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Wait I'm still confused about one thing. If I have a Reseller Certificate, does that mean I DON'T charge sales tax to my customers? Or I DO charge sales tax but I need a different permit to do it legally?
You DO need to charge sales tax to your customers (in most cases), but you need a sales tax permit to do so legally. The Reseller Certificate is for YOUR purchases - it lets you buy inventory without paying sales tax because the expectation is that your customers will pay the sales tax when they buy from you. The Sales Tax Permit is for YOUR SALES - it's your legal authorization to collect sales tax from your customers and then send that money to the state. Two different documents for two different directions of the sales tax flow!
This is such a common mix-up for new business owners! I made the same mistake when I started my online store. Just to add to what others have said - even if you're only selling online, you might need sales tax permits in MULTIPLE states depending on where your customers are located and how much you sell there. Each state has different "nexus" thresholds (usually based on sales volume or number of transactions) that trigger the requirement to collect sales tax. For example, if you sell $100k+ to customers in a state or have 200+ transactions there in a year, you might need to register for a sales tax permit in that state too. It's not just about where your business is located anymore. The Supreme Court's Wayfair decision in 2018 really changed the game for e-commerce businesses. Definitely worth checking the rules for each state where you have significant sales!
Just adding that as someone who's been filing with 1099 income for years, make sure you track ALL your business expenses. This includes things like: - Home office (if you have a dedicated space) - Internet and phone (business percentage) - Computer/equipment - Software subscriptions - Professional development - Business travel - Office supplies These can significantly reduce your taxable income and therefore your tax bill! Don't leave money on the table.
I always get confused about the home office deduction. I heard it's a red flag for audits? Is it worth claiming if you legitimately use part of your home exclusively for work?
The home office deduction isn't really an audit red flag if you qualify legitimately! The key is that the space has to be used "regularly and exclusively" for business. If you have a dedicated room or area that's only used for work, you're totally fine to claim it. There are two ways to calculate it: the simplified method (up to 300 sq ft at $5 per sq ft) or the actual expense method where you calculate the percentage of your home used for business. For most people with smaller spaces, the simplified method is easier and less likely to raise questions. Just make sure you can prove the exclusive use if asked - photos of your workspace, records showing it's only used for business, etc. The IRS actually wants you to claim legitimate deductions!
Yes, you absolutely need to file! With $15k from a 1099-MISC, you're well above the $400 threshold for self-employment income. This is a common misconception - the higher filing thresholds ($13,850 for single filers in 2023) only apply to W-2 wages, not 1099 income. You'll need to file Form 1040 with Schedule C to report your freelance income, and you'll also owe self-employment tax (about 15.3% for Social Security and Medicare). The good news is you can deduct business expenses to reduce your taxable income - things like equipment, supplies, mileage for work travel, etc. Don't worry about it being complicated! Many people are in your exact situation. Just make sure to file by the deadline to avoid penalties, and consider making quarterly estimated payments for 2024 if you expect similar income this year.
I just went through this exact situation and I'm still in shock at how complicated it all is! š± ⢠The IRS has MILLIONS of backlogged returns ⢠They're STILL catching up from COVID delays ⢠Some returns get randomly flagged for review ⢠The same form can be sent MULTIPLE times (happened to me too!) ⢠You should DEFINITELY still file this year's taxes ⢠Your new return might actually help resolve the old one ⢠I learned all this after hours of research I never imagined taxes could be this complicated! It's like you need a PhD just to get your own money back! š¤Æ
I'm so sorry you're going through this nightmare! As someone who's dealt with IRS delays before, I completely understand your frustration. Here's what I'd recommend based on what others have shared: 1. **File your 2023 taxes on time** - Don't let fear of the old issue create new problems. The IRS processes each year separately. 2. **Get your tax transcript ASAP** - This will show you exactly what codes are on your account and why your refund is stuck. You can access it online through the IRS website. 3. **Document everything** - Keep copies of those duplicate 60-day notices and note the dates you received them. 4. **Consider the Taxpayer Advocate Service** - If this is causing financial hardship, you can file Form 911 to get additional help navigating the system. The fact that you received the same paperwork twice suggests there might be a processing error on their end. When you do get through to someone, make sure to mention this duplication - it could be key to resolving your case. You worked hard for that money and you deserve to get it back! Don't give up - there are people here who've successfully resolved similar situations. šŖ
I had this exact issue on February 8th, 2023. My DDD was 02/08/2023, SBTPG had taken their fees, and I had a trace number, but no deposit hit my account. After calling Wells Fargo on February 10th, 2023, they confirmed no pending deposits had been rejected. I then called SBTPG on February 13th, 2023, and after escalating to a supervisor, they discovered the ACH transfer had failed due to a system error on their end. They reprocessed it that same day, and I received my funds on February 15th, 2023. The key was getting to a supervisor at SBTPG who could actually see the failed transfer details and manually reprocess it.
This is such a common issue this tax season! I went through something similar with SBTPG and Bank of America last month. The trace number is actually a good sign - it means the IRS has successfully transmitted your cousin's refund to SBTPG. What I learned from my experience is that there's often a disconnect between SBTPG's systems and the receiving bank's processing timeline. In my case, Wells Fargo was holding the deposit for additional verification due to the third-party processor routing, which added 4 extra business days beyond the DDD. I'd recommend your cousin call Wells Fargo first to ask specifically about any pending ACH transfers from SBTPG or TPG - sometimes the bank can see pending deposits that haven't been released yet. If Wells Fargo shows nothing, then definitely escalate with SBTPG using that trace number as reference. The key is being persistent and asking for supervisors who can access the detailed transfer logs.
Fidel Carson
Has Jackson Hewitt offered any support with tracking your amended return? I'm considering using them next year but I'm worried about their customer service if issues come up. Do they help you communicate with the IRS or are you on your own after filing? š
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Javier Mendoza
I filed with Jackson Hewitt on March 5th and had to amend on March 20th for a missing 1099-INT. Currently at week 12 of waiting with no updates on the amended return tracker. From what I've learned lurking in this community, Jackson Hewitt's post-filing support is pretty limited - they basically tell you to check the IRS tools and wait. I had to call the IRS myself using one of those callback services mentioned here because JH couldn't provide any additional insight beyond "it's processing." The rep confirmed my amendment was received but couldn't give me a specific timeline. Based on everyone's experiences here, looks like we're in for a long wait regardless of which tax prep service we used. The 16-20 week timeline seems to be the new reality for amended returns this year.
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Omar Fawzi
ā¢I'm in almost the exact same boat as you! Filed with Jackson Hewitt on March 8th and amended on March 25th for a missing 1099-DIV. I'm at week 11 now and the amended return tracker still shows "received" with no processing date. It's frustrating that Jackson Hewitt basically washes their hands of it once you file - I expected more support given what we pay them. Did the IRS rep give you any sense of where you are in the queue when you called? I'm debating whether it's worth trying to get through to them or just accepting the 20+ week wait that everyone seems to be experiencing.
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