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My tax guy told me not to stress about tiny amounts like this. He said the IRS is focused on people hiding thousands, not a few hundred bucks. Just something to consider.
I had a similar situation with Cashapp income last year! The key thing to understand is that you're legally required to report ALL income, even if it's under $600 and you didn't get a 1099-K form. The $600 threshold just determines whether Cashapp has to send you tax documents - it doesn't change your obligation to report what you earned. For your $480 in side gig income, you'll need to report it as self-employment income on Schedule C. The good news is that you can also deduct legitimate business expenses (gas, supplies, etc.) which might reduce your tax liability. Even if you don't have perfect receipts, bank statements can serve as documentation. While the IRS may not catch small unreported amounts, it's not worth the risk of penalties and interest if you're ever audited. Better to be compliant from the start, especially since you're establishing a pattern of side income that might grow in the future.
Thanks for the clear explanation! I'm new to all this tax stuff and this really helps. Just to make sure I understand - even though I only made $480, I still need to fill out a Schedule C? That seems like a lot of paperwork for such a small amount. Is there a simpler way to report it, or do I really need to go through the whole self-employment process?
Same thing happened to me last week! Filed on Feb 10th and my transcript was completely blank for like 3 days straight. I was panicking thinking I messed something up but then boom - everything showed up on day 4. The IRS processing system is just slow af during tax season. Your transcript looks totally normal for something that's still being processed. Just gotta be patient (easier said than done I know lol
thanks for sharing your experience! it's reassuring to know this is normal. day 4 gives me hope lol - gonna try not to refresh the transcript page every 5 minutes š
Don't stress about it! I'm dealing with the exact same thing right now. Filed my return on Feb 12th and when I pulled my transcript yesterday it was showing the same "RETURN NOT PRESENT" message with everything blank except my filing status. The IRS is probably just swamped right now since we're in peak filing season. From what I've read, it can take anywhere from 24-72 hours for a return to even show up in their system initially, and then another 2-3 weeks for full processing. Your transcript actually looks completely normal for this stage - the fact that your filing status is showing as Head of Household means the system at least has some of your info on file. The $0.00 balances are also a good sign since it means there are no outstanding issues or penalties. I'd give it another day or two before checking again. The waiting game sucks but it's totally normal!
This is super helpful! I'm in the same boat - filed on Feb 11th and getting the exact same blank transcript with just my filing status showing. It's good to know this is totally normal during peak season. The waiting is definitely the hardest part but at least we're all going through it together! š
Quick tip from experience - make sure the Roth IRA is actually in your child's name with them as the owner (not beneficiary). I messed this up last year with my son's lawn mowing money. Also keep in mind they can only contribute what they actually earned - so if your child made $410, that's their max contribution for the year.
Is there a minimum age for opening a kid's Roth IRA? My daughter is 11 and made about $500 last year from dog walking. Also does it matter which company you open it with?
There's no minimum age requirement for opening a Roth IRA - your 11-year-old is definitely eligible as long as she has earned income. The IRS cares about the income being earned, not the age of the earner. As for which company to open it with, there are several good options like Fidelity, Vanguard, or Charles Schwab that offer custodial Roth IRAs with no minimum investment requirements and no maintenance fees. The main differences are in the investment options and user interface, so pick one that you find easy to use.
Just be aware there's also a Schedule H you might need if this is considered household employment. The rules are a bit different than for self-employment and the thresholds are different too. Might be worth double-checking which applies in your specific situation.
I don't think Schedule H would apply in this case since my daughter was mowing lawns for different neighbors, not working regularly for just one household. From what I understand, she would be considered self-employed rather than a household employee. Is that correct?
Don't forget about your state tax ID too! Depending on your state, you might need a separate sales tax permit for selling baked goods, even if you're using the same federal EIN. In my state, food items have different tax rules than retail goods.
Great question! I went through something similar when I switched from freelance graphic design to running a small catering business. You can definitely reuse your existing EIN since it's tied to your business entity, not the specific type of business activity. The key things you'll want to do: 1) File Form 8822-B to update the IRS about your business activity change, 2) Make sure you understand the cottage food laws in your state (they vary a lot!), and 3) Look into whether you need any local business licenses or health department permits for food preparation. Since you never actually operated the original business or filed any returns, you shouldn't have any compliance issues. Just treat this as reactivating your EIN for a new venture. The IRS cares more about proper reporting going forward than what you originally intended to do with the number.
Paolo Ricci
Pro tip: sign up for informed delivery with USPS. Sometimes refund checks come before the where's my refund tool even updates
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Yuki Tanaka
I'm going through the same thing right now! Verified 3 weeks ago and still checking WMR obsessively every day. The uncertainty is the worst part - I wish they could just give us a realistic timeline instead of these generic "up to 9 weeks" responses. Has anyone found that calling back actually helps or do they just repeat the same script?
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