Something important that hasn't been mentioned yet - make sure your cousin is actually eligible for a Traditional IRA deduction before recharacterizing! If he's covered by a retirement plan at work and his income is over the limits (for 2023: starts phasing out at $73,000 for single filers or $116,000 for married filing jointly), he might not get any tax benefit from the recharacterization. In that case, it might actually be better to keep it as a Roth contribution, especially if the recharacterization hasn't been fully processed yet. The worst scenario is recharacterizing to Traditional, getting no deduction due to income limits, and then having to pay taxes on that money again when you eventually withdraw it.

Just wanted to share my experience since I went through something very similar last year. I did a Roth to Traditional recharacterization in March 2024 for my 2023 contribution, and like your cousin, I was worried about the timing of the 1099. Here's what I learned: You absolutely report it on your 2023 return. The key date is when the original contribution was made (2023), not when you completed the recharacterization. Since your cousin did it before the April 15th deadline, he's good to go. As for the 1099 timing - don't stress about it. The recharacterization gets reported to the IRS by the custodian, but you don't actually need that form to file your return. You just report the contribution as if it went directly to the Traditional IRA. When the 1099 eventually comes, it's mainly for record-keeping and IRS matching purposes. One tip: Make sure to keep all the documentation from Fidelity showing the recharacterization details, including any earnings that were transferred. This will be helpful if the IRS ever has questions down the road. Good luck with the filing!

Don't forget about state and local requirements too! Everyone's talking about federal taxes, but depending on where you live, you might need: - State business license - Local business permit - Sales tax permit if you're selling taxable items - Possible local business taxes Also, some cities have restrictions on running businesses from home if that's what you're planning. Worth checking all this BEFORE you form the LLC.

Great question! I started my LLC at 19 while working full-time at a bank, so I totally get the confusion. Here's what I learned: You absolutely can have both - in fact, it's smart to keep that steady W-2 income while building your business. Your LLC won't affect your day job taxes at all. You'll still get your regular paycheck with taxes withheld, and you'll get a W-2 like normal. For your reselling business, since you're making $2800-3500/month, you're definitely at the point where an LLC makes sense for liability protection. Just make sure you're tracking EVERYTHING - cost of goods sold is huge for resellers. Every sneaker you buy to resell, shipping costs, packaging materials, gas for pickups, even a portion of your phone bill if you use it for business. One tip that saved me tons of money: look into a business credit card that gives cash back on business purchases. I use mine for all inventory and business expenses, then pay it off monthly. The cash back helps, plus it makes expense tracking automatic. Also, start making quarterly estimated tax payments NOW. I learned this the hard way - owing $4K at tax time when you're 19 is brutal. The IRS has a calculator on their website to help figure out how much to pay each quarter. Good luck with the business! Reselling can be really profitable if you stay organized with the tax side.

Something important no one's mentioned - get EVERYTHING in writing! After my tax year mess up, I had a verbal confirmation from an IRS agent that my penalty would be removed, but it never happened. When I called back, they had no record of the conversation. Now I send all communications via certified mail with return receipt and request written responses. For phone calls, I follow up with a "confirmation letter" summarizing what was discussed and agreed upon. Mail it certified and keep the receipt.

I went through this exact same situation with my LLC in 2021! The "short year" checkbox is so misleading - I also thought it just meant partial business activity, not business termination. Here's what worked for me: 1. **Request a Collection Due Process (CDP) hearing** - This gives you formal rights and stops collection while you're resolving the issue. You have 30 days from the levy notice to request this. 2. **File Form 911 (Taxpayer Assistance Order)** - This is for when normal IRS processes aren't working. Since your amendment has been processing for 2+ months with penalties still accruing, this might qualify as a "significant hardship." 3. **Document your reasonable cause argument thoroughly** - I wrote a detailed letter explaining that the form was confusing, attached screenshots of the TurboTax interface showing how unclear the "short year" option was, and included evidence that my business was ongoing (bank statements, contracts, etc.). The key thing that finally resolved mine was getting assigned to a specific IRS case worker through the CDP process rather than dealing with different agents each time. It took about 4 months total, but they eventually removed all penalties and accepted my full-year amendment. Don't give up - this is absolutely fixable, just frustratingly slow! Your CPA meeting should help a lot with the formal documentation needed.

The early deposit feature mostly applies to regular paychecks, not tax refunds. Tax refunds are sent by the Treasury in batches and the timing can be unpredictable. I wouldn't count on the "2 days early" thing for tax refunds specifically.

For anyone still waiting - just wanted to share that I also bank with Current and had a 4/15 DD date. Mine hit around 1:30pm today, so about 1 day early like most people have been saying. I think the key thing to remember is that the IRS releases these in waves throughout the day, so even if you have the same bank and DD date as someone else, you might get yours at different times. Don't panic if yours isn't there yet - it's probably coming soon! The stress of waiting is the worst part but it sounds like Current is being pretty consistent with the 1-day early timing for tax refunds.

I heard they're super backed up because of the pandemic still. My cousin's neighbor's dog's previous owner works for the IRS and said they're like 2 years behind on everything.

I'm going through the exact same thing right now! Filed early February, did the identity verification through ID.me about 3 weeks ago, and my transcript still shows no updates. It's like my return just disappeared into the void. One thing I've been doing is checking the "Where's My Refund" tool every Friday (that's when they typically update), but it's been stuck on "Your return is being processed" forever. Really hoping someone here has some insight because calling the IRS feels impossible these days. @Annabel have you tried checking if there are any notices in your online account? Sometimes they send digital notices that don't show up in the mail right away.