I'm really sorry you're going through this - tax levies are incredibly stressful, especially when you're already struggling financially. The advice here about keeping the money in Cash App is spot on. The IRS levy is specific to your bank account, so funds that never touch that account should be safe from seizure. Here's what I'd recommend for your immediate situation: **Keep the $600 in Cash App** - Use their debit card directly for groceries, gas, and other essentials. Don't transfer any of it to your levied bank account. **Call the IRS hardship line immediately** - This is crucial. Call 1-800-829-1040 and tell them you need to speak about levy hardship release. Be very specific: "I have $X left for food this week, my rent of $Y is due on [date], and I cannot afford basic necessities due to the levy." The IRS is legally required to leave you enough for survival. **Consider the Taxpayer Advocate Service** - If the regular IRS line isn't helpful, call 1-877-777-4778. They specialize in situations where normal processes aren't working and can expedite hardship reviews. **Alternative money transfer options** - If you're worried about Cash App, consider having your brother send money via Western Union (cash pickup) or load a prepaid card that's not connected to your bank. Remember, there are legal protections that prevent the IRS from leaving you completely destitute. You have rights even with an active levy. Stay persistent, document everything, and focus on getting that payment plan finalized. This situation is temporary and you will get through it.

I've been through a similar situation and completely understand the panic you're feeling right now. The advice about keeping the money in Cash App is absolutely correct - the IRS levy is specific to your bank account, so funds that never touch that account should remain safe. A few additional thoughts that might help: **Immediate cash access:** Beyond Cash App, you could also have your brother send money through Zelle to a friend's account, then have them withdraw cash for you. Or use services like PayPal, Venmo, or even old-school Western Union for cash pickup. **Know your rights:** The IRS has specific Collection Standards that require them to leave you enough for basic living expenses. For 2024, this includes allowances for food, housing, transportation, and medical expenses. If your levy has taken everything, you have strong grounds for immediate hardship relief. **Documentation tip:** When you call the IRS hardship line, have your monthly budget written down with specific dollar amounts. Being able to say "I need $120/week for groceries, $800/month for rent due on the 15th" is much more effective than general statements about financial hardship. **Timeline reality check:** While you work on the payment plan, remember that even after it's approved, it can take 1-2 weeks for the levy to actually be released from your account. Plan accordingly with these alternative funding methods. You mentioned ignoring notices initially - don't beat yourself up about that. Focus on moving forward. The IRS actually wants to work with people who are willing to pay, and once you get that payment plan in place, this whole nightmare will be behind you. Hang in there!

One thing nobody mentioned - you should check if you qualify for First Time Penalty Abatement! If you haven't had any penalties in the past 3 tax years, the IRS will often waive the penalties (not the interest though) for your first offense. I was late on my SE taxes in 2023 and got about $240 in penalties completely removed. You usually have to pay everything first, then request the abatement.

I think everyone's overcomplicating this. Just file your return on time and pay what you can. Then the IRS will send you a bill for the rest plus penalties. Or set up a payment plan online, it takes like 10 minutes. The penalties aren't that bad if you pay within a couple months. I was late last year and the total penalty+interest was like $35 on a $1200 balance that I paid 6 weeks late. The IRS saves the scary stuff for people who ignore them completely.

One thing nobody mentioned yet - if your coverage was through Medicaid or CHIP, some states don't send 1095-B forms automatically. You might need to specifically request one from your state Medicaid office. I learned this the hard way last year when I was waiting forever for a form that was never going to come unless I asked for it! Check your state's Medicaid website as some states now have portals where you can download the form yourself.

Just to add some clarity on the state penalty situation since there seems to be some confusion in the comments - while California does have a state individual mandate, the 2-month gap mentioned by the original poster would likely qualify for the "short gap exemption" as Katherine mentioned. However, it's worth noting that you need to actively claim this exemption on your California state return (Form 540) - it's not automatic. You'll need to check the appropriate box and keep documentation of your coverage dates in case of an audit. For anyone else reading this with similar situations, the key states with individual mandate penalties for 2024 are: - California (with short gap exemption for under 3 months) - Massachusetts - New Jersey - Rhode Island - Washington D.C. Each state has different exemption criteria, so definitely check your specific state's requirements. And yes, you can absolutely file your federal return without the 1095-B form - the IRS has all the information they need from your insurance company already.

