pro tip: make sure your bank info is correct bc if theres any issues itll get kicked back and delay everything another 6-8 weeks

Congrats Mei! That's awesome news after such a long wait. Code 846 is definitely the refund issued code, so you should see that money hit your account on or around 1/10/25. I know the feeling of waiting almost a year - it's incredibly frustrating but you're finally at the finish line! Make sure to keep an eye on your bank account starting a day or two before that date, sometimes they process a bit early.

been on hold with irs for 3 hrs today trying to figure out my codes. wish id known about that ai thing sooner ngl

Congrats on the 846! That's the golden code we all wait for 🎉 You should see your refund in your account within 2-5 business days. I remember that feeling of relief when I finally saw mine after months of waiting. Chase usually processes pretty quickly so you might even see it sooner than expected!

Quick tip that helped me: Make sure you're also considering the annual Section 179 expense deduction dollar limit ($1,160,000 for 2025) and the phase-out threshold ($2,890,000 for 2025). These limits apply before you even get to the business income limitation. Also, don't forget that taking Section 179 is optional - you can always just take regular depreciation instead if it makes more sense for your tax situation. Some years it's better to spread the deduction out rather than taking it all upfront.

Just be careful with how you document this. I took the full Section 179 deduction counting my W2 income last year and got a CP2000 notice questioning it. Had to send in explanations and reference the exact regulation. Make sure you keep excellent records including invoices for all equipment, proof of payment, business use percentage documentation, and placed-in-service dates.

I did a single photography job last year for a wedding and wondered the same thing. Ended up having to pay self-employment tax and it sucked. Don't forget you'll need to pay ESTIMATED taxes next year if he does something like this again!! I got hit with a penalty because nobody told me about that rule.

I was in a very similar situation a few years back with some freelance web development work I did for a neighbor's small business. The amount was around $3,800, so pretty close to what your husband earned. Even though it felt like "just helping someone out," the IRS treats any income from services as self-employment income regardless of whether it's a one-time thing or an ongoing business. I learned this the hard way when I tried to report it as "other income" initially. One thing that helped me was keeping detailed records of all the expenses related to the project - software licenses, the portion of my home internet used during those work hours, even some office supplies I bought specifically for organizing the project files. These deductions on Schedule C helped offset some of the self-employment tax burden. Also, since your husband's friend didn't send a 1099, make sure to keep any records of the payment (bank deposits, checks, PayPal records, etc.) in case the IRS ever has questions. The lack of a 1099 doesn't mean the income doesn't need to be reported, but having your own documentation makes everything cleaner.

Just adding my experience - I did a voluntary disclosure in 2023 for unreported income from freelance work I did while living abroad. The key factor that saved me from major penalties was proving that my failure to report was genuinely non-willful. I wrote a detailed statement explaining how I misunderstood the foreign earned income exclusion rules and thought my income was fully covered. I included evidence of seeking tax advice (albeit bad advice) from a local accountant who wasn't familiar with US tax requirements. The IRS accepted my explanation and I qualified for the Streamlined procedures. I paid the back taxes plus interest, but avoided the massive FBAR penalties that could have applied. The peace of mind is worth it - I sleep much better now knowing I'm not at risk of a scary IRS letter showing up someday.

I'm currently dealing with a similar situation and this thread has been incredibly helpful! I've been putting off addressing some unreported foreign account income because I was terrified of the potential penalties, but reading everyone's experiences gives me hope that voluntary disclosure might not be as scary as I thought. One question I haven't seen addressed yet - does anyone know if there's a statute of limitations on how far back the IRS can look for unreported foreign income? I'm worried they might want to go back more than the typical 3-6 years because of the international component. Also, for those who went through the process, did you have to provide documentation from foreign banks in English, or were certified translations required? My account statements are in German and I'm not sure what level of documentation the IRS expects. Thanks to everyone who shared their experiences - it's really helping me work up the courage to move forward with this instead of continuing to lose sleep over it!