Mine also had Topic 151 but with Ref 1242 and it took EXACTLY 77 days from acceptance to deposit. The WMR tool never updated beyond first bar - it went straight from "processing" to "sent" when the money hit my account. So frustating but hang in there!!

I'm dealing with the exact same situation - Topic 151 and Ref 1242 for about 9 weeks now. Filed in early February with EIC and CTC claims, and like you, everything was legitimate. The waiting is absolutely brutal, especially when you're counting on that money for essential expenses. From what I've learned lurking in these forums, Topic 151 with Ref 1242 typically indicates your return is in manual review queue specifically for refundable credits verification. It's not an audit per se, but they're double-checking your EIC and Child Tax Credit claims against their databases. Unfortunately, this process seems to take anywhere from 60-120 days regardless of how straightforward your return is. The most frustrating part is the complete lack of communication from the IRS. No letters, no updates, nothing - just that same stalled progress bar on WMR. I've seen multiple people report their refunds suddenly appearing with zero warning after 10-16 weeks of radio silence. Hang in there - based on the patterns I've observed, you should hopefully see movement in the next few weeks. Your situation sounds identical to many others who eventually got their full refunds, it just takes an unreasonably long time.

Quick tip from someone who dealt with this last year - you can use Schedule H with your personal tax return to report household employment taxes instead of filing quarterly business tax forms. Makes it a bit simpler. I used TurboTax Home & Business which has a household employee section that walks you through everything. Also, don't forget state requirements! Some states have additional paperwork for household employers. In my state, I had to register with the state workforce agency and pay state unemployment insurance. The requirements vary by state so check your state's department of labor website.

As someone who just went through this exact situation with my grandmother's caregivers, I can't stress enough how important it is to get this sorted out properly. The IRS doesn't mess around with household employment taxes. From what you've described - setting specific times, showing them how your mom likes things done - these sound like household employees, not independent contractors. The fact that they told you "not to worry" is a red flag. Many caregivers don't understand the tax implications either. Here's what I learned the hard way: if you're paying someone $2,400+ per year to provide care in your home and you control when/how they work, you're legally their employer. That means you need to: - Get an EIN from the IRS - Have them complete Form W-4 and I-9 - Start withholding Social Security and Medicare taxes (7.65% total) - Pay your matching employer portion - Provide W-2s by January 31st I ended up owing back taxes and penalties because I waited too long to get compliant. Don't make the same mistake - start the paperwork now even if it seems overwhelming. The IRS household employer hotline (1-800-829-1040) can walk you through the process if you can get through to them. Your peace of mind and your mom's care are worth doing this right!

I'm confused about the timing. Can I still make a backdoor Roth contribution for 2024 right now in August 2024, or do I have to wait until Jan 2025 to do it?

Great question! Yes, backdoor Roth IRAs are definitely still allowed for 2024. At your income level of $168k, you're correct that you're above the direct Roth IRA contribution limits ($153k-$168k phaseout range for 2024), so the backdoor method is your best option. Since you mentioned you don't have existing traditional IRA balances, you're in a perfect position - no pro-rata rule complications to worry about! The process is straightforward: contribute $7,000 (2024 limit) to a non-deductible traditional IRA, then convert it to a Roth IRA shortly after. For tax reporting, you'll need Form 8606 to report the non-deductible contribution and the conversion. The conversion itself isn't taxable since you're converting after-tax dollars. Just make sure to keep good records of the contribution date and conversion date. One tip: consider doing this early in the year so any small gains between contribution and conversion are minimal. The strategy has been around for years and Congress hasn't moved to eliminate it despite various tax reform discussions.

Just wanted to add - don't forget about state taxes too! In Pennsylvania (where you mentioned you live), you'll need to file a PA Schedule C with your state return as well. Pennsylvania doesn't recognize LLCs as separate from their owners for tax purposes, similar to federal treatment for single-member LLCs. Also, depending on your local municipality, you might need to file a local business tax return or get a business privilege license. Some PA cities and townships have these requirements even for small side businesses. Might be worth checking with your local government office.

Great question! I went through this exact same situation when I started my consulting LLC alongside my teaching job. A few additional points that might help: Since you're already employed as a high school counselor with taxes withheld, you might want to consider increasing your withholding at your main job rather than making quarterly payments. You can adjust your W-4 to have extra tax withheld to cover the tax liability from your LLC income - this is often easier than remembering to make quarterly payments. Also, don't underestimate your deductible expenses! Beyond the obvious ones like mileage and startup costs, consider things like: - Professional liability insurance (if you get it for your coaching) - Continuing education related to your coaching specialty - Office supplies (even if it's just notebooks and pens for client sessions) - Professional memberships or certifications - Business meals with potential clients (50% deductible) One more tip: Keep detailed records of your time and activities. Since coaching can sometimes blur the line between business and personal development, having clear documentation of your business activities will be helpful if you're ever audited. The Schedule C filing is straightforward, especially with TurboTax, but don't hesitate to consult a tax professional if your income grows significantly or your situation becomes more complex.

One thing I wish I'd done from the beginning: develop clear client acceptance criteria. When you're starting out, it's tempting to take anyone who's willing to pay you, but some clients will drain your time and energy in ways that aren't worth the fee. I now have a checklist of red flags that help me decide whether to take on a new client: - Do they have multiple years unfiled? - Are they bringing you their taxes on April 14th expecting same-day service? - Do they argue about your fees before you've even started? - Are they unwilling to provide complete information? - Do they tell you what their refund "should be"? Being selective about clients from the start will save you major headaches down the road.

This is a really comprehensive checklist! As someone who made the transition from working at a firm to solo practice about 3 years ago, I'd add a couple more items: - Client onboarding process/intake forms (beyond just engagement letters) - having a standardized process helps you look professional from day one - Backup plan for technology failures - what happens if Drake goes down during busy season or your internet cuts out? - Malpractice/liability insurance separate from E&O (depending on your state requirements) - Document retention policy - how long you'll keep client files and in what format Also, since you mentioned potentially buying your current employer's book of business eventually, start thinking about how you'll handle that transition with clients. Having your systems and processes dialed in early will make that much smoother when the time comes. One last tip: consider starting with a smaller subset of services initially rather than trying to do everything from day one. I focused just on individual returns and simple business returns my first year, then expanded into more complex work as I got comfortable with my workflow. Good luck with the venture!