Forget all this complicated stuff. Just hire them through an official day labor center instead of picking them up from Home Depot. The center handles all the paperwork, taxes and legal stuff. You pay a little more but get an official receipt you can deduct. No headaches about 1099s or documentation.

You're absolutely right about the documentation being key here. I've been dealing with this exact issue in my construction business for years. The IRS doesn't actually require you to get W-9s from every single day laborer - that's a common misconception that causes a lot of unnecessary stress. Here's what I learned from my tax attorney: for occasional workers paid under $600 annually, you just need to maintain adequate records showing the expense was ordinary and necessary for your business. This means keeping a simple log with dates, amounts paid, work performed, and ideally some form of acknowledgment from the worker (even just a first name and signature on a receipt). For your ATM records, you can definitely use those as supporting documentation. Create a log that matches your withdrawal dates to specific jobs, noting how many workers you hired, what work they did, and how much you paid each person. Photos of the work being done can also help establish the business purpose. The $600 threshold is per individual worker per year, not total payments to all workers. Since you're using different people each time, you're likely not hitting that threshold with any single worker. Just make sure you're consistent with your documentation going forward - the IRS values consistency and good faith effort to maintain proper records.

Has anyone used TurboTax to amend a return with a 1099-R code 8/J? I'm in a very similar situation and wondering if it handles these special codes correctly or if I need to go to a tax professional.

One thing I'd add about your situation - since you're planning to make that additional $1,800 contribution before the April deadline, make sure you have accurate documentation of your final 2024 income. The Roth IRA contribution limits are based on your modified adjusted gross income (MAGI), and if your income was indeed lower than expected, you want to be certain you're not accidentally creating another excess contribution situation. The phase-out ranges for 2024 are $138,000-$153,000 for single filers and $218,000-$228,000 for married filing jointly. If you're close to these thresholds, double-check your final AGI calculation before making that contribution. Also, when you file Form 1040-X for the amendment, you'll want to include a brief explanation in Part III about why you're amending - something like "Adding 1099-R for return of excess Roth IRA contribution" keeps it simple and clear for the IRS processor.

Just a heads up that the 3/28 date was just before Easter weekend, so there might be additional delays due to the holiday. Banks don't process on weekends or holidays, so Monday (tomorrow) would be the first business day after your DDD. I'd wait until end of day Tuesday before really worrying.

I'm in a similar situation with my March 28th DDD - also banking with Chime and still waiting. Based on what others are saying here, it sounds like there might be some processing delays this week, especially with the Easter holiday. I'm going to wait until Tuesday evening before I start panicking. If it doesn't show up by then, I'll probably try to get my transcript or call the IRS directly. Fingers crossed both of our refunds hit soon! The waiting is definitely stressful when you're counting on that money.

Just wanted to add a quick tip that saved me from a lot of confusion when I first started using EFTPS for my freelance writing income. After you select Form 1040-ES, make sure you're also selecting the correct tax period (Q1, Q2, Q3, or Q4) that matches when you're making the payment. I made the mistake of selecting Q1 for a payment I was making in July, thinking it was for income I earned in Q1. But actually, the tax period should match the quarter you're currently in when making the payment, not when you earned the income. So a July payment should be marked as Q2, even if some of that money is covering income from earlier in the year. The IRS uses this to track whether your payments are on time for each quarter. Getting the tax period wrong can make it look like you missed a quarterly deadline even if you paid the right amount.

This thread has been incredibly helpful! I'm a newcomer to freelancing and was completely overwhelmed by the EFTPS system. Reading through everyone's experiences has given me so much clarity. Just to make sure I understand correctly: for my freelance graphic design income of about $3,200 from last quarter, I should select Form 1040-ES in EFTPS, choose the current quarter (Q1 for a payment I'm making now in January), and save that confirmation number. Is that right? One follow-up question - do I need to calculate exactly how much tax I owe, or is there a safe harbor amount I can pay to avoid penalties while I figure out the precise calculation? I want to make a payment this week but I'm still working through all the numbers with my tax software.

That's definitely on the high side! I've been using a local CPA for about 5 years now and my fees have ranged from $185-$295 depending on complexity. Last year with rental income and some stock sales, I paid $275. The year before with just W-2s and standard deduction was $185. I'd definitely ask for that itemized breakdown others mentioned - sometimes they include services like "tax planning consultation" or "prior year review" that you might not have requested. Also worth checking if this person is actually a licensed professional (CPA, EA, or AFSP) since that can justify higher fees than someone just using commercial software. If you're comfortable sharing, what forms/schedules are involved in your return? That might help us gauge if $700+ is reasonable for your situation.

Wow, $700+ does seem excessive unless there's something really complex going on with your return! I've been doing my own taxes with FreeTaxUSA for years and pay maybe $15-20 total. When I helped my elderly neighbor find a tax preparer last year, we shopped around and found prices ranging from $150 for basic returns to about $400 for more complex situations with business income. Before you pay that $700, I'd definitely ask for a detailed breakdown of exactly what services and forms are included. It's possible they're bundling in extras you don't need, or maybe there's been a miscommunication about the scope of work. If your tax situation is similar to what you've been handling yourself on TaxAct, you shouldn't need to pay premium rates. Don't be afraid to negotiate or walk away if they can't justify the charges!