Adding to this conversation - unemployment tax withholding is definitely confusing! A big thing to remember is that unemployment compensation stacks on top of your regular income. So if you were already making $47k from your job, then adding another $49k from unemployment pushes your total income to $96k, which is well into the 24% federal tax bracket for 2024. The 10% withholding option is just a standard flat rate - it doesn't take into account your other income or your actual tax bracket. That's why you're seeing such a big difference in your expected refund.

Just wanna share my experience - I had this EXACT same problem in Washington state last year!! That 10% withholding is such a trap. I thought I was being responsible by choosing to have taxes withheld from my unemployment but still ended up owing a ton. The real issue is that unemployment doesn't take into account your total annual income situation. For me, I had worked half the year making good money before being laid off, so combined with unemployment I was in a higher tax bracket than what the 10% covered. For anyone else facing this - consider setting aside some additional money beyond the 10% withholding if you can afford it. Better to have extra saved than to owe a bunch at tax time.

Has anyone had experience claiming this credit when part of the installation included removing an old system? My invoice bundles everything together - new heat pump plus removal of old oil furnace - and I'm not sure if I can claim the full amount or need to separate out just the equipment cost?

Great news about being able to claim the full credit with financing! I just wanted to add one thing that helped me when I was in a similar situation - make sure you understand the difference between this Energy Efficient Home Improvement Credit (Form 5695) and the Residential Clean Energy Credit for solar/geothermal. The heat pump credit you're asking about has that $2,000 annual cap, but it's 30% of qualified costs. Since your system was $8,500, you'd get the full $2,000 back (30% would be $2,550 but it's capped). Also, double-check if your contractor did any electrical panel upgrades as part of the installation - those can qualify for the credit too under certain circumstances. My electrician had to upgrade my panel to handle the new heat pump load, and that counted toward the total qualifying expenses. Keep all your paperwork organized - the manufacturer certification, installation invoices, and financing agreement. The IRS doesn't require you to submit these with your return, but you'll definitely want them if there are any questions later!

Wait I'm still confused about one thing. If I have a Reseller Certificate, does that mean I DON'T charge sales tax to my customers? Or I DO charge sales tax but I need a different permit to do it legally?

This is such a common mix-up for new business owners! I made the same mistake when I started my online store. Just to add to what others have said - even if you're only selling online, you might need sales tax permits in MULTIPLE states depending on where your customers are located and how much you sell there. Each state has different "nexus" thresholds (usually based on sales volume or number of transactions) that trigger the requirement to collect sales tax. For example, if you sell $100k+ to customers in a state or have 200+ transactions there in a year, you might need to register for a sales tax permit in that state too. It's not just about where your business is located anymore. The Supreme Court's Wayfair decision in 2018 really changed the game for e-commerce businesses. Definitely worth checking the rules for each state where you have significant sales!

Has Jackson Hewitt offered any support with tracking your amended return? I'm considering using them next year but I'm worried about their customer service if issues come up. Do they help you communicate with the IRS or are you on your own after filing? 😟

I filed with Jackson Hewitt on March 5th and had to amend on March 20th for a missing 1099-INT. Currently at week 12 of waiting with no updates on the amended return tracker. From what I've learned lurking in this community, Jackson Hewitt's post-filing support is pretty limited - they basically tell you to check the IRS tools and wait. I had to call the IRS myself using one of those callback services mentioned here because JH couldn't provide any additional insight beyond "it's processing." The rep confirmed my amendment was received but couldn't give me a specific timeline. Based on everyone's experiences here, looks like we're in for a long wait regardless of which tax prep service we used. The 16-20 week timeline seems to be the new reality for amended returns this year.

Just adding that as someone who's been filing with 1099 income for years, make sure you track ALL your business expenses. This includes things like: - Home office (if you have a dedicated space) - Internet and phone (business percentage) - Computer/equipment - Software subscriptions - Professional development - Business travel - Office supplies These can significantly reduce your taxable income and therefore your tax bill! Don't leave money on the table.

Yes, you absolutely need to file! With $15k from a 1099-MISC, you're well above the $400 threshold for self-employment income. This is a common misconception - the higher filing thresholds ($13,850 for single filers in 2023) only apply to W-2 wages, not 1099 income. You'll need to file Form 1040 with Schedule C to report your freelance income, and you'll also owe self-employment tax (about 15.3% for Social Security and Medicare). The good news is you can deduct business expenses to reduce your taxable income - things like equipment, supplies, mileage for work travel, etc. Don't worry about it being complicated! Many people are in your exact situation. Just make sure to file by the deadline to avoid penalties, and consider making quarterly estimated payments for 2024 if you expect similar income this year.