Just a heads up - make sure none of that $1,260 was for state taxes! Everyone here is talking about federal, but depending on what state you live in, you might have state income tax too. Some states don't have income tax (like Texas and Florida) but if you're in a state that does, the rules might be different.

@Victoria Scott - Based on your situation, you should definitely get most of that $1,260 back! Since your income is under $12,000 and well below the standard deduction, you won't owe federal income tax. Just keep in mind that part of what was withheld might be FICA taxes (Social Security and Medicare) which are about 7.65% of your income - so roughly $918 if you made exactly $12,000. Those aren't refundable. But any federal income tax withheld should come back to you. Also, don't forget to check if you qualify for the Earned Income Tax Credit (EITC) - with your income level, you might actually get back MORE than what you paid in! The EITC is a refundable credit that can result in a larger refund than your withholding. For timing, definitely file electronically with direct deposit as others mentioned. 21 days is typical, but early in tax season (January-February) it's often faster.

I'm in almost the exact same situation! Got an EIN in March for a consulting business I was planning to start, opened a business checking account, even bought a laptop specifically for the business. Then I got a fantastic job offer that's been keeping me incredibly busy, so the business idea got shelved indefinitely. I've been stressing about this tax question for months - wondering if I somehow created an obligation just by getting the EIN. Reading through everyone's experiences here has been such a huge relief! It's clear from both the professional advice and people who actually called the IRS that no business activity means no filing requirement. What really helped me understand it was that library card analogy someone mentioned - just having the number doesn't create any obligations unless you actually use it for business purposes. I'm definitely going to close my business checking account this week after reading about potential issues with interest or fees. Thanks to everyone who shared their experiences, especially those who went through the hassle of calling the IRS directly. It's amazing how much anxiety this can cause when you're just trying to do everything correctly! Nice to know this is actually a pretty common situation.

I'm dealing with this exact situation right now! Got my EIN in late February for what was going to be a freelance web development business, even went ahead and registered a domain and bought some basic equipment. Then an amazing opportunity came up at my current company for a senior developer role that's been consuming all my time and energy. I've been losing sleep over whether I created some kind of tax obligation just by getting the EIN, so this whole discussion has been incredibly helpful! It's really reassuring to see so many people have been through identical situations and gotten clear answers from tax professionals and the IRS directly. The consistent message seems to be that simply having an EIN without any actual business activity doesn't trigger filing requirements. I love that library card analogy - it really puts things in perspective. Just because you have the card doesn't mean you checked out any books! I'm definitely going to follow everyone's advice and close my business checking account this week. I think I may have earned a few dollars in interest that I'll need to check on, but better to deal with that now and keep everything clean going forward. Thanks to everyone who shared their experiences, especially those who took the time to actually call the IRS for confirmation. It's amazing how much stress this seemingly simple question can cause when you're just trying to do everything by the book!

You're definitely making the right call by listening to your instincts here. As someone who works in banking compliance, I can tell you that large deposits absolutely do trigger reporting requirements, and while that doesn't automatically mean trouble, it does create a paper trail that connects you to that money. The "passing through" argument sounds logical, but from the IRS perspective, you had control and access to those funds, which can sometimes be enough to create complications. Plus, if your parents have existing tax issues like you mentioned, there's always the risk that the IRS could place a levy on accounts where they've deposited funds - even if you transfer the money out immediately. I've seen cases where well-meaning family members ended up spending months trying to prove to the IRS that large deposits weren't actually their income. Even when everything gets resolved correctly, it's a huge hassle that's easily avoided. Your plan to help them find proper banking solutions is much smarter. Many credit unions have "fresh start" programs specifically designed for people with past banking problems, and some online banks are surprisingly accommodating. It might take a few applications, but getting them their own account is definitely worth the effort compared to the potential headaches of mixing your finances with theirs.