This is such a complex situation, and I appreciate everyone sharing their experiences! I'm dealing with something similar with my grandmother who gets both SSDI and a small pension. One thing I learned from my tax preparer is that you should also keep detailed records of all the support you provide - receipts for groceries, utilities, rent payments, medical expenses, etc. The IRS support test requires you to provide more than half of someone's total support for the year, and having documentation makes this much easier to prove if questioned. Also, even if you can't claim her as a dependent this year due to the income limit, her disability status might change or her income might fluctuate, so it's worth reassessing each tax year. Some people don't realize that certain one-time payments (like back disability payments) might affect the income calculation differently than regular monthly benefits. The Head of Household filing status suggestion is really valuable too - that alone can save you hundreds in taxes even without the dependent exemption. Make sure to calculate both scenarios to see which gives you the better outcome!

I just went through this exact situation with my disabled aunt last year. One thing that really helped was getting a clear breakdown of her disability benefits from Social Security - you can request a detailed statement that shows exactly what type of benefits she receives (SSDI vs SSI) and the monthly amounts. Since you mentioned she gets $1,550 monthly ($18,600 annually), if this is all SSDI, it would unfortunately exceed the $4,700 income limit for 2025. However, don't give up yet! There are still valuable tax benefits available: 1. You can likely file as Head of Household since you're providing more than half the cost of maintaining the home where your mother lives. This gives you a higher standard deduction and better tax brackets. 2. If she doesn't qualify as a dependent due to income, you might still get the $500 Credit for Other Dependents if she meets all other dependency tests. 3. Keep detailed records of all support you provide (housing, food, medical, utilities) - this documentation is crucial for both the support test and potential future audits. The key is to calculate your taxes both ways (single vs head of household, with and without credits) to see which scenario gives you the best outcome. Even without claiming her as a full dependent, you could still save significant money on your tax bill through the other available benefits.

The Section 179 limit does reset each tax year, so you get the full $1,160,000 limit again in 2026! However, your strategy about potentially saving some depreciation for future years isn't a bad idea from a cash flow perspective. Here's what I'd consider: if your empanada business is profitable this year and you expect to be in a similar or higher tax bracket next year, taking the full Section 179 deduction now makes sense. But if you're just breaking even or expect much higher profits next year when you expand, you might want to use regular MACRS depreciation on the current truck and save your Section 179 capacity for the second truck. One thing to keep in mind - you can't retroactively change your depreciation method once you file, so it's worth running some projections. If you're thinking about a second truck next year, consider what that total equipment cost might be and how much deduction you'll want to take in that year. Also, since you mentioned catering events, make sure you're tracking mileage to and from those events separately from your regular route operations. The IRS likes to see detailed records for mobile businesses, and catering miles can really add up to significant deductions! Your grandmother's authentic recipes sound amazing - there's nothing like family tradition to set you apart in the food truck world!

Just wanted to add one more thing that might be helpful - since you're operating as a sole proprietor now but considering forming an LLC next year, the depreciation method you choose this year will carry forward to the LLC if you do convert. The IRS treats this as a continuation of the same business for depreciation purposes. Also, I noticed several people mentioned different online tools and services. While those can be helpful, make sure you're keeping your own detailed records regardless of what software you use. The IRS wants to see your documentation, not just what a program calculated. Keep those purchase receipts, loan documents, maintenance records, and mileage logs organized and easily accessible. One last tip from someone who's seen a lot of food service businesses - consider setting aside a percentage of your profits each month for equipment replacement/repairs. Food trucks work hard and unexpected breakdowns can be expensive. Having a repair fund separate from your tax savings will help you handle those surprises without derailing your business growth plans. Sounds like you're asking all the right questions and building something special with those family recipes. The food truck industry needs more authentic, family-tradition businesses like yours!