This thread has been incredibly educational! I work in payroll for a small business and had no idea about the complexity of professional athlete taxation. The multi-state filing requirements alone sound like a full-time job. One thing I'm curious about - when these players set up LLCs for endorsements, do they typically need separate business licenses in each state where they do endorsement work? Like if a player does a commercial shoot in California but their LLC is registered in Texas, are there additional compliance requirements? Also, I'm wondering about the timing aspect. Since NFL careers can be relatively short, is there a point where it makes sense to dissolve the LLC structure if endorsement income drops significantly after retirement? Or do most players keep the business entity active for other ventures?

This has been such an enlightening discussion! As someone who's always been curious about how professional athletes handle their finances, I had no idea the tax situation was this complex. What really stands out to me is how the LLC structure isn't the "magic bullet" tax avoidance strategy that people sometimes make it out to be. It sounds like it's more about proper business organization and asset protection for legitimate business activities rather than trying to game the system. The multi-state filing requirements alone sound like they'd give me a headache! It makes total sense why these athletes need specialized CPAs rather than trying to use TurboTax like the rest of us. One thing I'm still wondering about - for college athletes who are now able to profit from their name, image, and likeness (NIL), do similar principles apply? Would a college quarterback getting local endorsement deals benefit from setting up an LLC, or is the income typically not high enough to justify the setup costs and complexity? Thanks to everyone who shared their expertise here - this has been way more educational than I expected when I clicked on this thread!

As someone who's been freelancing for a few years now, I want to emphasize something that really helped me when I was starting out with such a low income - you might actually qualify for free tax preparation help through the IRS Volunteer Income Tax Assistance (VITA) program! Since you made under $64,000 (way under in your case), you can get your taxes prepared for free by IRS-certified volunteers who understand self-employment situations. They're specifically trained to handle Schedule C and Schedule SE forms, and they can make sure you're not missing any deductions or credits you qualify for. You can find locations near you on the IRS website. I used VITA my first couple years of freelancing and it was such a relief to have someone walk me through everything in person and explain what I was actually filing. Plus, they can help you set up a system for tracking income and expenses going forward. Don't let the tax complexity discourage you from pursuing your art! Once you get the hang of the basic forms and record-keeping, it becomes much more manageable. You've got this!

Another thing worth mentioning for new freelance artists - make sure you're keeping track of ALL your income sources, even the small ones! This includes things like: - Direct client commissions - Sales through platforms like Etsy, Redbubble, Society6 - Patreon or Ko-fi donations/subscriptions - Art contest winnings or prizes - Teaching art workshops or classes - Selling art supplies you no longer need Many new artists don't realize that platforms like PayPal, Venmo, and cash apps are now required to send you a 1099-K if you receive more than $600 in a year. But even if you don't get a 1099, you still need to report ALL income to the IRS. I recommend using a simple spreadsheet or even a notebook to track every payment as it comes in. Include the date, source, amount, and what it was for. This will make tax time so much easier and ensure you don't accidentally miss reporting something that could get you in trouble later. Also, don't forget to track any bartering or trade work you do! If you create a $200 logo in exchange for $200 worth of photography services, that's still $200 of taxable income for both parties.

Call the MA DOR helpline! They were actually super helpful when I had a similar issue.

Sophie, this is actually pretty straightforward - Massachusetts has records of income paid to your SSN that wasn't reported on your return. The $6,423 unemployment likely came from a 1099-G form you may not have received or missed, and the $1,000 lottery winnings would be from a W2-G form (casinos/lottery must report winnings over $600). First step: Log into mass.gov/masstaxconnect and pull your original return to see what you actually filed. Compare it line by line with what they're showing. If you genuinely didn't receive this income, you'll need to dispute it with documentation. But if you did receive it and just forgot to include it, it's better to accept the adjustment rather than rack up more penalties. The key thing is they're not billing you yet - this is just notification. But don't ignore it because silence = agreement in their eyes.

Quick tip for anyone dealing with this situation: if you're using tax filing software, look for an option specifically for addressing 1099-K income that's also reported on other forms. Most major tax programs now have this feature because this problem is so common with PayPal, Venmo, Cash App, etc. In TurboTax, there's a specific question asking if any 1099-K income was already reported elsewhere. H&R Block has something similar. Answer YES and it should guide you through properly documenting without double-counting. Saved me a ton of hassle last year!

Just wanted to share my experience as someone who went through this exact situation last year. I was getting both 1099-NEC and 1099-K forms for my freelance writing income and was completely panicked about double taxation. The key thing I learned is that this is actually a very common issue now with digital payment platforms. The IRS knows this happens and has procedures to handle it. What worked for me was reporting my actual income once on Schedule C, then keeping detailed records showing that both forms represent the same payments. I made a simple spreadsheet matching each client payment on my 1099-NEC to the corresponding transaction on my 1099-K. This way I could clearly demonstrate they were the same money if ever questioned. Also kept screenshots of my PayPal transactions and bank deposits to show the money flow. One thing I'd recommend is don't stress too much about this - it's becoming so common that tax software and even IRS systems are getting better at handling these situations. Just be thorough with your documentation and you'll be fine!

This is a textbook case of tax identity theft that needs immediate attention. The timeline you've described - with a "wrong identifying number" notice from December 2023 followed by a refund freeze in February 2024 before you even filed - clearly indicates someone used your SSN to file a fraudulent return. The 290 code showing just a "$" symbol without an amount suggests the IRS system is struggling to calculate what you actually owe because it's trying to reconcile your legitimate returns with the fraudulent one already in the system. Here's your action plan: 1. Call the IRS Identity Protection Unit at 800-908-4490 TODAY - don't wait for any notices 2. File Form 14039 (Identity Theft Affidavit) immediately 3. Contact all three credit bureaus to place fraud alerts and check your credit reports 4. Consider freezing your credit entirely until this resolves 5. Keep detailed records of everything The multiple amendments you filed likely complicated things further because now the system has to sort through several legitimate returns plus the fraudulent one. This will take months to resolve, but acting quickly is crucial. Once the IRS confirms identity theft, they typically expedite processing of your legitimate refund, but the sooner you start this process, the better. Don't file your 2025 return until you speak with the identity theft unit about whether you'll need an IP PIN or special procedures going forward.

This is definitely a complex identity theft situation that requires immediate action. The sequence of events - December 2023 "wrong identifying number" notice, February 2024 refund freeze before you filed, and now a 290 code with no amount - all point to someone having filed a fraudulent return using your SSN. The 290 code typically shows "additional tax assessed" with a specific dollar amount, but yours showing just "$" suggests the system can't properly calculate what you owe because it's trying to reconcile your legitimate returns with the fraudulent one already in the system. Here's what you need to do immediately: 1. Call the IRS Identity Protection Specialized Unit at 800-908-4490 - don't wait for notices 2. File Form 14039 (Identity Theft Affidavit) right away 3. Place fraud alerts with all three credit bureaus and check your free credit reports 4. Consider freezing your credit entirely until this resolves 5. Request a complete account transcript to see all activity on your SSN Your multiple amendments likely complicated the situation further since the system now has to sort through several legitimate returns plus the fraudulent one. This will take months to resolve, but starting the identity theft process immediately is crucial. Once confirmed, the IRS typically expedites legitimate refunds. Also, don't file your 2025 return until you speak with the identity theft unit about whether you'll need an IP PIN or special filing procedures going forward. Document everything and keep detailed records - these cases require a lot of follow-up.