Successfully received my Middle Class Tax Refund yesterday. According to the California Revenue and Taxation Code Section 17052.10, which authorized this rebate, the payments must be completed by February 2025. However, the FTB has consistently delivered ahead of statutory deadlines for similar programs. For those concerned about timing, the legislation specifies that all eligible recipients must receive payment, and the FTB cannot arbitrarily deny or delay legitimate claims beyond the statutory period.

Still waiting for mine here. Filed jointly in February, AGI around $78k, last name starts with K. Based on the alphabetical schedule mentioned earlier, I should have received it by now since K falls in the A-M range that was supposed to get payments by October 21st. Has anyone else with last names in the middle of the alphabet experienced delays? I'm wondering if there are other factors affecting the timeline beyond just alphabetical order.

Has anyone used one of those online bookkeeping services for financial statement prep? My friend said she uses Bench for her business and pays way less than what you guys are talking about, like $1,500 for the whole year including financial statements.

I went through this exact situation two years ago with my landscaping business (similar size to yours). The key thing I learned is that you really need to understand what level of assurance your bank actually requires before getting quotes. Most banks will accept compiled statements for businesses under $1M revenue, but some loan officers will initially ask for reviewed statements because it's their default. The difference in cost is huge - compilation runs $2,500-$3,500 for a business your size, while review can be $4,500-$6,500. I'd strongly recommend calling your bank's commercial lending department directly and asking to speak with someone who can give you the specific requirements in writing. Don't just rely on what a loan officer mentions in passing. Get them to confirm whether they'll accept compiled statements with specific disclosures rather than a full review. Also, since you're in construction, make sure whoever you hire has solid experience with percentage of completion accounting and WIP schedules. That's where a lot of general practice accountants get tripped up with construction companies, and you don't want to pay to have it redone. The $3,200 quote from your tax accountant isn't unreasonable if they know construction accounting well. Sometimes it's worth paying a bit more to work with someone who already knows your business rather than starting fresh with someone cheaper.

Just want to add - my son's first 1099-NEC came in at around $900 last year too and I checked with my CPA. If the 1099-NEC is the ONLY income they have, you might qualify to use Form 8814 to report it on your return instead of filing separately. But there are income limits and other restrictions.

Adding to the great advice here - one thing that caught me off guard with my daughter's first 1099-NEC was the quarterly estimated tax payments for the following year. If your son continues working and expects to earn more than $1,000 in net self-employment income next year, he'll need to start making quarterly payments. Also, consider opening a separate savings account for him to set aside about 25-30% of his earnings for taxes. At 16, this is a perfect time to teach him about tax planning and budgeting. My daughter now automatically transfers a portion of every payment she receives into her "tax account" - it's become a great habit that will serve her well as she gets older. The self-employment tax can be a shock for teens who aren't used to seeing money come out of their paychecks, so preparing him for that reality early is helpful!

Does anyone know if we need to file anything with the IRS when we update how we complete W9 forms? I'm in the same boat - been doing it wrong for years apparently and now I'm worried about consistency issues between old and new clients.

This is such a common confusion! I run a consulting business through my single-member LLC and went through the exact same thing last year. After 15+ years of putting my business name first, a new client's accounting department rejected my W9 and insisted on the personal name/business name format. I ended up calling my CPA to confirm, and they explained that while many vendors don't scrutinize the technical details, the IRS instructions have always been clear about this. The key thing to remember is that for tax purposes, you and your single-member LLC are essentially the same entity - that's why your personal name needs to be primary. What helped me was creating a standard W9 template with the correct format and keeping it handy for new clients. I also proactively sent updated W9s to my regular clients during the slow season to avoid any payment delays. Most didn't even notice the change, but it prevented future headaches with their accounting departments. Don't stress about the years of "incorrect" completion - as long as you were using the right EIN, the important tax reporting information was accurate.

Has anyone mentioned the birth certificate? When I was in this situation, we needed both the birth certificate AND death certificate to claim our daughter who lived for just one day. The hospital should have provided paperwork for both, but sometimes you need to follow up with vital records. Also, don't forget that they can claim any qualifying expenses under the Child and Dependent Care Credit if they paid for any care for the baby while the baby was alive (even if very brief).

My heart goes out to your friends during this incredibly difficult time. I went through something similar two years ago when we lost our son after just 18 hours. I want to echo what others have said - yes, they can absolutely claim their baby as a dependent. The IRS doesn't have a minimum time requirement; being born alive is what matters. A few practical things that helped us: 1. The hospital social worker was actually our best resource for navigating the paperwork - they deal with these tragic situations more often than you'd expect and knew exactly what forms we needed. 2. Getting the SSN can take a few weeks, but don't wait to start the process. We found it helpful to call the Social Security office first to understand exactly what documentation they needed rather than making multiple trips. 3. Keep copies of everything - birth certificate, death certificate, hospital records. You probably won't need to submit them all with your taxes, but having them organized helps if questions come up later. The tax benefits won't take away their pain, but every bit of financial relief helps during such a devastating time. Please let them know that this community is thinking of them.