The same thing happened to me but with Spotify! Tax was like 14.2% and I was so confused. Turns out I had moved counties but my billing address was still using my old address which had higher local taxes. Check your billing address in your Apple account. Even if you updated your Apple ID info, sometimes the billing address for subscriptions updates separately.

I work in tax compliance for a digital services company, and what you're experiencing is actually quite common. The 13.6% rate you're seeing is likely a combination of multiple tax layers that Apple has to collect based on your billing address. Here's what's probably happening: your base state sales tax, plus any county tax, city tax, and potentially a specific digital services tax. Many jurisdictions have added special taxes on streaming and digital subscriptions in recent years - some call them "amusement taxes" or "digital goods taxes." Chicago is notorious for this - they have a 9% amusement tax on top of regular Illinois sales tax. If you're in a high-tax area, 13.6% is unfortunately not unusual for digital subscriptions. The key thing to check is your billing address in your Apple account settings. Make sure it's current and accurate, because Apple calculates tax based on that address, not where you physically are when you use the service.

Just wanted to echo what everyone else has confirmed - you're absolutely right about the tax treatment of distribution code G! I went through this exact situation last year when my 401(k) from a previous employer was rolled over to my IRA. One thing I'd add is to keep an eye out for any state tax implications if you live in a state with income tax. Most states follow the federal treatment for retirement rollovers, but it's worth double-checking your state's specific rules just to be thorough. Also, since you mentioned it's been a couple years since you've dealt with retirement transfers, you might want to verify that your wife's IRA custodian sent you any welcome materials or account statements showing the rollover deposit. Having that documentation alongside the 1099-R creates a complete paper trail, even though you shouldn't need it for filing. Sounds like everything was handled properly - direct rollovers with code G are pretty straightforward from a tax perspective!

Your understanding is absolutely correct! Distribution code G is specifically for direct trustee-to-trustee rollovers, which means this transaction should have zero tax consequences for you. The amount will show up on line 5a (gross distribution) but not on line 5b (taxable income) of your Form 1040. The timing of receiving the 1099-R two years after your wife left her teaching position is actually quite common. Many 403(b) plan administrators take time to process rollovers, especially when the employee doesn't initiate the transfer immediately upon leaving. Some plans also have waiting periods or administrative processes that can delay these transactions. When you file your return, make sure to enter the G code correctly in your tax software - it should automatically recognize this as a non-taxable rollover and zero out the taxable portion. If you're filing manually, just note "Rollover" next to the entry on your return. Keep all your documentation, including the 1099-R and any statements from your wife's new IRA showing the rollover contribution. While the IRS rarely questions properly coded direct rollovers, having that paper trail is always good practice. You're all set to file with confidence - this is exactly how these retirement account transfers are supposed to work from a tax standpoint!

You're being a great friend by helping out! From a tax perspective, you're totally fine. Since you're not keeping any of the money or charging a fee, this is just a personal favor - not taxable income for you. The IRS will see this as your friend's income (which it is) because his employer reports it on his W-2 under his Social Security number. The fact that it briefly passes through your account doesn't change who actually earned the money. Just keep it simple and occasional. If you start doing this regularly for lots of people or charging fees, that could potentially create tax issues. But for a one-time $215 favor? No worries at all. I'd also echo what others said about suggesting online banks to your friend - many offer instant or early direct deposit access, which would solve his problem without needing to involve you. Banks like Chime, Current, and others specialize in faster fund availability. You're good to go on helping him out this time!

I'm dealing with a similar banking frustration myself! My credit union holds checks for what feels like forever, especially if they're over a certain amount. From what I understand (and others have confirmed here), you should be fine tax-wise since you're just helping a friend access his own money faster - not earning income yourself. The employer already reported this on your friend's W-2, so the IRS knows it's his wages. One thing I'd add is maybe take a quick photo of the endorsed check before depositing it, just for your own records. Probably unnecessary, but it shows you were handling legitimate payroll funds if any questions ever came up. The online bank suggestions are spot on though. I've been thinking about switching to one of those digital banks myself after hearing how much faster they are with deposits. Might save both of you the hassle in the future!

