
IRS
CommunityGovernment Services


Ask the community...
I file my taxes every year but I only ever get my federal refund. Never seen my state refund hit my account. Been happening for years now and im starting to think something's wrong. Is there a reason why this keeps happening? Anyone else dealing with this?
Hey tax peeps, I'm in a bit of a situation and need some advice. One of my old college buddies is interested in giving me some money to help get my small pottery studio off the ground. This wouldn't be a loan or investment where he's expecting returns - he just really believes in what I'm trying to do and wants to support me. I'm concerned about potential tax implications though. If he gives me like $15,000 to help purchase equipment and supplies, do I need to report this as income for my business? Does he need to file any special gift tax forms? Would it be better if he just bought the equipment directly instead of giving me cash? My business is set up as a sole proprietorship right now if that matters. I'm really new to all this business tax stuff and don't want either of us to get in trouble with the IRS. Thanks for any help!
Has anyone else dealt with a situation where a friend gave money as a "gift" but later started acting like they owned part of the business? I didn't have good documentation and now it's super awkward. Make sure you get everything in writing no matter what!!!!
This is such an important topic for small business owners! I went through something similar when starting my consulting practice. One key thing I learned is that you really want to be extra careful about how you structure this, even with close friends. Beyond the gift tax considerations others have mentioned, think about potential future complications. What happens if your business takes off and becomes really successful? Or if it fails? Sometimes friends who give "gifts" can have different expectations than what was originally discussed, especially if circumstances change. I'd strongly recommend having a conversation with your friend about specific scenarios - like what happens if the business fails, or if you decide to sell it later, or if other people want to invest. Getting aligned on these hypotheticals upfront and documenting them can save a friendship later. Also consider consulting with a tax professional or attorney who can help you structure this properly. The cost of an hour or two of professional advice now could save you thousands in taxes or legal issues down the road. Some business formation attorneys even offer free initial consultations where they can give you guidance on the best approach for your specific situation.
I earned about $2,678 doing DoorDash last year and now I'm totally panicking about taxes. I seriously have no idea how to claim any deductions for this gig work. I stupidly didn't keep track of my miles or any expenses while I was delivering. This was just supposed to be a side hustle to help with bills, and I didn't realize I'd need to track all this stuff. Will I end up paying a ton in taxes now? Can I still claim anything even though I didn't keep records? I'm really stressing about this since I don't have much saved up for a big tax bill. Any tips from other dashers or tax people would be super helpful!
Do any of you dashers know if the standard mileage rate is better than claiming actual car expenses? I put a lot of miles on my car last year doing deliveries.
In my experience as a full-time dasher for 3 years, standard mileage is almost always better for delivery drivers. The rate for 2024 is 67 cents per mile which really adds up when you're putting 20k+ miles a year for deliveries. Plus it's way simpler than tracking all your actual expenses and calculating depreciation.
Don't panic! I was in your exact situation two years ago - made about $3K doing DoorDash and kept zero records. It felt overwhelming at first, but it's totally manageable. Here's what worked for me: Go into your DoorDash app and screenshot/save every single delivery summary you can find. Even if you can't get all of them, partial records are better than nothing. Then estimate your average miles per delivery (mine was about 6-8 miles round trip) and multiply by your total deliveries. For the $2,678 you earned, you're looking at roughly $400-500 in self-employment taxes, but your deductions will significantly reduce that. Even a conservative mileage estimate could easily give you $1,000+ in deductions. Also remember you can deduct things like: insulated bags, phone chargers, portion of your phone bill, car washes (if you cleaned your car for work), and even snacks/drinks you bought during long shifts. The IRS isn't trying to trap you - they just want reasonable documentation. As long as your estimates are honest and based on actual work patterns, you'll be fine. I ended up owing way less than I feared!
My California state refund just dropped in my account at 7:37pm. Been checking all day like crazy and finally got it! For anyone else waiting, keep checking your accounts because they're definitely processing refunds after normal business hours.
I just got the weirdest tax document in the mail yesterday. It's a 1099-NEC where I'm somehow listed as both the payer AND the recipient. Both TINs on the form are my SSN. The really confusing part is that I have absolutely no memory of ever paying myself this money or receiving it from myself (obviously, because that makes no sense). The amount shown is $4,875 which is significant enough that I'm concerned about how this will affect my taxes. I've been self-employed before but never had anything like this happen. Has anyone ever encountered something like this where you're both the payer and recipient on a 1099-NEC with the same SSN? Is this some kind of scam or just a weird mistake? What should I do about it when filing my taxes this year? I already checked my bank records and don't see any payments that would match this amount. Appreciate any insights!
Check if this might be related to any government benefits you received during COVID. There were some weird reporting requirements that confused a lot of systems. Some payment processors and accounting software had glitches where they accidentally generated 1099s with the recipient's info duplicated as the payer.
This is definitely a system error - you cannot legitimately be both the payer and recipient on a 1099-NEC with the same SSN. I'd suggest taking a multi-step approach: 1. First, look closely at the form to identify who issued it. There should be contact information for the payer (even though it incorrectly shows your info). 2. If you can't determine the issuer from the form, check your records for any freelance work, consulting, or business relationships from last year that might have resulted in this payment. 3. Contact the IRS at 1-800-829-1040 and explain the situation. They can help you identify the actual payer and flag this error in their system. 4. When you file your taxes, do NOT include this $4,875 as income unless you can verify it's legitimate income you actually received. Keep detailed records of your attempts to resolve this issue. The IRS has seen these kinds of clerical errors before, especially with newer business owners or during transitions between accounting systems. Document everything and don't stress too much - this can be resolved.
Alice Coleman
call ur state tax office asap! they might be trying to contact u about something. dont be like me and wait 3 years to figure it out ๐ญ
0 coins
Luis Johnson
Check if you actually owe money to your state first! Sometimes they'll intercept your refund to pay off old debts, unpaid tickets, child support, student loans, etc. You won't get any refund until those are settled. Log into your state's tax portal or call them directly - they should be able to tell you exactly what's happening with your returns.
0 coins