Another independent contractor here! Just want to add that you DEFINITELY need to file Schedule C regardless of LLC status. An LLC is just a liability protection layer, it doesn't change your tax filing. I've been filing Schedule C for 5 years with no LLC.

Great question! Yes, you definitely need to file Schedule C even without an LLC. As an independent contractor, you're automatically considered a sole proprietor for tax purposes, and Schedule C is how you report that business income and expenses. The good news is that since you have legitimate business losses, filing Schedule C will actually benefit you by allowing those losses to offset other income on your tax return. Just make sure to keep detailed records of all your business expenses - even though you're using personal accounts, you can still deduct legitimate business costs as long as you can document them properly. Don't worry about not having separate business accounts yet - many independent contractors start this way. The key is being able to distinguish between personal and business expenses. Consider getting a simple accounting app or spreadsheet to track everything going forward. You're on the right track planning to set up separate accounts once you form your LLC!

For anyone dealing with this situation, I'd recommend downloading IRS Publication 1494 "The IRS Collection Process" and keeping it handy. It's free on the IRS website and explains exactly how different types of levies work. Section 3 specifically covers Notice of Levy (Form 668-A) and confirms what others have said about it being a one-time seizure of property you have on hand. What really helped me when I dealt with this was creating a timeline showing: (1) when I received the notice, (2) exactly what funds I had for that vendor at that moment, and (3) when I sent the payment. This documentation proved invaluable when our auditor reviewed our files later. One thing to watch out for: make sure you're only withholding funds that actually belong to the taxpayer named in the levy. If you have payments due to a different legal entity (like their LLC vs. personal name), those might not be subject to the levy depending on how it's written.

Just wanted to add something that helped me when I dealt with a similar Notice of Levy situation - make sure you understand the "property in possession" concept clearly. The IRS defines this as money or property that you currently hold that belongs to the taxpayer at the time you receive the levy notice. In my case, we had already cut a check to the vendor but hadn't mailed it yet when we received the 668-A. Our attorney advised that since the check was still in our possession, those funds were subject to the levy. But payments we made after sending in the levy amount were not subject to withholding. Also, keep in mind that interest and penalties can continue to accrue on the taxpayer's debt even after you send in what you withheld. This doesn't affect your obligations, but it's why the vendor should contact the IRS directly to resolve their underlying tax issue rather than just waiting for the levy to be satisfied. One last tip: if you're ever unsure about compliance, err on the side of caution and document everything. The IRS is much more forgiving of businesses that clearly attempted to comply in good faith, even if they made minor procedural errors, than those who ignored the levy entirely.

@Mateo, you're in great shape for qualifying! At $46k, you're well within the Premium Tax Credit range. Since you're a chef, I'd definitely recommend taking the advance payments option - it'll help your monthly budget tremendously while you're waiting for employer benefits to kick in. One thing to keep in mind is that your 6-month waiting period for employer insurance actually works in your favor here. You'll qualify for the full Premium Tax Credit during those months since you won't have access to affordable employer coverage. Just make sure to cancel your Marketplace plan and transition to your employer plan once it becomes available - the PTC stops once you have access to employer insurance. The income calculations can definitely be confusing, but Healthcare.gov's application process will walk you through it step by step. They'll ask for your expected 2025 income, and based on that $46k estimate, you should get a decent credit amount. Just remember to update them if your income changes significantly throughout the year - especially important in restaurant work where you might pick up extra shifts or catering gigs. Don't stress too much about the exact calculations - focus on getting enrolled during the open enrollment period and you'll be set!

@Mateo, you're absolutely going to qualify for the Premium Tax Credit with that income! At $46k for a single person, you're well within the eligibility range (which goes up to around $58k for 2025). Since you're coming from restaurant work myself, I totally get the income uncertainty. Here's what I learned when I was in your exact situation: definitely take the advance payments (APTC) - it'll reduce your monthly premiums right away instead of waiting until tax time. This was a lifesaver for my budget during the gap period. One practical tip: when you're estimating your 2025 income on the application, consider potential variables like overtime during busy seasons, holiday bonuses, or if you might pick up catering gigs on the side. Restaurant income can fluctuate more than you expect. I'd suggest maybe estimating around $48k instead of exactly $46k to give yourself a small buffer. Also, mark your calendar for when your employer insurance kicks in (6 months from your start date). You'll need to cancel your Marketplace plan at that point since the PTC only applies when you don't have access to affordable employer coverage. The transition is pretty straightforward - Healthcare.gov will guide you through it. Don't overthink the application process - it's actually more user-friendly than the IRS website makes it seem! You've got this.

Just wanted to add my experience to this amazing thread! I received an identical Austin TX envelope last week with all the same markings - the G-48 permit, "Official Business" stamp, and that anti-fraud warning. I was terrified to open it after months of waiting, but it turned out to be my refund check plus interest! The envelope really does look intimidating with all those official warnings, but as everyone here has explained, those are actually security features that confirm it's legitimate IRS correspondence. That Austin processing center (73301-0003) has definitely been busy lately - I've seen so many people across different forums getting mail from there this week. @Michael Adams - I'm really excited for you to open yours! Based on the timing and all the positive experiences people are sharing here, I have a really good feeling about what's inside. The fact that you're getting mail after months of silence is huge progress. This thread has become such an amazing support system for all of us going through the IRS waiting game. To everyone else still waiting on their Austin letters - there's definitely light at the end of the tunnel! The pattern of refund checks coming from there this week is so encouraging. Hang in there! 🤞✨

This thread has been absolutely incredible to follow! 🙌 I'm a February filer and just received my Austin TX envelope today with the exact same markings everyone's been describing - the G-48 permit, "Official Business" stamp, and that anti-fraud warning message. Reading through all these success stories, especially @Lydia Santiago and @Brianna Muhammad getting their refund checks, is giving me so much hope after months of radio silence from the IRS! The fact that so many people are getting these letters this week with identical security features really does seem like they're finally pushing through the massive backlog. I had no idea about any of these authentication details before finding this thread - the G-48 permit being Treasury-exclusive, the anti-fraud message being a security feature, etc. This community has been such a lifesaver for understanding what to look for and calming my nerves about whether it's legitimate. @Michael Adams - I'm really hoping you get amazing news when you open yours! And to everyone else still waiting on their Austin letters, this timing pattern is so encouraging. I'm planning to check my transcript tonight and then finally work up the courage to open mine. Will definitely update with results! This waiting game has been absolutely brutal, but seeing real people get real results is keeping my faith alive that our patience is finally paying off! 🤞✨

Does FreeTaxUSA support multiple state filings? I lived in Ohio for half the year and then moved to Pennsylvania, so I need to file in both states. TurboTax charges extra for each state and it's getting ridiculous.

I've been using FreeTaxUSA for the past 3 years after switching from TurboTax and can confirm the accuracy is identical. What really sold me was when I ran both in parallel one year and got the exact same refund down to the penny. The main thing I miss from TurboTax is their more polished interface and better explanations of why certain deductions apply, but honestly once you get used to FreeTaxUSA's layout it's perfectly fine. The $120+ I save each year more than makes up for the slightly less flashy user experience. For anyone on the fence, I'd definitely recommend trying FreeTaxUSA first - you can always go back to TurboTax if you run into issues, but chances are you won't need to.