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I may have some relevant information to share. My verification was completed on February 20th, and I received my refund on March 8th, which was approximately 16 days later. It seems the timeframe might be somewhat consistent based on what others have shared here. I checked my transcript every few days and noticed the 846 code appeared about 3 days before the deposit hit my account. I believe the system follows a fairly standard process unless there are additional complications with your return.
Based on everyone's experiences here, it looks like you're right in the normal timeframe window. I completed ID verification on February 25th and got my refund on March 15th - exactly 18 days later. The key thing I learned is that patience is really your only option during this phase. The IRS systems seem to process post-verification returns in batches, which explains why some people get theirs in 9 days while others wait the full 21. Since you're at day 15 and documented everything so well, I'd suggest checking your transcript one more time for any new codes, then waiting about 5-6 more days before calling. The fact that you completed verification online and got confirmation is a good sign - it means you're definitely in the queue.
This is really reassuring to hear! I'm new to dealing with ID verification and wasn't sure what to expect. Your timeline of 18 days gives me hope since I'm only at day 15. I like your suggestion about checking the transcript once more and then waiting - I've probably been checking too frequently out of anxiety. Quick question: when you say the IRS processes in batches, do you know if there's a particular day of the week they typically release refunds? I've heard Friday deposits are common but wasn't sure if that applies to post-verification cases too.
Don't stress too much about this. I've been filing 1099s for 7 years as an IT professional and I've used slightly different descriptions as my work evolved. One year I used "software programmer" and another "IT consultant" when my work shifted. I think we techies tend to overthink the classification stuff. As long as it's reasonably accurate and your expenses make sense for that type of work, you're fine!
Thanks for saying this, I was stressing out way too much. Think I'll go with "Software Developer" since that's what most of my work is. Appreciate everyone's advice here!
As someone who's been doing IT contract work for several years, I'd recommend going with "Software Developer" since that seems to be your primary focus. The IRS business code 541511 (Custom Computer Programming Services) would be appropriate for this. The key thing to remember is that your business description should reflect where most of your income comes from. Since you mentioned backend development is your main work, "Software Developer" is accurate and straightforward. The fact that you also do some frontend, server maintenance, and security work doesn't change your primary classification - many developers wear multiple hats. TurboTax will walk you through the business code selection when you get to the Schedule C section, and you'll be able to search for "software" or "programming" to find the right code. Don't overthink it - consistency with your actual work activities is what matters most!
This is really helpful advice! I'm in a similar situation as the original poster - doing mostly backend work but some other IT tasks too. Quick question though - if I choose "Software Developer" and use code 541511, does that limit what kinds of business expenses I can deduct? Like if I buy networking equipment for server maintenance work, would that still be deductible under a software development classification?
For those suggesting spreadsheets alongside QBSE - I wrote a simple Google Sheets template specifically for Etsy sellers using QBSE who need COGS tracking. Happy to share the link if anyone's interested. It's free and has formulas to calculate everything you need for Schedule C.
Yes please! That would be super helpful. I'm in exactly this situation - selling on Etsy and using QBSE but struggling with inventory tracking.
Here you go! I've put the template here: [link removed by moderator]. It has sheets for tracking beginning inventory, purchases throughout the year, ending inventory, and automatically calculates your COGS for Schedule C. It also breaks things down by product category if you sell different types of items. I included instructions on the first tab about how to use it alongside QBSE. Basically, you still enter all your expenses in QBSE but use this spreadsheet to calculate the proper COGS figure for your Schedule C. No need to upgrade your QBSE subscription!
I've been dealing with this exact same frustration! As a tax professional who works with a lot of small business owners using QBSE, I can confirm that the software really isn't designed for product-based businesses, despite what their marketing suggests. Here's what I recommend to my clients: Use QBSE's expense categories to track your material purchases (I usually suggest "Supplies" or "Cost of Goods Sold" if that category is available in your version), but keep detailed records outside the system. The key is consistency in how you categorize things. For your jewelry business specifically, track each material purchase in QBSE with detailed descriptions like "Silver wire - 20ft - Inventory" so you can easily identify inventory-related expenses later. Then maintain a simple inventory log separately to track quantities, costs per unit, and what you have on hand. At tax time, you'll manually calculate COGS using the standard formula: Beginning Inventory + Purchases - Ending Inventory = COGS. This goes on Schedule C line 42, and you'll need to fill out the additional COGS details on lines 35-41. It's not perfect, but it's completely legitimate and you won't need to upgrade. The IRS cares that your COGS calculation is accurate, not that it came directly from your accounting software.
