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Great question! Yes, you can absolutely deduct the cost of building a workshop shed that's used 100% for business. Since you're building it yourself, you'll want to track all material costs carefully - lumber, hardware, roofing, electrical supplies, etc. For the Home Depot card issue, that's totally fine. You can deduct business expenses regardless of which personal card you use to pay for them. Just make sure to: 1) Keep all receipts 2) Document that these purchases were for your business workshop 3) Take photos during construction showing business use One important consideration: if you're putting this on a permanent foundation, it's typically treated as real property and needs to be depreciated over 39 years. However, if it's a simpler structure (like on skids or piers), you might qualify for Section 179 deduction to write off the full amount this year. Also consider whether any electrical work needs permits - having proper documentation strengthens your position if questioned. The key is excellent record-keeping showing exclusive business use from day one.
This is really helpful! I'm actually in a similar situation where I'm planning to build a workshop. One question - you mentioned the difference between permanent foundation vs skids/piers affecting the deduction. How do you determine what counts as a "permanent foundation"? I was planning to use concrete piers but wasn't sure if that would be considered permanent or not. Also, is there a specific dollar threshold where Section 179 becomes more beneficial than depreciation?
Building your own workshop shed is definitely a smart move both financially and from a tax perspective! Since you're planning to use it 100% for business, you have good deduction options available. A few key points to consider: **Foundation matters for tax treatment**: If you go with a concrete slab foundation, it's typically considered "real property" and would need to be depreciated over 39 years. However, if you build on concrete piers, gravel pads, or skids, it might qualify as "personal property" eligible for Section 179 deduction (immediate write-off) or bonus depreciation. **Documentation is crucial**: Since you're using a personal credit card, keep meticulous records. Save every receipt, take progress photos, and document the exclusive business use. Consider creating a simple spreadsheet tracking all material costs. **Permits and compliance**: Check local building codes - some areas require permits for structures over certain square footage. Having proper permits actually helps support your business expense claims if you're ever audited. **Timing considerations**: You can only start depreciating or taking Section 179 deduction once the structure is "placed in service" (completed and ready for business use), so plan your construction timeline accordingly if you want the deduction in a specific tax year. The personal credit card approach is fine - just make sure you can clearly show these were legitimate business expenses. Good luck with the build!
This is really comprehensive advice! I'm curious about the "placed in service" timing you mentioned. If I start building in November but don't finish until February, would I need to wait until the following tax year to claim any deductions? Or can I deduct materials as I purchase them throughout the construction process? I'm trying to figure out if it makes sense to rush and finish this year or if spreading the work over a few months doesn't matter tax-wise.
Friendly reminder that Square fees aren't your only potential deduction! When I got my first 1099-K, I only deducted the processing fees and ended up paying WAY too much in taxes. Don't forget about: - Supplies for your services - Any equipment purchases - Mileage if you travel to clients - Portion of phone bill if used for business - Software subscriptions related to your work - Continuing education or training costs - Marketing/advertising expenses TurboTax walks through all these categories, so don't skip them! Your tax bill could be significantly lower.
Can you really deduct part of your phone bill? How do you calculate that if you only use your personal phone for occasional business calls?
You can deduct a portion of your phone bill if you use your phone for business purposes, but it needs to be reasonable and documented. The IRS expects you to calculate the percentage of business use vs personal use. For example, if you estimate that 20% of your phone usage is business-related (taking appointments, communicating with clients, etc.), you could potentially deduct 20% of your monthly phone bill. Keep records of business calls and be conservative with your estimate. Some people find it easier to get a separate business line to avoid the complexity of calculating mixed-use percentages. But if you're just starting out with a side hustle, the mixed-use deduction can be legitimate as long as you can justify the business percentage if ever questioned.
I went through this exact same situation last year with my dog walking side business! The good news is TurboTax makes it pretty straightforward once you know the steps. When you get to the business income section, you'll enter your 1099-K information using your SSN as the tax ID. TurboTax will automatically generate Schedule C for your self-employment income. The key thing is to make sure you enter the gross amount from Box 1a of your 1099-K - that's what Square reported to the IRS. One thing that really helped me was keeping a simple spreadsheet throughout the year tracking all my business expenses. Beyond the Square processing fees, don't forget about: - Hair styling tools and equipment - Products you use on clients - Any licensing or certification costs - Transportation to client locations - Even a portion of your home wifi if you use it to manage bookings Also be prepared for the self-employment tax hit - that caught me off guard my first year. You'll owe both regular income tax plus the additional 15.3% for Social Security and Medicare on your net profit. Setting aside about 25-30% of your side business income throughout the year helps avoid a big surprise at tax time. The most important thing is just being honest and thorough with your reporting. The IRS isn't trying to trick you - they just want to make sure the income matches what was reported by Square.
