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.

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.

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 highly recommend pulling your credit reports too! I had a similar situation where I owed $12k in taxes suddenly, and it turned out someone had stolen my identity, gotten a job using my SSN, and never paid taxes on the income. The IRS thought that income was mine. You can get free credit reports at annualcreditreport.com - look for any accounts or employers you don't recognize. If you do find evidence of identity theft, the IRS has a special department that handles these cases and they can help clear it up.

I went through something very similar last year - $8k surprise tax bill that made no sense. Here's what I learned from my experience: First, don't panic about owing the full amount right away. The IRS is actually pretty reasonable about payment plans if you communicate with them proactively rather than ignoring the situation. Second, there are really only a few common reasons for surprise tax bills like this: 1. Unreported income (1099s you didn't know about, employer reporting issues) 2. Filing status problems (like the dependent/married situation you mentioned) 3. Identity theft or fraudulent filing 4. Stimulus payment mix-ups from 2021 Before you spend money on professional help, I'd suggest doing some detective work first. Get your wage and income transcript like Anna mentioned, pull your credit reports to check for identity theft, and call the IRS to get a basic explanation of what they think you owe and why. In my case, it turned out a previous employer had filed a corrected W-2 that reported additional income I'd never been told about. Once I understood what happened, I was able to work directly with the IRS to set up a manageable payment plan. The key is getting that initial conversation with the IRS to understand exactly what's on their records. Then you can figure out if it's legitimate debt you need to pay or an error you need to dispute.