Just a heads up that the rules are different for personal tax payments vs. business tax payments. A lot of people wrongly think that ANY fee paid to pay taxes is deductible, but thats not true! The credit card convenience fees are only deductible on Schedule C because their for BUSINESS tax payments. If you pay your regular income tax with a credit card, that fee is NOT deductible for personal taxes due to the Tax Cuts and Jobs Act.

Great question! Yes, those credit card convenience fees for paying estimated taxes on your sole proprietorship income are definitely deductible as business expenses on Schedule C. Since you're only making these estimated payments because of your gig work income, the fees directly relate to your business operations. A couple of practical tips from my experience: - Keep screenshots or receipts showing both the tax payment amount AND the separate convenience fee - Report these under "Other Expenses" on Part V of Schedule C - Consider the math: if you're paying $1000 quarterly, that 2% fee is $20 per payment or $80/year Also, since you mentioned you're new to estimated taxes - don't forget you might also be able to deduct a portion of your phone bill if you use it for the delivery apps, plus mileage or actual car expenses. The IRS mileage rate for 2024 is 67¢ per business mile, which can add up quickly with delivery work! Keep good records of everything - it'll make tax time much smoother.

Code 806 is definitely nothing to worry about! I went through the same confusion last year when I started really examining my transcript closely for the first time. What helped me understand it was thinking of your tax return like a ledger: Code 150 shows what you owe, Code 806 shows what you've already paid through withholding and estimated payments, and the difference determines your refund or balance due. Since you mentioned being meticulous with your returns, you'll probably find it interesting that this code has been there all along - it's just one of those details that's easy to miss until you're specifically looking for it. Your 17-day wait is still perfectly normal, especially given the volume of returns the IRS processes this time of year.

I completely understand your concern about Code 806 - it's one of those technical details that can be alarming when you notice it for the first time! As others have correctly explained, Code 806 represents your withholding credits (federal taxes withheld from paychecks, estimated payments, etc.). Think of it as the IRS acknowledging "Here's what you've already paid us this year." The reason you might not have noticed it before is that most people focus on the final refund amount rather than the individual line items that make up the calculation. Your transcript is essentially showing the math: your tax liability minus your withholding credits equals your refund. At 17 days, you're still well within the normal processing timeframe, so no need to worry about delays. The fact that you've been consistently meticulous with your returns since 2018 suggests everything is likely processing normally!

I'm experiencing the exact same thing! Got my 846 code with a March 26 date through TurboTax and Credit Karma, but still nothing in my account as of this morning. This is my first year using Credit Karma for tax refunds so I wasn't sure if this was normal or not. Reading through everyone's experiences here is really helpful - sounds like the 1-2 business day delay after the IRS release date is pretty typical for online banks. I'm going to give it until Friday before I start worrying. Thanks for posting this question, it's reassuring to know I'm not the only one in this situation!

I'm going through the exact same thing! Filed through TurboTax, got my 846 code for March 26th, and still waiting for Credit Karma to show the deposit. It's so frustrating because you see all these posts about people getting their refunds early and you start wondering if something went wrong. But reading through all these responses really helps put things in perspective - seems like the 1-2 business day delay after the IRS release date is totally normal for online banks like Credit Karma. I'm going to stop obsessively checking my account every hour and give it until Friday like others have suggested. Thanks everyone for sharing your experiences, it definitely makes the waiting less stressful when you know you're not alone!

filed on 03/29, accepted 03/30, DDD of 04/12 on my transcript, and it hit my CashApp on 04/10 - so 2 days early.

CashApp user here! Got mine 3 days early this year. Filed on 4/8, accepted same day, transcript showed DDD of 4/25, but money hit my CashApp on 4/22. My sister used Wells Fargo and got hers exactly on the IRS date - no early release. From what I've noticed over the years, it really depends on when during the week your DDD falls and how quickly the IRS processes that particular batch. If your bills are tight, CashApp is definitely worth trying, but I wouldn't count on more than 1-3 days early max.

Has anyone considered the possible legal implications beyond just taxes? Letting someone else use your account on gig platforms usually violates their terms of service. Could she get in trouble with the platform too?

This is a really tricky situation that I've seen cause headaches for people. The key thing to understand is that the IRS computer systems automatically match 1099s to Social Security Numbers, so if Sarah doesn't report that $13,500 on her return, she'll almost certainly get a CP2000 notice (basically an automated "you forgot to report this income" letter). Her dad's promise to "take care of the taxes" doesn't change the fact that the income is tied to her SSN. Even if he somehow managed to pay taxes on it through his own return, the IRS systems would still be looking for that income on Sarah's return. The Schedule C approach mentioned by Carmen is probably the most practical solution at this point - Sarah reports the income, then deducts the full amount as payments to her father for contract services. This way the IRS sees the income reported under the correct SSN, but the tax burden effectively passes to the person who actually earned it. Just make sure there's proper documentation of this arrangement in case of questions later. And definitely learn from this situation - sharing gig accounts creates way more problems than it's worth!