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.

I'm 24 and just did my own taxes for the first time using TurboTax. Is it normal that it took me like 3 whole days to figure it out??? Everyone says it's "easy" but I kept second-guessing everything.

Don't feel bad about taking your time - doing taxes right is way better than doing them fast! I've been doing my own for about 8 years now and still sometimes spend a weekend on them when I want to make sure I'm not missing anything. The second-guessing is totally normal, especially for deductions. I keep a little tax folder throughout the year now where I throw receipts and documents as I get them. Makes tax time way less stressful when everything's already organized. Pro tip: if you're using TurboTax, they have a "review" feature at the end that double-checks everything and explains why certain things were included/excluded. Really helped build my confidence in the early years!

I had a very similar experience last year when our payroll system double-submitted W-2s for about half our employees due to a software glitch. I was absolutely terrified about the potential consequences! Here's what I learned from going through it: The SSA and IRS systems are actually pretty robust when it comes to handling these duplicate submissions. In our case, all the duplicates were automatically identified and consolidated during processing, and none of our employees had any issues when filing their tax returns. I did follow the advice to call the SSA Employer Reporting Service, and they were incredibly helpful and reassuring. They explained that this happens more frequently than you'd expect, especially during busy filing periods when systems can have hiccups or when employers use multiple submission methods. The representative also mentioned that as long as all the information is identical (wages, withholdings, employee info), their automated systems are designed specifically to catch and handle these situations. It's when there are discrepancies between the duplicate filings that things can get more complicated. One additional tip - I documented everything about the incident, including the date I discovered it, which employees were affected, and the confirmation number from my SSA call. Having that paper trail gave me peace of mind and would have been helpful if any questions came up later (though thankfully none did). Your employee should be fine, but definitely let them know what happened so they're not confused if they see anything unusual when checking their records online.

I'm a CPA and have dealt with this exact scenario multiple times with my small business clients. You're absolutely right to be concerned, but the good news is that this is very manageable. The IRS and SSA systems are specifically designed to handle duplicate W-2 filings with identical information. During their processing, they'll flag the duplicate based on matching EIN, SSN, and wage data, then consolidate the records before they're used for tax return matching. Here's what I recommend: 1. Call the SSA Employer Reporting Service at 800-772-6270 to document the duplicate filing (get a reference number) 2. Verify that both W-2 submissions contain exactly the same information - wages, withholdings, everything 3. Inform your employee about what happened so they're not surprised if they see anything unusual 4. Keep documentation of when you discovered this and the steps you took In my experience, employees have never had filing issues when the duplicate W-2s contained identical information. The only problems I've seen were when there were slight differences between the filings (even small rounding errors), which can trigger verification letters. Your employee should be able to file normally, but I'd suggest they check their wage and income transcript online before filing just to confirm everything looks correct from the IRS perspective.

Don't forget about continuing education! Tax laws change EVERY YEAR so even after you learn the basics, plan to spend 10-20 hours annually just keeping up with changes. The TCJA in 2018 literally made experienced preparers feel like beginners again in some areas.

Your timeline sounds pretty realistic! I've been preparing taxes for about 3 years now, and when I was starting out, I found that the biggest challenge wasn't just learning the software or forms - it was developing the intuition to know when something doesn't look right. One thing that really helped me was keeping a "learning log" where I wrote down every new concept I encountered and why it mattered. For example, when I first learned about the difference between above-the-line and below-the-line deductions, I wrote out scenarios showing how they affected AGI differently. Also, don't underestimate how much client communication skills matter! You'll spend almost as much time explaining things to clients as you do actually preparing returns. Practice explaining tax concepts in simple terms - it'll help solidify your own understanding too. The good news is that once you get comfortable with the fundamentals, each new scenario you encounter builds on what you already know. By your second tax season, you'll be amazed at how much more confident you feel!

IMO the best approach is to check ur transcript weekly after filing. Most ppl in this sub have seen tax debts appear w/in 2-3 wks of processing, but system delays happen esp during peak season (Feb-Apr). If u filed electronically, check WMR first to confirm acceptance, then wait ~10 days b4 transcript should update. TC 150 = assessment posted. TC 971 = notice issued. If u see these but no balance, something's def wrong w/ the system. Pro tip: if u can't pay in full immediately, request payment plan ONLINE before they send the first bill - way easier process!

Based on my experience from 2023, tax debts typically show up on your account transcript within 10-14 days after your return is processed if you e-file. I had a similar situation with unexpected capital gains from selling some stock to cover emergency expenses. Filed on March 3rd, return was accepted March 5th, and the balance due (TC 150) appeared on my transcript March 18th. One thing I wish I'd known earlier - you can actually make payments toward your expected tax debt BEFORE it officially appears on your transcript using Form 1040V or EFTPS. This can help reduce interest accumulation since interest starts from the original due date regardless of when the debt posts to your account. Given your medical expenses situation, this might be worth considering if you want to minimize the total amount you'll owe.