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Just a heads up - make sure your bank knows exactly what you're doing. Some banks require additional documentation beyond just the EIN to link a business name to your account. My credit union wanted to see the DBA filing AND the EIN before they would accept checks with my business name.
Great advice from everyone here! Just to add one more tip - when you get your EIN, write it down in multiple places and take a screenshot of the confirmation page. The IRS doesn't mail you a physical document anymore, so that online confirmation is your only proof until you start filing tax returns with it. Also, once you have your EIN, you can call your bank ahead of time to ask exactly what documents they'll need to update your account for business name deposits. Some banks are more flexible than others, and it's better to know their specific requirements before you show up with the check. The whole process really is pretty straightforward once you know the steps - EIN online (15-20 minutes), DBA at county level (varies by location), then coordinate with your bank. You should be able to get that check deposited within a few days if you stay on top of it!
This is such helpful advice! I just went through a similar situation with my small tutoring business and wish I had known about taking screenshots of the EIN confirmation page. I lost mine and had to dig through old emails to find it again. One thing I'd add - if your bank is being difficult about the business name deposits, consider opening a dedicated business checking account. Some banks make it easier to deposit business-named checks into a proper business account rather than trying to modify a personal account. Plus it helps keep your business and personal finances separated, which makes tax time much easier.
Something everyone seems to be missing - make sure you're using the right version of Form 8865! The IRS updates these forms almost every year. Using the 2011 form for your 2023 taxes would be a disaster!
This is such a common source of confusion! I've been dealing with foreign partnerships for about 8 years now and still had to look this up when I first started. One thing that might help is to think of it this way: your personal tax return is like a "snapshot" of your financial situation for that calendar year. So for your 2023 personal taxes, you need to include income/losses from any partnership tax year that "closed the books" during your 2023 calendar year. In your case with the April 1 - March 31 fiscal year, the partnership year that ended March 31, 2023 is what gets reported on your 2023 personal return. Even though most of that partnership year (April-December 2022) happened in 2022, it still gets reported on your 2023 taxes because that's when the partnership "closed the books." Pro tip: I always write down the partnership's fiscal year dates somewhere prominent on my tax prep checklist each year. Saves me from having to re-figure this out every single time! The partnership should send you a K-1 that will also show which tax year it covers.
This is really helpful advice about writing down the fiscal year dates! I'm definitely going to start doing that. Quick question though - what happens if the partnership K-1 shows a different tax year than what I calculated using the "ended within" rule? Should I follow the K-1 or stick with my calculation? I've never had this happen but want to be prepared just in case there's a discrepancy.
I've helped exactly 17 clients with 1095-A issues this tax season already. Here's a specific example that might help you understand what you're dealing with: Client had a 1095-A showing $437.28 monthly premium, $578.45 for the SLCSP (Second Lowest Cost Silver Plan), and $312.00 in monthly APTC (Advanced Premium Tax Credit). Their actual annual income was $32,450 instead of the $29,000 they estimated when applying for coverage. When we completed Form 8962, they had to repay $428 of their premium tax credit because their actual income was higher than projected. However, since their income was at 253% of the Federal Poverty Level, their repayment was capped at $800 (they would have owed $624 without the cap). The most common mistake I see is people entering annual totals instead of monthly amounts from the 1095-A. Be precise with those numbers!
Hey Alicia! I totally understand that overwhelmed feeling - the 1095-A can definitely look intimidating at first glance! π As a fellow student who went through this last year, here's what helped me get through it: **Quick sanity check first:** Make sure all the information on your 1095-A looks correct (coverage months, premium amounts, etc.). If anything looks off, contact the Marketplace for a correction before filing. **The good news:** Most tax software (TurboTax, FreeTaxUSA, etc.) will walk you through this step-by-step. You basically just enter the numbers from each box on your 1095-A and it does the heavy lifting on Form 8962. **Student-specific tip:** Since you mentioned you're a full-time student, your income might be pretty low, which could actually work in your favor! If your actual income ended up being lower than what you estimated when you signed up, you might get additional tax credits back as a refund. **Before your appointment:** Have your 1095-A ready and double-check that the monthly premium amounts match what you actually paid. Your tax preparer will need these exact numbers. You've got this! The anticipation is definitely worse than actually doing it. Let us know if you run into any specific questions about the numbers on your form! π
This is such helpful advice! I'm also a student and was dreading dealing with my 1095-A, but knowing that low income might actually work in my favor makes me feel better about the whole process. Quick question - when you say "double-check that the monthly premium amounts match what you actually paid," should I be looking at my bank statements or insurance company records to verify this? I want to make sure I'm comparing against the right source before my tax appointment.
I recommend getting tax software like FreeTaxUSA or Credit Karma Tax (now Cash App Taxes) which are both free for federal filing and guide you through the process for both W-2 and 1099 income. They'll prompt you to enter your doordashing income and expenses on Schedule C and automatically calculate your self-employment tax. Even with income under the standard deduction, definitely still file a return! You might qualify for refundable credits like the Earned Income Credit depending on your situation, which could get you money back even if you don't owe income tax.
FreeTaxUSA is great but definitely not completely free - they charge for state filing. I think TurboTax has a free option for simple returns but they upcharge if you have 1099 income.
As someone who went through this exact situation last year, I can confirm what others have said - you can definitely use the standard deduction against your combined income from both sources. However, the self-employment tax part caught me off guard too! One thing I'd add is to make sure you keep track of ALL your doordashing expenses going forward, not just mileage. Things like phone accessories (car mounts, chargers), insulated bags, even a portion of your phone bill can be deductible. I wish I had known this during my first year of gig work. Also, since you're young and this might be your first time dealing with self-employment income, consider setting aside about 15-20% of your 1099 earnings for taxes throughout the year if you continue doordashing. The self-employment tax plus any income tax can add up, and you don't want to be surprised next filing season. Good luck with everything - you've got this!
Sean Flanagan
Ugh, I'm going through the exact same thing! Filed my CT return in late February and it's been stuck on "Under Review" for 7 weeks now. It's so nerve-wracking when you're counting on that money. I actually called the DRS office yesterday and after waiting 90 minutes (!) they told me that "Under Review" can mean anything from routine verification to them needing additional documentation. The rep said they're really backlogged this year and to expect 10-12 weeks total processing time. Apparently if they need anything from you, they'll send a letter, so no news is kinda good news? Still super frustrating though - my federal came back in like 2 weeks! π€
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Ana ErdoΔan
β’Thanks for calling and getting that info! 90 minutes on hold is brutal but at least you got some clarity. That's actually reassuring to hear that no news is good news - I was starting to worry they lost my return or something. 10-12 weeks total is still crazy long compared to federal but good to know what to expect. Did they give you any sense of where CT is in processing February returns right now?
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StarSeeker
Just got off the phone with CT DRS after a 2+ hour wait (I called at 8am sharp when they opened). Rep told me they're currently processing returns filed in early February, so if you filed mid-to-late February you're probably still a few weeks out. She also mentioned that anything involving Schedule CT-1040EZ or certain tax credits automatically goes into extended review. The good news is once it moves from "Under Review" to "Approved" the deposit usually hits within 3-5 business days. Hang in there everyone - sounds like we're all in the same boat! π€
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