Something nobody's mentioned yet - you might want to look into the IRS Fresh Start program. It's designed specifically for people with tax debt who need manageable payment options. With your income level and no assets, you'll likely qualify for an installment agreement. If you're really struggling financially right now, you might even qualify for an Offer in Compromise, where the IRS accepts less than the full amount owed. That's harder to get, but worth exploring.

You're absolutely right to tackle this head-on now. Five years of unfiled 1099 income is serious, but the IRS does appreciate voluntary compliance and you have options. First priority: Get a CPA who specializes in tax resolution or back taxes. Don't try to handle this alone - the penalties and interest calculations are complex, and you'll want someone who knows how to maximize deductions and negotiate with the IRS. Quick reality check on what you're facing: You're looking at roughly $135k x 5 years = $675k in unreported income. As a 1099 contractor, you'll owe both income tax AND self-employment tax (15.3%). Even with deductions, you're probably looking at $150k-200k+ in taxes, plus penalties and interest that could add another 50-75% to that amount. The good news is payment plans are very doable. The IRS would rather collect over time than not at all. Start gathering every piece of financial documentation you can find - bank statements, any 1099s you received, receipts for business expenses, etc. The more legitimate deductions your CPA can find, the less you'll owe. Don't wait any longer. The penalties and interest are accruing monthly, and voluntary compliance will always get you better treatment than if the IRS finds you first.

If you're concerned about the address discrepancy, you might consider bringing a voter registration card if you have one updated with your current address. It's often overlooked, but it's an official government document that verifies your identity and residence. Some people also find that bringing a copy of last year's tax return helps establish continuity of identity, especially if you're using the same bank account for direct deposit.

Just wanted to add that if you're still worried about the address issue, you can also bring your vehicle registration if it has your current address on it - that's another official document they accept. I had my appointment a few months ago and the IRS agent was actually really helpful and understanding about these common situations. They see address discrepancies all the time, especially with retirees who might have moved recently. The key is just showing up prepared with multiple forms of address verification. Good luck on Wednesday - you've got this!

Just want to echo what others have said - you're in a great position with the LLC! Your income is well below the phaseout limits, and your education expenses definitely qualify. One small thing to double-check: make sure your school reports the tuition payments correctly on your 1098-T form. Sometimes there's a timing difference between when you paid and when the school reports it, especially if you paid in December for spring semester or made payments across multiple tax years. The IRS matches your claimed credit against what's reported on the 1098-T, so you want those numbers to align. Also, keep all your receipts and documentation for the tuition payments, even though you probably won't need to submit them with your return. If you ever get audited, you'll want to have proof of exactly what you paid and when. Sounds like you've got this figured out though - claiming the LLC will definitely get you that full $2,850 refund since it'll zero out your tax liability completely!

I just went through this exact same situation last year as a grad student! Your calculation is spot on - with the LLC reducing your tax liability to $0, you'll get back the full $2,850 that was withheld, which is $750 more than you'd get with just the standard deduction. One tip that saved me some headache: when you're filling out Form 8863 (the education credits form), make sure to use the "qualified tuition and fees" amount from your 1098-T, not the total amount you paid to your school. Sometimes schools include non-qualifying expenses like student activity fees or technology fees in their billing, but those don't count toward the LLC. Also, since you mentioned this is your first time filing on your own, don't stress too much about the process. The LLC is one of the more straightforward education credits to claim, especially since you're well below the income limits. Just make sure you keep copies of your 1098-T and any payment receipts in case the IRS ever wants to verify your expenses. Congrats on getting such a good refund - that extra $750 should help with next semester's expenses!

Hey Ethan! I went through this exact same situation a few years ago when I was doing tutoring and pet sitting around my neighborhood. Just to add to what others have said - when you go to deposit the cash, you can literally just tell the bank teller "I earned this money doing odd jobs like yard work and house sitting in my neighborhood." They might ask for a bit more detail, but there's nothing suspicious about a teenager earning money this way. Banks see this all the time. One thing that helped me was creating a simple log of the work I did and when, even if it was just rough estimates. Like "October - helped Mrs. Johnson with yard cleanup, $150" or "November - dog sat for the Smiths, $200." It doesn't have to be perfect, but having some record makes you feel more confident about everything. Also, don't stress too much about the tax part. Yeah, you'll probably owe some money, but it's not going to be a huge amount. The self-employment tax is about 15% of your profits, so even if you had no deductible expenses, you'd be looking at maybe $800 or so. And if you can deduct any equipment or supplies you bought, it'll be less than that. You're being really responsible by thinking about this stuff now instead of just ignoring it!

Hey Ethan! As someone who's helped a lot of teens navigate this exact situation, I wanted to add a few practical tips to what's already been shared here. First, don't worry about the bank deposit - just be straightforward about earning it from neighborhood jobs. Banks are used to this, especially during summer months when lots of young people do yard work and odd jobs. For the tax side, since you've earned over $400 in self-employment income, you'll need to file. But here's the good news - you can likely deduct quite a bit! Gas for any equipment, tools you purchased, even mileage if you drove between jobs. Keep track of everything going forward. One thing I always tell young entrepreneurs like yourself: consider opening a separate savings account just for taxes. A good rule of thumb is to set aside about 20-25% of what you earn for taxes (this covers both income tax and self-employment tax, with a small buffer). So from your $5,300, maybe put $1,200-$1,300 aside. That way you're not stressed when tax time comes. Also, this is actually great preparation for if you want to keep doing this kind of work! You're learning business skills that will serve you well. Consider getting a simple invoice book or app so you can start tracking everything more formally going forward. You're asking all the right questions - way more responsible than I was at 17!

Another option nobody mentioned is Form 3115 (Change in Accounting Method) if you've been depreciating things incorrectly for years. I had to use this for my rental properties when I realized I had lumped together items with different class lives. It's complicated but lets you correct past mistakes without amending returns.

I went through this exact same situation with my rental property last year when I had to replace a combined HVAC/electrical system that was originally entered as one line item back in 2014. Here's what I learned from my CPA: The key is documentation and reasonable allocation. Since you can't go back and break down the original $8,700 into components, you need to make a reasonable estimate of what portion was actually the HVAC system versus other improvements. Look at current replacement costs - if a similar HVAC system today costs $6,000 and you spent $8,700 total, you might reasonably allocate 70% ($6,090) to the HVAC disposal. In TurboTax, dispose of the portion you're attributing to the HVAC ($6,090 in my example), and the remaining undepreciated value will create a loss that offsets your rental income. Keep the remaining portion ($2,610) on your depreciation schedule for any components still in use. The most important thing is being able to justify your allocation method if questioned. Save your research on current replacement costs and any contractor quotes you got - this shows you made a good faith effort to be reasonable and accurate.