IRS.

Amended returns typically take 8-12 weeks to process, sometimes longer during busy periods. The IRS will send you a notice once they've processed your amendment, and if you're due a refund from the capital loss deduction, it usually comes as a separate check or direct deposit. One tip: make sure to keep copies of everything you file, including the original 1099-B form and your amended return. Also, when you file the amendment, include a brief explanation of why you're amending (forgot to include 1099-B showing capital loss) - this can help speed up processing. You're definitely doing the right thing by reporting it properly. Better to handle it now while it's fresh in your mind rather than worry about it later!

I've been dealing with this exact same situation and wanted to share what I learned from my tax preparer. The biggest relief was understanding that PayPal only counts actual "goods and services" transactions toward their 1099-K threshold - not money transfers from other platforms. Based on your breakdown, you're actually in a pretty good spot. Your $1,600 in client invoices is the only amount that would count toward PayPal's $5,000 threshold for issuing a 1099-K. All those other transfers (crypto exchange, marketplace sales, fantasy sports, rewards) are just moving money around - the original sources will handle their own tax reporting. One thing that really helped me was creating a simple spreadsheet tracking each income source separately. I have columns for the platform, amount, type of income (business vs. personal vs. investment gains), and which 1099 I expect to receive it on. This way when tax season comes, I can report each income stream once without accidentally double-counting anything. Since you're under the PayPal threshold, you probably won't even get a 1099-K from them, which actually simplifies things. Just make sure to still report that $1,600 in client payments as business income on your Schedule C, even without a formal 1099. The key is treating each platform as its own separate reporting entity rather than thinking of PayPal as some master aggregator of all your income streams.

This is a great question that comes up a lot! Based on your numbers, you're actually in better shape than you might think regarding PayPal's 1099-K reporting. PayPal only counts "goods and services" payments toward their 1099-K threshold, not transfers or deposits from other sources. From what you've described, only your $1,600 in client invoice payments would count toward PayPal's $5,000 threshold for 2024. Since you're well below that amount, you likely won't receive a 1099-K from PayPal at all. Here's how your other income sources work: - The $9,500 crypto transfer is just moving your own funds (the exchange reports the actual trading gains/losses) - Your $7,800 marketplace sales should be reported directly by that marketplace on their own 1099 - Fantasy sports winnings and reward site payments have their own separate reporting requirements The key is to track each income source individually and report it once on your tax return, regardless of how many platforms it flows through. I'd recommend creating a simple tracking sheet with columns for: income source, amount, platform received on, and expected tax form. This prevents any double-reporting confusion. Since you're under PayPal's threshold, your main focus should be properly categorizing and reporting each distinct income stream - the $1,600 in service income on Schedule C, any crypto gains from your exchange activity, marketplace sales, etc. Each gets reported once based on its original source, not where the money ended up.