This is super helpful, thank you! I'm in a similar boat with my freelance graphic design work. Quick question about the self-employment tax - is that calculated automatically in TurboTax or do I need to figure that out separately? Also, when you mention setting aside 25-30%, is that on the gross income from the 1099-K or just on the net profit after expenses? I want to make sure I'm saving enough for next year!
I can share some recent data points that might help with your tracking. I filed my CA return in February and received my refund check exactly 9 business days after the "issued" status appeared on the FTB website. What I learned from calling the FTB is that there's often a 2-3 day gap between when they mark it as "issued" and when it actually gets sent to their mailing contractor. So your 5 days might actually be more like 2-3 days in transit. Given that you're planning investments around this, I'd suggest waiting until day 10-12 before getting concerned. The good news is that CA refunds are generally very reliable once they hit "issued" status - just slower than we'd like!
This is exactly the kind of detailed timeline I was hoping to find! The 2-3 day gap between "issued" status and actual mailing makes so much sense - I hadn't considered there might be a mailing contractor involved. Your 9 business day timeline gives me a much better framework for my investment planning. I'll wait until day 10-12 before calling as you suggest. Really appreciate you sharing the specifics from your FTB call - that inside knowledge about their process is super valuable for understanding what "issued" actually means! š
I'm also waiting on a CA refund that was marked "issued" about a week ago. Reading through these experiences is really reassuring - it sounds like 7-10 business days is pretty normal for paper checks. I had no idea about the mailing contractor delay that @Isabella Ferreira mentioned, that explains a lot! For what it's worth, I signed up for USPS Informed Delivery like @Molly Chambers suggested and it's been helpful for tracking what's coming. At least now I'll know the day before it actually arrives in my mailbox. @Mohammed Khan - since you mentioned this is for investment planning, you might want to build in that extra buffer time going forward. Seems like CA is more predictable than fast when it comes to refund delivery!
Just a heads up - even if you confirm you need the 1095-A, don't panic if you haven't received it yet. The deadline for insurance companies and marketplaces to send them out was technically January 31, but many are still sending them out. My friend works for a state marketplace and said they're dealing with massive backlogs this year. If you absolutely can't get yours in time, you can still file for an extension until October to give yourself more time to track down the form.
Will filing an extension give more time to pay too? I'm expecting a refund because of the premium tax credit so I want to file asap.
Filing an extension only extends the deadline to file your return, not to pay any taxes owed. But since you're expecting a refund, there's no penalty for filing late when the IRS owes you money. However, you won't get your refund until you actually file the return, so an extension would just delay getting your money back. If you can get your 1095-A sorted out soon, it's definitely better to file on time to get your refund faster.
Just wanted to add that if you're still not sure whether you went through the marketplace, check your bank or credit card statements from when you signed up. Marketplace payments usually show up as something like "CMS" or "Healthcare.gov" or your state's marketplace name, while direct Molina payments would just show as "Molina Healthcare." Also, if you received any advance premium tax credits (which would have lowered your monthly premium), that's a dead giveaway you went through the marketplace. Those credits are only available for marketplace plans, and if you got them, you absolutely need the 1095-A to reconcile them on Form 8962 when you file. One more tip - don't stress too much about the April deadline if you're still tracking this down. The tax filing deadline got moved to April 18th this year anyway, so you have a few extra days!
This is really helpful advice! I'm dealing with a similar situation and the bank statement tip is genius - I never would have thought to check there. Quick question though - if I did get advance premium tax credits but can't find my 1095-A anywhere, what happens? Can the IRS calculate the reconciliation without the form or am I stuck until I get it?
