Called the IRS yesterday and the rep said depositz are still scheduled for the 17th regardless of the holiday. Hope this helps!

Just wanted to share my experience from last year - my PATH Act refund hit my account on Presidents Day itself even though banks were "closed." Most banks process ACH deposits automatically overnight, so federal holidays don't usually delay them. The IRS sends the money out and your bank receives it regardless of whether their physical locations are open. Should still be good for Feb 17th!

lol its the IRS, expect delays on everything. wouldn't be surprised if it takes till march 🤡

I work at a regional bank and can give you some insight! When the IRS sends deposits with a holiday date, most banks will actually process them early (usually Friday) or on the next business day (Tuesday). The deposit won't just disappear - it's already authorized by the IRS. Your bank's online system might show "pending" over the weekend but it'll clear. I'd check Friday evening and if not then, definitely by Tuesday morning!

I'm not seeing anyone mention this, but you might qualify for the Qualified Business Income deduction (QBI) which could reduce your taxable income by up to 20% of your net profit from this work. It's available to most self-employed people and independent contractors. Since your total compensation wasn't super high based on what you described, this might help offset some of the self-employment tax hit you're facing.

Victoria, your situation is actually pretty common with non-profits that can't afford traditional salaries! The arrangement you described - direct payments to landlord plus gift cards and transit passes - definitely constitutes compensation and the 1099-NEC is the correct form. A few key points for your filing: 1. Report the total amount from the 1099-NEC on Schedule C as self-employment income (don't break down the components separately) 2. You'll owe self-employment tax (~15.3%) plus regular income tax on this amount 3. Keep detailed records of any work-related expenses you can deduct - office supplies, equipment, mileage to/from the charity, etc. Since you mentioned being new to 1099s, remember you may need to make quarterly estimated tax payments next year if you continue this type of work arrangement. The IRS expects taxes to be paid throughout the year, not just at filing time. Also double-check that 1099-NEC amount against your own records to make sure they captured all the benefits you received accurately!

This thread has been incredibly helpful! I just wanted to add my experience as someone who recently went through this process. I got my EIN about 6 months ago specifically for affiliate marketing, and it's been one of the best decisions I made. One thing I learned that might help others - when you're filling out W-9 forms for affiliate programs, make sure you select the correct tax classification. As a sole proprietor with an EIN, you'll typically check "Individual/sole proprietor" and then write your EIN in the tax ID field instead of your SSN. Some people get confused and think they need to check "LLC" or something else, but if you haven't formed a separate business entity, you're still an individual/sole proprietor even with an EIN. Also, I'd recommend keeping a simple log of which affiliate programs you've provided your EIN to and when. This has helped me anticipate which 1099s to expect at the end of the year and follow up if any seem to be missing. The organization aspect really does make tax season much less stressful! For anyone still hesitant - the whole process took me maybe 15 minutes on the IRS website, and the peace of mind has been worth so much more than that small time investment.

I've been doing affiliate marketing for about 3 years now and can confirm that having an EIN has definitely helped with program applications. Many of the premium affiliate networks seem to view applicants with EINs as more serious about their business, which can help with approval rates. One practical tip I'd add - when you get your EIN, consider opening a separate business checking account even if you're just a sole proprietor. Many banks will let you open a business account with just your EIN and operating agreement (which can be as simple as a one-page document stating you're doing business as yourself). This makes tracking your affiliate income and business expenses much cleaner for tax purposes. Also, don't forget that once you start earning significant affiliate income (generally $600+ from a single program), you'll receive 1099-NEC forms. Having all these going to your EIN rather than mixed in with your personal tax documents makes everything so much more organized. The psychological benefit of separating your business and personal finances really can't be overstated - it helps you take the venture more seriously and make better business decisions.

Has anyone had issues with the limitations on Form 1116? I'm in a similar situation but with clients in multiple countries, and I'm getting confused about how to handle separate forms for different types of income and different countries. Some tax software doesn't seem to handle this very well.

For Australian contractor payments, make sure you're aware of the tax treaty benefits between the US and Australia. The 5% withholding rate your client is using suggests they're applying the treaty rate for personal services income, which is actually beneficial for you. One thing to watch out for - if you're working remotely from Colorado but your client is treating this as Australian-source income subject to withholding, you may want to verify this is correct. Under the tax treaty, income for personal services performed outside Australia (like remote work from the US) may not be subject to Australian tax at all, depending on the specifics of your arrangement. If the withholding is incorrect based on the treaty, you might be able to get a refund directly from the Australian Tax Office and wouldn't need to claim the foreign tax credit. But if the withholding is proper, then yes, definitely claim it on Form 1116 as others have described. Just wanted to mention this potential issue since it could significantly impact your tax situation!