One thing I haven't seen mentioned - If your wife already owned her house before marriage and you owned your condo before marriage, be careful about how you're filing. In some states, property owned before marriage remains separate property, which can affect how the rental income and expenses should be reported. If the condo is still in your name only, and not jointly with your wife, you might need to file Schedule E under just your name, not jointly. The LLC complicates things further. You should really consult with a CPA who specializes in real estate, not just a general tax preparer.

Your tax preparer is being overly cautious. You absolutely can and should claim legitimate rental property expenses on Schedule E even without rental income yet. The IRS allows deductions for properties that are "placed in service" - meaning ready and available for rent - regardless of whether you've found tenants. The fact that you're actively showing the property and being selective about tenants actually strengthens your position. This demonstrates genuine business intent, not a hobby activity. Keep detailed records of your marketing efforts, showings, and communications with potential renters. A few key points for your situation: - Document everything: receipts, photos of work done, rental listings, showing appointments - The LLC formation date doesn't determine "placed in service" - it's when you first made the property available for rent - Start keeping a mileage log NOW for any rental-related trips with the truck - Consider finding a tax professional who specializes in rental properties if your current preparer won't file Schedule E The IRS has consistently ruled in favor of taxpayers who can demonstrate legitimate business purpose and proper documentation. Your expenses are real business costs that should be deductible. Don't let fear of an audit prevent you from claiming legitimate deductions you're entitled to take.

Wait, I'm confused about something. If the OP reported MORE income than was on the 1099 ($3000+ vs $600), wouldn't that mean they OVERPAID their taxes? Why would the IRS come after them for an audit when they paid more tax than required?

I went through something very similar last year with multiple gig platforms. The key thing to understand is that you likely DID report the correct income - you just need to make sure the sources are properly documented. From what you've described, it sounds like you found your tax summary showing the full $4000+, which is exactly what you should be reporting. The $600 1099-NEC is just one piece of the puzzle (likely bonuses/incentives as others mentioned). Here's what I'd recommend: First, gather ALL your tax documents from Uber - the 1099-NEC, the annual tax summary, and any 1099-K if you received one. Then compare what you actually filed versus what these documents show. You may find that you're closer to being correct than you think. If there are discrepancies, file Form 1040-X to amend, but don't panic about audits. The IRS is much more concerned with people underreporting income than overreporting it. Since you were trying to be accurate and used the information available to you at the time, this is clearly an honest mistake that's easily correctable. The important thing is to get it sorted out properly rather than leaving mismatched information on file, even if it resulted in you paying more tax than necessary.

Has anyone used the annualized income method instead? I'm in a similar situation but my income is VERY uneven throughout the year, so paying equal installments seems like it would create cash flow problems for me.

I'm in a very similar boat - just started freelancing in March and was totally confused about estimated payments! Reading through all these responses has been super helpful. One thing I'd add is to make sure you're also setting aside money for self-employment tax (the additional 15.3% for Social Security and Medicare) on top of your regular income tax. That caught me off guard my first year since as a W-2 employee, half of that was paid by my employer. Also, don't forget that you can deduct half of the self-employment tax when calculating your adjusted gross income, which can help reduce your overall tax burden. It's not huge but every bit helps when you're navigating this for the first time! The safe harbor route definitely seems like the way to go for peace of mind, especially in your first year when you're still figuring out your income patterns.

Same here! Filed 2/4 and got the exact same codes on my transcript yesterday. The waiting is killing me but sounds like we're in good shape based on what everyone's saying. Fingers crossed we see that 846 code soon 🤞

I'm in the exact same situation! Filed 2/3 and just saw my transcript update with codes 150, 806, 766, and 768. It's so nerve-wracking not knowing what's happening but this thread has been super informative. Thanks everyone for breaking down what these codes mean - sounds like we're on the right track and just need to be patient for that 846 code to show up. The IRS really needs to make this process more transparent for taxpayers!

Still waiting here too with a 2/24 DDD and Chime! I've been obsessively checking both my Chime app and my IRS transcript. My transcript shows code 846 with the refund issued date, so I know it's been processed. Based on what everyone's saying, it sounds like it really varies - some people get it 2-3 days early, others right on the DDD. I'm trying not to get my hopes up too much since it seems like the IRS sends these in batches throughout the day. Fingers crossed we all see our deposits soon! The waiting game is brutal when you're constantly refreshing your banking app 😅

I'm in the exact same situation! DDD of 2/24 with Chime and checking my account obsessively. Just saw that a few people have already gotten theirs today, so I'm cautiously optimistic. It's reassuring to see others getting their deposits 2 days early - gives me hope mine will hit tomorrow or Friday at the latest. The waiting is definitely the hardest part, especially when you see some people already celebrating their deposits! Thanks for asking this question, it's helpful to see everyone's experiences with Chime's early deposit feature for tax refunds specifically.