Don't forget you'll need to file a Form 4562 with your taxes if you're depreciating your vehicle! Also if you're doing quarterly estimated taxes, you should factor in your vehicle deduction to avoid overpaying throughout the year.

Something I learned the hard way - if you decide to go with actual expenses method, make sure you keep receipts for EVERYTHING related to your car from day one of business use. Gas, oil changes, repairs, insurance, registration fees, even car washes if they're for business purposes. The IRS can ask for documentation going back years. Also, get a dedicated business credit card or bank account if you can. Makes tracking so much easier than trying to separate personal vs business expenses later. I use a simple spreadsheet to track my business mileage with columns for date, starting odometer, ending odometer, destination, and business purpose. Takes like 30 seconds per trip but could save you thousands if you ever get audited. One more tip - if you're just starting out as an independent contractor, consider setting aside about 25-30% of your income for taxes since you won't have an employer withholding. Vehicle deductions help reduce that burden but you still want to be prepared for quarterly payments.

I've been a sole proprietor for 3 years and the most important thing is accurate record keeping, not how you process checks. Write in your records what each check was for. Was it payment for services? Personal gift? Loan repayment? Keep notes on everything.

I understand your confusion about check processing - I had similar questions when I started my business. The key point everyone's making is correct: whether you cash or deposit doesn't change your tax obligations. What matters is proper categorization and reporting. For those $650 in personal checks, if they're truly personal (gifts, reimbursements from friends, etc.), they're generally not taxable income regardless of how you process them. Just keep clear records of what each check was for. The bigger issue I see is that you mentioned potentially doing this with business checks too. That's where you could get into trouble. Business income must be reported whether you cash the check or deposit it. The IRS can access your banking records during an audit, so hiding business income by cashing checks instead of depositing them won't work and could lead to serious penalties. My advice: Keep detailed records of every check - who it's from, what it's for, and whether it's personal or business income. Consider opening a separate business account even if you're a sole proprietor. It makes everything cleaner and shows the IRS you're taking proper steps to maintain accurate records.

I've used Cash App for the last two tax seasons. They're actually faster than most banks with tax refunds. My DDD was the 18th last month, and I got it on the 16th. For SBPTG though, that's state-level and follows different timing. You should check your state's website for that payment schedule - they usually have a portal where you can track it.

I'm also waiting for my refund with a DDD of the 5th! This is my first time using Cash App for tax deposits too. Really helpful to hear everyone's experiences - sounds like Cash App is pretty reliable with getting refunds out early. I'm keeping my fingers crossed for the 3rd or 4th. Did you have to do anything special to set up direct deposit with Cash App, or just use your routing and account number like normal?

Sorta related - what software are you guys using to track all this stuff? I've been using a spreadsheet but it's getting unwieldy with all the different categories and percentages.

As someone who just went through my first year of self-employment taxes for my woodworking business, I wanted to add a few things that caught me off guard: 1) **Quarterly estimated taxes** - If you're making decent money on Etsy, you'll likely need to pay quarterly estimated taxes to avoid penalties. The IRS expects you to pay as you earn, not just at year-end like with W-2 income. 2) **Self-employment tax** - This was a shock! On top of regular income tax, you'll owe self-employment tax (about 15.3%) on your net business income. This covers Social Security and Medicare that your old employer used to pay half of. 3) **Business bank account** - Open a separate business checking account even if you're just a sole proprietor. It makes tracking so much easier and looks more professional if you ever get audited. 4) **Mileage tracking** - Don't forget to track mileage to lumber yards, craft fairs, shipping stores, etc. At 65.5 cents per mile for 2023, this adds up fast. The good news is your first year is a learning experience, and it gets easier once you have systems in place. Just keep every receipt and document everything!

I went through a very similar situation during my bar application process. I had unreported freelance income from 2018 that I discovered while gathering documents. Here's what I learned: First, don't panic - this is more common than you think. The fact that you discovered it yourself during the application process actually demonstrates the kind of diligence and integrity that bar committees want to see. My approach was: 1) Get the IRS wage and income transcript immediately (as others mentioned, it's free through irs.gov), 2) File the amended return regardless of what the transcript shows, 3) Be completely transparent on the bar application. For the bar application, I included a brief but complete explanation with specific amounts and dates, along with copies of the amended return and payment confirmation. The key is showing you took immediate corrective action once you discovered the issue. During my character and fitness interview, they spent maybe 2 minutes on it. The interviewer actually commended me for catching and correcting it myself rather than waiting for the IRS to find it. They said it showed good character that I was willing to pay additional taxes I legally owed even when I might have gotten away with it. Don't let this derail your bar admission - handle it properly and it could actually strengthen your application by demonstrating integrity under pressure.

I completely understand the panic you're feeling right now - I went through something very similar during my CPA license application a few years back. Discovered I'd missed reporting about $3,500 in consulting income from 2018, and I was absolutely terrified it would derail everything. Here's what I learned from that experience: the key is demonstrating that you're taking immediate, responsible action to correct the mistake. Get that IRS wage and income transcript first (it's free through irs.gov/individuals/get-transcript) to see exactly what they have on file. This will tell you whether your former employer actually filed a W-2 or 1099 for your work. Regardless of what the transcript shows, I'd recommend filing the amended return. Even if the statute of limitations has technically passed, showing the bar committee that you voluntarily corrected the error demonstrates exactly the kind of integrity they're looking for in future attorneys. For your bar application, be completely transparent about the situation. Include the dollar amount, timeline, and documentation of your corrective actions. I know it feels scary to put this in writing, but trying to hide it would be infinitely worse if they discovered it later. The licensing board for my CPA application actually commended me for catching and correcting the error myself. They said it showed professional responsibility and the kind of character they wanted in the profession. Your situation could very well be viewed the same way - as evidence of your integrity, not a disqualifying mistake. You've got this! Handle it properly and this could actually strengthen your application by showing how you respond to challenges with honesty and accountability.