Owen Jenkins
I'm dealing with the exact same nightmare! Filed my 2024 return on February 3rd, got acceptance within minutes, but just discovered a 810 freeze code on my transcript dated February 10th with "RETURN NOT PRESENT" showing everywhere. It's incredibly frustrating that the system can accept our returns electronically but then they just vanish into some bureaucratic black hole. After reading everyone's experiences here, it's crystal clear that waiting for automatic resolution is probably futile. The pattern seems consistent - 810 codes almost always require human intervention. I've been dreading the phone call because of all the horror stories about 3+ hour wait times and getting disconnected, but it sounds like the actual resolution is usually straightforward once you reach an agent. The complete lack of communication from the IRS is what really grinds my gears. They have all our contact information but can't be bothered to send even a basic notice explaining why our refund is frozen? Instead we're left to decode cryptic transcript messages like we're solving ancient riddles. @Kevin Bell @Oliver Cheng - Thanks for sharing those resources! I'm definitely going to try both claimyr.com and taxr.ai. It's absolutely insane that we need third-party services just to communicate with our own tax agency, but if they can help avoid the phone system nightmare, they're worth trying. Planning to call at 7 AM tomorrow if those services don't work out. Will definitely update with my progress. Thanks everyone for sharing your experiences - it's oddly comforting to know we're all suffering through this together! š¤
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Gabriel Ruiz
ā¢I'm in almost the exact same boat! Filed February 5th, acceptance confirmation came through immediately, but discovered the 810 freeze on my transcript last week dated February 11th. Same "RETURN NOT PRESENT" message across all the income fields. The timing is so weird - like why does the system accept our returns instantly but then they get stuck in limbo for weeks? And you're absolutely right about the communication issue. They can send us notices for literally everything else but when our refunds are frozen, radio silence! I've been reading through this whole thread and it's pretty clear we need to call. Everyone who waited for automatic resolution either waited months or it never happened at all. The success stories all involve actually talking to an agent, even though getting through is a nightmare. I'm also going to try those services people mentioned. At this point I'd pay anything to avoid sitting on hold for 4 hours just to get disconnected. Will definitely keep you posted on what works! Good luck tomorrow - hopefully we can all get this resolved soon! š¤
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Chloe Taylor
I'm experiencing the exact same issue right now! Filed my 2024 return on February 14th, got immediate acceptance confirmation, but my transcript shows a 810 freeze from February 21st with that dreaded "RETURN NOT PRESENT FOR THIS ACCOUNT" message across all fields. After reading through everyone's experiences here, it's become crystal clear that waiting for these 810 codes to resolve automatically is basically wishful thinking. The pattern is overwhelmingly consistent - these freezes need human intervention virtually every time. I've been putting off calling because the wait time horror stories are genuinely terrifying, but it sounds like once you actually reach an agent, the resolution is typically pretty quick. What's most infuriating is the complete communication blackout from the IRS. They can process electronic acceptance in milliseconds but then our returns disappear into some manual review purgatory with zero explanation. No letters, no emails, no calls - just cryptic codes we have to stumble upon and decode ourselves like tax archaeologists. @Kevin Bell @Oliver Cheng - I'm definitely going to try both claimyr.com and taxr.ai based on the multiple recommendations here. It's absolutely absurd that we need third-party services just to communicate with our own government agency, but if they can save me from the phone system torture chamber, they're worth every penny. Planning to call at 7 AM sharp tomorrow if those services don't pan out. Have all my documents ready - SSN, filing status, refund amount, and last year's return for identity verification. Will absolutely update with my progress! Thanks everyone for sharing your experiences - there's definitely strength in numbers knowing we're all battling this same bureaucratic nightmare together! šŖ
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Giovanni Gallo
ā¢I'm going through the exact same thing! Filed my 2024 return on February 16th, got acceptance right away, but just found the 810 freeze on my transcript from February 23rd. Same "RETURN NOT PRESENT" nightmare everywhere. What's really getting to me is how the IRS can instantly accept our returns electronically but then they just vanish into this manual review black hole with zero communication. Like, they have our phone numbers and email addresses but can't send a simple "hey, we're reviewing your return" message? Instead we have to become transcript detectives! After reading everyone's stories here, I'm convinced calling is the only way forward. Every single person who got their 810 resolved had to talk to an agent. The automatic resolution stories are basically unicorns at this point. @Kevin Bell @Oliver Cheng - I m absolutely'going to try both of those services you mentioned. If they can save me from sitting on hold for half my life, they re worth'whatever they cost. This whole situation is beyond ridiculous. Planning to call tomorrow at 7 AM too if needed. We should all coordinate and share what works! Solidarity in this IRS nightmare! š¤
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