This thread has been incredibly helpful - thank you to everyone who shared their expertise and experiences! As someone who's dealt with similar family financial situations, I can't emphasize enough how important it is to trust your gut when something feels risky. What really stands out to me from all these responses is how many different ways this seemingly simple arrangement could create complications - from tax implications and bank reporting requirements to potential creditor issues and IRS levies. Even if each individual risk is manageable, the combination of all these factors makes it clear why keeping your finances separate is the smart choice. I love that the conversation evolved from just answering the tax question to providing actual constructive solutions like credit union fresh start programs and nonprofit financial counseling services. That's exactly the kind of practical help that can turn a difficult situation into an opportunity for your parents to establish better banking relationships going forward. For anyone else reading this who might be in a similar situation - the key takeaway seems to be that helping family members find their own financial solutions is almost always better than getting your own accounts involved, no matter how temporary the arrangement is supposed to be. The short-term convenience is rarely worth the potential long-term complications.

I'm SO ANGRY right now! I finally got through to SBTPG yesterday after calling 800-901-6663 and waiting for 1 hour and 22 minutes. The agent confirmed my refund had been sitting in their system since April 2nd, but there was a "verification hold" they never notified me about! They released it immediately after I called and my bank showed the deposit this morning. Don't give up - keep calling until you get answers!

I feel your frustration - went through the same nightmare last month! After reading through all these suggestions, here's what finally worked for me: I called 800-901-6663 at 7:58 AM Eastern (right before they opened) and selected option 1. The key was having ALL my information ready - SSN, exact refund amount, filing date, and the dates from my IRS transcript showing when they sent the refund to SBTPG. When I got through after about 45 minutes, I calmly explained that my refund had been with them for over a week and I needed to know the specific reason for the delay. Turns out there was a "manual review flag" that required a supervisor to clear. The rep escalated it immediately and I had my money 2 days later. Don't let them give you vague answers - ask for specifics about what's holding up YOUR money. You've got this!

I actually made this transition about 3 years ago and can share some insights on the client relationship aspect that @e96ccd7043d5 asked about. You're absolutely right that the interactions are much more emotionally charged than typical accounting work. The biggest adjustment for me was learning to be both a technical advisor and a counselor. When someone is facing a six-figure penalty or criminal investigation, they need someone who can not only navigate the technical issues but also help them understand the process and manage their anxiety. Law school doesn't really prepare you for this - you learn it on the job. Regarding existing clients, I was surprised that about 40% of my accounting clients did follow me to my new firm when I transitioned. Many had developed trust in my judgment over the years and appreciated having someone who understood both the accounting and legal sides. However, I had to be very careful about conflicts of interest and properly transitioning their ongoing compliance work to other CPAs. The key is positioning yourself as a resource for more complex matters rather than competing with their existing accountants. Now I often work collaboratively with CPAs on cases, which has actually strengthened my professional network rather than burning bridges. One practical tip: if you're serious about this transition, start attending local tax controversy CLEs even before law school. It will give you a realistic preview of the work and help you start building relationships in the legal community.

I'm a tax attorney who made the transition from public accounting about 5 years ago, and I can definitely relate to your situation! One thing I'd add to the excellent advice already shared is the importance of understanding the different "personalities" of various tax law specialties. Tax controversy work (my current focus) attracts people who enjoy the adversarial process and working under pressure with tight deadlines. Estate planning tends to be more relationship-focused with longer-term client development. Corporate tax law often involves complex transactions and requires strong analytical skills but less direct client counseling. Your accounting background will be invaluable regardless of which direction you choose. I've found that judges and IRS agents take me more seriously when I can speak knowledgeably about the underlying accounting treatment of transactions, not just the legal implications. One practical suggestion: before committing to law school, try to get involved in some pro bono tax work through organizations like the Volunteer Income Tax Assistance program or local legal aid societies. This will give you exposure to the advocacy side of tax work and help you determine if you enjoy representing clients' interests rather than just preparing their returns. The investment is significant, but for me personally, the intellectual stimulation and variety of work has made it absolutely worthwhile. Feel free to reach out if you'd like to discuss specific aspects of the transition!