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.

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

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!

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.

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.

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.

This discussion has been incredibly helpful! I'm dealing with a similar situation with my freelance business and wanted to share what I learned from my CPA about this exact issue. The key insight that finally made it click for me is that the IRS views prepayment as immediately creating an asset - the "right" to receive services or use property. This right has value from the moment you pay for it, which is why the benefit period starts then rather than when you actually use the service. I had prepaid some web hosting and business software licenses totaling about $4,500 in November 2023 for services running through various dates in 2024. My CPA confirmed that since all the service periods end within 12 months of payment (and within 2024), I can deduct the full amount in 2023. What really helped me organize this was creating a simple tracking sheet with columns for: Payment Date, Service Period Start, Service Period End, 12-Month Rule Date, and "Following Tax Year" End Date. Then I can easily see which prepaid expenses qualify for immediate deduction versus those that need to be capitalized. For anyone still confused about this rule, I'd recommend talking through a few specific examples with a tax professional. Once you see how it applies to your actual business expenses, the concept becomes much clearer than trying to understand it in the abstract.

This entire discussion has been incredibly valuable! As someone who's been struggling with prepaid expense timing for my small business, I finally feel like I understand the 12-month rule properly. The key breakthrough for me was realizing that the "benefit" isn't the actual use of the service, but rather securing the RIGHT to that service at the agreed terms. It's like the difference between having a reservation at a restaurant versus actually eating the meal - the value of the reservation exists from the moment you make it. I've been overly conservative with my prepaid expenses, spreading them across multiple years when I could have been deducting them immediately under the 12-month rule. This could have saved me significant cash flow issues during my startup phase. One practical tip I'd add: I now negotiate payment terms with vendors to maximize the 12-month rule benefits. For example, instead of paying in January for services starting immediately, I sometimes pay in December for the same January start date. This lets me deduct in the earlier tax year while still getting the same services. The tracking spreadsheet idea mentioned earlier is something I'm definitely implementing. Having a clear visual of payment dates, benefit periods, and the 12-month windows will make tax prep so much smoother and help ensure I'm taking advantage of this rule properly going forward. Thanks everyone for sharing your experiences and explanations - this community really helps demystify these complex tax concepts!