Instead of waiting anxiously for a letter that may be delayed, here's an alternative approach you can take right now: 1. Call the IRS main number (1-800-829-1040) first thing in the morning (7am Eastern) 2. Select options for "personal tax questions" 3. When prompted for SSN, don't enter anything (this routes you to a human) 4. Ask the representative to verify your current address on file 5. Request information about any pending correspondence 6. If moving soon, submit Form 8822 online immediately This proactive approach gives you control rather than waiting in uncertainty. As a student, you have enough stress already without tax worries!

I went through this exact situation last year as a graduate student! The 420 code appeared on my transcript in early March, but I didn't receive the actual CP75 letter until almost 6 weeks later. The IRS systems update much faster than their physical mail processing. Here's what I learned: the 60-day response period doesn't start until you actually receive the letter in hand, so don't stress about missing deadlines yet. However, given your May 15th move, I'd strongly recommend calling the IRS at 1-800-829-1040 to verify your address is correct in their system. If you need to update it, file Form 8822 immediately. Also, as a student, there's a good chance this is just a routine verification of education credits or student loan interest deductions - very common and usually resolved quickly with proper documentation. Keep checking your mailbox daily, but don't panic about phantom deadlines!

I just ignored a $8.50 use tax I owed last year and nothing happened lol. The state has bigger tax cheats to go after than someone who didn't pay a few bucks on an online purchase. But technically yes you're supposed to pay it.

For your specific situation with the $5.40, here's my practical advice: Yes, technically you're required to pay use tax, but realistically the enforcement risk for such a small amount is essentially zero. However, I'd recommend getting into good habits now. Most states let you report use tax on your annual income tax return - there's usually a line where you can enter the total amount of use tax owed for the year. You can either track individual purchases or use your state's estimation table based on income (much easier). Since you're just starting to deal with this, I'd suggest setting up a simple system: keep a running tally of untaxed online purchases throughout the year, then report the total when you file your state taxes. The deadline is typically the same as your income tax filing deadline. Don't stress too much about this particular $5.40 purchase, but use it as a learning experience for bigger purchases in the future. Better to understand the system now than be caught off guard with a larger amount later!

This is such a complex situation and I'm dealing with something similar. I'm 63 and considering taking SS early next year while also needing to start my 457b withdrawals. After reading all these responses, it sounds like I really need to map out the timing carefully. One thing I'm still confused about - if the 457b distributions push me over the earnings limit and my SS benefits get reduced, does that mean I permanently lose that money or do I get it back later? I think someone mentioned it gets recalculated at full retirement age, but I want to make sure I understand this correctly before making any decisions. Also, has anyone here worked with a tax professional who specializes in retirement planning? My regular accountant doesn't seem to know much about how 457b plans interact with Social Security, and I'm worried about making expensive mistakes.

I just went through this exact situation last year at 64, so I can share what I learned. Yes, 457b distributions absolutely count as income for the Social Security earnings test - this caught me off guard initially because I thought only wages counted. The key thing to understand is that it's not just about whether you go over the limit, but HOW MUCH you go over. For every $2 you earn above the annual limit (which was $22,320 in 2024), they reduce your Social Security benefits by $1. So if you're planning to take out a large lump sum from your 457b, it could significantly impact your benefits for that year. What helped me was creating a monthly budget that included both my expected 457b withdrawals and the current earnings limit. I ended up taking smaller, more frequent distributions rather than one big withdrawal to stay under the threshold. Also, don't forget that these distributions will be added to your other income for tax purposes, which could push you into a higher tax bracket. The good news is that any benefits you lose due to excess earnings aren't gone forever - they get added back to your monthly benefit when you reach full retirement age. But if you need that money now for living expenses, the temporary reduction can still be a real hardship.

Don't forget that if you made over $60k, you probably should have been making quarterly estimated tax payments throughout the year. If you didn't, you might get hit with an underpayment penalty when you file.

This is such a common confusion right now! I went through the exact same thing with my Etsy payments processed through Square. The key thing everyone's mentioned is correct - you absolutely must report all that income regardless of getting a 1099-K. What helped me was creating a simple spreadsheet tracking my monthly Square deposits so I could cross-reference everything. Square's dashboard makes it pretty easy to pull annual totals, but I also kept screenshots of my year-end summary just in case I ever get audited. One thing I haven't seen mentioned yet - if you're using Square for a side business, make sure you're tracking ALL your business expenses too. Things like materials for your jewelry, packaging supplies, shipping costs, even the Square processing fees can be deducted. Those deductions can really add up and reduce your tax liability significantly. The quarterly payment thing Connor mentioned is super important too. I set up automatic transfers to a separate "tax savings" account now so I'm not scrambling come tax time.

Don't stress too much about this! I accidentally selected "retail" for my SAAS business two years ago and it's never caused any issues. The business category on the EIN application isn't as critical as people make it out to be. The IRS cares more about accurate income reporting than the specific category you select during application.

Great question! I went through this exact same process last year for my SaaS startup. After researching extensively and consulting with my accountant, I selected "Service" for our EIN application. The reasoning is that SaaS businesses are fundamentally providing ongoing access to software functionality rather than selling a tangible product. Even though customers "purchase" subscriptions, what they're really buying is continuous access to your service platform. This puts it squarely in the service category rather than retail, which is typically reserved for businesses selling physical goods or one-time software purchases. The IRS views subscription-based software access as a service offering, similar to how they'd classify other subscription services like consulting or cloud hosting.