Oh no, I had no idea about quarterly payments! So I should have been paying throughout 2024 already? How do I even calculate how much to pay each quarter when my income varies so much month to month?

Yes, you should have been making quarterly payments for 2024, but don't panic too much - first-time business owners often miss this. The payments are due in April, June, September, and January of the following year. For calculating the amount, you have a few options. The safest way is to pay 100% of your previous year's tax liability divided by four (or 110% if your income was over $150,000). Since this is your first year, you can estimate based on your projected annual profit. The IRS Form 1040-ES has worksheets to help you calculate this. If your income varies a lot, you can also use the "annualized income installment method" which lets you pay based on what you actually earned each quarter.

The QBI is huge! But doesn't it phase out at certain income levels? I think there are also limitations based on business type.

You're right about the phase-outs, but they start pretty high - around $170,700 for single filers or $341,400 for married filing jointly (for 2024). Since OP mentioned making about $24,000, they should be well under the threshold. There are limitations for certain service businesses like law, medicine, consulting, etc., but a woodworking business making physical products would generally qualify without those restrictions. The basic calculation is straightforward for most small businesses under the income thresholds - typically 20% of your net Schedule C income.

Do you know if there's a way to see if my forms are still being processed or if they're just not going to send them? The tax deadline is getting closer and I'm getting nervous.

You can check the status of your tax forms by going to the Tax Documents section I mentioned and looking for a notice about "Remaining Forms." Robinhood usually indicates if you have forms that are still being processed. If there's no indication of pending forms, you may want to contact support directly. Another option is to look at your "Account Statement" for the year - it will show all your activity including stock trades and dividends. While not a substitute for official tax forms, it gives you the information you need to report your taxes properly.

This is terrible advice. The threshold isn't $20 for stock sales reporting. Brokers are required to report stock sales on 1099-B regardless of amount. The $20 threshold is for interest income on 1099-INT.

16 Do you have a link to this? I tried searching but came up with several different resources and I'm not sure which one you're referring to.

7 Sorry I should have included the link! It's called "Tax Procedure" by Morgan and is available through the University of Minnesota Scholarship Repository. Just Google "Morgan Tax Procedure Minnesota" and it should be the first result. The direct PDF is a bit hard to link, but that search should get you there. The most recent edition covers all the TCJA changes and has excellent citations if you want to dive deeper into specific sections of the tax code.

12 Bloomberg's materials are extremely comprehensive but probably not where you want to start if you're new to tax law. They're really designed for practicing tax attorneys and CPAs who already have a strong foundation. I'd recommend starting with something more accessible to build fundamentals, then using Bloomberg as a reference resource when you need deep dives into specific topics.

I never thought to check that! We do use Workday actually. Is this something in the benefits section or somewhere else? I'll have to poke around tomorrow. If I could set preferences that would be awesome.

Check under the Payroll section in Workday. Look for something called "Tax Withholding" or "W-4 Elections." Most versions have a withholding calculator where you can play with different scenarios. Some even have a slider where you can choose between maximizing paychecks (0 refund) or getting a specific refund amount. It's usually in the same place where you would update your W-4 information. The calculator is pretty helpful because it shows how each change affects both your paycheck and your expected refund. If you don't see it, your HR department can tell you if this feature is enabled for your company.

This is actually a myth that needs to die. For most normal people, the "interest" you'd earn on the extra $20-40 per paycheck is minimal compared to the psychological benefit of getting a larger refund. Most people don't invest that small difference anyway.

You're missing the bigger financial picture. Even small amounts add up significantly over time, especially with compound interest. An extra $40 per paycheck is $1,040 annually that could be in your investment accounts growing instead of sitting with the IRS. But more importantly, having access to your full earnings gives you financial flexibility throughout the year. That money could go toward paying down high-interest debt, building an emergency fund, or investing in retirement accounts with tax advantages. It's about having control of your own money rather than voluntarily restricting access to it. For people struggling with cash flow issues, every dollar in their regular paycheck matters.

Wait, can you really deduct car repairs if you use your car for both personal and business? How does that work with the standard mileage deduction? I thought it was one or the other?

You're absolutely right about the standard mileage rate vs. actual expenses - it's one or the other. If you take the standard mileage rate (which is 67 cents per mile for 2024), that's meant to cover gas, insurance, repairs, depreciation, etc. If your car costs are really high, you can instead choose to deduct actual expenses, but you'll need to track everything and then deduct the business percentage. For most people, especially with older vehicles, the standard mileage rate is simpler and often more beneficial. Just make sure you're keeping a detailed mileage log either way!

This information is outdated. The IRS eliminated Form Schedule C-EZ after the 2019 tax year. All self-employed individuals now use the regular Schedule C, regardless of income amount or business complexity. The good news is that most tax software makes filling out Schedule C pretty straightforward, even for simple situations. Just answer the questions the software asks, and it will complete the form properly.