Anybody know if this early deposit thing happens with state tax refunds too? My federal came lightning fast this year (4 days!) but my state refund is nowhere to be seen after 3 weeks.

This is totally normal now! I'm a tax preparer and we've been seeing this a lot this filing season. The IRS has really streamlined their processing for simple returns, especially early filers. Your refund is 100% legitimate - once it's in your account as available funds from the Treasury, you're good to go. The "Where's My Refund" tool is honestly the worst part of their system. It's designed more for customer service than real-time tracking, so it often lags behind actual processing by days. I tell all my clients to trust their bank account over the WMR tool. The fact that you got it so fast even with EIC is actually impressive - they've really improved their fraud detection systems so they can process legitimate returns much quicker than before. You can absolutely use that money with confidence!

Welcome to California taxes lol. I moved here from Texas 2 years ago and nearly had a heart attack seeing my first paycheck. No state income tax in Texas vs California's crazy high rates was a serious lifestyle adjustment. If it helps, your actual effective tax rate when you file will probably be lower than what's being withheld. Most people I know get decent refunds their first year out of college because the withholding tables are designed to make sure you don't owe money.

That tax shock is definitely real! I remember being so confused my first year out of college too. One thing that helped me was setting up a simple spreadsheet to track my paystubs and see exactly where my money was going each pay period. Since you mentioned student loans, make sure you're taking advantage of that student loan interest deduction when you file your taxes next year - it can save you a decent amount. Also, if your employer offers a 401k with any kind of match, definitely look into that. Not only does it reduce your current taxable income (which means less taxes withheld), but you're also getting free money from your employer. The withholding does seem high, but California really does hit you hard with state taxes. I'd recommend using the IRS withholding calculator others mentioned to double-check, but don't be surprised if it's actually pretty close to correct. Better to have a little too much taken out than to owe a big chunk in April!

Just an FYI - I was in the exact same boat last year. Filed a paper return with an extension and it took SEVEN MONTHS to get my refund. No issues with my return, no audit, nothing complicated. The IRS is just extremely backed up with paper returns. Make sure your direct deposit info was entered correctly because if the deposit bounces back for any reason, they'll mail a paper check which adds another 4-6 weeks. Also check that your address is current with the IRS in case they need to send any correspondence.

I'm in a similar situation - filed my extension return via mail in early May and still waiting on my refund. Reading through these experiences is both reassuring and nerve-wracking! It sounds like 4-6 months is becoming the new normal for paper returns. Has anyone had success checking their transcript through the IRS online account to get more detailed status info? I'm wondering if that shows anything beyond what the Where's My Refund tool displays. Also curious if anyone knows whether the IRS sends any kind of acknowledgment that they've actually received your mailed return, or if you just have to wait and hope it didn't get lost in the mail. The waiting game is definitely stressful when you're counting on that money!

Don't forget about state and local requirements too! Everyone's talking about federal taxes, but depending on where you live, you might need: - State business license - Local business permit - Sales tax permit if you're selling taxable items - Possible local business taxes Also, some cities have restrictions on running businesses from home if that's what you're planning. Worth checking all this BEFORE you form the LLC.

Great question! I started my LLC at 19 while working full-time at a bank, so I totally get the confusion. Here's what I learned: You absolutely can have both - in fact, it's smart to keep that steady W-2 income while building your business. Your LLC won't affect your day job taxes at all. You'll still get your regular paycheck with taxes withheld, and you'll get a W-2 like normal. For your reselling business, since you're making $2800-3500/month, you're definitely at the point where an LLC makes sense for liability protection. Just make sure you're tracking EVERYTHING - cost of goods sold is huge for resellers. Every sneaker you buy to resell, shipping costs, packaging materials, gas for pickups, even a portion of your phone bill if you use it for business. One tip that saved me tons of money: look into a business credit card that gives cash back on business purchases. I use mine for all inventory and business expenses, then pay it off monthly. The cash back helps, plus it makes expense tracking automatic. Also, start making quarterly estimated tax payments NOW. I learned this the hard way - owing $4K at tax time when you're 19 is brutal. The IRS has a calculator on their website to help figure out how much to pay each quarter. Good luck with the business! Reselling can be really profitable if you stay organized with the tax side.

Just a heads up - I went through this exact situation in 2023 and chose to carry forward my excess contribution. I can confirm that the earnings DO stay in the account. I called Vanguard (my Roth IRA provider) to double-check, and they said they don't even track which earnings came from which contributions - once money is in the account, it's all treated the same. They just report the total contributions for the year to the IRS. I paid the 6% tax on Form 5329 for 2023, and then in 2024 I contributed less to "use up" that carried-forward amount. It was actually pretty straightforward once I understood the process.

This is really helpful information! I've been dealing with a similar excess contribution situation and was worried I'd have to withdraw everything including the earnings. One question I have - when you carry forward the excess contribution, do you need to file Form 5329 every year until the excess is "absorbed," or just for the first year? And is there any limit to how many years you can carry it forward? I'm also curious about the practical side - how do you track this on your own records? Do you just make a note that part of next year's contribution is actually the carried-forward excess from this year?