Thank you all for this incredibly helpful discussion! As the original poster, I really appreciate everyone taking the time to explain the Zelle situation so thoroughly. It's crystal clear now that even though Zelle doesn't issue 1099-K forms, I absolutely need to report that $8,500 from my graphic design work. I was honestly hoping there might be some wiggle room, but after reading about Yuki's cousin's audit experience, I'm definitely not taking any chances. I think I'll check out that taxr.ai tool Giovanni mentioned to help organize my records, and maybe use Claimyr if I need to speak with an IRS agent directly about anything else. Better to be over-prepared than face penalties and interest later. You've all saved me from making a potentially very expensive mistake. Time to get my Schedule C properly filled out!

As a tax professional, I want to emphasize something that's been touched on but bears repeating: the burden of proof is always on the taxpayer. While Zelle doesn't issue 1099-K forms, you should be keeping meticulous records of all your business transactions regardless of the payment method. I recommend creating a simple spreadsheet to track each Zelle payment you receive for your graphic design work - date, amount, client name, and description of services. Take screenshots of the Zelle transactions as backup documentation. If you're ever audited, having organized records will make the process much smoother and demonstrate good faith compliance. Also, don't forget that as a self-employed individual earning over $400, you'll likely need to pay self-employment taxes on that $8,500 in addition to regular income tax. Make sure to set aside approximately 25-30% of your freelance income throughout the year for taxes to avoid any surprises come filing time.

I'm an Enrolled Agent and see this situation frequently with contractors and mobile service businesses. Here's what you need to know: 1) Employee snacks and beverages like you're describing are typically 100% deductible as de minimis fringe benefits, even when not provided at a traditional office. 2) The key distinction is between "snacks/refreshments" vs "meals" - if you're buying actual meals (like hot food from the deli counter), those would likely fall under the 50% limitation. 3) Document, document, document! Note on receipts: date, business purpose, who received the items. 4) Be reasonable with amounts - $5-10 per employee for snacks/drinks won't raise eyebrows, but large amounts might trigger questions. 5) Consider setting up a specific credit card just for these purchases to make tracking easier. Hope that helps! The mobile nature of your business doesn't eliminate deductions that would be available in a traditional office setting.

This is really helpful information everyone! I run a small plumbing business and face the exact same situation - always on the road with my crew and grabbing drinks/snacks to keep morale up during long days. One thing I'd add from my experience: if you're doing this regularly, consider getting a business credit card specifically for these employee-related expenses. It makes tracking so much easier at tax time, and you can set spending limits if needed. Also, don't forget that if you're providing these snacks consistently, your employees might need to report them as income if they exceed the IRS de minimis thresholds. But for occasional convenience store runs like you're describing, that's usually not a concern. Keep doing what you're doing - happy employees are productive employees, and the IRS recognizes legitimate business expenses for employee benefits even in mobile work situations.

Has anyone used TurboTax for filing with two jobs? Does it handle this situation well? I'm worried about trying to figure all this out next April.

I went through this exact situation last year and can confirm it's totally manageable! The key thing to understand is that having two jobs doesn't change how much tax you actually owe - it just affects how much gets withheld from your paychecks. Here's what worked for me: I used the IRS Tax Withholding Estimator (it's free on their website) after getting my first few paystubs from both jobs. It showed me I needed to have an extra $150 per month withheld to avoid owing at tax time. I just updated my W-4 at my higher-paying job to withhold the extra amount. The medical bills situation you mentioned is actually another reason this could work in your favor - medical expenses over 7.5% of your adjusted gross income are deductible, so higher income might help you qualify for that deduction if your bills are substantial. Don't let tax concerns stop you from earning extra income to tackle those bills! Just plan ahead with your withholding and you'll be fine.

Does anyone know if it's normal to have a balance due if your employer was withholding taxes all year? I thought the whole point of withholding was to avoid owing at tax time?

Just to add another perspective - if you're dealing with multiple income sources like you mentioned (W-2, freelance, and investment income), it's really common to have a balance due situation. The withholding from your W-2 job only covers that specific income, but your freelance work and investment gains often don't have any taxes withheld at all. This is especially true if your freelance income was significant or if you had capital gains from investments. The IRS expects you to make quarterly estimated payments for this non-W-2 income throughout the year. If you didn't do that (which many people don't realize they need to), you'll likely see a balance due when you file. For next year, you might want to either increase your W-4 withholding at your main job to cover the additional income sources, or start making quarterly estimated payments. This will help you avoid that surprise balance due next April!

lmaooo irs really said log off and touch grass 💅

Been there! The lockout is super annoying but it's usually because the system is being extra sensitive. Make sure you're using the EXACT refund amount from line 35a of your 1040 (not what you think you'll get). Also try using a different browser or clearing your cache - sometimes that helps with the login issues.