I was wondering what kinda tax law lets Illinois hold onto your money for 3 months without paying interest. That's literally money you overpaid them that they're using interest-free. But whatever, glad you got it!

Same thing happened to me! Filed my IL return in February and the status page said "processing" for months. Then boom - refund showed up in my account last week with zero warning. The status STILL says processing even now. It's like their left hand doesn't know what their right hand is doing. At least we got our money but man, their system is completely broken. Would be nice to get some kind of notification when they actually send the refund instead of having to randomly discover it in your bank account!

The whole "donation" thing is actually a pretty common misunderstanding. I've been making and selling jellies at farmers markets for years. Here's my practical advice: 1) Track EVERYTHING. Every egg, cup of flour, jar, label, even a portion of your electricity bill for running the oven. 2) Take lots of photos of your workspace and ingredients for documentation. 3) Open a separate bank account for your business income/expenses to make tracking easier. 4) Set aside 25-30% of what you make for taxes from day one. The good news is once you're properly set up, you'll likely owe less in taxes than you think because of all the legitimate deductions available to small food businesses.

Adding to what everyone's said about the "donation" approach - I learned this lesson with my homemade pasta business last year. The IRS specifically looks at whether there's a "quid pro quo" relationship (you give bread, they give money), regardless of what you call it. Even if you put up a sign saying "free bread, donations appreciated," if people consistently pay you for specific loaves, that's income. One thing that helped me was starting small and keeping meticulous records from day one. I use a simple app to photograph every receipt and track mileage to farmers markets. Also, don't forget you can deduct things like recipe testing ingredients and even a portion of your phone bill if you're using it for business communications. The cottage food laws vary wildly by state too - some allow online sales, others don't. Some have income caps (like $50K/year max), others don't. Definitely worth checking your state's agriculture department website before you scale up. Good luck with the sourdough venture!

Quick note: You mentioned you're not from this country - depending on your visa status and tax treaty, your eligibility for education credits might be affected. Some international students on certain visas can't claim these credits! Make sure to check your specific situation as an international student before claiming.

As an international student myself, I went through this exact confusion last year! First, you absolutely need to determine your tax residency status using the substantial presence test or if you qualify under a tax treaty. This determines whether you can even claim education credits. If you qualify as a resident alien for tax purposes, then yes - you can claim the Lifetime Learning Credit for your computer purchase since you paid for it yourself and aren't claimed as a dependent. The LLC allows 20% of up to $10,000 in qualified expenses, so your $2,500 computer could get you a $500 credit. However, the computer must be "required" for enrollment or attendance. Save your course syllabi that mention online submissions, emails about digital assignments, or any school documentation showing computer requirements. I had to provide this during my filing. One more thing - even though your parents paid tuition, if they don't claim you as a dependent AND you're eligible for education credits as an international student, you can still claim the LLC for expenses you personally paid. But double-check your visa status first - F-1 students in their first 5 years are typically nonresident aliens and can't claim these credits.

Just wanted to add that the penalties for failing to file quarterly estimated taxes as an independent contractor can be pretty significant too. Did your CPA mention anything about requesting a penalty abatement since you were misclassified and didn't know about the quarterly requirement? The IRS has a First Time Penalty Abatement policy that could potentially waive those failure-to-pay penalties if you have a clean compliance history. Might be worth asking about, especially if you're getting hit with both the misclassification AND penalties for not making quarterly payments.

This is exactly why I always tell people to document EVERYTHING when they suspect they're being misclassified. I went through this same situation two years ago and learned the hard way that the IRS looks for very specific evidence when making their determination. Some key things that helped my case: emails showing my boss setting my daily schedule, proof that I used company equipment exclusively, documentation that I couldn't subcontract my work to others, and evidence that I was required to attend company meetings and training. The more concrete evidence you have showing you were treated like an employee (not an independent business), the stronger your SS-8 and 8919 claims will be. Also, don't let your CPA's initial response discourage you. Worker misclassification cases are actually quite common and the IRS has established procedures for exactly this situation. If your CPA isn't familiar with these forms, consider getting a second opinion from someone who specializes in employment tax issues. A $17,000 tax bill is definitely worth fighting for, especially when you have a good case.

What investment platforms are you using? I've noticed that some brokerages are slower than others at reporting 1099 information to the IRS, which can cause delays in refund processing. Did you receive any CP01 notices or other IRS correspondence?

I had a similar situation last year with dividend income causing delays. The IRS transcript is definitely your best bet for getting detailed info before calling. If you do need to call, try the callback feature on 800-829-1040 - you can request they call you back instead of waiting on hold. I used it successfully last month and got called back within 3 hours instead of sitting on hold for over an hour. Just make sure you answer when they call back because they won't try again!