Omg i'm dealing with this EXACT situation right now! I made a bunch of ACH donations on Dec 30 thinking they'd count for 2024 but they didn't process until Jan 3, 2025. My tax guy says I have to claim them for 2025 taxes. So annoying, I really needed those deductions for this year! 😫

Thanks everyone for the helpful discussion! I'm dealing with the same timing issue and it's reassuring to know I'm not the only one confused by this. Based on what I'm reading here, it sounds like I need to count my ACH donations for the year they actually processed, not when I initiated them. One thing I'm wondering - if I have a mix of donation methods (some ACH, some checks, maybe a credit card donation), do I need to track each one separately for timing purposes? It seems like each payment method has different rules for when the donation "counts" tax-wise. This is more complicated than I thought it would be! Also, does anyone know if the charity sends different receipts based on when they receive the money vs when you initiated it? I want to make sure my documentation lines up properly with however I report this on my taxes.

I see you mentioned 570 and 971 codes, but what's your cycle code? The last 4 digits on your 570 transaction line can tell you when your account updates. If it ends in 05, you're on a weekly cycle (updates Thursday nights). If it ends in 01-04, you're on a daily cycle. Also, is your 971 date after your 570 date? That sequence matters for predicting resolution timeframes.

I went through this exact situation last month! Had 570/971 codes for about 12 days before getting my 846. The key thing that helped me was checking my transcript on Friday mornings - that's when most updates seem to happen. I also drive for gig work (DoorDash) so I totally understand the stress of needing that refund for car expenses. One thing I learned is that if your 971 notice date is recent, give it the full 21 days before panicking. Mine resolved on day 12 and the refund hit my account 3 days after the 846 code appeared. Keep checking your transcript weekly rather than daily - it'll save your sanity!

Seeing lots of good advice here but just want to emphasize: *Please be careful providing your SSN online.* Make sure you're on the actual bank's secure website (https, lock icon visible). There are scam sites that pose as banks specifically to collect SSNs and other personal info from young people opening their first accounts. Always double-check the URL and maybe even call the bank's official number (from their real website) to confirm the application process.

Smart move going to a branch in person! That's exactly what I did for my first account. The staff there are really helpful and can walk you through everything step by step. Plus, you don't have to worry about any online security issues. When I went in, they had me fill out the W-9 right there at the desk - it literally took like 2 minutes. They also explained that the form is just so they can report any interest I earn to the IRS at the end of the year. No stress at all! Bring your driver's license and Social Security card if you have the physical card. Some branches are flexible about the SS card requirement, but it's good to have just in case. You're doing everything right by being cautious and asking questions first.

Has anyone used TaxJar or Avalara for this? I'm wondering how they count transactions for economic nexus thresholds compared to what everyone's saying here about invoice vs payment.

This is such a timely question for me! I'm actually dealing with the same confusion as I'm setting up my new consulting business. From what I've been reading in the state tax codes, it seems like most states are pretty consistent about counting "transactions" as unique sales events rather than payment events. I found it helpful to think about it this way: if a customer walks into a physical store and buys something for $500 but pays with 3 different credit cards to split the cost, that's still just one sale/transaction from the store's perspective. The economic nexus rules seem to follow the same logic - they're trying to measure your business activity level, not your payment processing volume. That said, I'm definitely going to implement some of the tracking solutions mentioned here because manually keeping track of this across multiple states sounds like a nightmare waiting to happen. Thanks for asking this question - the responses have been super helpful!

Quick question - does anyone know if this same principle applies to cash back from credit cards used for business purchases? Like if I get 2% back on all my business expenses, should I be reducing all my deductions by 2%?

This is a really common confusion for freelancers and small business owners! I dealt with something similar when I got a promotional bonus from a business credit card signup. The consensus here is spot on - you can only deduct your actual out-of-pocket expense of $40. The $200 gift card effectively reduced your cost basis for the equipment, just like if you had used a coupon or bought the items on sale. One thing to keep in mind for future reference: make sure you're keeping good records of these promotional bonuses and how you use them. The IRS likes to see clear documentation that separates business and personal use, especially when gift cards or rewards are involved. Also, since you mentioned you're a freelance videographer, don't forget you can still deduct the full $40 plus claim depreciation on the camera equipment over time (depending on the cost and type of equipment). Sometimes the depreciation deduction can be more valuable than the immediate expense deduction anyway!