Does anyone know if the April 15th tax filing deadline is also the deadline for paying remaining taxes on 1099 income? Im confused if we are supposed to pay all remaining taxes by January 15th or if April 15th is ok too?

This is exactly the kind of situation where having good records really pays off! I'd recommend pulling together all your documents - your Q1-Q3 payment confirmations, your October 1099 income records, and your November-December pay stubs showing withholding amounts. Here's a practical approach: Calculate 25% of your total annual 1099 income (since that's roughly what your Q4 payment should cover). Then subtract what you already paid in Q1-Q3. Whatever's left is what you'd normally owe for Q4. Now check if your W-2 withholding in Nov-Dec exceeded what you'd typically owe on just those two months of W-2 income - that excess could cover your remaining Q4 obligation. The key thing to remember is that the IRS doesn't care how you structure your payments throughout the year, as long as you end up paying the right total amount by the time you file. So if your W-2 withholding "overpaid" for Nov-Dec and covers your October 1099 taxes, you're golden. When in doubt, making a small Q4 payment is usually the safer bet than risking underpayment penalties, especially since you'll get any overpayment back as a refund.

I went through this exact same situation about 6 months ago with a 12c letter requesting my W2. Here's what I learned that might help you: First, the 6-8 week timeline is actually pretty accurate if you respond quickly and completely. Mine took about 7 weeks from when I mailed my response to when I got my refund deposited. Definitely use certified mail like others mentioned - it's worth the extra cost for peace of mind. I was paranoid about them losing my documents too, so I also made sure to write my SSN and the letter reference number on every single page I sent. One thing that helped me was calling the IRS about 4 weeks after I sent my response to confirm they had received it and that it was being processed. Yes, it's a pain to get through to them, but it was worth it to know my case was moving forward. Also, keep checking the "Where's My Refund" tool regularly. Once they start processing your documentation, you'll see the status change from "still processing" to showing an actual refund date. That's when you know you're in the home stretch. Good luck with your refund! $3,800 is definitely worth the stress of dealing with this paperwork.

I'm dealing with a 12c letter right now too and this thread has been incredibly helpful! Just wanted to add one thing I learned from my tax preparer - if your W2 shows any corrections or amendments (like a W2c), make sure to include BOTH the original W2 and the corrected version when you respond. The IRS needs to see the complete paper trail to understand any discrepancies. I almost made the mistake of just sending the corrected W2c thinking that was all they needed, but my preparer caught it and said that could have delayed my case even further. Also, if you have multiple W2s from different employers, send copies of ALL of them even if the letter only mentions one specifically. Better to give them more information than they need rather than having to go through another round of correspondence. Hope this helps someone avoid the mistakes I almost made!

Code 570 can definitely be stressful when you're waiting on your refund! I went through this last year and it ended up being because I had a small discrepancy with my W-2 reporting. The good news is that most 570 holds are resolved within 4-6 weeks. Keep an eye out for any correspondence from the IRS - they'll usually send you a letter explaining what they need if additional documentation is required. In the meantime, try not to stress too much. The vast majority of these reviews result in the refund being released once they complete their verification process.

I feel you on the stress! Code 570 hit my transcript last month and I was freaking out too. From what I've learned lurking here, it's usually just the IRS being extra careful with their reviews. Mine actually cleared after about 5 weeks with no action needed on my part. The waiting is brutal but try to stay positive - most people get their refunds eventually, just takes longer than expected. Keep checking your transcript every Friday when it updates!

Has anyone else noticed that Venmo's reporting rules changed for 2025? They lowered the threshold for issuing 1099-Ks from $20,000 down to $5,000. But this still only applies to BUSINESS accounts, not personal ones.

The key thing to remember is that your 1099-NEC filing obligation is completely separate from whatever Venmo does or doesn't report. As a business owner, you're required to issue 1099-NECs to any non-employee service provider you paid $600 or more during the tax year - period. The payment method is irrelevant. Whether you paid via personal Venmo, business Venmo, check, cash, or carrier pigeon, your reporting requirement stays the same. Venmo's 1099-K reporting (which only applies to business accounts anyway) is about THEIR obligation to report payment processing volume, not about YOUR obligation to report business expenses. So for your makeup artist ($7,800) and assistant ($5,200), you definitely need to issue 1099-NECs. Get their W-9 forms ASAP and file the 1099s by January 31st. Don't overthink the Venmo aspect - just focus on the basic rule: $600+ to a service provider = 1099-NEC required.

I know everyone's focused on the deduction itself, but PLEASE keep good records of your business usage! I claimed 70% business use on my laptop last year and got audited. The IRS wanted a usage log showing how I came up with that percentage. Thankfully I had a spreadsheet where I tracked hours, but it was still super stressful. If I could do it again, I'd take pictures of my setup being used for business, save business-related files in clearly labeled folders, and keep a simple log of hours used for business vs personal. Just my 2 cents from someone who learned the hard way!

This is such a common situation for people with side businesses! I've been doing 1099 work for about 3 years now and went through the same laptop dilemma. One thing I'd add to the great advice already given - consider setting up a dedicated user account on your laptop just for business use. It makes tracking so much easier and gives you a clear separation between business and personal activities. I use one login for all my freelance work and another for Netflix/gaming/personal stuff. Also, don't forget you can deduct other related expenses too! If you're buying software subscriptions that you use for business (like Adobe Creative Suite, Microsoft Office, etc.), you can apply the same business-use percentage to those as well. Same goes for any laptop accessories like a business-appropriate carrying case or external hard drive for backups. The 60/40 split sounds reasonable for your situation, but I'd recommend being conservative rather than aggressive with your estimates. Better to claim 55% and be safe than claim 70% and get questioned later. The peace of mind is worth the small difference in deduction amount.