As someone who works in college admissions, I wanted to add a few money-saving tips that might help offset some of these application costs that can't be covered by 529 funds: 1. Fee waivers - Many colleges offer application fee waivers for students who qualify based on income or participation in programs like free/reduced lunch. Don't assume you won't qualify - the income thresholds are often higher than expected. 2. Apply early decision/early action where possible - Some schools waive application fees for early applicants or offer reduced fees. 3. Visit virtual campus tours first - Most schools now offer comprehensive virtual experiences that can help you narrow down which schools are worth the expense of an in-person visit. 4. Look into SAT/ACT fee waivers - Low-income students can get up to 4 free SAT attempts plus free score reports to colleges. 5. Some schools participate in "application blitzes" or have special free application periods - usually announced on their social media or websites. While it's disappointing that 529 plans can't cover these pre-enrollment costs, there are definitely ways to reduce the financial burden. Every dollar saved on applications is more money available for actual college expenses!

This thread has been incredibly informative! I'm in a similar situation with my son who's a junior, and I was definitely planning to use 529 funds for application fees before reading this. It's disappointing that these pre-enrollment costs don't qualify, but I appreciate everyone sharing their experiences and workarounds. One question I haven't seen addressed: what about test prep courses or tutoring? My son is planning to take a prep course for the SAT - would that qualify as a 529 expense since it's education-related, or does the same "pre-enrollment" rule apply? I'm assuming it doesn't qualify, but want to make sure before I budget for it separately. Also, has anyone dealt with National Merit Scholarship applications or other scholarship application fees? I'm wondering if those fall into the same non-qualified category. Thanks again to everyone who's shared their knowledge - this has saved me from making some expensive mistakes!

This is such helpful information! I've been doing Uber Eats deliveries on weekends and making about $600-800 a month, and I had no idea I needed to be paying quarterly taxes or keeping track of my mileage for deductions. Reading through all these responses has been eye-opening - especially about how payment apps like Venmo and Zelle are now required to report business transactions over $600. I'm definitely going to start keeping better records of my earnings and expenses. The advice about deducting car expenses and phone usage is something I never would have thought of. Does anyone know if I can deduct things like phone chargers or a phone mount that I bought specifically for delivery driving? Also, since I sometimes grab drinks or snacks during long delivery shifts, would any of that count as a business expense? I'm also curious about the liability insurance mentioned - is that something gig workers should really be considering? My regular car insurance probably doesn't cover commercial use, but I've never thought about what happens if I get in an accident while delivering food.

Great question! I went through this exact same situation last year with my pet sitting business. The key thing to understand is that the IRS considers you self-employed once you're regularly providing services for income, regardless of how informal it feels. Since you're making $950/month ($11,400 annually), you're definitely above the $400 self-employment threshold. Here's what you need to know: **Tax Forms You'll Need:** - Schedule C (Profit or Loss from Business) - this is where you report your dog walking income and expenses - Schedule SE (Self-Employment Tax) - for the 15.3% self-employment tax - Form 1040 - your regular tax return **Quarterly Estimated Taxes:** You should start making quarterly payments using Form 1040-ES. A good rule of thumb is to set aside 25-30% of your earnings for taxes (this covers both income tax and self-employment tax). **Deductible Business Expenses:** Track everything! Dog treats, leashes, waste bags, mileage to/from clients, pet insurance if you carry it, cleaning supplies, even a portion of your phone bill if you use it to coordinate with clients. **Record Keeping:** Those Zelle screenshots are a good start, but create a simple spreadsheet tracking dates, client names, services provided, and amounts received. The IRS loves detailed records if you're ever audited. Don't panic about not setting money aside yet - just start now! You can even set up a separate savings account and automatically transfer a percentage of each payment. Better late than never, and the IRS offers payment plans if needed.

This is a great discussion! I'm seeing multiple valid explanations here. Having worked in retail bookkeeping, I think there might be confusion between different types of taxes at play. The inventory accounting issue (COGS impact on income tax) that Fatima explained is real - keeping more inventory means less expense recognition, potentially higher taxable income. But the panic about "end of day" suggests this might actually be about personal property tax that Yara mentioned, where inventory is assessed on a specific date. What's concerning is the owner creating urgency without explaining the actual tax mechanism. If it's personal property tax, the amount is usually small compared to lost revenue from fire sales. If it's income tax planning, there are better strategies than last-minute inventory dumps. Your buddy should ask the owner to clarify exactly which tax they're concerned about and get the specific statute or tax code. That way they can calculate whether aggressive inventory reduction actually saves money or just creates unnecessary business disruption.

