Don't overlook self-employment taxes! As a 1099 contractor you'll pay both the employer and employee portions of Social Security and Medicare taxes (around 15.3% total). That's on top of your regular income tax. Make sure you're setting aside enough. I learned this the hard way my first year lol.

Actually, there are a few ways to reduce your self-employment tax burden! First, make sure you're maximizing ALL business deductions (equipment, software, home office, etc.) because these reduce your net self-employment income that the 15.3% is calculated on. Second, you can deduct half of your self-employment tax as an above-the-line deduction on your personal return. Third, consider contributing to a SEP-IRA or Solo 401k if you're making good money - these reduce both your income tax AND self-employment tax. The key is tracking every legitimate business expense since those directly reduce what you're paying SE tax on.

Just went through this exact process a few weeks ago! Filed on February 20th and was obsessively checking everything. The Account Transcript is 100% what you need - it's like having a backstage pass to see what's actually happening with your return. Here's what I learned from my experience: - Code 150 appeared first (return processed) - About 10 days later, got the dreaded 570 code which freaked me out - Called the IRS (after a 2-hour wait) and they said it was just routine income verification - Code 571 showed up exactly 2 weeks later releasing the hold - Code 846 appeared the next day with my deposit date - Money hit my account one day BEFORE the 846 date! The cycle codes are actually pretty cool once you understand them. Mine was 20240805 which meant processed in week 8 on a Friday. Since you filed March 1st, you're still well within the normal timeframe. Don't stress if you see a 570 code - it's way more common than people think and usually resolves itself. The key is just being patient and checking Wednesday mornings when transcripts update. You've got this!

This thread has been incredibly helpful! I filed on March 5th and have been anxiously waiting. Just checked my Account Transcript this morning and I have code 150 with cycle code 20241105. Based on what everyone's shared here, that means my return was processed in week 11 on a Friday, which gives me hope I'm on track for normal processing times. One question for the group - I noticed my transcript also shows a small amount next to code 768 (Additional Child Tax Credit). Is this normal to see alongside the 150 code, or does this indicate any potential issues? I claimed the CTC for my two kids on my return, so I'm hoping this is just the system properly crediting that amount. Really appreciate everyone sharing their real experiences with timelines and what the codes actually mean. It's so much more useful than the vague explanations on the IRS website. I'll be checking Wednesday mornings from now on instead of randomly throughout the week!

LPT: if this happens again next year, try accessing the mySocialSecurity site very early in the morning (like 5-6am) or very late at night. Their servers get completely overloaded during tax season during normal hours. I couldn't log in for weeks during business hours, then tried at 5:30am and got right in!

As a tax professional, I want to emphasize that while these alternative solutions like taxr.ai and Claimyr might be helpful, the most important thing is accuracy. The IRS does allow you to report Social Security income without the physical SSA-1099 form, but you need to be absolutely certain of the amounts. If you received only two payments in 2023, you should be able to find the exact amounts on your bank statements or by checking your Social Security account online during off-peak hours (as others mentioned). The key is that whatever you report must match exactly what the SSA reports to the IRS. For future reference, SSA-1099 forms are typically available online by February 1st even if the mailed versions are delayed. But definitely try the early morning login trick - I've recommended this to many clients with success. Don't let a delayed form prevent you from filing on time, especially since you can always file an amended return later if needed.

As someone who's been through this exact situation, I'd strongly recommend getting some concrete numbers before making that truck purchase. With your $67k in 1099 income and that $16k annual tax hit, you're definitely in a position where smart vehicle deductions could make a real difference. Here's what I'd suggest: before you buy, calculate both scenarios with actual numbers. For the depreciation route on a $55k truck (assuming 80% business use), you're looking at potentially deducting around $44k in year one with Section 179. At your tax bracket, that could save you roughly $10-12k in taxes the first year alone. But here's the catch - you mentioned you're conservative with deductions and that's smart. Make sure you can genuinely justify that 80% business use percentage, because the IRS will want to see detailed records. If your actual business use is more like 60%, then your deduction drops accordingly. Also consider the cash flow impact. That truck payment might be $800-1000/month, but if you're saving $10k+ in taxes year one, it changes the math significantly. Just remember those big first-year savings mean smaller deductions in future years. Have you considered leasing instead? Sometimes the deduction structure works out better for contractors, especially if you like updating equipment regularly.

The 70% business use sounds much more realistic and defensible than 80%, especially if you're planning weekend personal use. The IRS loves to audit vehicle deductions, so being conservative here is smart. For leasing vs buying: With a lease, you deduct the business percentage of your monthly lease payments instead of taking depreciation. So if you lease for $600/month and use it 70% for business, you'd deduct $420/month ($5,040/year). The advantage is consistent annual deductions and no depreciation recapture issues if you switch vehicles. The downside is you don't own anything at the end, and there can be mileage restrictions that might not work for your equipment hauling needs. For your situation with lumpy 1099 income, the big first-year depreciation write-off might be more valuable since it hits that $16k tax bill hard right away. Just make sure you're prepared for smaller deductions in years 2-5. One more thing - since you're hauling heavy equipment, make sure whatever truck you get has the payload capacity you actually need. Don't let the tax tail wag the business dog. A truck that can't properly handle your work loads isn't worth any tax savings.

Thanks for all the helpful info everyone! Just to clarify my understanding - so I can withdraw up to $10,000 TOTAL across both my Roth and traditional IRAs using the first-time homebuyer exemption, not $10k from each account. And with my Roth IRA, I can also take out all my contributions penalty-free anytime regardless of the exemption, which gives me more flexibility. One follow-up question - does the order matter? Like should I exhaust my Roth contributions first before using the $10k exemption on earnings? Or would it be smarter to use the exemption on my traditional IRA since those withdrawals would be taxable anyway? I'm trying to minimize my overall tax burden while maximizing what I can access for the down payment.

Just wanted to add a practical tip from my recent home buying experience - if you're planning to use IRA funds for your down payment, make sure to coordinate the timing with your lender and closing date. I made the mistake of withdrawing the money too early and had to keep it in a savings account for 6 weeks, which actually complicated my mortgage application because lenders want to see "seasoned" funds. The 120-day rule gives you flexibility, but ideally you want to time the withdrawal so the funds hit your account close to when you'll need them for closing. Also keep detailed records of the withdrawal and home purchase - I saved copies of my IRA distribution form, the closing disclosure, and purchase contract just in case the IRS ever asks for documentation of the first-time homebuyer exemption. Good luck with your home purchase! The market is definitely challenging right now, but every bit of penalty-free access to your retirement funds helps with that down payment.