Just wanted to chime in with my experience from last year when I had a similar issue with missing state information on my W-2. I work for a consulting firm that has clients all over the country, and my W-2 had the same problem - blank box 15 but state taxes withheld in boxes 16-17. What ended up working for me was checking my final pay stub from December, which clearly showed which state the taxes were being withheld for (it was listed as "CA SIT" for California State Income Tax). Once I confirmed the state, I was able to call their tax department directly and they helped me get the employer state ID number over the phone. The whole process took about a week to sort out, but it was much faster than waiting for my employer to issue a corrected W-2. Since you mentioned you worked remotely from Nevada but moved to Arizona, and Nevada doesn't have state income tax, that $1,142 is almost certainly Arizona withholding. One tip that helped me was to have my W-2 in front of me when I called the state tax department. They asked for the exact employer name as it appears on the form, the federal EIN, and the withholding amounts to verify everything in their system. Don't stress too much about the deadline - you have more options than you think, and this kind of issue is actually pretty routine for the tax agencies to handle.

I've been dealing with W-2 issues myself this year and this thread has been incredibly helpful! One thing I wanted to add that might save others some time - if you're working with a larger company that uses a major payroll provider like ADP or Paychex, they often have dedicated tax support lines that can be faster than going through your regular HR department. I called ADP's client support line directly (since that's who processes our payroll) and they were able to pull up my complete tax withholding history by state within minutes. They even emailed me a detailed breakdown that showed exactly which state taxes were withheld and when, along with the proper state ID numbers that should have been on my W-2. For anyone in Arizona specifically, I've found their Department of Revenue to be really responsive. When I called them about a different issue, the wait time was only about 15 minutes and the representative was very knowledgeable about handling incomplete W-2 situations. They seem to deal with this pretty frequently, especially with all the remote work arrangements these days. The key takeaway from this whole discussion seems to be: don't panic, you have multiple options, and this is way more common than most people realize. Thanks to everyone who shared their experiences - it's made me feel much more confident about handling my own tax situation this year!

As someone new to this community, this discussion has been incredibly valuable! I just started an LLC that sells handcrafted furniture, and I received my first W9 request from a corporate client last week. I was completely baffled because I'd only heard about W9s in the context of freelance work. Reading through everyone's experiences has been so enlightening - especially learning that this is just standard vendor management practice for many companies. The corporate perspective from Ryan really helped me understand why businesses collect these forms regardless of whether they're purchasing products or services. I'm definitely going to set up that pre-filled W9 template that so many people recommended. It sounds like being responsive and professional about these administrative requests is actually a way to strengthen client relationships rather than just bureaucratic busy work. Thanks to everyone for sharing their real-world experiences - it's exactly this kind of practical guidance that new business owners need!

Welcome to the community, Amara! Your furniture business sounds wonderful, and you're definitely not alone in that initial confusion about W9 requests for product sales. I had the exact same reaction when I first encountered this with my small manufacturing business. What really helped me was realizing that these requests are actually a positive sign - they usually come from established companies with professional procurement processes, which often translates to reliable payment and potential for ongoing business relationships. I've found that clients who request W9s tend to be more organized overall and easier to work with in the long run. Since you're just starting out, I'd also suggest keeping a simple log of which clients have requested W9s. In my experience, these tend to be the clients who place regular orders or larger purchases, so it can be helpful to track for business planning purposes. The handcrafted furniture market probably has a good mix of individual customers and corporate clients, so being prepared for both types of relationships will serve you well as you grow!

Ok but what if my client paid exactly 90% and not a penny more? Does the software round in their favor or does it need to be slightly over 90%? Our firm uses different software and I'm curious if there are any edge cases I should watch for.

This is a great discussion! I've been dealing with similar penalty calculations and it's clear there's a lot of nuance here that even experienced practitioners sometimes miss. From what I'm seeing in the responses, it sounds like Ultratax might actually be correct in your situation. The combination of filing an extension AND paying at least 90% by the original due date does provide some protection from the Failure to Pay penalty during the extension period. However, I'd still recommend double-checking this with the IRS directly or using one of the tools mentioned here to verify. The stakes are too high to just assume the software is right without confirmation. I've seen cases where software gets updated penalty calculations wrong, especially when there are special provisions or recent rule changes. Also worth noting - even if the Failure to Pay penalty doesn't apply during the extension period, make sure your client understands that interest is still accruing from the original due date on that unpaid $8,000. That can add up over time even without penalties.