Great question about resources! For understanding business tax obligations, I'd recommend starting with IRS Publication 334 (Tax Guide for Small Business) which breaks down the different types of taxes businesses face. The Small Business Administration (SBA.gov) also has excellent free resources explaining sales tax, income tax, and property tax differences. For inventory-specific guidance, IRS Publication 538 covers accounting periods and methods, including inventory valuation. Your state's Department of Revenue website will have details about local personal property taxes on business inventory - this varies significantly by state. What I've found most helpful is that each type of tax has different deadlines and calculation methods. Sales tax is typically monthly/quarterly and based on actual sales. Income tax planning happens throughout the year with annual filing. Personal property tax is often assessed on a specific date (like January 1st) and paid annually to local jurisdictions. The key is figuring out which tax the owner is actually worried about, then you can research the specific rules and deadlines that apply. Most of the panic I've seen comes from business owners mixing up these different tax obligations or getting incomplete information from well-meaning but uninformed advisors.

I'm in a very similar boat - filed my amended return about 7 weeks ago for some business expense corrections I discovered while preparing this year's taxes. The waiting is definitely anxiety-inducing when you're trying to make business decisions! Based on all the experiences shared here, I'm now planning for the 20+ week timeline that several people mentioned. What's really helped me is reaching out to my accountant to double-check that I included all the necessary supporting documentation with my amendment. She mentioned that incomplete documentation is one of the biggest causes of delays, especially with business deduction corrections. I also started looking into a small business line of credit as a backup plan for my equipment needs - the interest cost is worth the peace of mind of not being dependent on IRS timing. It's frustrating that amended returns take so much longer than regular ones, but at least this thread has given me much more realistic expectations. Thanks everyone for sharing your experiences and timelines!

I'm dealing with the same situation right now - filed my amended return 9 weeks ago for some business deduction corrections and the waiting is killing me! What's been really helpful reading through all these responses is realizing I need to completely change my business planning approach. I was naively expecting maybe 8-10 weeks max, but clearly I need to plan for 20+ weeks like many of you have experienced. I've already started conversations with my suppliers about extended payment terms, and I'm also looking into a business credit line as backup funding. One thing I'm curious about - has anyone here tried filing their amendment electronically vs. paper? I filed mine electronically but I'm wondering if that actually makes any difference in processing time, or if they all end up in the same manual review queue anyway. This thread has been incredibly valuable for setting realistic expectations, so thank you all for sharing your experiences and timelines!

Great question about the NIIT! The Net Investment Income Tax is technically separate from FICA taxes, even though it does help fund Medicare. It's imposed under a different section of the tax code (Section 1411) and has different rules and thresholds than regular FICA taxes. The key differences: - FICA taxes apply to earned income (wages, self-employment) with no income limits for Medicare portion - NIIT applies to investment income (capital gains, dividends, etc.) but only kicks in above certain income thresholds - FICA has both employer and employee portions for W-2 workers; NIIT is paid entirely by the taxpayer So while both help fund Medicare, they're administered as separate taxes with different rules. The NIIT is more like an additional income tax on investment income for high earners rather than a true payroll/FICA tax. For most people discussing capital gains taxes, the main point remains: no regular FICA, but high earners need to factor in the potential 3.8% NIIT surcharge.

This thread has been incredibly helpful! As someone who just started investing seriously this year, I had the exact same confusion about which taxes apply to capital gains. One thing I'd add for other newcomers - don't forget about tax-loss harvesting if you have any losing positions. You can offset your capital gains with capital losses, and if you have more losses than gains, you can deduct up to $3,000 against ordinary income per year (with excess losses carrying forward to future years). This strategy can be especially useful for managing your tax liability on those $8,500 gains you mentioned. Even if you don't have losses this year, it's worth keeping in mind for future tax planning. Also, make sure to keep detailed records of your cost basis (what you originally paid) for all your investments. Your brokerage should provide this, but it's good to have your own records as backup since this directly affects how much gain you'll owe taxes on.