Canadian card shop owner here - the best advice I can give is separate your transactions in your accounting system: 1. Create a PURCHASE transaction for the cards you're buying from the customer (the $120 value) 2. Create a SALE transaction for the full value of what you're selling them ($250) Don't use the "discount" approach in your POS - it messes up your revenue reporting and can create GST/HST problems. I use a simple trade slip that the customer signs confirming the value of cards I'm purchasing from them. This becomes my purchase receipt. Then I create a separate sales receipt for what they're buying from me. Keeps everything clean for tax purposes and I've survived two CRA reviews without issues.

As someone who's been running a small collectibles business for a few years, I wanted to add one more consideration that might help - make sure you're thinking about the GST/HST implications on BOTH sides of the transaction if you're registered. When you "purchase" those $120 worth of cards from your customer, you might be eligible to claim input tax credits if the person you're buying from is also GST/HST registered (though this is rare with individual collectors). Most of the time you won't get ITCs since you're buying from consumers, but it's worth understanding the rules. Also, I've found it helpful to set up specific inventory categories in my accounting software for "trade-in inventory" vs "purchased inventory" - makes it easier to track your margins and see how profitable your trade programs actually are. Sometimes what feels like a good deal in the moment doesn't look as great when you factor in all the tax obligations! The separate transaction approach that Dylan mentioned is definitely the way to go. Clean books make everything easier when tax season rolls around.

Has anyone used TurboTax to calculate their EIC? I'm having the same issue with a low credit amount and wondering if the software might be calculating it wrong. I've used TT for years but this is the first time I've qualified for EIC.

I'm dealing with a similar situation and found that many people don't realize the EIC has very specific income ranges where it provides maximum benefit. Based on what everyone's shared here, it sounds like your $19,000 income is putting you right at the phase-out threshold. One thing that helped me understand my situation better was requesting a transcript of my tax account from the IRS website. It shows exactly how they calculated my EIC and breaks down all the income sources they used. You might discover there's additional income being counted that you forgot about - even small amounts like bank interest or cash app earnings can push you over the optimal EIC range. Also, if you're doing food delivery work, make sure you're deducting legitimate business expenses like mileage, phone bills, and delivery bags. While this won't directly increase your EIC (since it's based on earned income before business deductions), it can reduce your overall tax liability and increase your refund in other ways.

Just wanted to add my experience from this tax season - I saw the same 960 code and called FreeTaxUSA directly to confirm what everyone here is saying. The customer service rep explained that when you select "pay fees from refund," you're essentially authorizing them to act as an intermediary. They create what's called a "temporary bank product" where the IRS deposits your full refund, FreeTaxUSA takes their preparation fee (mine was $14.99), and then they ACH transfer the remainder to your actual bank account. The whole process took about 10 days from when my refund was issued. The authorization is very narrowly defined - they can't access any other tax information or communicate with the IRS about your return status. It's purely transactional. Your daughter should receive email updates from FreeTaxUSA throughout the process showing when they received the refund and when they transferred her portion.

Thank you everyone for the detailed explanations! As someone new to this community, I really appreciate how thorough and helpful these responses have been. I had the exact same concern when I saw a 960 code on my transcript after using TaxSlayer and choosing the refund transfer option. What struck me most was how this authorization process isn't clearly explained during the filing process - you really have to dig into the fine print to understand what's happening. For anyone else encountering this, I'd recommend keeping screenshots of your filing confirmation emails and checking your transcript periodically to see when the code gets removed. It's also worth noting that some tax prep companies are more transparent about this process than others - might be something to consider when choosing software for next year's filing season.

Based on all the excellent advice here, I want to emphasize one more practical consideration: even if you successfully get more of your bonus upfront through questionable W-4 changes, you're essentially giving yourself an interest-free loan that you'll have to pay back at tax time. Instead of risking compliance issues, consider these cash flow alternatives: - If you have urgent expenses, look into a short-term personal loan or line of credit - Ask family or friends for a temporary loan if possible - See if you can negotiate payment plans for your urgent expenses - Check if your employer offers payroll advances or emergency hardship programs Many people don't realize that most financial institutions offer short-term lending options that might cost less in interest than the potential penalties and stress of IRS scrutiny. Plus, you maintain a clean tax compliance record. The tax professionals and compliance experts in this thread have made it clear that the risks far outweigh the temporary benefits. Your future self will thank you for handling this situation legally and responsibly, even if it means less immediate cash in hand.

After reading through all these responses, I'm really glad I asked this question here before doing something I would have regretted. The consensus is pretty clear that claiming exempt when you don't qualify is a bad idea, both legally and practically. What's been most helpful is learning about the legitimate alternatives - adjusting allowances temporarily instead of claiming exempt, understanding how different companies handle bonus withholding, and exploring other cash flow options like short-term loans or employer hardship programs. The point about IRS algorithms flagging suspicious W-4 timing patterns really opened my eyes. I had no idea they actively monitor for these kinds of changes around bonus payments. That alone makes it not worth the risk. I think my next steps will be: 1) Talk to payroll about how they specifically handle bonus withholding, 2) Look into whether my company has any emergency assistance programs, and 3) Maybe consult with a tax professional about legitimate ways to optimize my withholding for the rest of the year. Thanks everyone for steering me away from what could have been a costly mistake. Sometimes the "quick fix" isn't actually the smart fix!

I've been with Wells Fargo for about 3 years now and can confirm they're pretty strict about waiting until the exact date. Unlike some of the smaller banks and credit unions that release early, Wells Fargo processes these right on schedule. Your June 12th date should be solid - I'd expect it to hit your account sometime during business hours that day. The one thing I've noticed is that if June 12th falls on a weekend, they usually process it on the Friday before, but since you're looking at a weekday you should be good. Just don't refresh your app at midnight expecting it to be there immediately - these usually post during normal banking hours.

Based on my experience with Wells Fargo, they're pretty conservative with deposit timing - they'll release your refund exactly on June 12th as shown on your transcript, not earlier. I switched to Wells Fargo two years ago from a local credit union that always gave me deposits 1-2 days early, so I totally understand the adjustment! The good news is that Wells Fargo is very reliable - if your transcript says June 12th, you can count on getting it that day (usually sometime during business hours). Just manage your expectations and don't expect the early release you were used to with your credit union. For future refunds, you might want to consider keeping a secondary account with an online bank like Chime or SoFi if early access to funds is important to you - many people do this specifically for the early deposit feature while keeping their primary banking with traditional banks.