Just wanted to add - don't forget about state taxes too! In Pennsylvania (where you mentioned you live), you'll need to file a PA Schedule C with your state return as well. Pennsylvania doesn't recognize LLCs as separate from their owners for tax purposes, similar to federal treatment for single-member LLCs. Also, depending on your local municipality, you might need to file a local business tax return or get a business privilege license. Some PA cities and townships have these requirements even for small side businesses. Might be worth checking with your local government office.

Great question! I went through this exact same situation when I started my consulting LLC alongside my teaching job. A few additional points that might help: Since you're already employed as a high school counselor with taxes withheld, you might want to consider increasing your withholding at your main job rather than making quarterly payments. You can adjust your W-4 to have extra tax withheld to cover the tax liability from your LLC income - this is often easier than remembering to make quarterly payments. Also, don't underestimate your deductible expenses! Beyond the obvious ones like mileage and startup costs, consider things like: - Professional liability insurance (if you get it for your coaching) - Continuing education related to your coaching specialty - Office supplies (even if it's just notebooks and pens for client sessions) - Professional memberships or certifications - Business meals with potential clients (50% deductible) One more tip: Keep detailed records of your time and activities. Since coaching can sometimes blur the line between business and personal development, having clear documentation of your business activities will be helpful if you're ever audited. The Schedule C filing is straightforward, especially with TurboTax, but don't hesitate to consult a tax professional if your income grows significantly or your situation becomes more complex.

This happened to a relative of mine in 2023. The IRS actually has a specific procedure for this. If you google "IRS erroneous refund procedures" you'll find their official guidance. Main thing is documenting everything and not spending the money. Is there any chance someone could have filed a tax return using your personal info? Might be worth checking your credit report just to make sure there's no other funny business going on. Identity theft with tax refunds has been increasing lately.

Actually, it's totally possible for someone to use your bank account info with a different SSN - this is more common than you'd think. Tax scammers sometimes get banking information through data breaches or phishing schemes, then file fraudulent returns using stolen SSNs but legitimate bank accounts for the refunds. The fact that there are two separate deposits ($7,250 and $1,750) makes me think this could be two different fraudulent returns rather than just a simple IRS mistake. Most legitimate refunds would come as one deposit, not split amounts like this. When you call the IRS, make sure to ask them specifically if any returns have been filed using your banking information but different SSNs. They can check this and will be able to tell you if this is fraud-related rather than just an administrative error. If it is fraud, they'll need to flag your account and potentially investigate how your banking information was compromised. Also consider changing your bank account numbers just to be safe. Better to deal with the hassle of updating your direct deposit info than risk this happening again.

Quick question for anyone who's dealt with this - if I already provided my SSN to Venmo but STILL got hit with backup withholding, what went wrong? Do I need to contact them specifically about this?

I went through something very similar with Venmo last year! The key thing to understand is that backup withholding isn't necessarily a bad thing - it's just the IRS making sure they get their cut upfront when tax info is missing. Since this was a legitimate loan repayment, you'll definitely get that 24% back. Make sure you keep records of the original loan (texts, emails, bank records showing the initial $2,700 going out) in case the IRS ever questions it. Also, definitely update your tax information with Venmo right away. You can do this in your account settings under "Tax Information" - it'll prevent this headache from happening again. One thing that caught me off guard was that the 1099-K might show up as "business income" in some tax software, so you'll need to make sure you're categorizing it correctly as a non-taxable personal transaction. The backup withholding credit will show up separately and should give you a nice refund boost since you won't actually owe taxes on the repayment amount.

I had a similar situation last year when I was on extended unpaid sick leave for about 10 months. I was really stressed about the occupation field too, but after doing some research and talking to a tax professional, I learned that the IRS primarily uses the occupation field for statistical analysis and research purposes, not for determining tax liability or flagging returns. The key principle is that your occupation represents what you do professionally, not necessarily where your income came from in a specific tax year. Since you maintained your employment status (just on unpaid leave), your occupation didn't actually change - you're still a Senior Project Coordinator, you just weren't actively working or receiving pay. I ended up listing my actual job title and had no issues at all. The IRS processes thousands of returns every year where people's occupations don't perfectly match their income sources - think about seasonal workers, freelancers between contracts, people on sabbatical, etc. As long as you accurately report whatever income you did receive during 2024, you'll be fine. Don't stress too much about this field - focus on making sure your income reporting is accurate and complete.

I understand the anxiety around this - I went through something similar when I was furloughed for several months during the pandemic but technically still employed. After consulting with a CPA, I learned that the occupation field is really just a descriptor of what you do professionally, not a reflection of your current work status or income sources. Think of it this way: if a doctor takes a sabbatical year to write a book, they're still a doctor by profession even if they didn't earn medical income that year. Same principle applies to your situation - you're still a Senior Project Coordinator by profession, you just weren't actively working due to your leave status. The IRS gets thousands of returns where occupation and income sources don't align perfectly - people changing careers mid-year, retirees with part-time work, students with summer jobs, etc. As long as you accurately report whatever income you did have in 2024 (unemployment benefits, freelance work, investment income, etc.), the occupation field won't cause any issues. Just put "Senior Project Coordinator" and focus your energy on making sure all your actual income is properly reported. You're definitely overthinking this part of the return!

One thing to keep in mind is that even if you structure this as a loan arrangement, the IRS has something called "substance over form" doctrine. They look at the economic reality of the transaction, not just how it's labeled on paper. If you're essentially planning from the start to let the lender take your assets instead of repaying, the IRS could argue this was always intended as a sale, not a genuine loan. This could trigger immediate tax consequences and potentially penalties for trying to disguise a sale as something else. The safest approach is usually to treat any loan against appreciated assets as what it is - a way to access liquidity while maintaining ownership, with the understanding that you'll need to either repay the loan or face the tax consequences of disposition. The wealthy people you mentioned using these strategies typically have much more complex estate planning structures and legal teams to navigate the rules properly.

I've been researching this exact situation for months and want to add a few critical points that haven't been fully covered yet. First, the timing of when you declare your intent matters enormously. If you structure this as a genuine loan with real repayment terms and only later face financial hardship that prevents repayment, the tax treatment can be different than if you go in planning to default. Second, the type of asset matters. With stocks held in taxable accounts, any loan-related disposition triggers capital gains calculations. But if these are stocks in retirement accounts, the rules get even more complex because you're dealing with prohibited transaction rules on top of the regular tax implications. Third, consider state taxes too - some states have no capital gains tax, others treat loan forgiveness differently than the federal rules. If you're in California or New York, the state tax hit alone could be massive. The "buy, borrow, die" strategy mentioned earlier only works if you actually die while holding the assets. If you're forced to liquidate during your lifetime for any reason, all those deferred taxes come due. It's not a magic bullet unless you're certain about the long-term timeline. My advice? Get a tax attorney consultation before doing anything. The potential penalties for getting this wrong far exceed the cost of proper planning upfront.