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Been waiting on my refund for 5 months and have mail forwarding setup with USPS for past 10 months. Anyone know if they forward IRS checks or send them back? Getting super anxious about this whole situation
Okay so I've been getting more and more free PR gifts sent to me lately since my Instagram following grew past 10K. I know that when companies send me products and expect me to post content about them in return, that counts as taxable income. Thats pretty clear. But what about when brands just randomly send me stuff with no expectations attached? Like last week I got a mystery box from a beauty brand with like $300 worth of makeup and skincare, and all they said was "Hope you enjoy!" No request for posts, no contract, nothing. Do I need to report these kinds of gifts on my taxes too? I'm trying to get my finances organized before next year's tax season and I'm confused about where these "no strings attached" PR gifts fall. I definitely don't want to get in trouble with the IRS, but also don't want to pay taxes unnecessarily if these are genuinely just gifts? Anyone have experience with this? Thx!
I got audited last year specifically because of PR gifts I didn't report!!! I thought since there was no contract or expectation to post, they were just gifts. The IRS disagreed HARD. Had to pay back taxes + penalties on about $12k worth of "free" products. The auditor specifically said "if they're sending it because you're an influencer, it's income." Doesn't matter if you post or not.
This is such a helpful thread! I'm in a similar situation with my growing Instagram account and had no idea about the tax implications. After reading everyone's experiences, I'm definitely going to start tracking all PR packages I receive with their retail values. Quick question though - for those who've been through audits or dealt with the IRS on this, how detailed do the records need to be? Should I be taking photos of everything I receive, keeping the original packaging, or is just a spreadsheet with dates and estimated values enough? I want to make sure I'm documenting everything properly from the start. Also, does anyone know if there's a minimum threshold? Like if a brand sends me a $5 lip balm, do I really need to report that too or is there some kind of de minimis rule for small items?
Just saw the IRS update about EITC and ACTC refunds. The IRS website specifically states: "If you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), you can expect to get your refund by March 3 if: - You file your return online - You choose to get your refund by direct deposit - We found no issues with your return" However, the IRS also mentions that "some taxpayers may see their refunds a few days earlier." I've been checking Where's My Refund (WMR) every day, but according to the IRS site, "Where's My Refund should show an updated status by February 22 for most early EITC/ACTC filers." One thing to keep in mind though - the IRS clearly points out that "your financial institution may need time to accept your direct deposit or issue a debit card. Many institutions don't process payments on weekends or holidays. So, if you file early, be aware of federal and local holidays that may affect how soon you get your refund." Plus, there's an important legal restriction they mention: "By law, we can't issue EITC or ACTC refunds before mid-February. This includes your entire refund, not just the part that's related to the credit you claimed." Anyone else planning around this March 3rd date? Getting tired of checking WMR everyday, especially knowing they won't even update most statuses until February 22nd. I'm just trying to be patient but it's hard when you're counting on that money!
My tax person said some ppl might get it earlier than March 3rd but dont count on it. Path act is annoying but at least we got a date to look forward to
Same here with the daily WMR checking! ๐ It's good to finally have concrete dates though. March 3rd feels so far away but at least we know February 22nd is when WMR should actually start showing real updates. I'm trying to remind myself that the PATH Act delay is there for fraud prevention, even though it's frustrating when you need that money. Hopefully some of us get lucky with the "few days earlier" thing they mentioned!
My daughter just turned 16 (was 15 for tax year 2024) and I'm trying to help her file taxes using FreeTaxUSA. Here's our situation: She made about $2,700 from dog sitting and similar gigs throughout the year - all cash or Venmo payments, no formal employer. She also had around $2,200 in capital gains from selling some stocks her grandparents gifted her years ago. I contributed $2,700 to a Roth IRA for her since she had earned income. The problem I'm running into: When filing with FreeTaxUSA, I'm required to report the Roth IRA contribution, but the system doesn't seem to recognize her dog sitting money as earned income since there's no W-2. I can't figure out where/how to properly report this non-W2 earned income on FreeTaxUSA. I tried looking through their self-employment section but got confused. Does anyone know the proper way to report her dog sitting income so FreeTaxUSA will recognize it for the Roth IRA contribution? I'm not even sure if she needs to file since her earned income is relatively low, but I want to make sure the Roth contribution is properly documented.
For the self-employment tax part - just a heads up that your daughter will owe about 15.3% in self-employment taxes (Social Security and Medicare) on her dog sitting income. At $2,700, that's roughly $413 in SE tax alone. Make sure you look into business deductions to offset some of that income! Things like mileage driving to clients' homes, any supplies purchased for the business, even a portion of her cell phone bill if she uses it to coordinate with clients.
