For ed-tech companies like Khan Academy, you'll likely want to use SIC code 7372 (Prepackaged Software) as your primary classification, especially if your revenue model is subscription-based software delivery. The key factor is how your business generates revenue - if it's primarily through software licensing/subscriptions, then 7372 is most appropriate. However, I'd strongly recommend also familiarizing yourself with the corresponding NAICS code 511210 (Software Publishers), as most government forms and business registrations now use NAICS instead of SIC. Many banks, investors, and regulatory agencies have transitioned away from SIC codes entirely. One thing to consider is that some states have specific licensing or regulatory requirements for educational service providers, regardless of your delivery method. It's worth checking with your state's business registration office to see if there are any additional requirements for companies providing educational content, even through software platforms. The educational component doesn't necessarily require a separate classification if your primary business activity is software development and distribution - the fact that your software serves an educational purpose doesn't change the fundamental nature of your business model.

I went through this exact same classification dilemma when launching my educational platform last year. After consulting with both a business attorney and my accountant, we settled on SIC 7372 (Prepackaged Software) as the primary code since our core business model is software subscription services. The key insight my attorney shared was to focus on your primary revenue-generating activity rather than just the subject matter of your content. Even though we're in education, we're fundamentally a software company that serves educational markets - similar to how Salesforce is a software company that serves sales teams. One practical tip: when filling out forms, I've found it helpful to have a brief one-sentence explanation ready for why you chose your classification. Something like "Software development and licensing with educational applications" has worked well for me when questions arise about why an education-focused company uses a software classification. Also worth noting that some business insurance policies have different rates based on classification codes, so this choice can have real financial implications beyond just paperwork compliance.

Heads up - the verification process might be diff than u expect. My letter had a QR code that took me to ID.me but others get sent to the IRS portal directly. IME the avg wait was ~5 wks but that was b4 the April rush. Rn the IRS is slammed w/ returns so prob longer. Def call if it goes past 6 wks. Also check ur transcripts not WMR - transcripts update 1st and WMR is often behind by days.

I went through identity verification in January and can share some specifics that might help with your timeline planning. After completing verification on ID.me (took about 20 minutes), my transcript showed the 971 notice code within 3 days, then had to wait for the 571 release code. Total time from verification to refund deposit was 5 weeks and 2 days. For medical expense planning, I'd honestly budget for 6-8 weeks to be safe. The IRS customer service rep I spoke to (week 4 of waiting) mentioned that verified returns don't get priority processing - they just rejoin the regular queue. My advice: set up transcript monitoring through the IRS app and don't check WMR daily - it'll drive you crazy and the transcript updates first anyway.

Why not just setup an LLC and have the business buy the alcohol? Then its clearly a business expense and you personally arent drinking it, your business entity is providing it as part of the service?

As someone who's dealt with similar content creator tax issues, I'd strongly recommend getting professional guidance on this one. The IRS has very specific rules about entertainment expenses, and alcohol deductions are heavily scrutinized regardless of business purpose. While your situation is unique since you only drink for content creation, you'll still likely face the 50% limitation on these expenses. The key is proving business necessity - keep detailed records linking each purchase to specific streams, viewer engagement metrics, and revenue generated from that content. Consider also documenting that these venues/drinks are essential to your brand and audience expectations. If you can show that your audience tunes in specifically for this type of content and that removing alcohol would significantly impact your business income, that strengthens your case. But definitely consult with a tax professional who understands creator economics before taking any large deductions.

Random question but does anyone know if tax software like TurboTax handles all this correctly? Like do I need to manually separate out my qualified dividends when entering everything or does it do that automatically?

This is such a helpful thread! I'm in a similar situation as the original poster - first year with significant investment gains and totally confused about how everything gets taxed together. One thing I'm still not clear on though - if my total income puts me right at the threshold between tax brackets for qualified dividends (like right around that $46,800 mark someone mentioned), do ALL my qualified dividends get taxed at the higher rate, or just the portion that pushes me over the threshold? For example, if I have $45,000 in regular income and $5,000 in qualified dividends, does the entire $5,000 get taxed at 15%, or just the portion above $46,800 (so like $3,200 at 15% and $1,800 at 0%)? I know regular income tax brackets work as marginal rates where you only pay the higher rate on income above each threshold, but I can't figure out if qualified dividends work the same way or if it's all-or-nothing based on your total income level.

i feel u fam. got one last week and almost had a heart attack but it was just confirming my address change lmaooo

Hey! I totally get the anxiety - IRS letters can be super intimidating even when they're nothing serious. Like others said, you really need to open it to know what's going on. Most of the time it's just routine stuff like confirming info or asking for documentation. The notice number (usually CP### or LTR####) will tell you exactly what type it is. Once you open it, definitely post a pic with your personal info blurred out and we can help you figure out next steps!