I made the mistake of not dealing with this properly at my first nanny job and it was a NIGHTMARE come tax time. If your employer won't do a W-2, you'll have to file as self-employed using Schedule C and Schedule SE, and you'll pay BOTH portions of Social Security/Medicare taxes (15.3% instead of 7.65%). Plus, quarterly estimated tax payments are your responsibility if you go the self-employed route. Don't ignore this! The penalties add up.

As someone who's worked in tax compliance for years, I want to emphasize that getting this right from the start is crucial. You're absolutely correct to be concerned about this - many people get into trouble by treating nanny work as casual income. The key point everyone's made about you being a household employee (not an independent contractor) is spot-on. Since you'll be earning $14,400-18,000 annually, this definitely triggers the household employer tax requirements. Here's what I'd suggest for your conversation with the family: Be upfront that you want to handle taxes properly and ask how they plan to manage payroll taxes. You can mention that household employees earning over $2,400 annually require proper tax withholding and a W-2. If they seem hesitant, explain that it protects both of you - you from tax penalties and them from potential liability for unpaid employment taxes. The IRS takes household employment taxes seriously, and the penalties can be substantial for both parties. Document everything - keep records of all Zelle payments, your work schedule, and any agreements. Even if they handle taxes properly, good records are essential for your own tax filing.

Quick question - I'm also a bandleader but I haven't been issuing 1099s because I thought we were all just splitting the income, not that I was paying them as contractors. Does it matter if the venue check is in my name but we just divide it up after the gig? Do I still need to do 1099s??

Just want to echo what others have said - you absolutely CAN issue 1099s as an individual! I went through this exact same situation with my photography side business a couple years ago. I was getting 1099s from wedding venues but paying assistants and second shooters throughout the year. One thing I learned the hard way: even though you're late on the 1099s, make sure you can still deduct those band member payments on your Schedule C for this tax year. The IRS doesn't require you to have issued 1099s to take the deduction - you just need to have proper records of the payments (bank statements, receipts, etc.). Also, don't stress too much about the penalties. For first-time filers who are clearly trying to do the right thing, the IRS is often more lenient than you'd expect, especially if you proactively file the late 1099s rather than waiting for them to come after you. Good luck!

As someone who works in banking, I can confirm what others are saying about TaxAct's confusing terminology. "This return has been paid" essentially means your refund has moved from the IRS to TaxAct's intermediary bank, they've collected their fees, and now they're processing the remainder to your account. It's basically the final step before you see your money. Since you're doing a PCS move next month, here's a pro tip: contact your bank and let them know you're expecting a large deposit from the US Treasury. Sometimes banks will put holds on unexpected large deposits for security reasons, which could delay access to your funds right when you need them most. A quick heads-up to your bank can prevent any unnecessary delays. Based on the experiences shared here, you should see your refund within the next few days. The military community has your back - we all know how tight finances can get during PCS season!

Hey Kristian! First off, thank you for your service and good luck with your upcoming PCS - I know how stressful those moves can be financially! That "This return has been paid" message is actually great news! I've been using TaxAct for about 4 years now, and from my experience (and what everyone else is confirming here), this means TaxAct has successfully collected their preparation fees from your refund. The key thing to understand is that they can only do this AFTER the IRS has already approved and sent your refund to TaxAct's processing bank. Since you mentioned you can't check your transcripts, definitely try the IRS "Where's My Refund" tool - you'll just need your SSN, filing status, and refund amount. But honestly, based on that TaxAct message, you're in the final stretch. Most people here are reporting they get their direct deposit within 2-5 days of seeing that status. I'd recommend checking your bank account directly rather than waiting for TaxAct to update - sometimes the money shows up first. You might also want to call your bank and give them a heads up that you're expecting a Treasury deposit, just to avoid any potential holds during your PCS timeline. Your refund should be hitting your account any day now! Hang in there - the timing should work out perfectly for your move next month.

Anyone know if you have to amend previous tax returns if you never got these 1099-INTs from security deposits in past years? Just realized I've never reported this kind of interest before. 😬

I went through this exact same situation last year! The key thing to remember is that even though it's a small amount, the IRS computer systems automatically match 1099 forms to tax returns, so you definitely want to report it to avoid any automated notices later. One tip that helped me: when you're entering it in TurboTax, make sure you enter the exact amount shown in Box 1 of the 1099-INT, even if it seems like an odd number. Don't round it. The software will handle all the calculations and put it in the right place on your return. Also, keep that 1099-INT with your tax records! If you ever get an IRS notice (unlikely for such a small amount, but possible), having the original form makes resolving it much easier.

This happened to my sister too! The IRS has been automatically enrolling people in the IP PIN program if they detect any suspicious activity on your SSN, even if you never requested it. You can also try going to an IRS Taxpayer Assistance Center in person - sometimes they can issue you an IP PIN on the spot if you bring proper ID. Just make sure to make an appointment first!

I went through this exact same situation last year! The IRS automatically enrolled me after they detected some suspicious activity on my SSN that I wasn't even aware of. What worked for me was calling early in the morning (like 7-8 AM) and using the trick someone mentioned about waiting for the Spanish prompt first. Also, if you can't get through by phone, try the online Get an IP PIN tool on IRS.gov - it worked for me after a few attempts. Just be patient with the ID.me verification process, it can be frustrating but it does work eventually. Good luck!