All these comments are helpful but I think we're missing something basic - have you talked to your parents about this? Before going to the IRS or using any tools, I'd just sit down with them and go through the actual support calculations together. Show them that you're covering your own rent, food, etc., and calculate what percentage they're actually providing. Many parents just assume they should claim their college students without actually checking the support test requirements.

This is such a common situation and I'm glad you're getting it sorted out! One thing I want to add that hasn't been mentioned much - make sure to keep detailed records of all your expenses and payments going forward. I learned this the hard way when my parents and I disagreed about who was providing more support. Having bank statements, receipts, and a simple spreadsheet showing monthly expenses like rent, groceries, utilities, etc. makes the conversation so much easier and more objective. Also, once you do establish that you're independent, don't forget to update your FAFSA for next year's financial aid. Your expected family contribution will likely be much lower when it's based on your $10k income instead of your parents' income, which could mean significantly more grant money for school. The healthcare piece is huge too - being able to get subsidies based on your own income rather than your parents' can save thousands per year. It's definitely worth having that conversation with your parents this weekend!

One thing I learned the hard way - make sure you're crystal clear on the GVWR (Gross Vehicle Weight Rating) vs actual weight. The IRS goes by the manufacturer's GVWR, not what the vehicle actually weighs when loaded. I almost missed out on the deduction because I was looking at curb weight instead of GVWR. Also, timing matters more than people realize. If you're planning to buy in December, make sure the vehicle is actually "placed in service" (meaning delivered and available for business use) before December 31st to claim the deduction for that tax year. I had a client who ordered in November but didn't take delivery until January 2nd and lost out on a whole year of deductions. The documentation requirements are pretty strict too - you'll need to maintain detailed records showing the business use percentage, mileage logs, and receipts for all vehicle-related expenses. The IRS loves to audit vehicle deductions, especially on expensive SUVs.

Thanks for all the detailed responses everyone! This is exactly the kind of real-world advice I was looking for. Just to make sure I understand the math correctly: For my $78,000 SUV, I can take $26,000 under Section 179, then 80% bonus depreciation on the remaining $52,000 (which is $41,600), for a total first-year deduction of $67,600. At my 35% tax bracket, that's $23,660 in tax savings. The documentation requirements seem pretty intensive though. I'm definitely going to start keeping detailed records from day one if I move forward with this purchase. The GVWR vs actual weight clarification was huge - I was definitely looking at the wrong numbers on the vehicle specs. One follow-up question: If I finance the SUV instead of paying cash, does that affect any of these depreciation calculations? Or can I still claim the full depreciation amount even if I'm making payments over time?

This has been such a comprehensive and helpful discussion! As someone who's currently navigating the exact same W-2/1099 combination situation, I wanted to add one more perspective that might be useful. I'm about six months into juggling both types of income, and one thing I wish I'd known earlier is how much the quarterly nature of 1099 work can affect your cash flow planning. Even if you choose the extra withholding route (which I'd also recommend for simplicity), you still need to think about timing - especially if your 1099 payments come irregularly or you have large business expenses upfront. What's worked well for me is creating a simple monthly budget that accounts for the fact that roughly 25-30% of any 1099 payment needs to be "untouchable" for taxes. I transfer that percentage to a separate high-yield savings account immediately when I receive each payment, treating it like it's already gone. This way, I'm never tempted to spend tax money, and the account earns a little interest while waiting for tax time. Also, don't underestimate the value of keeping a running list of potential business deductions throughout the year. I started a simple note on my phone where I jot down anything that might be deductible - from equipment purchases to professional development courses. It's amazing how much you can forget by tax time if you don't track it as you go. The advice about unchecking box 2(c) and using additional withholding instead is spot-on. It really is the cleanest approach for most people in this situation!

