I tried looking on their website but couldn't find it anywhere. And googling my small local credit union didn't turn up the EIN. Maybe I should just call them?

Yes, calling them is definitely your best option if you can't find it online. Ask specifically for their "federal employer identification number" or "tax identification number" for 1099 reporting purposes. Make sure to have your account number handy as they'll likely need to verify your identity before providing any tax information. Local credit unions usually have much shorter hold times than big banks, so hopefully it won't be too painful!

The IRS did make some changes to the 1099-INT form for 2024. The payer's EIN should be in the top left section now in its own designated field. Some banks are using the updated format while others are still using older versions. If your form is missing the EIN field entirely, that's definitely a mistake on the bank's part.

How detailed does that log need to be? I use my laptop for both my regular job and my side hustle selling digital patterns. Should I be tracking hours or something?

Is getting an EIN difficult? I'm concerned about making things more complicated. Does it change how you file taxes?

Getting an EIN is actually super easy - it takes about 5 minutes online through the IRS website. You get the number immediately. It doesn't complicate your taxes at all. You'll still file the same Schedule C with your personal return. It just means you can use your EIN instead of your SSN on W-9 forms and invoices, which helps protect your identity when dealing with multiple clients. Many banks also prefer seeing an EIN when you're opening a business checking account.

I've been using it for about 3 years now. It's definitely worth it for me. The mileage tracker alone saves me hundreds in deductions I would've missed, and it automatically categorizes transactions from your bank account. The quarterly tax calculator and payment reminders are super helpful too.

Thanks for the info! The mileage tracker sounds especially useful since I do a lot of driving between client sites. Do you find the automatic categorization is actually accurate or do you spend a lot of time fixing its guesses?

That actually makes me feel better! Do you think it's worth trying to do my own taxes this year with software, or should I just stick with my tax person until my situation gets more stable? Right now I just have one job and some student loans.

With just one job and student loans, you have a perfect situation to try doing it yourself! It's actually the ideal time to learn because your taxes are relatively straightforward but you'll still learn about education credits and student loan interest deductions. I strongly recommend trying it yourself with a good tax software. You can always decide not to submit if you're uncertain and go back to your tax person. But honestly, you'll probably find it much easier than you expect, and you'll learn a ton about taxes that will benefit you for years.

Any specific channels you'd recommend? I've tried looking up tax videos before but couldn't tell which ones were actually giving good info vs just trying to sell something.

Thanks for this advice. I didn't realize there was a specific order I needed to follow. So how long does it typically take to get a sales tax permit once you apply? Can I still sell during that period or do I have to pause my store?

Most states will issue permits within 2-3 weeks, though some can take longer. You can absolutely continue selling during this period - you don't need to pause your store. You'll just need to account for any sales made before you start collecting properly. Keep good records of all sales by state during this transition period so you can accurately report them when it's time to file.

This is such a good point! I got audited because I had inventory sitting in an Amazon warehouse in California but wasn't collecting California sales tax. Cost me nearly $12k in back taxes and penalties.