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facts. taking forever to process anything š¤¦āāļø
Looking at your transcript, the 570/971 combo is pretty standard when the IRS needs to verify credits - especially with that large refund amount. The good news is your account shows no penalties or interest accruing, which means they're not questioning the legitimacy of your return, just doing their due diligence. Based on the timing (971 notice issued May 2nd), you should receive that letter within 7-10 business days explaining exactly what they need. Once you provide any requested documentation or they complete their internal review, the 570 hold gets released and your refund processes. With credits like EIC and CTC, these reviews are routine but can take 6-12 weeks total. Keep checking your transcript weekly for updates - you'll see the 570 disappear first, then hopefully a 846 code with your direct deposit date. Hang in there! š¤
Does nobody here realize that if ur income is under $400 from self-employment you dont even have to pay self employment tax?? So all this worry about filing schedule C might be pointless. Also hobby income goes on Schedule 1 line 8 now (used to be "other income" on old forms). But cant deduct expenses so that sucks. Honestly for such a small amount IRS probably wont care either way lol but self employed makes more sense and lets u deduct expenses
Based on my experience with similar situations, I'd strongly recommend filing as self-employment income on Schedule C. The key indicator here is that you deliberately switched from a free app to a paid app with the intention of generating revenue - that's a clear profit motive, which is the primary factor the IRS considers. A few important points to consider: 1. **Expense deductions**: With self-employment classification, you can deduct your $99 developer fee and other legitimate business expenses, which could potentially reduce your taxable income below the $175 you received. 2. **Documentation**: Keep records of all expenses related to the app (developer fees, any equipment costs, software subscriptions, etc.) to support your business classification. 3. **Consistency**: If you plan to continue this activity in future years, it's better to establish the self-employment classification now rather than switching between hobby and business classifications later. The amount of time you spend on the app or whether it's your primary income source doesn't disqualify it from being a business. Many legitimate small businesses operate exactly as you've described - maintaining an existing product with occasional adjustments. Given the modest income level, the additional complexity of Schedule C is minimal and the ability to deduct expenses likely makes it worthwhile.
This is really helpful advice! I'm curious though - if someone switches from hobby to business classification in a later year (like if they decide to start actively marketing their app), does that create any issues with the IRS? Or is it okay to change classification as your situation evolves? I'm asking because I have a similar app situation but I'm genuinely not sure if I'll want to put more effort into it in future years. Don't want to lock myself into the wrong classification now if my intentions might change later.
Mine went from zeros to actual numbers then back to zeros again... The IRS is straight trolling us at this point š¤
bruh same. this tax season is wild
Looking at your transcript, the code 570 "Additional account action pending" typically means the IRS needs to do additional review or verification before releasing your refund. It's not necessarily a problem - could be routine verification of your EIC claim since you're getting $4,095. The negative account balance (-42) does mean you have a credit/refund coming. The processing just happened on 12/9, so you're still early in the process. Code 570 usually gets resolved within 2-4 weeks, then you'd see a code 571 when it's released. Keep checking your transcript for updates!
This is super helpful! So the 570 code isn't necessarily bad news? I was freaking out thinking something was wrong with my return. The 2-4 week timeline actually makes sense since it just processed. Thanks for breaking down what the negative balance means too - I wasn't sure if that was good or bad! š
The confusion here is that platforms like Hitched, Zola, etc. are required to issue 1099-Ks when total transactions exceed $600 (the threshold changed recently). This is supposed to help catch unreported business income but obviously catches a lot of non-taxable personal transactions too.
Actually, the $600 threshold was supposed to go into effect but the IRS delayed it. For 2023 (filing in 2024), the threshold is still $20,000 AND 200 transactions. It's changing to $5,000 for 2024 (filing in 2025), and then eventually to $600 in future years.
This is such a common issue now with wedding registries! I went through the exact same thing with our Zola registry last year. The key thing to remember is that you DO need to report the 1099-K on your tax return even though the gifts aren't taxable - otherwise the IRS computers will flag your return as missing income. Here's exactly what I did in TurboTax: Go to the "Federal" section, then "Wages & Income," then "Other Common Income," and select "Miscellaneous Income, 1099-A, 1099-C." Enter your 1099-K information there. Then, in the same section, you can add an offsetting entry with a negative amount and description like "Wedding registry gifts - not taxable income per IRC Section 102." The net effect is zero additional tax, but you've properly acknowledged the 1099-K. Keep screenshots from Hitched showing it was a wedding registry, any confirmation emails from gift-givers, and the registry page itself. Most importantly, don't stress - this is becoming super common and the IRS is aware that these platforms are issuing 1099-Ks for non-taxable personal gifts!
Giovanni Colombo
Community wisdom on WMR updates: ⢠Most updates happen overnight (3-4 AM Eastern) ⢠Saturday mornings often show the most changes ⢠Checking multiple times per day won't help ⢠Transcripts update before WMR about 80% of the time ⢠Status bars disappearing can actually be a good sign ⢠Tax Topic 152 usually means normal processing Hope this helps! Anyone have other tips?
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Malik Johnson
As someone who's been through this frustrating waiting game multiple times, I feel your pain about needing that refund for bills. One thing that helped me manage the anxiety was setting up direct deposit if you haven't already - it can shave off a few days compared to paper checks. Also, while everyone's mentioning the overnight updates (which is true), I've noticed that if there's going to be a status change, it usually happens between Wednesday night and Saturday morning. The worst part is that "accepted" status can last anywhere from a few days to several weeks depending on your return complexity. Hang in there - two weeks is still within normal processing times, especially during peak season.
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