Thanks for pointing this out, I hadn't even thought about the self-employment tax aspect. Would she still owe this even though her total income is below the standard deduction? I thought she wouldn't owe any federal income tax, but I guess the SE tax is different?
Yes, that's exactly right. Self-employment tax is completely separate from income tax. Even if she's below the standard deduction threshold (meaning no income tax), she'll still owe self-employment tax on her net profit over $400. The good news is that business deductions can help reduce the taxable income. For example, if she spent $500 on business expenses (travel, supplies, etc.), her net profit would be $2,200 instead of $2,700, reducing the SE tax accordingly. FreeTaxUSA should walk you through all this once you set up the Schedule C properly.
Make sure your daughter is actually keeping good records going forward! My son learned this lesson the hard way last year with his programming freelance work. The IRS doesn't play around with self-employment income, even for teens. Have her track: - Date of each job - Client name - Amount paid - Method of payment (cash, Venmo, etc) - Any expenses related to the business
Do you use any particular app for tracking this stuff? My daughter just takes pictures of receipts with her phone but they end up lost in her camera roll mixed with 10,000 tiktok screenshots lol
We use QuickBooks Self-Employed for my daughter's pet sitting business - it's like $15/month but totally worth it. She can snap photos of receipts right in the app and it automatically categorizes them. Plus it tracks mileage when she drives to clients' houses, which adds up to decent deductions. For the simpler/free route, even just a basic spreadsheet or notes app works if she's disciplined about updating it after each job. The key is making it a habit - like she can't get paid until she logs the job details first!
So I recently formed an LLC for my side business and I'm confused about the proper formatting when filling out tax documents. The LLC is registered as "Smith Enterprises, LLC" with the comma before LLC. When I'm filling out tax forms (Schedule C, 1099s, etc.), should I include the comma before "LLC" or just write it as "Smith Enterprises LLC"? I've seen it done both ways and I'm not sure what's correct according to the IRS. I don't want to have issues with my business tax filing because of an incorrectly formatted business name. Does anyone know the proper way to format this on official tax documents?
Has anyone used TurboTax Self-Employed for their LLC? I'm wondering how picky it is about the comma in the business name field and if it matches that format to all the forms it generates.
I use TurboTax Self-Employed for my LLC. The software lets you enter your business name exactly as you want it, including commas. Whatever you type in the business info section carries through to all the forms it generates. Just be consistent with what's on your EIN letter.
I went through this exact same confusion when I first started my LLC! After dealing with multiple tax forms and even getting a notice from the IRS about a name mismatch (turned out to be unrelated), here's what I learned: The key is to use your business name exactly as it appears on your EIN confirmation letter from the IRS. This is the "official" version they have in their system. If your state registration has the comma but your EIN letter doesn't (or vice versa), go with the EIN letter format for all federal tax documents. I keep a copy of my EIN letter handy whenever I'm filling out tax forms so I can reference the exact spelling and punctuation. It's saved me from second-guessing myself every tax season. The IRS matching systems are looking for consistency with what's in their database, not necessarily what your state has on file. For what it's worth, I've never heard of anyone getting into trouble specifically over comma placement - it's usually bigger discrepancies like completely different business names or missing the LLC designation entirely.
Simon White
Had the exact same issue last year! USPS forwarding doesn't work for IRS mail - they mark it "DO NOT FORWARD" specifically. You'll need to file Form 8822 to change your address with the IRS directly. Also call the IRS refund hotline (1-800-829-1954) to let them know about the address change. If the check already went to your old address, it'll get returned to them and they'll reissue it to your new address, but expect another 4-6 weeks delay. Super frustrating but that's the process! ๐ค
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Lucas Bey
This happened to me too! The stress is real when you're waiting that long for your refund ๐ฐ Everyone's right about the Form 8822 - that's absolutely your first step. But also wanted to add that you can check your refund status online at irs.gov using "Where's My Refund" tool. It'll show if there are any issues or if they're trying to send it to the wrong address. Also, if you have access to your old mailbox (like if you're still friendly with new residents/landlord), might be worth giving them a heads up to watch for any IRS mail just in case. The whole system is definitely frustrating but hang in there!
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Harmony Love
@Lucas Bey Great advice about checking Where "s'My Refund online!" I totally forgot about that tool - it actually shows you if there s'an address issue or if the refund got sent back. And yeah, definitely reach out to whoever s'at your old place if possible. When I moved last year I gave my old landlord my new address just for situations like this. The whole IRS system is so outdated but at least there are ways to track what s'happening. Thanks for the reminder about the online tool!
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