Another option nobody mentioned is setting up EFTPS (Electronic Federal Tax Payment System). It's clunky and takes like 2 weeks to get set up bc they mail you a PIN, but once it's active you can schedule all your quarterly payments in advance. The verification for that was easier for me as a first-timer than the regular IRS payment site.

I went through this exact same frustration when I started my consulting business! The verification loop is so annoying when you're trying to be responsible about quarterly payments. What worked for me was using my AGI and filing status from my most recent W-2 return (2023) for the verification step. The system doesn't actually care that it wasn't self-employment income - it just needs to verify you're really you using ANY previous tax filing. If you're still stuck, try the EFTPS system that Miguel mentioned. The verification process there was slightly different and I found it easier to navigate as a first-timer. Yes, you have to wait for the PIN in the mail which is annoying, but once it's set up you can schedule all your quarterly payments for the year in one sitting. Don't let this discourage you from staying on top of your quarterlies - you're already ahead of so many freelancers by thinking about this early!

Don't forget about quarterly estimated tax payments! Since you don't have taxes withheld as a self-employed person (whatever they call you), you likely need to make quarterly payments to avoid penalties. The safe harbor is generally paying either 90% of this year's tax or 100% of last year's tax (110% if your AGI was over $150k). Missing these payments can result in penalties even if you pay everything you owe by April 15.

This is such a helpful thread! I'm dealing with a similar situation where one client calls me a "vendor" and another calls me a "contractor," but it sounds like the tax treatment is the same regardless of their internal terminology. One thing I'd add - if you're worried about documentation, I've found it helpful to keep copies of all invoices I send to clients, along with their payment confirmations and any email correspondence about the work relationship. Even if they don't send 1099s, having a clear paper trail of the business relationship can be valuable. Also, don't forget to look into business insurance if you haven't already. As a self-employed person, you might want professional liability or general liability coverage depending on your field. Some clients even require it before they'll work with you. The quarterly estimated tax payments mentioned above are crucial - I learned this the hard way my first year and got hit with penalties. Setting aside money from each payment as it comes in is definitely the way to go!

Make sure you understand the difference between tax WITHHOLDING and actual tax LIABILITY. If you reduce withholding too much, you'll just owe a big payment when you file your taxes next year. My brother thought he was "smart" by claiming a bunch of allowances on his old W4, then got hit with a $7k tax bill plus penalties. Just be careful!

Based on your numbers, you're definitely having too much federal tax withheld. With $3100 weekly gross pay and the deductions you mentioned (10% 401k + $280 health insurance), your federal withholding should be closer to $350-380 per week, not $450. Here's what I'd recommend: Use the IRS Tax Withholding Estimator first to get a baseline, then fill out a new W4. Since the 2020 W4 doesn't use allowances anymore, focus on Step 4(c) - enter a negative amount to reduce your weekly withholding. Based on your situation, try "-70" to reduce federal withholding by $70 per week. Also double-check your pay stub for any other deductions you might have missed - sometimes there are small items like disability insurance or union dues that add up. And make sure your filing status on the W4 matches what you'll actually file (single vs married). The key is finding the sweet spot where you get more take-home pay now without owing a big tax bill next April. Start conservative with the reduction and adjust if needed.

Does anyone know if there's an income limit for the Lifetime Learning Credit? I think I might be getting close to the phaseout and I'm worried I won't qualify even though I have the expenses.

Great question Sofia! I was in a similar situation a few years back. Yes, you can absolutely claim the Lifetime Learning Credit after using up your 4 years of AOTC - that's exactly what it's designed for! The LLC allows you to claim 20% of up to $10,000 in qualified education expenses (so max $2,000 credit). Those monthly $350 payments you made should definitely qualify as long as they were for tuition and required fees. The fact that FAFSA covered most expenses doesn't disqualify you - you can claim the LLC on the portion you paid out of pocket. Just make sure you keep good records of what those payments covered. Download official receipts from your student portal showing the breakdown of fees - this will be important if you ever get audited. The IRS wants to see exactly what the payments were for, not just bank statements. Also double-check your income limits - the LLC phases out starting at $80k for single filers, so you should be fine unless you're in a higher income bracket.

I had almost the exact same thing happen to me two years ago - my first name was spelled "Micheal" instead of "Michael" on my return. I was panicking about depositing the check, but it turned out to be no big deal at all. I took it to my bank and explained the situation to the teller. She just had me show my ID, confirmed my SSN matched what was on file, and deposited it without any issues. The key is that all your other identifying information (SSN, last name, address) is correct - that's what really matters to both the bank and the IRS. Don't stress about calling the IRS right now. Just have your accountant fix it on next year's return and you'll be all set. The one-letter typo won't cause any long-term problems as long as it gets corrected going forward. Your SSN is your primary identifier with the IRS anyway, not your name spelling.

I work at a credit union and can confirm what others are saying - minor spelling errors on tax refund checks are rarely an issue for deposit. We see this all the time, especially during tax season. As long as your SSN matches our records and you can provide valid ID, we'll typically process the deposit without problems. The key things we look for are: 1) SSN matches account holder, 2) ID verification, and 3) the check is properly endorsed. A single letter difference in the first name won't typically cause rejection, especially when everything else is correct. If you're concerned about pushback, I'd recommend going to a teller rather than using mobile deposit or ATM. That way you can explain the situation upfront and avoid any automated flags. Most tellers have dealt with this before and know how to handle it. Just bring your ID and be ready to explain that it's an accountant error that will be corrected on future returns.