This is really helpful context - thank you! She definitely uses my equipment (camera, lights, props) and I do direct how and when she works. She doesn't work exclusively for me though - she has her own separate job too. Does that mix of factors still lean more toward employee classification? I'm worried about the complexity of setting up payroll for just one part-time person.

Based on what you're describing, it does sound like she leans more toward being an employee than a contractor. Using your equipment and you controlling how/when she works are big factors the IRS looks at. The fact that she has another job doesn't automatically make her a contractor for your business - plenty of people have multiple employers. What matters is the nature of her relationship with YOUR business specifically. I totally understand the payroll setup concern - it felt like overkill for my situation too. But there are affordable payroll services like Gusto or Square Payroll that make it pretty simple and handle all the tax filings for you. They're designed for small businesses with just a few employees. The peace of mind knowing I'm compliant has been worth the extra cost for me. Some of these services are only $35-45/month for your first employee.

This is dangerously incorrect advice. The IRS has very specific tests for determining contractor vs employee status, and "being family" or "small business" doesn't exempt you from those rules. Misclassification can result in back taxes, penalties, and interest. The IRS looks at behavioral control, financial control, and relationship factors - not how convenient it is for the business owner. Please don't spread information that could get people in trouble.

Thanks for mentioning this! I do have a full-time job in marketing, so offsetting some income would be amazing. What's the best way to prove that my Instagram page is a legitimate business and not just a hobby? I'm definitely approaching it as a business, but want to make sure I have the right documentation.

The best way to prove business intent is to treat your Instagram venture like a professional business from day one. Create a separate business bank account for all transactions, develop a formal business plan showing your path to profitability, keep meticulous records of all expenses, and document your marketing strategies and partnership outreach. Start tracking metrics that show growth and progress toward monetization - follower growth, engagement rates, partnership inquiries, etc. Keep records of all communications with potential business partners or sponsors. Consider getting an EIN (Employer Identification Number) from the IRS even if you don't have employees, as it demonstrates business formality. The key is showing that you're approaching this with a serious profit motive and not just as a passion project.

I think you're confusing tax concepts. QBI deduction only applies once you're profitable, and if OP is spending $13k with no revenue, they're not going to benefit from this at all. Also, they'd need to be filing as a sole proprietorship, partnership, or S-corp to qualify, not just randomly spending money on Instagram.

Thanks for this suggestion! I just called the company and apparently they had been sending my 1099 to an old address. They emailed me a copy right away and apologized for the confusion. Problem solved!

This is true but having the official forms makes it a lot easier if you ever get audited. Always better to have more documentation than less!

I'm a payroll specialist and while this technically works, most HR departments hate when employees do this because it creates extra work. Plus with the new W-4 form, there aren't "allowances" anymore - you'd need to specify an additional withholding amount.

Thanks for the clarification about the new W-4 - I didn't realize they changed the form. I guess I won't bother my HR department then. Just doesn't seem worth creating drama over one paycheck even if it is frustrating to see so much withheld.

Do you need to make an appointment for VITA or can you just show up? And do they file state taxes too or just federal?

You definitely need to make an appointment for VITA services - they book up fast, especially as it gets closer to the April filing deadline. I recommend calling your local library or checking the IRS website to find VITA locations near you and schedule ASAP. They absolutely handle state taxes too! The volunteers are trained on both federal and state returns. Just make sure to bring all your tax documents (W-2s, 1099s, last year's return, etc.) to your appointment. Most locations also offer the option to file electronically so you can get your refund quickly.

I used H&R Block last year when I was unemployed. Their basic free version is OK but very limited. I don't think they have a specific laid-off promo, but they do have a "More Zero" option that's free for simple returns. But beware they'll try HARD to upgrade you if you have anything even slightly complicated.