One thing I'd add to all the great advice here - make sure you understand the difference between deducting WeWork as a business expense versus trying to claim it as a home office deduction. Since you're renting workspace outside your home, this falls under regular business rent/lease expenses on Schedule C, which is much simpler than the home office rules. The home office deduction has all those complicated "exclusive use" tests and percentage calculations, but renting external workspace like WeWork is straightforward - if you use it for business, it's deductible. No need to prorate or calculate square footage like you would with a home office. Also, don't forget that your WeWork membership might include some perks (coffee, printing, conference room access) that you use for business - those are all part of the legitimate business expense too. Keep it simple, document your business use, and you should be good to go!

Just wanted to share my experience as someone who went through this exact situation! I'm a freelance marketing consultant with 1099 income and also work part-time W2 for a nonprofit. I was super nervous about deducting my coworking space membership (about $3,200/year) until I spoke with my CPA. She confirmed that since I use the space exclusively for my consulting work - client calls, proposal writing, project work - the full amount is deductible on Schedule C. The W2 job doesn't matter at all since I do that work from their office or at home. What really helped me was creating a simple system: I use a shared calendar between my phone and laptop where I log my coworking visits with just a brief note like "Client strategy session - 4 hours" or "Invoice prep and admin - 2 hours." Takes 30 seconds but gives me solid documentation. The peace of mind is worth it - having a dedicated professional workspace has actually helped me land bigger clients because I can host proper meetings there. Don't let tax anxiety keep you from investing in your business growth!

As someone who just went through this exact situation with my occasional photography sales, I can confirm that getting an EIN for privacy protection is totally legitimate and won't force you into business status. The IRS allows individuals to obtain EINs for various reasons beyond just business formation. Here's what I learned from my research and talking to a tax professional: 1. Having an EIN doesn't automatically require Schedule C filing - the determining factor is whether your activity meets the IRS criteria for a business (profit motive, regularity, time investment, etc.) 2. You can absolutely report the income on Schedule 1, Line 8 as hobby income even with an EIN. Just make sure to be consistent in how you treat the activity. 3. When you receive the 1099-NEC (which they'll likely issue for $600+), include a brief statement with your tax return noting that the 1099 income is being reported as hobby income on Schedule 1. This prevents automated IRS matching notices. 4. Creating an LLC isn't necessary for just getting an EIN - you can apply for one as a sole proprietor for privacy purposes. One thing to consider though: since hobby expenses aren't deductible anymore (thanks to 2018 tax law changes), you might actually save money by treating it as business income on Schedule C if you have legitimate photography expenses. The self-employment tax might be offset by equipment deductions, but run the numbers for your specific situation. The key is being consistent in your treatment and having a clear understanding of your intent with the activity.

This is exactly the kind of situation where getting an EIN makes perfect sense! You're absolutely right to be cautious about sharing your SSN with companies - identity protection is important. To answer your specific questions: 1. No, getting an EIN doesn't automatically require Schedule C filing. The IRS determines business vs. hobby status based on your actual intent and activity patterns, not whether you have an EIN. 2. Yes, you can definitely report this as hobby income on Schedule 1, Line 8 even with an EIN. Just be consistent in treating it as a hobby. 3. You don't need an LLC at all - you can apply for an EIN as a sole proprietor specifically for privacy purposes. One practical tip: when you receive the 1099-NEC (which they'll issue for $600), consider adding a brief statement to your tax return explaining that the 1099 income is reported as hobby income on Schedule 1, Line 8. This helps prevent any automated IRS notices about mismatched income. Since this is truly a one-off payment and you want to keep things simple, the hobby income approach with an EIN for privacy protection sounds like the perfect solution for your situation. You'll protect your personal information while avoiding unnecessary business complications.