dont forget state taxes!!! my LLC in california costs $800/year minimum tax just to EXIST even if i make zero profit. make sure u check ur state fees before setting anything up!!!

Thanks everyone for all this helpful info! I had no idea there were so many factors to consider beyond just the basic tax savings. The QBI deduction thing is completely new to me - definitely need to research that more. @Fatima Al-Qasimi - when you mention modeling both scenarios with QBI, is that something a regular tax software can handle or do I need to find a tax professional? I've been doing my own taxes with TurboTax but this is getting way more complex than I expected. Also @StarStrider thanks for the state tax reminder - I'm in Texas so no state income tax, but I should definitely check if there are any LLC fees here. The last thing I want is to save money on federal taxes but get hit with surprise state costs! I think I'm leaning toward trying that taxr.ai tool that @Jamal Harris mentioned to get a clearer picture of my specific situation before making any moves. Better to spend a little time upfront than make the wrong choice and regret it later.

Just wanted to add something important about your mileage situation. Since you're a single-member LLC on cash basis, you actually have another option that nobody mentioned yet. You could take a "draw" from your business in 2025 (not classified as a reimbursement), but still claim the mileage deduction on your 2024 Schedule C. As a sole proprietor (which is how you're taxed), you don't technically need to "reimburse" yourself - the business and you are the same tax entity. You can simply claim the mileage directly as a business expense on Schedule C regardless of whether money moved from the business account to your personal account. This is probably the best approach since you'd get the tax benefit sooner (on your 2024 return).

Just to confirm what others have said - I'm a delivery driver with a similar setup and I had this exact question last year. The key is definitely documentation! I keep a spreadsheet with columns for: Date, Starting Address, Ending Address, Total Miles, and Business Purpose. Having this detail saved me when I got a letter asking about my mileage deduction. I was able to show every trip was legitimate. Another tip - take photos of your odometer at the beginning and end of each month. I do this religiously now and it's another layer of proof if needed.

After 2 months of waiting for my amended return to process, I finally gave up and used claimyr.com to get a real person on the phone. The agent told me there was a small issue they needed to verify that wasn't being communicated anywhere on my transcript. Got it resolved in one call and my refund was deposited a week later. Sometimes you just need to talk to an actual human to get things moving.

I've been through this exact same situation and I know how frustrating it is! The good news is that negative balance of -$3,410 means you're definitely getting that refund - it's just a matter of when. The confusing dates you're seeing are totally normal. The 04-15-2025 dates on codes 806, 766, and 768 are just system-generated dates that represent the tax year deadline, not when you'll actually receive your refund. Think of them as placeholder dates the IRS uses internally. The amended return dates showing 01-31-2025 (codes 971 and 977) are also system quirks - sometimes the IRS assigns different processing dates than when you actually submitted. Since your amendment was accepted on 2/19, you're looking at roughly 8-16 weeks for processing. Given that we're in mid-March now, I'd expect movement sometime between mid-April to early June. The fact that your transcript already shows the correct refund amount calculated is actually a really good sign - it means the math part is done and it's just working through their processing queue. Keep checking your transcript weekly for an 846 code - that's when they'll show the actual refund date. Hang in there, I know the waiting is the worst part!

I've had the same cycle code (05) for 8 consecutive tax years. According to Internal Revenue Manual 3.12.3.2.6.2, cycle codes are assigned based on the Submission Processing Center that handles your return, your filing methodology, and certain taxpayer characteristics including your SSN pattern. The terminology they use is "pipeline processing criteria" which essentially means they sort returns into specific processing queues. My brother-in-law and I file nearly identical returns (both self-employed contractors in the same industry), yet he's consistently a 03 cycle and I'm a 05. The only significant difference is our SSNs.

Based on my experience as a tax professional, your cycle code will almost certainly remain 05 this year. The IRS assigns cycle codes based on a combination of factors including your SSN, filing method, and processing center, and these rarely change unless there's a significant shift in your tax situation (like moving to a different state or dramatically changing your filing pattern). What's interesting about the 05 cycle is that it typically processes on Thursdays with transcript updates appearing on Friday mornings. This means if you're expecting a refund, you'll want to check your transcripts on Friday mornings during tax season. One tip for gig workers like yourself: even though your cycle code will likely stay the same, your actual processing time can vary based on the complexity of your return. Schedule C filers (which includes most gig workers) sometimes face additional review periods, especially if you're claiming the home office deduction or have significant business expenses. Keep your documentation organized just in case the IRS needs to verify anything. You can verify your cycle code assignment by checking your 2023 Account Transcript once it's available - look for Transaction Code 150, and the cycle code will be the 8-digit number there.

You can request your own transcript directly from the IRS even if your ex has the original documents. You have a few options: 1) Order online at irs.gov/individuals/get-transcript (you'll need to verify your identity), 2) Call the transcript request line at 800-908-9946, or 3) Mail Form 4506-T to request it by mail. Since you're post-divorce, make sure to use your current address and contact information. The transcript will show all the trace numbers for payments and refunds from that tax year. I'd recommend getting transcripts for the past 3-4 years to have complete records for your new financial situation.

The trace number is essentially your receipt for any electronic transaction with the IRS - whether it's a refund they sent you or a payment you made. Given that you just finalized your divorce, this number could be particularly important if there are any questions about who received refunds or made payments during your marriage. I'd definitely keep a record of it along with your other financial documents. If you're having trouble locating it on your transcript, it's usually found in the "Transaction Code" section next to entries like 846 (refund issued) or 770 (payment received). Since you mentioned being extra careful with finances lately, I'd recommend downloading and saving copies of all your tax transcripts from the past few years - having that paper trail could be invaluable for your fresh financial start.