I think everyone is overcomplicating this. I've been doing side jobs for cash for years and never reported any of it. As long as you don't deposit large amounts in your bank at once, the IRS has no way of knowing. Just keep it under $10k deposits to avoid triggering those bank reporting requirements, spend the cash on regular expenses, and you'll be fine.

I want to share my experience as someone who went through a similar situation last year. I was offered $8,000 in cash for helping with landscaping work, and I was really tempted to just not report it. But after reading about the potential consequences, I decided to do the right thing and report it properly. It ended up being much less painful than I expected. I filed Schedule C for the self-employment income, but I was also able to deduct expenses like gas for my truck, tools I bought, and even part of my cell phone bill since I used it for work coordination. After all the deductions, I only owed taxes on about $5,500 of the income. The peace of mind has been worth it. I sleep better knowing I'm not looking over my shoulder wondering if the IRS will catch up with me someday. Plus, now I have a legitimate track record of self-employment income that could help if I ever want to apply for a loan or mortgage. My advice: report the income, keep good records of your expenses, and consider it a learning experience for handling taxes as a freelancer. It's really not as scary as it seems when you do it properly from the start.

pro tip: call ur bank and ask if theres any pending deposits. sometimes they can see it b4 it posts

I'm waiting on my Indiana refund too! Filed last week and still showing "processing" - hopefully it switches to approved soon. The waiting game is always nerve-wracking, especially when you need that money 😅

FYI - the IRS has been super backed up this yr. Ppl who filed in mid-March are def seeing longer wait times than usual. The IRS website says 21 days for e-file but tbh that's more like a minimum these days. If u have any credits like CTC or EIC, that adds more time too. One thing I learned - if WMR shows "still processing" that's actually better than "being processed" bc it means it's moving through the system. Hang in there!

I'm experiencing almost the identical situation! Filed on 03/21 and got my state refund within 10 days, but federal has been stuck in processing for over 5 weeks now. The phone lines are absolutely useless - I've tried calling multiple times and either get disconnected or can't get through at all. What's really frustrating is that my return is straightforward with no complicated deductions or credits. I've been checking Where's My Refund daily and it just keeps saying "still being processed." Based on what others are saying here, it sounds like this is unfortunately normal for this filing season, but it's still nerve-wracking when you're waiting on that money. Thanks for posting this - at least I know I'm not alone in this situation!

A practical tip from someone who sells vintage clothing: Start using inventory management software NOW before you get deeper into selling. I use a simple spreadsheet with columns for: 1. Item description 2. Date acquired 3. Original cost 4. Estimated current value 5. Storage location 6. Condition notes This makes it much easier to track your COGS and will save you massive headaches at tax time. Also, take photos of everything for insurance purposes - 3000 pairs of collectible sneakers represents a significant asset!

Great advice in this thread! I went through something similar when I transitioned from collecting vintage watches to selling them as a business. One additional consideration that hasn't been mentioned yet: make sure you're prepared for the self-employment tax implications of Schedule C income. Unlike capital gains treatment, business income from Schedule C is subject to self-employment tax (15.3%) on top of regular income tax. This can be a significant additional cost, especially if you're planning to sell $2000+ worth annually. However, the benefit is that you can deduct business expenses like storage costs, packaging materials, listing fees, even a portion of your home if you use it for storage/processing. Keep detailed records of all these expenses - they can really add up and offset some of that self-employment tax burden. Also, consider making quarterly estimated tax payments if you expect to owe more than $1000 in taxes from your sales to avoid underpayment penalties.

Just want to warn everyone - be super careful about claiming ESA expenses. My friend tried deducting her emotional support cat expenses last year and got audited. The IRS made her pay back all the deductions plus penalties. Unless your situation clearly qualifies under the service animal rules, it's probably not worth the risk.

Thanks for sharing this question - it's one that comes up a lot and the answers here are really helpful. I went through something similar with my therapy dog last year. Just to add another perspective: even if you can't deduct the ESA expenses directly, don't forget that you can still deduct your therapy sessions and any other mental health treatment costs (assuming you itemize and meet the 7.5% AGI threshold). The therapy that led to your ESA prescription is definitely a legitimate medical expense. Also, keep really detailed records of everything - receipts, vet bills, your therapist's documentation, etc. Even if you don't claim the ESA expenses this year, tax laws can change, and having good documentation ready is always smart. The IRS appreciates thorough record-keeping if you ever do get questioned about any medical deductions. Hope Milo continues to help with your anxiety and depression - ESAs can make such a difference even if the tax benefits aren't there!