As someone who's been through this exact scenario multiple times as a freelance consultant, I can definitely relate to your frustration! The good news is that you're absolutely on the right track by planning to report all your income regardless of having the 1099s or EINs. Here's my step-by-step approach that's worked well: First, do one final comprehensive search through all your records - check email signatures, contract footers, old invoices you sent them, and even payment confirmations from apps like Zelle or QuickBooks. I've found EINs in the most random places! If you're still missing EINs after that, you can definitely file with "EIN UNAVAILABLE" in the payer information field on Schedule C. The IRS processing systems are designed to handle this situation. What's most important is that you're reporting the income accurately and can demonstrate you made reasonable efforts to get the missing information. For future reference, I now include a clause in all my contracts requiring clients to provide their EIN within 30 days of our first payment, which has eliminated this headache going forward. But for this year, don't stress too much - file on time with accurate income reporting and keep documentation of your attempts to contact these clients. The IRS is much more concerned with income accuracy than perfect paperwork, especially when the missing information is due to unresponsive payers rather than taxpayer negligence.

I'm dealing with this exact same situation right now! I work as a freelance writer and have been trying to get EINs from three different clients for weeks with no luck. Reading through all these responses has been incredibly reassuring - I was really worried about filing without the proper payer information. The tip about checking email signatures and old contracts has already helped me find one EIN I completely missed! I'm also definitely going to try that Secretary of State website search that someone mentioned earlier. One thing I wanted to add that might help others: if you use any invoicing software like FreshBooks or Wave, sometimes client information gets automatically populated with tax details when they initially set up their account. I found one EIN buried in my FreshBooks client profile that the business owner must have entered when they first signed up but never explicitly shared with me. Thanks everyone for all the practical advice - it's made this whole situation feel much more manageable!

Small business owner and former bookkeeper here. A simple approach I've used with clients: create "product cost sheets" for each type of item you make. For example, if you make jewelry, figure out the average cost of materials for each earring/necklace/bracelet type. Then just track how many of each product you sell. Multiply sold quantities by your standard costs = COGS. You can put this on Schedule C Part III, and you don't need complex inventory systems. This method is allowed for businesses under the gross receipts thresholds. You should still do occasional checks to make sure your standards are accurate (like once a year), but this saves SO much time compared to tracking every single component.

As someone who's been dealing with this exact issue for my small pottery business, I can share what finally worked for me. The key insight is that you don't need formal inventory tracking, but you do need some reasonable method to estimate what materials went into sold products. Here's my simple approach: I created a basic spreadsheet with standard material costs for each product type (like $3.50 in clay and glazes per mug, $5.25 per bowl, etc.). Then I just track how many of each item I actually sold during the year. At tax time, I multiply quantities sold by standard costs to get my COGS. For your jewelry business with $8,700 in sales, this method would work perfectly. You could estimate something like "each necklace uses $4 in materials, each pair of earrings uses $1.50" based on your typical designs. Then just track your sales quantities - no need to count individual beads! The IRS accepts this simplified approach for small businesses like ours. I do a basic inventory count once a year just to verify my standards are still accurate, but it's way more manageable than tracking every component. This goes in Part III of Schedule C, and it's completely legitimate under the small business accounting methods.

One thing I'd add about inventory documentation - consider setting up a simple system where you photograph items with a piece of paper showing the date, location, and price paid. This creates a timestamp that's harder to question later. I learned this the hard way when I had to reconstruct some purchase records. Now I keep a small whiteboard in my car and snap a quick photo of each item with the purchase details written on the board. It takes an extra 30 seconds but gives you rock-solid documentation. Also, don't forget that packaging materials, shipping supplies, and even the gas you use driving to source inventory are all legitimate business expenses that can be deducted separately from your cost of goods sold.

