As someone who just went through this exact situation with my occasional photography sales, I can confirm that getting an EIN for privacy protection is totally legitimate and won't force you into business status. The IRS allows individuals to obtain EINs for various reasons beyond just business formation. Here's what I learned from my research and talking to a tax professional: 1. Having an EIN doesn't automatically require Schedule C filing - the determining factor is whether your activity meets the IRS criteria for a business (profit motive, regularity, time investment, etc.) 2. You can absolutely report the income on Schedule 1, Line 8 as hobby income even with an EIN. Just make sure to be consistent in how you treat the activity. 3. When you receive the 1099-NEC (which they'll likely issue for $600+), include a brief statement with your tax return noting that the 1099 income is being reported as hobby income on Schedule 1. This prevents automated IRS matching notices. 4. Creating an LLC isn't necessary for just getting an EIN - you can apply for one as a sole proprietor for privacy purposes. One thing to consider though: since hobby expenses aren't deductible anymore (thanks to 2018 tax law changes), you might actually save money by treating it as business income on Schedule C if you have legitimate photography expenses. The self-employment tax might be offset by equipment deductions, but run the numbers for your specific situation. The key is being consistent in your treatment and having a clear understanding of your intent with the activity.

This is exactly the kind of situation where getting an EIN makes perfect sense! You're absolutely right to be cautious about sharing your SSN with companies - identity protection is important. To answer your specific questions: 1. No, getting an EIN doesn't automatically require Schedule C filing. The IRS determines business vs. hobby status based on your actual intent and activity patterns, not whether you have an EIN. 2. Yes, you can definitely report this as hobby income on Schedule 1, Line 8 even with an EIN. Just be consistent in treating it as a hobby. 3. You don't need an LLC at all - you can apply for an EIN as a sole proprietor specifically for privacy purposes. One practical tip: when you receive the 1099-NEC (which they'll issue for $600), consider adding a brief statement to your tax return explaining that the 1099 income is reported as hobby income on Schedule 1, Line 8. This helps prevent any automated IRS notices about mismatched income. Since this is truly a one-off payment and you want to keep things simple, the hobby income approach with an EIN for privacy protection sounds like the perfect solution for your situation. You'll protect your personal information while avoiding unnecessary business complications.

I went through almost this exact situation a few years back and want to reassure you that it's really not as bad as it feels right now! Missing one year happens to more people than you'd think, especially during major life transitions. Since you mentioned you were probably due a refund with your $45k W-2 job, you're actually in the clear on penalties. The IRS is pretty understanding when they owe YOU money - they just hold onto it until you file. Here's what worked for me: I gathered all my tax documents from that missed year (W-2, any 1099s, bank interest statements, etc.) and filed using TurboTax's prior year option. Yes, I had to pay for it even though I normally used the free version, but it was worth it for the peace of mind. Got my refund about 3 weeks after e-filing. Then I filed my current year return normally - no issues whatsoever. The IRS really does treat each tax year independently. The key is just to get that 2023 return filed ASAP so you can get your refund and put this behind you. Don't let the anxiety keep you frozen - once you actually sit down and do it, you'll probably be surprised how straightforward it is for a basic W-2 situation like yours.

Hey Mateo! I can totally relate to your situation - life gets chaotic and sometimes important things like taxes fall through the cracks. The good news is you're definitely not as screwed as you think! Since you mentioned you were probably due a refund from your W-2 job, you're actually in a really good position. Here's the deal: if you were owed money, there are no penalties for filing late. The IRS basically just holds onto your refund until you claim it, and you have up to 3 years from the original due date to do so. For your situation, I'd recommend: 1. File your 2023 return ASAP - you can still get that refund! 2. File your 2024 return normally by the April deadline 3. Each tax year is treated separately, so you don't need to fix 2023 before filing 2024 The most important thing is to not let anxiety paralyze you. For a straightforward W-2 situation like yours, it's much simpler than it seems. Just gather your 2023 W-2 and any other tax documents from that year, and you can file using any standard tax software (though you'll likely need to pay for prior year filing even if you normally qualify for free options). You're handling this responsibly by addressing it now rather than letting it pile up. Take a deep breath - you've got this handled!

Don't forget that if you're married, having your spouse be an employee of the company (a real employee with actual duties) can open up some options. You could potentially provide health benefits to employees without running into the 2% shareholder limitations. This only works if your spouse isn't also a shareholder though.

One thing I haven't seen mentioned yet is the importance of timing when implementing these strategies. If you're going to start having your S-Corp pay health insurance premiums directly, you need to make sure this is consistent throughout the entire tax year. You can't just start doing it partway through the year for the expenses you've already paid personally. Also, keep in mind that if you do switch to having the corporation pay premiums directly, you'll need to adjust your officer compensation accordingly since this will increase your W-2 wages. This might push you into a higher tax bracket, so run the numbers carefully. For those considering the spouse employment route, remember that you'll also need to factor in the additional payroll taxes and potential workers' compensation requirements depending on your state. Sometimes the administrative burden can outweigh the tax benefits, especially for smaller operations.

Here's a simple breakdown of the main sections on a Robinhood 1099-B: 1A: Short-term transactions with basis reported to the IRS 1B: Short-term transactions with basis NOT reported to the IRS 1D: Proceeds from broker transactions (total sales amount) 1E: Cost basis (what you paid) 1G: Gain or loss (what you're actually taxed on) The large number in 1D is just the total dollar amount of ALL your stock sales combined - like if you bought $1000 of stock and sold it at $1100, then that $1100 goes in 1D, but you're only taxed on the $100 profit.

I used to be a tax preparer and saw this confusion ALL THE TIME. One thing not mentioned yet: check if your Robinhood 1099 has supplemental information pages. They often include a summary that breaks down your actual taxable gains/losses more clearly than the main form. The IRS only cares about your profits/losses, not the total amount of money that moved through your account. The big number in section 1D freaks everyone out, but it's just the sum of all your sales, regardless of whether you made or lost money on those transactions.

Check your account transcript not return transcript. Sometimes return transcript takes longer to update but account transcript will show processing status

Same boat here - filed and accepted 2/5, no transcript updates yet either. I've been checking daily (probably too much lol). From what I've read on here and other forums, the IRS is still ramping up their systems for the season. Early filers often get caught in this limbo period. Try not to stress too much about it, though I know that's easier said than done when rent's coming up! Keep checking your transcripts every few days but don't drive yourself crazy with daily checks.