This is really helpful information everyone! I've been dealing with a similar situation with my adult kids - I send them money for textbooks, groceries, etc. and they pay me back for things like car insurance. Probably $400-500/month back and forth. Based on what everyone's shared, it sounds like I don't need to worry for 2024 taxes since the threshold is still $20k AND 200 transactions. But I'm definitely going to start keeping better records just in case. The screenshot idea is brilliant - I usually just send money with a pizza emoji or whatever, but adding actual descriptions makes way more sense. One question though - if these payment apps are making so many mistakes with the 1099-Ks, shouldn't there be some kind of penalty for them when they report personal transfers as income? Seems like they're creating a lot of unnecessary work for taxpayers and the IRS.

This thread has been incredibly helpful! I'm in a similar boat with my spouse - we probably send $600-800/month between our accounts for bills, groceries, date nights, etc. I've been losing sleep over whether we'd get hit with a massive 1099-K. The clarification about the delayed threshold is huge relief. $20k AND 200 transactions means we're nowhere close for 2024 taxes. But I'm definitely taking everyone's advice about better documentation moving forward. One thing I'm curious about - has anyone actually contacted Meta/Facebook directly about how they're handling the categorization? Their customer service is notoriously terrible, but I'm wondering if there's a way to proactively mark transfers as personal/family payments to avoid issues when the $600 threshold does eventually kick in. Also really appreciate the tools people have shared (taxr.ai and claimyr.com). Even though I might not need them this year, it's good to know they exist for when these rules actually take effect.

I used to work for elderly services. This screams financial exploitation tbh. The attorney and caregiver tag-team blocking you out is sus af

This is exactly why I always tell people to get their affairs in order early. The IRS doesn't mess around with unreported income, especially when it involves cash payments to caregivers. Your parent's attorney is giving terrible advice - even seniors have filing obligations if they meet income thresholds. I'd recommend getting a second opinion from a tax professional ASAP and maybe consider whistleblower protection if you decide to come forward about the unreported payments. The estate could be looking at serious liability here.

I tried to use VITA last year but got turned away because my income was slightly over their limit. Just a heads up that they usually have income restrictions (around $60k in my area). Also, there's another program called TCE (Tax Counseling for the Elderly) that specifically helps people 60+ with their taxes. My parents used it and had a great experience - the volunteers were other seniors who understood their specific tax situations better.

I'm planning to use VITA this year for the first time and this thread has been super helpful! I've been doing my own taxes with online software but keep worrying I'm missing deductions or making mistakes. Question for those who've used VITA - do they review your previous year's return at all to make sure you didn't miss anything? I'm wondering if I should bring last year's return with me or if they only focus on the current tax year. Also, is there any follow-up support if the IRS has questions about the return they prepared? Really appreciate everyone sharing their experiences here. It's making me feel much more confident about trying the free service instead of paying for tax prep again!

Has anyone used TurboSelf Employed? Is it worth the extra $90 or should I just use the regular TurboTax?

I just went through this exact same situation last year! As a freelance photographer who made about $38k, I was so confused about the whole business expenses vs standard deduction thing. What really helped me was understanding that Schedule C (your business income and expenses) and your personal tax return (Form 1040 where you choose standard vs itemized) are completely separate calculations. Think of it this way: your business expenses reduce your business profit, and then that net profit flows to your personal return where you still get to choose the standard deduction. So definitely claim all $7,800 of your legitimate business expenses on Schedule C! That will reduce both your income tax AND your self-employment tax. Then on your 1040, you can still take the full $13,850 standard deduction instead of itemizing personal things like mortgage interest or charitable donations. One tip from my experience - make sure you're also tracking any home office expenses if you have a dedicated workspace. Even a small percentage of your rent/utilities can add up to significant deductions. Good luck with your first year as self-employed!

Don't feel bad about being confused! Tax language is deliberately confusing imo. I remember the first time I filed using TaxAct and it asked for my "prior year AGI" and I had no clue what that meant.

I totally understand your confusion! I went through the exact same thing last year and was panicking thinking I owed thousands more. Your tax liability is basically the "sticker price" of your taxes before any payments were taken out. Think of it like buying a car - the tax liability is the full price of the car ($12,605 in your case), but you've already made payments throughout the year through payroll withholding. So if your employer withheld $13,000 from your paychecks, you'd actually get a $395 refund even though your liability was $12,605. The reason TurboTax asks for this number is usually for identity verification - the IRS uses it to confirm you're really you when you file electronically. Sometimes it's also used to calculate estimated tax payments for the current year if you're self-employed or have other income sources. Don't stress about it! Just enter that $12,605 from Line 24 of your 2023 Form 1040 and you'll be good to go.