Has anyone tried just increasing their prices to cover the sales tax? I know it's not ideal but I wonder if customers would even notice a 6-8% increase if all your competitors are facing the same issue.

This is a really common issue that trips up a lot of dropshippers! The key thing to understand is that the Wayfair ruling changed how states determine nexus for sellers, but it didn't change the fundamental rule that legitimate resale purchases should be tax-exempt. Your supplier is charging you sales tax because they're treating you like a regular consumer rather than a reseller. The solution is definitely getting proper resale certificates as others mentioned, but here are a few additional tips: 1. Make sure your business is properly registered in your home state and you have a valid sales tax permit/license 2. Keep detailed records showing these are legitimate inventory purchases for resale 3. If your supplier pushes back, remind them that charging sales tax on legitimate resale transactions could actually create liability issues for them One thing I haven't seen mentioned yet - if you're approaching economic nexus thresholds in other states (typically $100k in sales OR 200+ transactions per year), you'll eventually need to register there anyway to collect and remit sales tax from your customers. But that's separate from this supplier issue. Don't let this eat into your margins unnecessarily - you shouldn't be paying sales tax on inventory purchases when you're a legitimate reseller!

Has anyone else noticed that like half the companies out there don't even know how to handle basic tax paperwork correctly? Last year I had three different clients mess up my 1099s even though I gave them properly completed W9s. One reported my income under the wrong tax ID, another used my old address, and the third just... never sent it at all. 🤦‍♀️

I've been freelancing for 3 years now and unfortunately this kind of confusion is pretty common. Many smaller companies don't have proper accounting departments and genuinely don't understand the W9 process. From what you've described, it sounds like you already provided them with your completed W9 when you started the contract work, and now you're just asking for a copy of that same form for your records. That's completely reasonable and they should provide it without requiring you to submit another blank form. Sometimes framing it differently helps - try saying "Could you please provide me with a copy of the W9 I submitted to you on [date]?" rather than just "I need a W9." This makes it clear you're asking for your own paperwork back, not requesting they fill out a new form. If they continue to be difficult, you might want to mention that you need it to ensure the 1099 they send you matches your records. Most companies want to avoid 1099 errors since those can create headaches for everyone involved.

One thing to consider while you're still small - get good tax PLANNING software, not just preparation software. That's where you can really add value and charge higher fees. I use Holistiplan for analyzing client tax situations and modeling different scenarios. Clients are way more willing to pay premium rates for help AVOIDING taxes rather than just filing returns. Something to think about as you scale!

Great thread! As someone who made the jump from casual tax prep to a real practice about 3 years ago, I'd echo the Drake recommendation but also suggest looking into ProSeries if you want something more budget-friendly to start. It's about $800-1000 for the base package and handles most everything you'll need early on. One thing I wish someone had told me when I was scaling up - invest in a good scanner and document management system early. I started with a basic flatbed scanner and it became a huge bottleneck when I hit 50+ clients. Now I use a high-speed duplex scanner (Fujitsu ScanSnap) and it's been a game changer for productivity. Also, don't underestimate the importance of having a solid intake process. Create standardized organizers and checklists for clients - it'll save you tons of back-and-forth emails asking for missing documents. Good luck with the expansion!

dose anyone know if the cycle code changes? mine was 05 last year but showing 02 this time

The cycle codes dont mean anything anymore tbh. I've seen 02 people waiting forever and 05 getting paid quick. its all random now

Just want to point out something else - if he's receiving SSI (not SSDI), there's a very important distinction. SSI is not taxable and doesn't appear on tax returns at all. SSDI might be taxable depending on other income. Make sure you're entering his disability income correctly in the tax software. Also, depending on the twins' adoption situation, there might be an Adoption Tax Credit he could claim if this was a recent adoption. This credit has different rules than the Child Tax Credit.

This is such a frustrating situation that so many people face! I went through something similar with my brother who's on SSDI with two kids. One thing that really helped us was getting a clear understanding of ALL the credits he might qualify for, not just the big ones everyone talks about. Beyond what others have mentioned about the Credit for Other Dependents, there are sometimes state-level credits that have different requirements than federal ones. Also, double-check that TaxAct is calculating everything correctly. Sometimes tax software doesn't handle disability income situations well, especially when there are qualifying dependents involved. You might want to try running the same info through a different tax program (many offer free versions) to see if you get different results. The suggestion about earning just a small amount of income to cross that $2,500 threshold is really smart. Even something like selling items online occasionally or doing small odd jobs (within disability limitations) could make a huge difference in qualifying for credits. The math often works out where the tax credits far exceed any small reduction in benefits. Keep advocating for him - you're doing great by not just accepting the software's initial answer!