I just went through this exact scenario with my craft business! I purchased $3,750 in materials in December 2023 but didn't sell anything until January 2024. My accountant had me file a Schedule C showing zero income, and we listed the inventory on Part III but didn't claim it as COGS yet since nothing sold. We did deduct my $850 in legitimate business startup expenses like my LLC filing fee, website costs, and business cards. The inventory will become COGS when I file my 2024 taxes as items sell.

Thanks for all the helpful responses everyone! Just to clarify a few additional points that might help other newcomers in similar situations: Make sure you keep detailed records of your inventory purchases with receipts and invoices - the IRS will want to see documentation if questioned. Also, don't forget about the business use of home deduction if you're operating from your residence. Even with zero sales, you can still claim a portion of your home expenses if you have a dedicated business space. And regarding accounting methods - you typically need to choose cash vs accrual when you file your first Schedule C, so research which makes more sense for your business type before filing.

Has anyone used TurboTax for this scenario? I'm wondering if it handles this situation correctly or if I should go to a professional preparer this year.

I went through this exact same situation last year and it was really confusing at first! You absolutely need to file Schedule H even though your payroll service is making the estimated payments. Here's what I learned: The Schedule H shows the IRS that you had household employment tax obligations, while the 1040-ES payments you already made get credited toward your total tax liability. Think of it this way - Schedule H calculates what you owe, and the estimated payments show what you've already paid toward that debt. Your payroll service should provide you with a year-end summary showing total wages paid, Social Security, Medicare, and federal unemployment taxes. Use those exact numbers on Schedule H. The estimated tax payments you made throughout the year will appear as credits on your 1040, so you won't pay twice. One tip: double-check that the total of your quarterly estimated payments matches (or comes close to) the total household employment taxes shown on Schedule H. If there's a big discrepancy, you might need to make an additional payment or expect a refund. I was terrified of messing this up, but once I understood that Schedule H is just reporting what happened (not creating a new tax bill), it made much more sense!

This is exactly what happened to us! We were in the same boat - both claiming 0 on our old W-4s and still owing every year. The problem is that "married" withholding assumes only one spouse works, so when you both have jobs with similar incomes, you end up in higher tax brackets than expected. Here's what finally fixed it for us: We both filled out brand new W-4 forms and checked the "Two Jobs" box in Step 2. That single checkbox made a huge difference! We also made sure only one of us claimed our kids (I claimed all three since my salary is slightly higher), and the other spouse left Step 3 blank. Since you owed $2,800 this year, you might also want to add some extra withholding in Step 4(c) just to be safe. We added $40 per paycheck each after our first year with the new forms, and now we get a small refund instead of owing. Don't wait - update those W-4s right away! Your HR departments should have the current forms, and you'll see the increased withholding in your next paychecks.

I went through this exact same frustrating cycle for years! The root issue is that when both spouses work and earn similar amounts, the standard withholding tables don't account for your combined household income pushing you into higher tax brackets. Here's what you need to know: the old "allowances" system you're using was completely replaced in 2020. Those old W-4s with "0 allowances" don't work the same way anymore, which explains why you keep owing despite thinking you're having maximum withholding. You both need to fill out the current W-4 form immediately. The key changes: - Check the "Two Jobs" box in Step 2 (this is crucial for dual-income households) - Only ONE of you should claim your 3 kids in Step 3 - typically the higher earner - Consider adding extra withholding in Step 4(c) - maybe $50-60 per paycheck total between both of you The "married" withholding rate assumes you're the sole earner, so when you both work, you're systematically under-withholding. The new W-4's "Two Jobs" checkbox specifically addresses this problem. Don't let this happen a fourth year! Update those forms with HR this week and you should see the difference in your next paychecks.

The r/TruistBank community has a pinned thread about this exact issue. According to multiple reports there, Truist has never released IRS refunds early in the last three tax seasons. The IRS Where's My Refund tool (https://www.irs.gov/refunds) will show the official DDD, but according to community data, Truist customers should always plan for that exact date. Some users reported that deposits sometimes don't appear until late afternoon on the DDD, so don't panic if you don't see it first thing in the morning.

Thanks for all the detailed responses! As someone new to tracking tax refunds this closely, this has been incredibly helpful. It sounds like Truist is pretty much locked into their exact DDD policy with no wiggle room. I appreciate the specific references to their internal policies and regulations - that gives me the confidence I need to plan my business cash flow knowing the funds will arrive exactly on 2/28, not before. The suggestion about maintaining accounts at different banks for different purposes is interesting too, though probably overkill for my situation. I'll definitely bookmark that r/TruistBank thread for future reference!

I'm about 2.5 weeks into waiting for TAS to contact me after submitting Form 911, and honestly this thread is both reassuring and terrifying at the same time! 😅 It's helpful to see I'm not the only one dealing with these insane wait times, but wow - some of you have been waiting 6+ weeks which is just brutal. @Michael your timeline really gives me hope though! Knowing that once they do contact you things can move quickly (10 days for refund release!) makes the wait feel slightly more bearable. I'm definitely going to call that TAS intake line at 1-877-777-4778 that multiple people have mentioned - even just getting confirmation that my case is in the system would help with the anxiety. For anyone else in this waiting game, I've been keeping a detailed log of all my IRS interactions like some folks suggested, and it's actually been helpful for my own sanity to see everything documented. Also pulling transcripts while waiting seems like a smart move. @Rami I totally feel your desperation about the refund situation - the financial stress on top of the uncertainty is just awful. Hang in there and keep us posted if you hear anything! We're all rooting for each other in this mess! 🤞

I'm at about 3 weeks since submitting my Form 911 and this thread has been incredibly helpful! It's both comforting and nerve-wracking to see everyone's different timelines - some getting responses in 4-5 weeks while others are still waiting after 2+ months. @Rami I completely understand your desperation, especially with 8 months already waiting on your refund. That kind of financial stress is just overwhelming. Based on what everyone's sharing here, it sounds like calling that TAS intake line at 1-877-777-4778 is definitely worth trying - multiple people have confirmed they can at least verify your case is in the system and give you a case number. One thing I noticed from reading through all these experiences is that people who clearly documented immediate financial hardship (like potential eviction) seemed to get contacted a bit faster. @Michael's success story of getting refund released in just 10 days after first contact really gives me hope that once they do reach out, things can move quickly. The waiting is absolutely brutal when you're facing financial pressure, but it sounds like most people do eventually get help. Keeping detailed records and pulling transcripts while we wait seems like smart advice from the folks who've been through this. Hang in there everyone - we're all in this frustrating boat together! 🤞