I worked for a 501(c)3 last year and they also didn't send a 1099. When I called them about it, they said they "don't do that for contractors under $10k" which is completely wrong! Any payment over $600 requires a 1099-NEC. Just be aware that when you report this income without a matching 1099, there's a slightly higher chance of getting flagged for review (not necessarily an audit, just verification). This happened to me, and I just had to show my bank statements proving the deposits matched what I reported. No big deal, but keep your documentation organized just in case.

Don't panic - you're in a manageable situation! Since you earned $5,950, you'll definitely need to report this as self-employment income on Schedule C, even without the 1099. The non-profit was required to send you a 1099-NEC since you earned over $600, so definitely follow up with them about it. Here's what to do in FreeTaxUSA: Go to the "Self-Employment" or "Business Income" section and enter your consulting income there. You'll pay self-employment tax (about 15.3%) on this income, but you can deduct business expenses to reduce your taxable amount. Think about any supplies, home office space, mileage, or equipment you used for this work. Since you're continuing this work in 2024, start keeping better records now - create simple invoices for each payment, track all business expenses, and consider making quarterly estimated tax payments to avoid a big bill next year. The key is having good documentation, whether or not you get proper forms from the organizations you work with. You've got this! The fact that you're being proactive about reporting everything correctly shows you're on the right track.

Has anyone tried just filling out BOTH? I mean, complete their substitute W9 AND send a standard form? That's what I've been doing with clients who are stubborn about their systems. Seems like overkill but it keeps everyone happy.

I've been dealing with this exact issue for the past few months! What finally worked for me was a combination approach - I explained to the stubborn clients that I have security concerns due to previous data breaches, and I offered to do a phone verification instead of using their portal. I prepared a simple script explaining that while I understand their need for W9 information, I maintain a policy of not entering sensitive tax information into third-party systems I haven't vetted. Then I offered alternatives: "I can provide you with a completed standard W9 via secure email, or we can schedule a brief call where I can verbally confirm all the required information while you complete your internal form." About 80% of clients accepted the secure email option. For the remaining 20%, the phone verification worked perfectly - they got their information entered into their system, and I didn't have to trust another potentially insecure portal with my SSN and other sensitive data. It only took about 5-10 minutes per client and gave me much better peace of mind.

Get a real accountant!!! Seriously, ask them these questions. Random internet advice could get you in trouble with the IRS. These detailed business expense questions depend on so many factors specific to YOUR situation.

As a tax professional, I can confirm that your Spotify subscription can likely be deducted as a business expense based on what you've described. The IRS allows deductions for expenses that are "ordinary and necessary" for your trade or business. Your case is particularly strong because: - You use Spotify directly in your creative process for client work - You can demonstrate a clear connection between the music and your income-generating activities - You maintain business playlists that support client relationships However, you'll need to be prepared to: 1. Document the business use percentage (if you also use it personally) 2. Keep records showing how specific music influenced paid projects 3. Track which playlists/music directly contributed to client work The key is proving business purpose rather than personal entertainment. Since you're using it as a creative tool that directly impacts your design process and client relationships, you have a solid foundation for the deduction. Just make sure to maintain detailed records in case of an audit, and consider the advice others mentioned about separating business and personal use if that applies to your situation.

The self-employment tax point is crucial - thanks for bringing that up! For anyone calculating their quarterly payments, don't forget that SE tax is calculated on 92.35% of your net self-employment income (after business deductions). So if you made $5,650 in freelance income like the original poster, you'd pay SE tax on about $5,217. Also worth noting that you can deduct half of your self-employment tax as an adjustment to income, which reduces your regular income tax burden slightly. It's not a huge amount, but every bit helps when you're trying to figure out your quarterly payment amounts. The combination of regular income tax AND self-employment tax is why that $1,000 threshold gets hit pretty quickly with freelance work, even at relatively modest income levels.

Just wanted to add another perspective on this - I'm a freelance audio engineer who went through the exact same confusion about quarterly payments. What really helped me was understanding the safe harbor rule: if you pay at least 100% of last year's total tax liability through withholding and/or quarterly payments, you won't face penalties even if you end up owing more when you file. So for your situation, look at your total tax from last year's return. If your day job withholding plus any quarterly payments you make this year add up to at least that amount, you're protected from penalties. This gives you some breathing room while you figure out the exact amounts. Also, since you're in the music industry like me, don't forget you can deduct a lot of business expenses - equipment, software, home studio space, travel to gigs, etc. These deductions reduce your net self-employment income, which lowers both your regular income tax and self-employment tax. Keep good records of everything!

Have you considered that Michigan might actually be one of the faster states for refund processing? I've lived in several states, and Michigan typically processes within 2-3 weeks, while some states take 6-8 weeks or longer. Are you checking the Michigan Treasury website's "Check My Income Tax Information" tool? That's more accurate than the general status line. And did you e-file or paper file? Paper returns take significantly longer - could add 4-6 additional weeks to processing. Michigan's direct deposit system usually works efficiently, but they batch process payments on specific days of the week, which might explain why some people get them early while others wait until the exact date.

As someone who's been through this waiting game many times, I can share that Michigan really does march to its own drummer when it comes to refund timing! In my experience, there's usually a 3-7 day gap after my federal DDD before the state deposit hits. What I've learned is that Michigan processes refunds in batches - they don't send them out every single day like the federal system does. So even if your refund is approved, it might sit in their system waiting for the next batch release day (usually Wednesdays and Fridays from what I've observed). The "Where's My Refund" tool on Michigan's Treasury site is your best friend here - it'll show you if there are any holds or if it's just in the normal processing queue. Don't panic if it takes a bit longer than federal; Michigan's system is thorough but reliable once it gets moving!