Great question! You're absolutely right about inventory - it's treated as an asset until you sell it, then becomes "cost of goods sold" which reduces your taxable income. For cash purchases without receipts, I'd recommend creating a simple log immediately after each purchase. Include the date, item description, amount paid, and seller info (even just "Facebook Marketplace - John" or "yard sale on Main St"). Take photos of items when possible. The key is contemporaneous documentation - records created at the time of purchase carry much more weight with the IRS than recreated records. Consider using a mileage tracking app too, since driving to source inventory is a deductible business expense that adds up quickly. For learning resources, the IRS has free publications (especially Pub 334 "Tax Guide for Small Business") and SCORE offers free mentoring. Your local Small Business Development Center might also have free workshops on business taxes and record-keeping. Start simple with good habits now - consistent documentation from day one will save you major headaches later!

This is such a common issue with family businesses! I went through something similar with my aunt's bakery last year. She had me working regular shifts, using all her equipment, and following her specific recipes and procedures, but wanted to classify me as a 1099 contractor. The key thing that helped me was understanding the IRS's control test - if the business controls what you do, when you do it, and how you do it, you're an employee. From your description, your brother is exercising all three types of control over your work. What really convinced my aunt to change my classification was when I explained the potential consequences for her business. The IRS can impose penalties of up to $50 per W-2 that should have been filed, plus interest and back taxes. For a small family business, that can add up quickly. I'd suggest approaching your brother with empathy - explain that you understand he's trying to keep costs down, but that proper classification actually protects both of you. Most family business owners don't realize they're creating tax and legal risks; they just think 1099s are simpler. Once you explain the rules and potential consequences, he'll likely want to do the right thing. The financial impact on you is significant too - that extra 7.65% in self-employment taxes plus the hassle of quarterly payments isn't fair when you're clearly functioning as an employee. Don't feel guilty about advocating for yourself here!

Based on your description, you're definitely being misclassified as an independent contractor when you should be treated as an employee. The IRS looks at three main factors: behavioral control (your brother sets your schedule and assigns tasks), financial control (he provides tools and equipment), and the type of relationship (sounds like an ongoing employment arrangement rather than a project-based contract). As a misclassified 1099 contractor, you'd end up paying an extra 7.65% in self-employment taxes compared to being a W-2 employee, plus you'd have to deal with quarterly estimated payments. That's a significant financial burden, especially when you're only working part-time. I'd recommend having an honest but diplomatic conversation with your brother soon. Frame it as wanting to make sure you're both following IRS rules correctly rather than accusing him of doing anything wrong. Many small business owners misclassify workers without realizing the rules or the potential penalties they face (which can include back taxes, interest, and fines). The IRS Publication 15-A has a good section on worker classification that you could reference. Emphasize that proper classification protects both of you - him from potential IRS penalties and you from overpaying taxes. Since he's family, he'll probably want to do right by you once he understands the implications. Better to sort this out now than deal with problems later!

I just went through this exact same headache last week! Box d is the control number on your W-2, but here's what nobody mentions - it's often in the most ridiculous places depending on your employer's payroll system. After staring at my W-2 forever, I finally found mine printed in super tiny font at the very bottom right corner, almost like an afterthought. Some employers put it in box d at the top, others scatter it randomly around the form, and many just leave it blank entirely. Here's what finally worked for me in H&R Block: if you can't find a control number anywhere, try entering your employee ID number (if you know it) or just type "0000". The system usually accepts either and lets you move forward with the import. Honestly though, after all this frustration, I'm probably just going to do manual entry next year. Takes about the same time as troubleshooting these import issues and you know the data is entered correctly. Sometimes the "convenient" features cause more problems than they solve!

I've been following this thread because I had the exact same problem with H&R Block's import feature! After trying all the suggestions here (checking for faint printing, looking in weird corners of the W-2, trying various workarounds like "0000" and "NONE"), I finally discovered something that might help others. I called H&R Block's customer support directly about this issue, and the rep told me that their system has been having compatibility problems with certain payroll providers this tax season. She said if the electronic import keeps failing on the box d requirement, there's actually a "skip electronic import" option hidden in the settings menu that lets you bypass the whole process. To find it: go to Settings > Import Options > and look for "Manual Entry Mode" - checking that box will disable the electronic import prompts and let you enter your W-2 information the old-fashioned way. Takes maybe 10 minutes tops and you don't have to deal with any of these mysterious box d issues. Really wish H&R Block would make this option more obvious since so many people seem to run into import problems every year. Sometimes the manual approach really is more reliable than the "convenient" automated features!