Something everyone is missing: while unemployment doesn't count as earned income for EIC calculations, it DOES count toward your Adjusted Gross Income (AGI), which can affect the AMOUNT of EIC you receive. If your AGI gets too high, your EIC starts phasing out. Also, unemployment is fully taxable income on your federal return. Just making sure your aware of both issues.

Don't forget to check if your state taxes unemployment benefits differently than federal! My state doesn't tax unemployment at all, while federal taxes it 100%. Also, if you didn't have taxes withheld from your unemployment, you might owe money even with the EIC.

I found the actual IRS warning about this exact issue: https://www.irs.gov/newsroom/employee-retention-credit-claims-involving-self-employed-individuals Key part: "The law is clear that self-employed individuals who reported no wages on their Form 1040 are not eligible for the ERC." Most of these companies are just taking advantage of confusion around pandemic benefits. If you're getting 1099s as a gig worker and have no employees, you almost certainly don't qualify for what they're claiming.

I work for a CPA firm and we've been dealing with the fallout from these SETC companies all tax season. The IRS has ramped up audits specifically targeting these claims, and we're seeing rejection rates over 90% for gig worker applications. Here's what most people don't realize: the Employee Retention Credit requires you to have had employees on payroll that you retained during the pandemic. If you're a sole proprietor getting 1099s with no W-2 employees, you don't qualify - period. These companies know this but keep filing claims anyway because they get paid upfront. We've had to help several clients deal with audit notices, repayment demands, and penalties after using services like Anchor Financial and Gig Worker Solutions. The documentation these companies collect is nowhere near what the IRS actually requires for legitimate ERC claims. My advice: if you're thinking about this, talk to a real tax professional first. Don't let these companies take your money for claims that will just create problems down the road.

mine took exactly 4 business days last week. hang in there!

I had the exact same issue last month! SBTPG cleared on a Wednesday and NetSpend didn't deposit until the following Tuesday. Turns out NetSpend processes refunds in batches and sometimes there are delays on their end. Check your NetSpend account for any pending transactions - mine showed as "pending" for 2 days before it actually hit. If you don't see anything pending by tomorrow, definitely call NetSpend customer service. They can at least tell you if the deposit is in their system.

One thing nobody's mentioned yet - there are additional tax advantages beyond just income tax. When my brother and I helped with my dad's construction business as teenagers, we were able to open Roth IRAs with some of our earnings. Since we had earned income (even though we didn't owe any income tax on it because we were under the standard deduction), we could each contribute to Roth IRAs. That money has been growing tax-free for years now! Just make sure the kids actually do the work and you keep good records. My dad had us fill out simple timesheets and took photos of bigger projects we helped with. The IRS never questioned it.

If you're going to do this, be SUPER careful with documentation. My friend tried this with his lawn care business and got audited. The IRS disallowed all the deductions for his kids because he couldn't prove they actually did the work or that the pay was reasonable. Keep a timesheet for each kid with dates, hours worked, and duties performed. Pay them regularly (biweekly or monthly) not just one big payment at year end. Take pictures of them working if possible. And pay them a reasonable wage for their age and the work they're doing - don't pay your 10-year-old $50/hour for stuffing envelopes!

Oh my gosh I was STRESSING about this same issue last month! If you need to make your April 15th estimated payment but are worried about accuracy, just pay what you reasonably think you'll owe based on last year's numbers. The safe harbor rule (Publication 505) says you won't face penalties if you pay at least 100% of last year's tax (or 110% if your AGI was over $150k). You can always adjust your June 15th estimated payment once your return is processed! That's what I did and it saved me so much anxiety!

Based on my experience working with IRS systems, the Friday morning update cycle is accurate, but there's an important detail many people miss: the IRS actually runs TWO separate update processes. The first is the Master File update (which affects transcripts) that typically completes between 2-6am ET on Fridays. The second is the transcript display system update that can take an additional 2-4 hours to reflect those changes. For business returns specifically, I've noticed that Schedule C income over $25,000 or any foreign account reporting (FBAR/8938) triggers additional review cycles that can extend processing by 2-3 weeks beyond the normal timeline. Since you mentioned "significant business income," this could explain your delay. One tip: if you need documentation for estimated tax calculations before your transcript updates, you can request a "Verification of Non-filing" letter online, which sometimes processes faster and can serve as interim proof while waiting for full transcript availability.