Banks also look for unusual deposit patterns compared to your history. If you suddenly start making cash deposits when you normally don't, that might trigger questions regardless of the amount. My friend runs a legit dog grooming biz and started taking cash instead of venmo, and the bank actually asked her about the change in deposit patterns!

Great question! Just to add to what others have said - the key is being natural and consistent with your deposits. Since you mentioned this is from photography work, I'd suggest keeping good records of your jobs and payments. If you're getting paid $2k for a wedding shoot, just deposit that $2k when you get it. Don't try to split it up or hold onto cash to avoid any thresholds. The IRS cares way more about whether you're reporting the income on your taxes than about the specific deposit amounts. As long as you're documenting your photography income and paying taxes on it, you're doing everything right. Banks are looking for people who are obviously trying to game the system, not legitimate small business owners just depositing their earnings. One practical tip: consider opening a separate business account for your photography income if you haven't already. It makes tracking everything much easier and looks more professional if there are ever any questions.

This is such a common and frustrating issue! I went through something very similar when I first started receiving RSUs. The $0 cost basis on your 1099-B is definitely causing the double taxation problem you're seeing. Here's what I learned from my experience: Your RSU income was already taxed as ordinary income when the shares vested (that's the $123K showing on your W-2). When you sell those shares, you should only owe capital gains tax on any appreciation between the vesting date and sale date - not on the full sale amount. The key is to correct the cost basis on Form 8949. For each RSU sale, your cost basis should equal the fair market value on the vesting date (which was already included in your W-2 income). If you sold immediately after vesting, your capital gain should be minimal or even zero. I'd strongly recommend getting your detailed vesting records from your brokerage or HR system - these will show you the exact vesting values you need. Given the amounts involved ($32K potential overpayment), it might be worth consulting with a tax professional who specializes in equity compensation to make sure everything is filed correctly. Don't panic though - this is totally fixable and you're definitely not the first person to run into this! The IRS sees these adjustments all the time during RSU season.

I've been through this exact scenario and it's absolutely maddening! You're 100% correct that this is double taxation. The $0 cost basis on your 1099-B is the culprit here. Here's what saved me: When RSUs vest, your company reports the fair market value as income on your W-2 (that's part of your $298K total). That same value should be your cost basis for capital gains purposes when you sell. Since you sold immediately after vesting, your actual capital gain should be close to zero, not $72K. You'll need to use Form 8949 to report the correct cost basis. In Column (e), enter the proceeds from your 1099-B. In Column (e), use the vesting day fair market value (not $0) as your cost basis. Most tax software has a specific workflow for RSU basis adjustments - look for prompts about "equity compensation" or "RSU sales." The good news is this will dramatically reduce your tax bill once corrected. I went from owing $18K to owing $2K after fixing my cost basis. Given the amounts involved, I'd definitely recommend either using specialized software that handles equity compensation well or consulting with a tax pro who knows this area. CPA firms that work with tech companies see this constantly and can usually fix it quickly. You're not crazy - the system is just poorly designed for equity compensation!

mine took exactly 12 days to come. hang in there!

Same situation here - filed about 2.5 weeks ago and still waiting on my 5071C letter. The uncertainty is killing me! Has anyone had luck with the online ID.me verification process, or is the phone/letter route really the only way? Also wondering if the postal service delays might be making this even longer than usual.

This thread has been incredibly valuable! I'm in a similar position with my IT consulting business - been running as a SMLLC for 18 months and just crossed $88k net profit. The timing couldn't be better since we're still early enough in 2025 to make the election effective for this tax year. One thing I'm curious about that I haven't seen discussed much: how do you handle business expenses with the S-Corp structure? With my LLC, I just run everything through the business account and deduct it all on Schedule C. Does the salary/distribution split affect how you categorize and deduct business expenses like equipment, software subscriptions, home office, etc.? Also, for those using payroll services - any specific recommendations? I've been looking at Gusto and QuickBooks Payroll, but would love to hear from people who've actually used them for single-member S-Corps. The monthly cost seems reasonable if it handles all the tax filings and compliance automatically. The documentation advice throughout this thread is gold - I'm already starting to compile salary research for IT consultants in my area. Even if I don't elect immediately, having that ready will make the decision process much smoother. Thanks everyone for sharing such detailed real-world experiences!

I've been following this discussion closely as I'm in a very similar situation with my freelance writing business. Currently at $102k net profit as a SMLLC and my tax preparer has been suggesting the S-Corp election for the past year. What really sealed the deal for me was running the numbers on the self-employment tax savings. At my income level, I'm paying about $14,400 in SE taxes annually. If I set a reasonable salary around $65k (based on content strategist roles in my market), I could potentially save over $5,000 per year even after accounting for payroll service costs. The timing aspect mentioned by several people here is crucial - I almost missed the March 15th deadline last year because I kept procrastinating on the decision. This year I'm planning to file the election by February to give myself plenty of buffer time. One thing I haven't seen mentioned much is how this affects quarterly estimated payments during the transition year. I'm assuming I'll need to recalculate my Q2 payment once I start taking salary, since the withholdings will change my overall tax liability calculation. Has anyone dealt with this mid-year adjustment process? The business legitimacy angle is also appealing to me. I've noticed some corporate clients have stricter vendor requirements that seem to favor incorporated entities. Even if it's just perception, anything that makes my one-person consultancy appear more established could help with client acquisition. Thanks to everyone who's shared their experiences - this thread has been more helpful than months of generic online research!

I'm going through this EXACT same situation right now and it's driving me absolutely crazy! The phone system has been saying "paid" for two days while the website stubbornly shows "unfunded" - I was starting to wonder if I was dealing with some kind of glitch in the matrix. Reading all these responses is incredibly reassuring though. It sounds like this is just how SBTPG operates unfortunately, with their systems living in completely different time zones. I love the idea of setting up mobile banking alerts and calling the bank directly to check for pending ACH transfers - that's way smarter than refreshing the SBTPG website every five minutes like I've been doing. Thanks everyone for sharing your experiences! It really helps to know this chaos is normal and that "paid" on the phone is the status to actually trust.

This is such a common and frustrating experience! I went through the exact same thing about a month ago and was convinced something had gone terribly wrong. The phone system saying "paid" while the website shows "unfunded" is basically SBTPG's signature move at this point. What I learned from my experience is that "paid" on the phone means the IRS has successfully transferred your refund to SBTPG, but "unfunded" on the website means they haven't processed it out to your bank yet. It's like two different stages of the same pipeline. My refund hit my account about 36 hours after the phone first said "paid" - and hilariously, the website was STILL showing "unfunded" even after I had the money! I'd recommend trusting the phone system and maybe checking your bank account twice a day instead of constantly refreshing their website. The anticipation is killer, but it sounds like you're right on track for getting your refund soon!