It could be a state tax notice too, not just federal IRS. I freaked out last year about a "tax letter" that turned out to be from my state revenue department about a local property tax issue, not federal income tax. What state are you in? Some state tax departments use similar envelope styling to the IRS.

Don't panic! I've received several IRS letters over the years and most were completely routine. Since you mentioned you already got your refund and your taxes are straightforward, it's likely something minor like a processing confirmation or a small adjustment notice. One thing that helped me was to remember that the IRS sends millions of these letters every year for all sorts of routine reasons. The fact that they're giving you advance notice through informed delivery actually suggests it's probably standard correspondence rather than anything urgent or punitive. When the letter arrives, read it completely before jumping to conclusions. IRS letters are usually pretty clear about what they're telling you and whether any action is needed on your part. If there's a deadline mentioned, note it immediately. And remember - even if there is an issue, most can be resolved with a simple phone call or by mailing back the requested information. You've got this! Try not to stress too much until you know what you're actually dealing with.

Something important that hasn't been mentioned yet - make sure your cousin is actually eligible for a Traditional IRA deduction before recharacterizing! If he's covered by a retirement plan at work and his income is over the limits (for 2023: starts phasing out at $73,000 for single filers or $116,000 for married filing jointly), he might not get any tax benefit from the recharacterization. In that case, it might actually be better to keep it as a Roth contribution, especially if the recharacterization hasn't been fully processed yet. The worst scenario is recharacterizing to Traditional, getting no deduction due to income limits, and then having to pay taxes on that money again when you eventually withdraw it.

Just wanted to share my experience since I went through something very similar last year. I did a Roth to Traditional recharacterization in March 2024 for my 2023 contribution, and like your cousin, I was worried about the timing of the 1099. Here's what I learned: You absolutely report it on your 2023 return. The key date is when the original contribution was made (2023), not when you completed the recharacterization. Since your cousin did it before the April 15th deadline, he's good to go. As for the 1099 timing - don't stress about it. The recharacterization gets reported to the IRS by the custodian, but you don't actually need that form to file your return. You just report the contribution as if it went directly to the Traditional IRA. When the 1099 eventually comes, it's mainly for record-keeping and IRS matching purposes. One tip: Make sure to keep all the documentation from Fidelity showing the recharacterization details, including any earnings that were transferred. This will be helpful if the IRS ever has questions down the road. Good luck with the filing!

Anybody know if this early deposit thing happens with state tax refunds too? My federal came lightning fast this year (4 days!) but my state refund is nowhere to be seen after 3 weeks.

This is totally normal now! I'm a tax preparer and we've been seeing this a lot this filing season. The IRS has really streamlined their processing for simple returns, especially early filers. Your refund is 100% legitimate - once it's in your account as available funds from the Treasury, you're good to go. The "Where's My Refund" tool is honestly the worst part of their system. It's designed more for customer service than real-time tracking, so it often lags behind actual processing by days. I tell all my clients to trust their bank account over the WMR tool. The fact that you got it so fast even with EIC is actually impressive - they've really improved their fraud detection systems so they can process legitimate returns much quicker than before. You can absolutely use that money with confidence!

Don't forget about state and local requirements too! Everyone's talking about federal taxes, but depending on where you live, you might need: - State business license - Local business permit - Sales tax permit if you're selling taxable items - Possible local business taxes Also, some cities have restrictions on running businesses from home if that's what you're planning. Worth checking all this BEFORE you form the LLC.

Great question! I started my LLC at 19 while working full-time at a bank, so I totally get the confusion. Here's what I learned: You absolutely can have both - in fact, it's smart to keep that steady W-2 income while building your business. Your LLC won't affect your day job taxes at all. You'll still get your regular paycheck with taxes withheld, and you'll get a W-2 like normal. For your reselling business, since you're making $2800-3500/month, you're definitely at the point where an LLC makes sense for liability protection. Just make sure you're tracking EVERYTHING - cost of goods sold is huge for resellers. Every sneaker you buy to resell, shipping costs, packaging materials, gas for pickups, even a portion of your phone bill if you use it for business. One tip that saved me tons of money: look into a business credit card that gives cash back on business purchases. I use mine for all inventory and business expenses, then pay it off monthly. The cash back helps, plus it makes expense tracking automatic. Also, start making quarterly estimated tax payments NOW. I learned this the hard way - owing $4K at tax time when you're 19 is brutal. The IRS has a calculator on their website to help figure out how much to pay each quarter. Good luck with the business! Reselling can be really profitable if you stay organized with the tax side.

Just sharing a warning - I tried having my refund sent to my girlfriend's account last year and it was a HUGE mess. The bank initially accepted it but then froze her account for 10 days while they investigated. We had to provide all kinds of documentation proving we lived together and why I was sending my refund there. Even if your friend has the same first name, the last name difference will likely trigger fraud alerts. Just not worth the headache.

I'm a tax preparer and I have to strongly advise against sending your refund to someone else's account, even if you share the same first name. The IRS requires the name on the tax return to match the name on the bank account for direct deposit. While some banks might initially accept the deposit, they can (and often do) reverse it later when their fraud detection systems catch the name mismatch. Here are some legitimate alternatives that will be much faster than waiting for a paper check: 1. Open a new checking account online - many banks like Ally, Capital One 360, or Chime can approve you within minutes and provide account details immediately 2. Use a prepaid debit card that accepts direct deposits - you can get these at most grocery stores 3. Consider digital banking apps like Cash App, Venmo, or PayPal that provide routing numbers for direct deposits The temporary account freeze that Edison mentioned is very real - I've seen clients deal with this exact situation and it's a nightmare that can take weeks to resolve. Don't risk your friend's banking relationship over this. Take the extra day or two to set up your own account properly.