Tax person here - some practical advice on statute of limitations: 1) Federal: 3 years normally, 6 years if you omit >25% of income, unlimited if fraud or no return filed when required 2) States vary widely! Some follow federal rules, others have different timeframes entirely 3) The "no requirement to file" situation: Technically true that there's no violation if you weren't required to file. BUT proving that years later can be challenging without documentation 4) Documentation is key - keep records of income for at least 7 years, especially for cash/1099 work 5) If you get notices like OP did, ALWAYS respond and keep copies of all correspondence The most practical approach is to file simple returns even when below thresholds, just for the paper trail. It's easier than explaining yourself years later.
Is there a downside to filing when you don't need to? Like could it trigger audits or other issues? I'm in a similar situation to OP and wondering if I should start filing my state returns even though I'm under the threshold.
There's virtually no downside to filing when you don't need to. It won't increase your audit risk - in fact, filing a return that shows very low income is extremely unlikely to trigger an audit since there's little tax revenue at stake. For state returns specifically, it can actually prevent problems. Many states have automated systems that flag taxpayers who filed federal returns but not state returns. By filing a state return (even showing zero tax), you avoid these automatic flags and the notices that follow. It's much easier to file a simple return than to respond to notices and explain why you didn't file. Think of it as preventative documentation.
This is such a helpful thread! I'm in a similar boat with state taxes - been under the filing threshold for a few years but always worried about getting notices. After reading everyone's experiences, I think I'm going to start filing simple returns even when not required, just for the documentation. The peace of mind seems worth the small effort, especially after hearing about people successfully using services like taxr.ai to get proper documentation of their filing requirements. One question for the tax professionals here - if I start filing now for previous years where I was under the threshold, is there any specific way I should note on the return that I'm filing voluntarily? Or do I just file normally and let the low income speak for itself? Thanks to everyone who shared their experiences with the various services too. It's reassuring to know there are options if I ever need to get through to the IRS or state tax office quickly.
You don't need to add any special notation when filing voluntarily - just file the return normally and let your income figures show that you were under the threshold. The return itself serves as documentation that you were compliant and below filing requirements for those years. One tip: if you're filing for multiple prior years at once, consider mailing them separately or clearly marking the tax year on each envelope to avoid processing delays. Some states can get confused when they receive multiple years together. Also totally agree about the peace of mind factor! I went through something similar a few years back and filing those "just in case" returns eliminated so much anxiety about potential future notices.
Mateo Gonzalez
I feel obligated to mention a cautionary note regarding verification timelines. Per Internal Revenue Manual 21.9.1.3, identity verification should be processed within 9 weeks, but I've observed numerous cases where this timeline was exceeded without notification to the taxpayer. In one particularly concerning case from last tax season, a client submitted verification on February 3rd and received no updates until May 27th - nearly 16 weeks later. The IRS cited "exceptional processing circumstances" but provided no further explanation. According to Taxpayer Advocate Service Report 2023-1, approximately 18% of verification cases exceed standard processing times. I strongly recommend documenting all verification submission dates and following up proactively if the 9-week mark passes without resolution.
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Yuki Ito
Thank you for sharing your timeline, Diego! As a fellow military family member, I completely understand the frustration of waiting on government processes. From what I've been reading in various tax forums and based on conversations with others who've gone through ID verification this season, your February 17th submission date puts you right in the thick of peak verification season. The IRS verification department seems to be processing in waves, and many people who submitted in mid-to-late February are just now starting to see movement. I'd suggest checking your online account transcript (if you haven't set one up yet) rather than relying solely on WMR - it tends to update faster and gives you more detailed information about where your return stands in the process. From what I've observed, once verification clears, the actual refund processing moves pretty quickly. Hoping you see some positive movement soon!
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