I'm confused about something related to this... if I have both W-2 income from my main job AND 1099 income from side gigs, do I combine them or file separately? My 1099 is only like $900 but my W-2 job pays over $45k.

Just to add one more important point that might help you feel less overwhelmed - even though you need to file, the good news is that with only $1,924 in DoorDash income, your actual tax burden will likely be pretty small after deductions. Don't forget you can deduct business expenses like: - Mileage (probably your biggest deduction - 67¢ per business mile for 2024) - Phone bill percentage (if you use it for deliveries) - Insulated delivery bags - Car phone mounts or other equipment - Even parking fees or tolls during deliveries Many gig workers find that after legitimate business deductions, their net profit drops significantly, which reduces both their income tax and self-employment tax. The self-employment tax on your net earnings will be around 15.3%, but you also get to deduct half of that self-employment tax when calculating your income tax. Since this is your first time with 1099 income, consider using tax software that handles Schedule C and Schedule SE, or consult with a tax professional to make sure you're claiming all eligible deductions.

I'm dealing with a very similar situation right now! I accidentally marked "yes" for backup withholding when helping my elderly neighbor open a new account last week. The panic was real when I realized what I'd done. From my research and calls with the bank, I can confirm what others have said - the deposits themselves aren't affected. The backup withholding only applies to interest payments, not the money you're putting into the account. My neighbor has been making regular deposits while we wait for the W-9 correction to process, and everything has gone smoothly. One thing that really helped was asking the bank representative to walk me through exactly what would happen with each type of transaction. They confirmed that cash deposits are available immediately, check deposits follow their normal new account hold policy (which was 7 days for amounts over $200), and debit card transactions work normally from day one. The 14-day processing time seems to be pretty standard across banks. We're on day 8 now and haven't had any issues. Your uncle should definitely feel comfortable making those deposits - the backup withholding mistake is more of a paperwork inconvenience than an actual barrier to using the account.

I actually had this exact same thing happen to me about 8 months ago when I was rushing through opening a business checking account online. Clicked "yes" to backup withholding without reading it carefully and immediately panicked when I realized what I'd done. Here's what I learned from my experience: the backup withholding flag really is only about interest and dividend payments, not your regular deposits. I was able to deposit my business funds (around $5,000) the same day without any issues. The money was available according to their normal new account policy - cash immediately, checks held for a few days. The W-9 correction did take the full 2 weeks to process, but during that time the account functioned completely normally. I made deposits, wrote checks, used the debit card - everything worked exactly as expected. The only difference would have been if the account had earned interest, which it didn't since business checking accounts typically don't pay interest anyway. Your uncle should be fine to make his deposits. The anxiety is understandable (I definitely felt it too!), but the practical impact is much smaller than it seems. The bank systems treat this as a tax reporting issue, not an account restriction issue. One tip: when you call to check on the W-9 processing status, ask to speak with someone in the tax reporting department rather than general customer service. They tend to have more specific knowledge about these situations and can give you clearer timelines.

Ok but what if my client paid exactly 90% and not a penny more? Does the software round in their favor or does it need to be slightly over 90%? Our firm uses different software and I'm curious if there are any edge cases I should watch for.

This is a great discussion! I've been dealing with similar penalty calculations and it's clear there's a lot of nuance here that even experienced practitioners sometimes miss. From what I'm seeing in the responses, it sounds like Ultratax might actually be correct in your situation. The combination of filing an extension AND paying at least 90% by the original due date does provide some protection from the Failure to Pay penalty during the extension period. However, I'd still recommend double-checking this with the IRS directly or using one of the tools mentioned here to verify. The stakes are too high to just assume the software is right without confirmation. I've seen cases where software gets updated penalty calculations wrong, especially when there are special provisions or recent rule changes. Also worth noting - even if the Failure to Pay penalty doesn't apply during the extension period, make sure your client understands that interest is still accruing from the original due date on that unpaid $8,000. That can add up over time even without penalties.

Has anyone compared what happens with futures and section 1256 contracts under regular vs MTM? I trade a lot of ES and NQ futures and right now I'm getting that sweet 60/40 split between long-term and short-term rates. Wondering if MTM would hurt or help in my case?

Great thread! As someone who made the MTM election two years ago, I wanted to add a few practical considerations that might help with your decision: One thing to consider is the timing of when you actually start generating significant trading income under MTM. If you're planning to scale up your trading activity significantly in 2025, the ordinary income treatment might actually work in your favor if you're able to deduct business expenses that you couldn't before (like a home office, equipment, education, etc.). Also, regarding your multiple brokerage accounts - while the MTM election does apply to all securities under your SSN, I've found it helpful to designate one account specifically for "business trading" and another for "personal investments" even before setting up any entities. This makes the record-keeping much cleaner if you do decide to go the LLC route later. One more tip: if you do sell your NVDA position before year-end to lock in those long-term gains, be mindful of the wash sale rules if you plan to repurchase it within 30 days. Even though MTM eliminates wash sales going forward, the rules still apply to your 2024 transactions under regular tax treatment. The complexity definitely increases, but the benefits can be substantial if you're doing high-volume trading. Just make sure you have a solid bookkeeping system in place!

I'm going through something very similar right now! My WMR just switched from PATH to processing yesterday, and I also have the 570 and 768 codes on my transcript. It's reassuring to see others have experienced this exact combination. From what I've been reading, the 570 code with EIC (768) seems pretty standard during the PATH Act verification period. I'm hoping mine resolves as quickly as some of the experiences shared here. Has anyone noticed if the day of the week matters for when transcript updates occur? I've heard they typically update on certain days, but I'm not sure if that's accurate.

This is exactly what happened to me last month! The progression from PATH to processing with those specific codes is a really good sign. I had the 570 and 768 combination too, and like others mentioned, mine resolved in about 18 days without any action needed from me. The fact that you don't see a 971 code means they're not requesting additional documentation, which is great news. Since you mentioned amending paperwork earlier, the 570 is likely just the system doing a final verification check on those changes. I found it helpful to check my transcript every Thursday since that's when most updates seem to post. You're definitely on the right track - just need to be patient while the system works through its process!