Wait I'm confused... if a single-member LLC that's disregarded can't pay W-2 wages to its owner, when DOES it make sense to pay yourself a salary from your business? I've heard so many conflicting things about this.

This is a great discussion that highlights a really important distinction. I've seen this confusion come up repeatedly with small business owners who think paying themselves a W-2 salary will somehow legitimize their business or provide better tax benefits. The key takeaway here is that tax structure should follow legal structure, not personal preferences. A disregarded single-member LLC cannot create an employer-employee relationship with itself - it's legally impossible. Your friend's reasoning that it "feels more like a real business" doesn't change the fundamental tax law. Beyond the compliance issues everyone's mentioned, there are practical problems too. If your friend is filing employment tax returns (940, 941) for these phantom wages, he's creating a paper trail that doesn't match his actual business structure. This inconsistency is exactly what can trigger IRS scrutiny. The irony is that if he wants the benefits of paying himself a salary (like potential self-employment tax savings), he should consider making an S-Corp election. Then he'd be legally required to pay himself reasonable compensation as a W-2 employee, and any additional profits could be distributed without self-employment tax. But that's a completely different tax structure with its own requirements and limitations. Bottom line: work with the structure you have, not against it.

Has anyone used both TurboTax and FreeTaxUSA for delivery gig work? I'm trying to decide which one to use this year and wondering which handles the deductions better.

This is super helpful for understanding how multiple income sources work together! I'm in a similar situation with my Instacart gig plus a regular part-time job. One thing I learned the hard way is to keep really detailed records throughout the year - I wish I had tracked my mileage better from the start. For anyone doing delivery work, I'd recommend downloading a mileage tracking app like MileIQ or Everlance. They automatically track your drives and categorize them as business or personal. Way easier than trying to reconstruct everything at tax time! Also keep receipts for things like phone accessories, insulated bags, or car maintenance that's directly related to your delivery work. The quarterly payment advice is spot on too. I got hit with an underpayment penalty last year because I didn't realize I needed to make estimated payments. Setting aside that 25-30% in a separate account really does make tax season so much less stressful.

mine showed that for 2 months before i got my $$. patience young grasshopper 🦗

Tax Topic 152 is definitely neutral - just means your return is in the system and being processed. I've seen it pop up for tons of people and most get their refunds right on schedule. The 21-day timeframe is pretty accurate for e-filed returns, so you should be good! Try not to stress too much about it 👍

Wait I'm confused about something... if you're getting paid through CashApp, shouldn't CashApp be sending you a 1099-K if you received over the threshold amount? I thought payment apps were required to report to the IRS now?

Hey Olivia! I totally understand your frustration - I had a similar situation last year where my employer kept giving me the runaround about tax forms. Here's what I learned from going through this: First, definitely report that $14,625 as self-employment income on Schedule C, even without the 1099. The IRS cares way more about you reporting all your income honestly than whether you have the official paperwork. Download your complete CashApp transaction history for 2024 - that's your proof of income. Your employer is technically wrong about not being "legally required" to provide 1099s. They should issue a 1099-NEC since you earned over $600, but their failure to do so doesn't stop you from filing correctly. Since you're filing as self-employed, don't forget about the self-employment tax (15.3% on top of regular income tax) - it can be a shock if you're not expecting it! Also look into business deductions like mileage to work, any supplies you bought, etc. Keep records of all your attempts to get the 1099 from them. Send one more email asking for a written statement of how much they paid you in 2024 - even an informal email works as documentation. If they still won't cooperate, you're covered as long as you report the income accurately. You've got this! The most important thing is being honest about your income, which you're clearly trying to do.

I claimed 100% of my Spotify last year and got audited! But don't panic - the audit was for something completely unrelated, and when they reviewed my Spotify deduction, they actually had no issue with it. The auditor said digital subscriptions for content relevant to your profession are legitimate business expenses for creative professionals. The key was I had documented when and how I used Spotify professionally - had screenshots of student playlists, practice playlists organized by gig, and even some email exchanges with clients referencing specific tracks. This made it super clear it wasn't just for personal entertainment.

As someone who's been teaching music and performing for over a decade, I can confirm that Spotify Premium is absolutely a legitimate business deduction for music professionals. The IRS allows deductions for expenses that are "ordinary and necessary" for your trade or business, and having access to a comprehensive music library clearly fits that criteria for what we do. I've been claiming my streaming subscriptions (Spotify, Apple Music, and YouTube Music) at 85% business use for the past 4 years without any issues. The key is documentation - I keep a simple log of when I create playlists for students, research songs for gigs, or study arrangements for performances. Your $180 annual expense is completely reasonable and well-documented with your professional usage. Don't let your new accountant's uncertainty make you miss out on legitimate deductions. Music education and performance require staying current with repertoire across all genres, and streaming services are essential tools for that. Just make sure you can demonstrate the business purpose if ever questioned.