The advice here is solid! I just wanted to add one thing that helped me a lot when I was in your exact situation - consider getting QuickBooks Self-Employed or a similar bookkeeping app specifically designed for gig workers and small LLCs. It automatically categorizes your income streams, tracks mileage using your phone's GPS, and even estimates your quarterly tax payments based on your actual earnings. When I was doing DoorDash plus freelance work through my LLC, it saved me hours of manual tracking and made tax time so much less stressful. The app connects to your business bank account and automatically pulls in transactions, then you just need to categorize them as business or personal. It also has a feature that calculates the business use percentage of mixed expenses like your phone bill based on the time you log as "working" in the app. For about $15/month, it basically pays for itself in time saved and helps ensure you don't miss any deductible expenses. Plus it generates all the reports you need for Schedule C filing, which is super helpful when you're new to the business tax world. You're definitely thinking about this the right way though - getting the structure and processes right from the beginning will save you so many headaches later!

Just want to echo what others have said about keeping everything separate and documented! I made the mistake my first year of mixing personal and business expenses, and it was a nightmare trying to sort it all out during tax season. One thing I'd add that really helped me - consider setting up automatic transfers from your business account to a dedicated tax savings account. Every time you get paid from DoorDash or your editing work, immediately move 25-30% to that tax account. I use a high-yield savings account so the money at least earns a little interest while I'm waiting for quarterly payment dates. Also, don't forget about other potential deductions like your home office space if you do any of your editing work from home. Even a small percentage of your rent/utilities can add up over the year. The fact that you're asking these questions now puts you way ahead of where I was when I started. Getting the systems and habits right from the beginning will save you so much stress down the road!

I had a similar experience last year! Those codes are actually a good sign - it means your return is being processed normally. The 150 code confirms they've accepted your return, and the 766/768 codes are your refundable credits. Since you mentioned PATH act, you're definitely right about the delay for EITC and Additional Child Tax Credit, but since we're already past February 15th, your refund should be released soon. I'd expect to see a direct deposit date (846 code) appear on your transcript within the next week or two. The IRS is usually pretty good about hitting their "by early March" timeline for PATH returns.

I'm in a similar situation with my transcript showing codes 150, 766, and 768 from when I filed in late January. It's so confusing trying to decode what all these numbers mean! From what I've gathered reading through everyone's responses, it sounds like these are actually positive signs that our returns are moving through the system. The PATH act delay has been frustrating but at least we're past the February 15th hold period now. Hoping we all see those 846 deposit codes show up soon! 🤞

One thing that might help clarify the SEP IRA vs Solo 401k question - you can actually convert your existing SEP IRA to a Solo 401k if your Solo 401k plan allows for rollovers. This could be beneficial since you'd get the employee contribution option ($22,500) that you don't have with the SEP IRA. However, be careful about the timing if you've already made SEP IRA contributions for this tax year. You can't make employer contributions to both plans for the same tax year from the same business, even if you do a rollover partway through. Also worth noting - with your S Corp structure and $145k salary, your total contribution space to a Solo 401k would be around $58,750 ($22,500 employee + ~$36,250 employer at 25% of compensation). This might actually be less than the $66k you were planning for the SEP IRA, so run the numbers carefully before switching.

One additional consideration that hasn't been mentioned - if you're planning to hire employees in the future (beyond just your wife), a SEP IRA requires you to contribute equally for all eligible employees as a percentage of their compensation. With a Solo 401k, you lose eligibility once you have employees who aren't your spouse. Given your business growth trajectory ($850k-$1.2M revenue), you might want to think about whether you'll need to hire W-2 employees down the road. If so, you might want to consider other options like a traditional 401k plan that can accommodate employees, or carefully structure any future hires as contractors rather than employees. Also, make sure you're considering state tax implications. Some states don't follow federal rules exactly for retirement plan deductions, so the optimal choice might vary depending on where your S Corp is based. The timing issue others mentioned is crucial - if you're already late in 2023, the SEP IRA's flexibility to be established until your filing deadline might outweigh the Solo 401k's higher contribution potential, especially if you can't increase your salary before year-end.

If you're buying clothes that aren't your size and specifically for professional use, those ARE deductible! I'm a theatrical costume designer and face similar issues. The key difference is that you're not buying these as "clothing" but as "professional supplies" or "production costs" for creating your portfolio. Make sure you're categorizing them correctly on your Schedule C. Also, don't forget you can deduct: - Transportation costs to/from shoots - Equipment (steamer, styling kits, etc) - Software for managing your portfolio - Reference materials (fashion magazines, books) - Portion of your home used exclusively for inventory storage Get a good accountant who understands creative fields ASAP!

Great thread! As someone who's been through multiple IRS audits for my creative business, I want to emphasize the importance of the "business purpose" test. The IRS will look at whether your clothing purchases have a genuine business purpose beyond personal use. For fashion stylists, you're in luck because your profession inherently requires purchasing clothing as "raw materials" for your creative work - similar to how a painter buys paint or a photographer buys lighting equipment. The fact that these items happen to be clothing doesn't automatically disqualify them. Key documentation tips from my audit experience: - Keep a business journal noting the creative concept/theme for each shoot - Photo evidence showing the items being used professionally - Client emails or contracts referencing specific styling requirements - Inventory tracking showing items stored separately from personal wardrobe The IRS auditor actually commended my documentation approach because it clearly demonstrated business intent rather than personal shopping disguised as deductions. Don't let the general "clothing isn't deductible" rule scare you away from legitimate business expenses!

I went through something very similar last year and totally understand your confusion! Getting a 1099-NEC when you expected a W-2 is jarring, especially when your work situation sounds like a traditional employee setup. A few things to keep in mind as you navigate this: 1. **File correctly for now**: Even if you suspect misclassification, you'll need to report the 1099-NEC income on your tax return this year. Use Schedule C and don't forget Schedule SE for self-employment taxes. 2. **Track everything going forward**: Since others mentioned documentation - start keeping records of your work arrangements now. Things like email instructions, schedule requirements, use of company equipment, etc. 3. **Consider the bigger picture**: While the extra self-employment tax (around 15.3%) is frustrating, remember you can also deduct legitimate business expenses that employees can't. Keep receipts for anything work-related. 4. **You have time to decide**: You don't have to rush into filing Form SS-8 right now. You can file your taxes correctly based on the 1099-NEC you received, then evaluate your options for challenging the classification later if you decide it's worth pursuing. The most important thing right now is meeting your tax obligations while you figure out the classification issue. Don't let the stress of the bigger question prevent you from filing on time!

I really feel for you - this exact situation happened to me last year and it was so confusing! The good news is that you're not alone in dealing with this, and there are definitely steps you can take to figure it out. First, yes - receiving a 1099-NEC does mean the IRS will treat you as self-employed for tax purposes. You'll need to file Schedule C to report the income and Schedule SE for self-employment taxes (which is the extra ~15.3% others mentioned). But based on your description (set hours, using their equipment, being told exactly what to do), it really does sound like you might be misclassified. Here's what I wish someone had told me: you can file your taxes correctly with the 1099-NEC you received AND still challenge the classification later. Don't let the classification question prevent you from meeting your tax deadline - that's the most important thing right now. Start documenting everything about your work relationship immediately - emails about schedules, instructions about how to do your job, what equipment you're required to use, etc. This will be valuable whether you decide to file Form SS-8 or just want to have a conversation with your employer about the situation. Also, don't forget that being classified as self-employed does have one silver lining - you can deduct business expenses that regular employees can't. Keep track of anything work-related you pay for out of pocket. You've got this! Take it one step at a time and don't let the overwhelm paralyze you.