Hey Ravi! Code 846 is definitely the light at the end of the tunnel - it means your refund has been officially processed and sent to your bank. With Chase, you're looking at pretty reliable timing. They usually post refunds either on the 846 date itself or the next business day. Since your 846 shows 02-01-2025, I'd expect to see that $6,397 hit your account either Saturday 2/1 or Monday 2/3 (depending on how Chase handles weekend processing). The fact that you're seeing 846 means you've cleared all the IRS hurdles - no more waiting for processing or reviews. Just the final bank transfer step left! Keep checking your account over the weekend. 🎉

Code 846 is basically the IRS's way of saying "money's on the way!" 🎉 That date (02-01-2025) is when they released the funds to your bank. With Chase, you're in good hands - they typically post refunds either same day as the 846 date or within 1-2 business days max. I've seen Chase deposits hit as early as the night before the 846 date sometimes! Since yours shows Saturday 02-01, I'd keep checking your account Friday night through Monday morning. The $6,397 should definitely be there by early next week. You're past all the IRS processing hurdles now - just waiting on the bank transfer to complete. Hope it helps with those car repairs! 🚗

I'm dealing with this exact situation right now as a new freelancer! This thread has been incredibly helpful in clearing up the confusion. I was about to make the same mistake your brother suggested and deduct my health insurance premiums from my Schedule C profit before calculating SE tax. It's really counterintuitive that something so essential for running a business (staying healthy so you can work) isn't treated as a business expense. I'm paying about $650/month for my plan, so that's almost $8,000 a year that I'll be paying the full 15.3% SE tax on even though it's going straight to health insurance. One thing I'm curious about - does anyone know if there are any proposed changes to this rule? It seems like such an unfair burden on self-employed people compared to traditional employees who get pre-tax health benefits. We're already paying double the Social Security and Medicare taxes, and then we can't even get health insurance to reduce that base. Thanks to everyone who shared their experiences and the resources like the IRS publications. This is definitely one of those tax rules that catches a lot of new freelancers off guard!

This is such a great discussion and really highlights one of the most frustrating aspects of being self-employed! I've been dealing with this exact issue for the past two years since I started freelancing. What really gets me is that if you work for a traditional employer, your health insurance premiums come out of your paycheck pre-tax, which means you don't pay Social Security, Medicare, OR income tax on that money. But as self-employed folks, we only get the income tax break - we still have to pay the full 15.3% SE tax on money that's going straight to keeping us healthy enough to work. I actually called the IRS taxpayer advocate service last year about this because it seemed so unfair, and they confirmed it's just how the law is written. The health insurance deduction for self-employed people was added later as a compromise, but it wasn't designed to reduce SE tax. One tip I learned from my CPA: if you're paying a lot in health insurance premiums, it might be worth exploring whether an HSA (Health Savings Account) could help. The HSA contributions ARE deductible for both income tax AND self-employment tax purposes if you have a high-deductible health plan. It's not a perfect solution, but every bit helps when you're getting hit with that 15.3% on top of regular income taxes!

Did you use the same tax software to calculate all three scenarios? Different software can give different results. I'd run all three options (you claiming kids, spouse claiming kids, filing jointly) through the same program to make sure you're getting consistent calculations. Also, check if you qualify for Head of Household status when filing separately - that could make a big difference but you have to meet specific requirements.

The marriage penalty is definitely frustrating, but there are a few things you should double-check before concluding that filing separately is better: 1. Make sure you're comparing apples to apples - look at your actual tax LIABILITY (line 16 on Form 1040), not just the refund amounts. Different withholding patterns throughout the year can make refunds misleading. 2. With your combined income of ~$170k, you're likely hitting the child tax credit phase-out when filing jointly (starts at $150k for joint filers). But filing separately means you lose access to several valuable credits entirely - like the Child and Dependent Care Credit, education credits, and student loan interest deduction if you have any student loans. 3. Consider maxing out pre-tax contributions (401k, HSA, etc.) to reduce your AGI below phase-out thresholds. Even small reductions in AGI can have big impacts when you're right at the edge of these cliffs. 4. Run the calculations one more time using the same software for all scenarios to make sure there aren't any inconsistencies in how deductions/credits are being calculated. The "marriage penalty" is real, but often the lost credits from filing separately end up making joint filing the better choice overall, even if the immediate refund looks smaller.

Based on your transcript, it looks like you had a refund of $9,435 issued on 03-09-2026 (code 846), but then $5,300.70 of that refund was applied to a non-IRS debt on the same date (code 898). This means you would have received the remaining amount ($9,435 - $5,300.70 = $4,134.30) as your actual refund payment. The $5,300.70 went directly to pay off a debt you had with another agency (like student loans, child support, or other federal/state debts). You won't receive that $5,300.70 as a separate payment since it was used to satisfy the outstanding debt. If you weren't expecting this offset, you should have received a notice explaining what debt was paid.

I had a roommate who worked as a bartender and never reported tips for years. IRS eventually caught up with him and hit him with back taxes, penalties and interest. They definitely go after smaller fish too, just might take longer.

Former IRS compliance officer here (retired). The $2 million threshold is a common misconception that gets people in trouble. While it's true that whistleblower awards are structured differently above and below that amount, the IRS investigates tax evasion at ALL income levels. What many people don't realize is that the IRS has multiple detection methods beyond whistleblower reports - lifestyle audits, third-party information matching, bank deposit analysis, and industry-specific compliance programs. Those cash-only contractors and service providers you mentioned are actually prime targets for these automated screening systems. The agency uses something called the "Unreported Income DIF" (Discriminant Function) that flags returns with statistical anomalies. If someone's reported income doesn't match their apparent standard of living or industry norms, they'll likely get flagged eventually - no whistleblower needed. Bottom line: there's no safe amount of unreported income. The consequences (penalties, interest, potential criminal charges) far outweigh any short-term benefits of tax avoidance.