I'm dealing with something similar right now with my food truck business. Been operating for 2 years and just found out I should have been collecting sales tax on prepared food in my state. The panic is real! One thing I learned is that you definitely want to get registered for a sales tax permit ASAP even before you figure out the back taxes situation. Continuing to operate without one while you're sorting out the past issues just makes things worse. Also, keep detailed records of EVERYTHING moving forward - sales by location, exempt vs taxable items, etc. I started using a POS system that automatically calculates and tracks sales tax by jurisdiction since I operate in multiple cities. It's been a lifesaver for staying compliant going forward while I work through my past issues. The voluntary disclosure route really does seem to be the way to go based on what I'm reading here. Better to rip the band-aid off and deal with it head-on than live in constant fear of getting caught.

As someone who went through a similar nightmare with my consulting business, I can't stress enough how important it is to act quickly but thoughtfully. I made the mistake of panicking and calling my state tax office without proper preparation, which actually hurt my case initially. Here's what I wish I had done from day one: First, stop beating yourself up - this happens to thousands of small business owners every year. Second, immediately start collecting sales tax going forward to prevent the problem from getting worse. Third, gather ALL your sales records systematically before contacting anyone. The key thing that saved me was documenting everything chronologically and being able to show the state that this was genuinely an oversight, not intentional tax evasion. I had to provide bank statements, marketplace records, invoices - everything that showed my sales history. The more organized and transparent you are, the better your chances of getting into a voluntary disclosure program with reduced penalties. One last tip: don't try to handle this alone if your total liability is significant. A tax professional who specializes in sales tax compliance can often save you more money in reduced penalties than their fees cost. They know exactly how to present your case to maximize your chances of penalty relief.

I went through this same confusion when I started my rental property journey! One thing that really helped me understand the "placed in service" concept was realizing it's all about when the property becomes available for its intended rental use, not when you actually start earning income from it. In your case with tenants moving in June 1st, that might actually be your placed in service date IF that's when the property was first ready and available for rent. But if you had finished repairs and could have rented it earlier but just didn't find tenants until then, your placed in service date would be earlier. Here's what I learned about those pre-tenant expenses you mentioned: - Advertising costs to find tenants are typically deductible rental expenses - Repairs to get the property rent-ready are usually deductible - New appliances that add value may need to be depreciated rather than expensed immediately The key is documenting everything with dates - when repairs were completed, when you started advertising, when the property was actually ready for occupancy. I took photos of my property when it was rent-ready as evidence for my records. Since this is your first rental, I'd really recommend getting professional help for at least your first year's taxes. A CPA who specializes in rental properties can help you set up proper record-keeping systems and make sure you're classifying everything correctly from the start. It's an investment that pays off in properly maximized deductions and avoiding future headaches with the IRS.

I completely understand your confusion about the placed in service date - it's one of those tax concepts that seems straightforward until you actually try to apply it! As others have mentioned, the key is that it's when your property becomes ready and available for rent, not necessarily when tenants move in. For your situation, you'll need to determine exactly when your property was in a condition where it could legally be rented out. If you were still doing essential repairs or renovations that prevented tenants from moving in before June 1st, then June 1st would likely be your placed in service date. But if the property was actually ready earlier and you were just looking for the right tenants, then your placed in service date would be earlier. Here's my practical advice for sorting through your expenses: - Keep all receipts organized by date and type of expense - Repairs needed to make the property rentable are typically deductible - New appliances and major improvements usually need to be added to your basis and depreciated - Advertising costs are generally deductible rental expenses Since this is your first rental property, I'd strongly recommend consulting with a tax professional who has experience with rental properties, at least for this first year. They can help you properly classify your expenses and set up good record-keeping practices that will serve you well in future years. The investment in professional guidance upfront can save you from costly mistakes and ensure you're maximizing your legitimate deductions. Don't stress too much - with proper documentation and maybe some professional help, you'll get through this!