I just went through this exact same situation last month! Your additional payment after filing the extension definitely goes on Schedule 3 Line 9 as an estimated tax payment, not Line 10. In TurboTax, you'll find this in the "Deductions & Credits" section under "Estimates and Other Taxes Paid." Look for where it asks about estimated tax payments - there should be a field to enter additional payments made during the year. Make sure you have the date and confirmation number from your payUSAtax payment handy. One thing to double-check: if you made the payment through payUSAtax, make sure it was applied to the correct tax year (2024 if you're filing your 2024 return). Sometimes people accidentally apply payments to the wrong year, which can cause major headaches later.

Just wanted to add one more verification step that helped me when I was in a similar situation - after you enter your payment in TurboTax, check that your total payments on the final review screen match what you actually paid to the IRS throughout the year. I caught an error this way where I had accidentally double-entered one of my payments. TurboTax was showing total payments that were higher than what I actually paid, which would have resulted in a larger refund than I was entitled to (and potentially issues with the IRS later). To verify: add up your extension payment + your additional payUSAtax payment + any other payments you made, and make sure that total matches what TurboTax shows on your final forms. It's a simple check but can save you from headaches down the road!

You can actually generate Form 1098 without expensive software! The IRS provides free fillable forms on their website that you can complete and print. Just go to irs.gov and search for "Form 1098 fillable." You'll need to manually enter the borrower's information, SSN, the total interest they paid you, and your information as the lender. If you want something more automated, there are also inexpensive online services like TaxAct or FreeTaxUSA that can generate 1098s for under $20. Much cheaper than QuickBooks if you're only doing one seller-financed property. Just make sure you keep good records throughout the year - track each payment showing principal vs interest breakdown. I created a simple spreadsheet with columns for payment date, total payment, principal portion, and interest portion. Makes filling out the 1098 much easier at year-end!

Great comprehensive advice everyone! As someone who's been through this maze multiple times with different seller-financed properties, I'd add one more crucial point that often gets overlooked - make sure you're charging at least the Applicable Federal Rate (AFR) for interest, or the IRS may impute additional interest income to you. The IRS publishes AFR rates monthly, and if your interest rate is below the AFR for the month you made the loan, they can treat the difference as additional taxable income to you AND as a gift to the buyer (which could trigger gift tax issues if it's significant). I learned this the hard way on my first seller-financed deal where I was being "generous" with a below-market rate. My CPA caught it during review and we had to amend some filings. Now I always check the AFR before setting terms - you can find the current rates in IRS Revenue Rulings or on their website under "Applicable Federal Rates." This is especially important for family transactions or situations where you might be tempted to offer a really low rate to help the buyer qualify. The tax implications can end up costing both parties more than just charging a market rate from the start.

Thanks everyone for the helpful responses! This gives me a lot more confidence to move forward. It sounds like the IRS is more focused on tax compliance than credit scores, which is reassuring. I've been current on all my filings and payments, just had some personal financial struggles during COVID that dinged my score. Going to submit my EFIN application next week!

Just wanted to add my experience - I got approved with a 590 credit score last year. What really matters is having a clean tax history and being able to demonstrate you're responsible with client funds. The IRS is way more concerned about tax compliance than consumer credit issues. If you've been filing and paying on time, you should be fine! The fingerprinting fee is worth it if your tax record is clean.

H&R Block Advisors was a total waste of money for my online business. The "advisor" clearly just had some basic training on business returns but didn't understand the specifics of e-commerce at all. I ended up using a combination of QuickBooks Online ($30/month) to track everything and then found a tax preparer who specializes in e-commerce through the Etsy forums. Best decision ever. For your specific concern about "what to collect and from who" - that's all about sales tax, and it varies entirely by: 1) What states you have nexus in 2) What products you sell (digital vs physical) 3) Your sales volume in each state No generic advice will cover your specific situation!

I'm actually in the middle of this exact decision right now! I've been running a small Etsy shop for about 6 months and just hit the point where I need real tax help. I got quotes from both H&R Block Advisors ($275 for business return + $85/hour consulting) and two local CPAs ($400-500 for similar services). The H&R Block person I spoke with seemed knowledgeable but kept asking me to explain basic e-commerce concepts, which was a red flag. One thing that's been super helpful is joining Facebook groups for sellers on your specific platform. I found way more practical advice there than from any tax professional so far. People share their actual experiences with different preparers and what worked for their situations. Have you considered starting with a consultation-only approach? I'm thinking of paying for a one-time setup consultation with a CPA who specializes in e-commerce, then potentially using software for the actual filing. Seems like it might give you the expertise you need without the ongoing high costs. The sales tax piece is definitely the most overwhelming part - each state has different thresholds and rules. I'm still trying to figure out if I need to register in states where I've only sold a few items.

Don't forget to check your state's requirements too! I got hit with an unexpected state tax bill because even though I was tracking everything for federal taxes, I totally missed that my state has different reporting requirements for online sellers. Some states have lower thresholds than the federal $10k for 1099-K reporting.

Just wanted to add a practical tip for everyone dealing with this - make sure you're tracking your inventory purchases throughout the year, not just scrambling at tax time. I learned this the hard way my first year. I use a simple spreadsheet to track what I buy specifically for resale (with purchase receipts), versus personal items I'm just getting rid of. This makes it so much easier when you need to calculate your actual cost of goods sold versus personal property sales. Also, don't forget about other deductible expenses like your eBay store subscription fees, packaging materials, printer ink for shipping labels, even a portion of your internet bill if you're doing this regularly. These little expenses add up and can significantly reduce your taxable profit. The key is staying organized from the start rather than trying to reconstruct everything when you get that 1099-K!