Does the address on my 1099-NEC form have to be under my name for my new business?

But what if I move during the tax year? I'm in a similar situation and might be changing apartments in a few months. Should I use my current address or wait until I move? And how do I update it if I need to?

You should use your current address when filling out the forms now. If you move later, you can update your address with the IRS by filling out Form 8822 (Change of Address). This keeps everything current in their system. For any clients who have your old address for sending 1099s, you'll want to give them your updated information as soon as you move. It's also good practice to set up mail forwarding with USPS when you change locations, just in case something gets sent to your old address.

Wait, what is taxr.ai exactly? Is it like TurboTax or something different? I'm in a similar situation (living with roommates, starting a side hustle) and could use some guidance that won't cost me a fortune.

I'm curious - did you need to create a separate business address later? I've heard some people say it's better to get a P.O. box or virtual mailbox for your business mail rather than using your home address. Did taxr.ai give any advice about that?

It's quite different from TurboTax actually. While TurboTax helps you file your completed taxes, taxr.ai is more like having a tax expert analyze your specific situation and documents. They help you understand what forms you need, how to fill them out correctly, and answer specific questions like the address issue. It was way more personalized than I expected. Regarding the business address question - yes, they did discuss that! They explained that using my parents' address was completely fine for starting out, but as my business grew, I might want to consider a PO box or virtual address for privacy reasons. They walked through the pros and cons of each option and when it might make sense to make that transition. I ended up getting a virtual mailbox about 6 months in when I started getting more clients.

So this service actually works? How long did it take for them to connect you? I've tried calling the IRS three times about a similar issue and keep getting disconnected after waiting an hour+ each time.

Sounds like a scam to me. Why would anyone pay for something like this when you can just keep calling the IRS yourself? And how do they even hold your place in line? The IRS doesn't have that capability as far as I know.

It took about 3 hours for them to connect me, which is way better than the 6+ hours I spent over multiple days trying to get through myself. They use an automated system that navigates the IRS phone tree and stays on hold so you don't have to. When they reach a human, they call you and connect you directly to the agent. I completely understand the skepticism - I felt the same way at first! But it's not like they're claiming to have special access to the IRS or anything shady. They're just using technology to handle the hold time for you. After wasting an entire afternoon on hold and getting disconnected twice, the service fee was worth it to me. The IRS is just legitimately understaffed and overwhelmed with calls, especially during tax season.

Thanks for mentioning this! I hadn't even thought about the privacy aspect. Do you know if a PO box costs a lot? And would that cause any issues with the IRS since it's not a physical residence?

A PO box typically costs between $60-180 per year depending on size and location. The smallest box is usually sufficient just for receiving mail. The IRS has no problem with you using a PO box - they just want to be able to contact you reliably. One important detail though: some government forms and business registrations will ask for both a physical address AND a mailing address. In those cases, you'd put your cousin's address as your physical location and the PO box as your mailing address. This gives you the best of both worlds - official compliance plus privacy for your day-to-day business correspondence.

Great question! Prior to 2020, non-employee compensation was reported on 1099-MISC. Now it's reported on 1099-NEC (Non-Employee Compensation). As a freelance graphic designer, you'll receive 1099-NECs from clients who paid you $600+ in a tax year. The 1099-MISC is still used, but now it's for things like rent payments, prizes, awards, and other miscellaneous income that isn't for services performed as a non-employee. So for your graphic design work, clients should be issuing you a 1099-NEC, not a 1099-MISC.

Thanks for clearing that up! So I should be looking for 1099-NECs from my clients in January/February. One last question - do I need to give my clients a W-9 form first, or do they just send the 1099-NEC automatically?