Wait - quarterly tax payments? Nobody told me about that! So I have to pay taxes four times a year now? How do I even know how much to pay when I don't know how much I'll make with DoorDash?

Yes, when you're self-employed the IRS wants you to pay taxes throughout the year, not just at tax time. It's because you don't have an employer withholding taxes from each paycheck. You estimate how much you'll make for the year and calculate your quarterly payments based on that. You can use last year's income as a basis, or if your income varies a lot, you can use the "annualized income installment method" which lets you pay based on what you've actually earned each quarter. If you use tax software, it will usually calculate your estimated payments for the next year and even generate payment vouchers.

Is it better to take the standard mileage deduction or track all your car expenses separately (gas, maintenance, etc)? I've been doing Doordash for 6 months and just writing down my miles.

Mine took 32 days this year! Filed January 28th and didn't get my refund until March 1st. No special situations or anything complicated either, just a standard return with W-2 income only. I think they're just backed up.

That's crazy! Wonder if they're understaffed or something. Did you ever get an explanation for why it took so long? And did the status bar on the "Where's My Refund" tool update regularly or was it just stuck for weeks?

Filing an amended return shouldn't affect the processing of your original return - they're handled separately. Your original refund should proceed normally, and then the amended return (Form 1040-X) will be processed afterward. However, be prepared for a long wait on the amended return. Those typically take 16 weeks or longer to process, especially during peak tax season. Also worth noting that amended returns have to be processed manually, so they tend to take much longer than regular returns.

Can you explain exactly how to get the transcript? I logged into my IRS account but got confused by all the different transcript options. Is it the "Record of Account" or the "Account Transcript" or something else?

You want to request the "Wage and Income Transcript" which shows all information returns filed with your SSN (like W-2s, 1099s, etc.) for the tax year in question. This will show exactly what the IRS has on record. Also request the "Account Transcript" for the specific tax year, which shows actions taken on your account including assessments, payments, and adjustments. These two together will give you the complete picture of what the IRS is seeing versus what you reported.

TurboTax Audit Defense does cover CP2000 notices! I used it last year when I got one. You just need to call them and they'll assign a tax professional to help prepare your response. They won't represent you before the IRS, but they'll help you figure out what documentation to send and review your response letter.

Thanks for the reality check. I'm guessing I'll need to reclassify it as a distribution then. Is there any downside to doing that versus a loan to shareholder? And will I get in trouble for having initially run it through the business account?

A distribution is simpler than a loan in most cases. With a loan, you need to create proper documentation, charge interest at market rates, and set up a legitimate repayment schedule - otherwise the IRS might still classify it as a distribution anyway. You won't get in trouble for the initial miscategorization as long as you correct it. This happens frequently with small business owners. Your accountant will simply reclassify the transaction properly in your books. What would cause trouble is if you tried to deduct the kitchen remodel as a business expense and got audited. By being proactive and fixing the categorization now, you're doing exactly what you should be doing in this situation.

Yeah but the IRS doesnt look at every transaction right? Couldnt they just call it "building materials" or something vague and avoid the whole issue? My brother in law does that kinda stuff all the time with his business.

Thank you so much for this additional perspective! If I file as HOH and then reconcile with my husband later this year, would that create any issues with either my taxes or benefits?

Your filing status is determined by your situation on December 31st of the tax year. If you reconcile later this year, that would affect next year's tax filing, not the current one. For benefits, you should update your SNAP case whenever your household situation changes. There's usually a requirement to report changes within a certain timeframe (often 10 days). Failing to update your household composition can potentially result in an overpayment that you might have to pay back. The specifics vary by state, so I'd recommend checking with your caseworker about your local reporting requirements.

The 6 month rule is so important! I messed this up one year and got a letter from the IRS later asking for proof. Had to refile and pay penalties because I misunderstood the timing requirement.

Exactly! And the burden of proof is on the taxpayer. I always recommend people keep documentation of separate residences (lease agreements, utility bills, etc) for at least 3 years after filing. The IRS can come back and question your filing status, and without proof, you could face not just having to pay the difference but penalties and interest too.