Pro tip: you can call the IRS automated system at 800-829-1040 and it will tell you if you have any outstanding balances. No need to wait for a human. Just have your SSN and filing status ready. It's how I check if I owe anything before I file each year.

Just wanted to add that you should also check if you have any estimated tax payment requirements for this year to avoid being in this same situation again. Since you had to pay additional taxes on your amended return, it might mean your withholding or estimated payments weren't quite right. The IRS generally expects you to pay as you go throughout the year, either through payroll withholding or quarterly estimated payments. If you end up owing more than $1,000 when you file, you might be subject to underpayment penalties next year even if you pay on time. You can use Form 1040ES to calculate if you need to make estimated payments for the current tax year. Better to stay ahead of it than deal with another surprise balance later!

I think there's confusion about how SBTPG compares to regular banks. When you see people posting that their bank released their tax refund early, that's usually with direct IRS deposits. SBTPG is different because they're a third-party processor - they have to wait until they actually receive the funds from the IRS, then they take out any tax prep fees you might owe, and only then do they forward the remainder to your bank account. In my experience last year, my credit union showed the deposit exactly on the DDD around noon, while my sister with Chase didn't see it until the next morning even though we had the same DDD.

As someone who's been through this exact situation, I can confirm that SBTPG will stick to your DDD of 2/25 - they won't release it early. I had a similar DDD last month and spent way too much time refreshing my bank app expecting it to show up early (spoiler: it didn't!). What I learned is that SBTPG operates differently from regular banks that might post IRS refunds a day early. They receive the funds from the IRS on your DDD, process any fee deductions if applicable, then initiate the transfer to your bank account. In my case, the money hit my account around 2 PM on the exact DDD date. Since you're so organized with your budgeting (love the spreadsheet prep!), you can confidently plan for the funds to be available on 2/25. The waiting is the hardest part, but at least you know exactly when to expect it!

Has your CPA discussed the potential benefits of a tax-free reorganization under Section 368? Depending on your specific situation, there might be ways to restructure the company that could facilitate the ownership transition with more favorable tax treatment.

One strategy that hasn't been mentioned yet is considering a self-canceling installment note (SCIN). This could be particularly valuable given your mom's desire to step back from the business and your 5-7 year timeline. With a SCIN, your mom would sell her shares to you and your sister in exchange for installment payments, but the note automatically cancels if she passes away before it's fully paid. This provides several benefits: it removes the remaining unpaid balance from her estate for tax purposes, gives her income during her lifetime, and allows you to potentially acquire the shares at a discount to reflect the cancellation risk. The payments would need to be higher than a regular installment sale to account for this risk, but it could provide significant estate tax savings if structured properly. This approach works particularly well when the selling family member is older or has health concerns. You'd definitely want your attorney and CPA to model this carefully, as the IRS has specific valuation requirements, but it's worth exploring alongside the other options mentioned here.

Think of this like when a restaurant brings you the wrong order - you need to flag down the server right away, not just eat it and complain later! I had almost the identical situation last year. I owed about $2,200 for 2021 and was supposed to apply my 2022 refund to it. They sent me the full refund anyway. I called within a week, explained the situation, and the agent was actually super helpful. They did a direct transfer from my account to cover the old balance and even waived the small amount of additional interest that had accrued. The key was acting quickly and being super polite on the call. The whole thing took about 20 minutes once I got through to someone. Don't stress too much - this happens all the time and there's a simple fix!

This exact thing happened to my neighbor last month! She was panicking because she thought she'd have to pay twice, but it turned out to be a pretty straightforward fix once she knew what to ask for. The IRS agent explained that their computer systems sometimes process refunds before they check for the offset instructions - especially during busy filing season. Here's what worked for her: She called the main IRS number (1-800-829-1040) early in the morning around 7 AM when call volume is lower. When she got through, she specifically asked for a "manual payment application" to transfer her refund amount to her 2022 tax debt. The agent was able to do this over the phone using her bank account info from the refund deposit. They also backdated it to avoid any additional penalties. One thing she learned - apparently if you're on a payment plan already, there can be some glitches in how their system handles refund offsets. The agent told her this is becoming more common as people set up payment plans online. Definitely call sooner rather than later though - she said the agent mentioned that after 90 days it becomes much harder to do these manual transfers.

One thing nobody mentioned yet - make sure you check if your state requires you to file a state tax return too! Not relevant for the original poster since they're in Oklahoma which does have state income tax, but some states have different minimum filing requirements than federal. I got burned on this my first year doing freelance work in college. Filed my federal return correctly but had no idea I needed to do a state return too. Ended up with a nasty penalty letter a year later. Don't make my mistake!

Just want to add something that helped me tremendously when I was in a similar situation - don't forget about the standard deduction! Even though you're being claimed as a dependent, you still get a standard deduction on your own tax return (though it's limited to your earned income or $1,100, whichever is greater, for 2024). With your $3,950 in 1099-NEC income, after deducting legitimate business expenses (computer equipment, software subscriptions, design materials, etc.), you might find that your taxable income for regular income tax purposes is pretty low or even zero. You'll still owe the self-employment tax on your net profit, but that's separate from regular income tax. Also, since you're a student, look into the American Opportunity Tax Credit - your parents might be able to claim it for your education expenses, which could help offset some of the tax impact for your family overall. It's worth having a conversation with them about this since it affects both your returns.