One thing to watch out for - make sure you're using the correct tax forms for each year! The 2020 forms are different from current ones because of the special Covid provisions. I made this mistake and had to refile because I downloaded the wrong year's forms.

Hey there! I totally understand that anxiety about getting behind on taxes - life happens and sometimes important stuff falls through the cracks, especially after major life changes like divorce. The good news is you're not in as bad a spot as you might think! Since you're making around $38k annually, you're likely eligible for several credits that could actually result in refunds rather than owing money. The Earned Income Credit alone could be worth $1,500+ depending on your filing status and any dependents. A few quick points to ease your mind: - You have until May 2024 to file 2020 and still claim any refund (including those Covid credits) - If you're due refunds, there are no late filing penalties - you just don't get your money until you file - The IRS has been pretty understanding about Covid-related delays Don't let the fear keep you from filing - in many cases, people in your income range end up getting money back even when filing late. The sooner you start, the sooner you'll know exactly where you stand and can move forward with peace of mind.

the whole system is broken fr. why we gotta wait so long for OUR money

I feel your pain on this! The confusion between transcript dates and notice dates is so frustrating. From what I've seen, when you get a CP-21B notice like that, they usually default to sending a paper check even if you have direct deposit on file - something about the "corrected" refunds needing extra verification. The 2-3 week timeframe they mention is usually pretty accurate from the notice date (so mid to late January for you). I know it sucks when rent is coming up, but at least the CP-21B is good news - it means they found you're owed MORE money than you originally claimed. Hang in there! 💪

Get a real accountant!!! Seriously, ask them these questions. Random internet advice could get you in trouble with the IRS. These detailed business expense questions depend on so many factors specific to YOUR situation.

As a tax professional, I can confirm that your Spotify subscription can likely be deducted as a business expense based on what you've described. The IRS allows deductions for expenses that are "ordinary and necessary" for your trade or business. Your case is particularly strong because: - You use Spotify directly in your creative process for client work - You can demonstrate a clear connection between the music and your income-generating activities - You maintain business playlists that support client relationships However, you'll need to be prepared to: 1. Document the business use percentage (if you also use it personally) 2. Keep records showing how specific music influenced paid projects 3. Track which playlists/music directly contributed to client work The key is proving business purpose rather than personal entertainment. Since you're using it as a creative tool that directly impacts your design process and client relationships, you have a solid foundation for the deduction. Just make sure to maintain detailed records in case of an audit, and consider the advice others mentioned about separating business and personal use if that applies to your situation.

Don't forget to factor in self-employment tax! That's 15.3% on top of regular income tax. When i started my graphic design side hustle last year i completly missed that and ended up owing way more than i expected. My $6k in freelance work added like $900 just in SE tax alone, plus regular income tax.

The self-employment tax point is crucial - thanks for bringing that up! For anyone calculating their quarterly payments, don't forget that SE tax is calculated on 92.35% of your net self-employment income (after business deductions). So if you made $5,650 in freelance income like the original poster, you'd pay SE tax on about $5,217. Also worth noting that you can deduct half of your self-employment tax as an adjustment to income, which reduces your regular income tax burden slightly. It's not a huge amount, but every bit helps when you're trying to figure out your quarterly payment amounts. The combination of regular income tax AND self-employment tax is why that $1,000 threshold gets hit pretty quickly with freelance work, even at relatively modest income levels.

Has anyone tried just filling out BOTH? I mean, complete their substitute W9 AND send a standard form? That's what I've been doing with clients who are stubborn about their systems. Seems like overkill but it keeps everyone happy.

I've been dealing with this exact issue for the past few months! What finally worked for me was a combination approach - I explained to the stubborn clients that I have security concerns due to previous data breaches, and I offered to do a phone verification instead of using their portal. I prepared a simple script explaining that while I understand their need for W9 information, I maintain a policy of not entering sensitive tax information into third-party systems I haven't vetted. Then I offered alternatives: "I can provide you with a completed standard W9 via secure email, or we can schedule a brief call where I can verbally confirm all the required information while you complete your internal form." About 80% of clients accepted the secure email option. For the remaining 20%, the phone verification worked perfectly - they got their information entered into their system, and I didn't have to trust another potentially insecure portal with my SSN and other sensitive data. It only took about 5-10 minutes per client and gave me much better peace of mind.