This thread has been incredibly valuable! I'm new to the community and currently researching business entity structures for a consulting firm I'm planning to launch. Reading through everyone's experiences with partnership-to-S-corp transitions has been both educational and eye-opening. What strikes me most is how this timing issue seems to be such a widespread problem across different professional practices. The fact that so many reputable accounting firms presented issuing W-2s to partners as "standard preparation" for S-corp conversion really highlights how important it is to get specialized expertise rather than relying on general business tax knowledge. The cascading effects everyone has described - payroll tax complications, retirement plan issues, workers' compensation implications - really drive home how interconnected business tax compliance can be. One seemingly simple classification error can create problems across multiple areas that all need to be addressed simultaneously. I'm definitely taking the advice here about investing in proper specialized guidance from the beginning rather than trying to figure out entity transitions later. The stories shared here make it clear that proactive planning with the right expertise is much more cost-effective than having to unwind multiple mistakes afterward. Thanks to everyone who shared their real-world experiences - this is exactly the kind of practical knowledge that helps newcomers avoid expensive pitfalls when setting up their business structures!

As someone who's been following this discussion closely, I wanted to add a perspective on the broader implications of this timing issue. What's particularly concerning is how this partnership-to-S-corp classification error can affect business credit and banking relationships. When we went through our entity conversion (veterinary practice), we discovered that the W-2 vs. guaranteed payment distinction also impacted our business loan applications. Banks often look at consistent income classification when evaluating creditworthiness, and having mixed reporting (both K-1 and W-2 income for the same period) created questions we had to explain during our facility expansion financing. Additionally, if you have any vendor contracts or professional liability insurance policies that reference your entity structure, make sure those align with your actual legal status during each period. We found that some of our contracts had clauses that were specific to partnership operations that needed updating once we became an S-corp. The silver lining is that addressing these classification issues comprehensively actually helped us get our business affairs more organized overall. Working with a specialist who understood entity transitions forced us to review all our business relationships and ensure everything was properly aligned with our new structure. For those still working through corrections - consider it an opportunity to do a complete business compliance audit. You might discover other areas that need attention beyond just the tax reporting issues.

The 846 code with a 2/10 date is definitely a good sign! That's your official refund issued date. Since you mentioned having to amend paperwork earlier, I totally understand the extra anxiety - I went through something similar last year when I had to correct my filing status. A few things that might help ease your mind: • The 846 code is one of the most reliable indicators in the whole process • Most banks process IRS direct deposits overnight, so you'll likely see it early morning on 2/10 • Since your transcript already updated for cycle 3, you're past the major processing hurdles • Amended returns can cause delays, but once you see that 846 code, those delays are behind you I'd recommend setting up account alerts with your bank so you get notified the moment it hits. The waiting game is brutal, but you're basically at the finish line now. Keep an eye on your transcript for any new codes, but honestly, once you have that 846 with a date, it's pretty much a done deal!

The 846 code with 2/10 date is great news! That's your official refund issued date from the IRS. Since you filed on 1/31 and had to amend paperwork (which can definitely add stress), seeing that 846 code means you've cleared all the processing hurdles. Here's what to expect: • Your refund will be released by the IRS on 2/10 • Most banks process IRS deposits overnight, so you'll likely see it early morning on 2/10 • Some banks may hold it 1-2 business days, but many make IRS refunds available immediately • Keep checking your transcript until the money hits - just to be safe I totally get the anxiety after having to amend things! I went through something similar and was constantly second-guessing everything. But once you see that 846 code with a specific date, you're basically home free. The IRS is pretty reliable with those dates once they commit to them. Set up mobile alerts with your bank if you can - there's nothing like getting that notification that your refund has arrived! You're almost there!

For TurboTax specifically, they'll ask if you have self-employment income. Say yes, and then you'll be guided to the "Business Income" section. Enter your Patreon/Buy Me A Coffee as a sole proprietorship business. You can use your own name as the business name if you don't have a formal business name.

One important thing to remember is keeping track of your expenses throughout the year, not just at tax time! I wish someone had told me this when I started my Patreon. Set up a simple spreadsheet or use an app to log art supplies, software subscriptions, equipment purchases, and even things like packaging for rewards you send to patrons. Also, don't forget about the home office deduction if you have a dedicated workspace for your art. Even if it's just a corner of a room that you use exclusively for creating content, you can potentially deduct a portion of your rent/mortgage, utilities, and other home expenses. TurboTax has a simplified method that lets you deduct $5 per square foot up to 300 square feet, which is much easier than calculating actual expenses. The key is being organized from day one rather than scrambling to reconstruct everything come tax season!

I just went through this exact process last month! I verified my identity through ID.me on January 28th and received my refund on February 18th - so exactly 21 days. Here's what helped me during the waiting period: 1. Set up your IRS online account to check transcripts - this gives you much more detailed info than WMR 2. Don't check WMR daily (easier said than done, I know!) - it rarely updates until the very end 3. Look for transcript codes 570/971 about a week after verification - this means they're processing it 4. Code 846 with a date means your refund is officially scheduled The hardest part is just the waiting and uncertainty. Since you verified last week, you're right on track for the typical 2-3 week timeframe. Try to resist the urge to constantly refresh WMR - I drove myself crazy doing that! Your refund is coming, it just takes time for their system to work through everything after verification.

I went through identity verification through ID.me about 6 months ago, and it took exactly 19 days to get my refund. Here's what I learned from the experience: The key is understanding that identity verification is just one checkpoint - your return still goes through all the normal processing steps afterward. After verification, expect to see codes 570 and 971 on your transcript within about a week (these are normal and not a cause for concern). A few things that helped me stay sane during the wait: - Check your transcript weekly, not daily - WMR rarely updates until the very end, so don't rely on it - If you claimed EITC or additional child tax credit, add extra time due to PATH Act requirements - The 846 code on your transcript with a date is your golden ticket - that's when you know your refund is officially scheduled Since you just verified last week, you're still very early in the process. Most people I know who verified this tax season have gotten their refunds between 14-28 days. Try to be patient - I know it's tough when you're waiting for money you're owed, but the system does work, it just takes time after verification.

Filed mine about 10 days ago and doing the exact same thing - checking constantly throughout the day like it's going to magically update! Really appreciate everyone sharing their experiences here. The overnight update schedule makes total sense, no wonder I've been seeing the same status message every time I check during work hours. Going to try the email alert suggestion too since I clearly can't trust myself to stop checking manually 😂

Been there! Filed mine 2 weeks ago and was literally refreshing every few hours like a maniac 😅 The overnight update thing is a game changer - wish they made that more obvious on their website. Also learned the hard way that weekends don't count toward processing time, so if you filed on a Friday don't expect anything until Tuesday at the earliest. The email alerts are clutch too, saves you from going insane checking manually!