One thing I'd add is to consider opening a separate bank account just for your skin trading business. It makes tracking so much easier when tax time comes around, and it helps establish that this is a legitimate business activity rather than just a hobby. You can deposit your trading profits there and pay for new inventory purchases from that same account. Also, since you're dealing with digital assets that can be volatile in value, consider taking screenshots or saving records of market prices when you make transactions. This can help justify your purchase and sale prices if the IRS ever questions your reported profits. Steam's market history is helpful but having your own backup documentation never hurts. The business bank account will also make it crystal clear how much you're actually withdrawing for personal use versus reinvesting, which will help with your bookkeeping and Schedule C reporting.

Great advice already in this thread! One additional thing to consider is quarterly estimated tax payments. Since you're essentially running a small business, you might need to make estimated payments throughout the year rather than waiting until tax time. The general rule is if you expect to owe $1,000 or more in taxes when you file, you should be making quarterly payments to avoid penalties. Given that you mentioned reinvesting most profits to grow the operation, it's easy to forget that you still owe taxes on those profits even if the cash isn't sitting in your personal account. I'd recommend setting aside about 25-30% of your net profits for taxes (income tax + self-employment tax) and making those quarterly payments if your annual profit looks like it'll be substantial. The due dates are usually mid-January, mid-April, mid-June, and mid-September for the following year's taxes. Also, since you're dealing with Steam's mandatory 7-day hold period, make sure you're tracking when each transaction actually completes for tax purposes - it's the sale date that matters for when you recognize the income, not when you first list the item.

I'm also new to this community and dealing with a very similar situation! My husband and I got married in the Philippines in 2021, and I've been so anxious about whether we're filing our taxes correctly. Reading through everyone's experiences here has been incredibly helpful and reassuring. What really stands out to me is how consistent everyone's advice is - whether you got married in the Dominican Republic, Italy, Japan, Mexico, or anywhere else, the rule seems to be the same: if your marriage was legally valid where it was performed, the IRS recognizes it for tax purposes. No special US registration required. I think what might be confusing some people (like your friends who gave you conflicting advice) is that there are different requirements for different purposes. Immigration has its own rules, some states might have different recognition requirements, but for federal taxes, it's straightforward - legal foreign marriage equals married filing status with the IRS. Your accountant was definitely right, and it sounds like you should stick with filing as married. Thanks to everyone who shared their experiences and resources like the IRS publications and various services - this community is so helpful for navigating these confusing situations!

Welcome to the community! I'm also dealing with a foreign marriage situation and this thread has been incredibly helpful. My wife and I got married in France in 2020, and I've been filing as married ever since based on my CPA's advice, but I was always in the back of my mind worried about whether it was correct. What really strikes me from reading all these responses is how universal this situation is - people getting married all over the world and then being confused about their US tax obligations. It's reassuring to see the consistency in everyone's advice and experiences. One thing I'd add for anyone still feeling uncertain: I found it helpful to actually read through some of the IRS guidance myself rather than just relying on what others told me. IRS Publication 501 (which Jessica mentioned) really does spell it out clearly - they recognize valid foreign marriages for federal tax purposes, period. Sometimes seeing it directly from the source helps calm those nagging doubts. Your accountant was absolutely right, and you should definitely continue filing as married. Don't let your friends' confusion throw you off - they probably mean well but are mixing up different legal contexts. Stick with the professional advice you received!

Letter 474C can definitely be confusing! The key sections to look for are usually near the bottom of the letter. Since you mentioned there's a payment voucher showing "Amount you owe: $732.18," that's your answer - you do owe money to the IRS. The difference between your original calculation of around $650 and the $732.18 they're requesting is likely due to interest that has accrued since your original 2021 tax return was due (April 2022), plus possibly some penalties. Even though you voluntarily filed the amended return, interest still applies from the original due date. Make sure to pay by the deadline shown on the letter to avoid additional penalties and interest. You can usually pay online through the IRS website, by phone, or mail in the payment voucher with a check. If you can't pay the full amount by the due date, consider calling the IRS to set up a payment plan - they're generally pretty reasonable about working with taxpayers who proactively reach out.

Just wanted to share my experience since I see you're dealing with the same confusion I had! I received a 474C letter last year after amending my 2020 return to add some 1099 income I missed. The letter layout is really confusing with all those different sections and calculations. What helped me was to ignore most of the middle calculations and focus on the very bottom where it clearly states either "Amount Due" or "Refund Amount." In your case, since you found the payment voucher showing you owe $732.18, that's definitely what you need to pay. The extra $82 beyond your estimated $650 is almost certainly interest that accumulated from April 2022 (when your original return was due) until now. The IRS charges interest on any additional tax owed, even when you voluntarily file an amended return. One thing that surprised me - I was able to pay online immediately through IRS Direct Pay on their website using my bank account info. Saved me from having to mail a check and worry about it getting lost. The payment posted within 2 business days and I got email confirmation. Just make sure you pay by the deadline on your letter to avoid any additional penalties!

Has anyone tried calling the organization that issued the 1099-NEC? I had a similar issue with a teaching stipend last year, and when I called the organization, they admitted they probably should have issued a 1099-MISC instead for Box 3 (Other Income) rather than a 1099-NEC.

I'm dealing with this exact same issue! I received a 1099-NEC for an early childhood education grant that was meant to help with professional development expenses. Like you, I'm not self-employed - I work at a daycare center as a regular employee. After reading through all these responses, it sounds like there are a few different approaches, but the key thing seems to be that since you received a 1099-NEC specifically, you need to make sure whatever you report matches what the IRS received from the grant organization. From what I'm gathering, you'll likely need to use Schedule C in TurboTax to avoid a mismatch, but you might be able to offset some of the self-employment tax burden by deducting legitimate expenses related to your teaching work. The suggestion about calling the grant organization is really smart too - they might have used the wrong form type. Have you tried reaching out to the organization that issued your grant to ask why they used a 1099-NEC instead of a 1099-MISC? That might help clarify the proper way to report it.

Thanks everyone for the detailed responses! This has been incredibly helpful. Just to summarize what I'm understanding for my situation: 1. Capital contributions don't go on Schedule K line 10 or 16b (those are for income/deduction items) 2. They get reported on Schedule L (balance sheet) as increases to capital accounts 3. For Schedule M-2, they go in column c "Other additions" with description like "Shareholder capital contribution" 4. They increase my stock basis but don't affect AAA 5. Important to document with corporate minutes/resolutions to distinguish from loans I'm going to make sure I have proper documentation showing these were intended as permanent capital investments rather than loans. The advice about not withdrawing the funds shortly after contribution makes sense too - these were genuinely meant to help the business grow and purchase equipment. One follow-up question: should I be tracking my basis adjustments on a separate schedule or statement that I attach to my return, or is there a specific form for this?

This is such a helpful thread! I'm dealing with the exact same situation as a single-member S corp. One thing I want to add that my CPA mentioned - make sure you're not mixing personal and business funds when making these capital contributions. The IRS likes to see clean money trails, so it's best to transfer funds directly from your personal account to the business account with clear documentation like "Capital Contribution - [Date]" in the memo line. This makes it crystal clear that it's not a loan, reimbursement, or compensation. Also, if you're planning multiple contributions throughout the year like I do, consider doing them at regular intervals (monthly or quarterly) rather than random amounts whenever cash gets tight. This helps establish a pattern that looks more like planned capital investment rather than emergency cash injections. Has anyone here had experience with how the IRS views frequent small contributions versus fewer large ones? I'm wondering if there's a preference from an audit perspective.