This has been an incredibly thorough and helpful discussion! I'm actually in a very similar situation - just started a contractor role alongside my W-2 job and initially made the same mistake with box 2(c) on my W-4. After reading through everyone's experiences, I feel much more confident about how to handle this. The consensus seems clear: uncheck box 2(c) since it's specifically for multiple W-2 jobs, then use additional withholding on line 4(c) to cover the estimated taxes on 1099 income. The 25-30% rule of thumb for setting aside 1099 income really helps put the tax burden in perspective. I particularly appreciate the practical tips about setting up separate accounts, tracking expenses from day one, and the reminder about state taxes. It's also reassuring to know that you can adjust your W-4 throughout the year as you get a better sense of your actual 1099 income - I was worried about having to get it perfect right away. For anyone else just starting this journey, this thread is a goldmine of real-world advice that goes way beyond what you'll find in generic tax guides. Thanks to everyone for sharing their experiences so openly!

I had this exact same panic attack situation two years ago! Here's what I learned from my bank rep after it was all over: most banks actually process incoming ACH deposits (like your paycheck) in a separate batch from outgoing ACH debits (like IRS payments), and they typically run deposits first in the early morning hours. The timing usually goes: 1) Incoming deposits process around 2-4 AM, 2) Account balances update, 3) Outgoing payments/debits process around 4-7 AM. This sequence is designed to minimize overdrafts for exactly the situation you're describing. That said, every bank is different, and some employers send payroll files later than others. The safest bet is definitely calling your bank TODAY to explain the situation. Most banks can put a temporary note on your account to ensure deposits are processed before any withdrawals on that specific date. Don't stress too much though - this timing conflict is way more common than you'd think, and banks have procedures to handle it. The fact that you're being proactive about it puts you in a much better position than someone who just hopes for the best!

I completely understand your stress about this timing issue! I went through something very similar last year and learned a few things that might help ease your anxiety. First, while the IRS typically initiates withdrawals early in the morning (usually between 2-6 AM), your bank's processing order can work in your favor. Most banks process incoming deposits (like your paycheck) before outgoing debits (like tax payments) during their daily batch processing. This means even if your employer doesn't deposit at midnight, there's still a good chance your direct deposit will hit before the IRS withdrawal is processed. That said, here's what I'd recommend doing immediately: 1. Call your bank's customer service line first thing tomorrow morning and explain the situation. Ask them to put a note on your account to prioritize your direct deposit before processing any withdrawals that day. Most banks will accommodate this request, especially when you mention it's to avoid an overdraft from a government payment. 2. If you're still worried, you can contact the IRS at 1-888-353-4537 to cancel the scheduled payment (you need at least 2 business days notice), then reschedule it for a safer date. 3. Check your account early on payment day and keep your bank's number handy - if you see any timing issues developing, call immediately as they can sometimes hold or reverse transactions for a few hours. Don't beat yourself up over this - it's a really common timing issue that banks deal with regularly. The fact that you're being proactive about it already puts you ahead of the game!

Has anyone used TurboTax Self-Employed for their Etsy/eBay sales? I've used regular TurboTax before but never the self-employed version. Does it help with all this confusion or is it worth paying for an actual accountant?

I feel your pain! I went through the exact same confusion when I started my small pottery business on Etsy two years ago. The tax requirements really do feel like they throw you into the deep end without a life jacket. Here's what I wish someone had told me from the beginning: Start simple and build your system as you go. I got so overwhelmed trying to track every penny perfectly that I almost gave up entirely. The most important thing is to separate your business from personal expenses right away - even if it's just a simple spreadsheet or a separate checking account. Track your major expenses (materials, shipping, platform fees) and keep all your receipts. You don't need to be perfect from day one. For the hobby vs business question - if you're actively trying to make money and treating it like a business (marketing, improving your products, etc.), then report it as a business. The IRS looks at your intent and effort, not just profit. The $600 threshold honestly isn't as scary as it sounds. You've always been supposed to report this income anyway, now the platforms just have to tell the IRS about it too. But remember - you're only taxed on PROFIT, not total sales. Don't let the tax stress kill your entrepreneurial spirit! It gets easier once you establish a routine, and there are good resources out there to help. Your side hustle can definitely be worth it - just take it one step at a time.