I had a very similar situation a couple years ago and can share what worked for me. You're absolutely right to be concerned, but the good news is this is totally fixable! First, yes - report ALL of that income regardless of missing 1099-K forms. The IRS is clear that income is taxable whether you get paperwork or not. Since you earned over $10,000, this goes on Schedule C as self-employment income. Here's what I'd recommend doing immediately: 1) Download and save all your Venmo transaction records as PDFs, 2) Reach out to the business owner to ask if they filed a 1099-NEC for you (some companies do this instead of relying on payment apps), and 3) Start gathering receipts for any business expenses you had. The "personal transfer" vs "goods/services" thing won't hurt you tax-wise, but it does explain why you didn't get a 1099-K. Venmo only reports business transactions that meet certain thresholds. One heads up - you'll owe self-employment tax (about 15.3%) plus regular income tax on this money, and since nothing was withheld, you might face underpayment penalties. For next year, definitely consider quarterly estimated payments to avoid that surprise. Don't stress too much though - this is a really common situation and the IRS just wants you to report the income honestly. Keep good records and you'll be fine!

I'm dealing with almost the exact same situation right now! I've been getting paid through Venmo for freelance writing work throughout 2024, and like you, none of the payments were marked as business transactions. Reading through all these responses has been incredibly helpful. What I'm taking away is that I need to report everything on Schedule C regardless of the missing 1099-K, and I should probably start setting aside money now for the self-employment tax hit. The advice about keeping detailed records really resonates - I've been pretty casual about documentation but I can see that needs to change. One thing I'm still wondering about is timing. Since we're still early in 2025, should I be making estimated payments for this year's income right away, or can I wait until the first quarter deadline? I don't want to get caught off guard again like I clearly did for 2024. Also planning to reach out to my clients to see if any of them filed 1099-NECs that I might not have received yet. Thanks to everyone who shared their experiences - it's reassuring to know this is manageable and that being proactive about reporting actually looks good to the IRS!

Thanks for this heads up! I was completely unaware of the Credit Karma/Intuit situation and almost got stuck paying for TurboTax. I've been using Credit Karma for taxes for the past few years and was shocked when they redirected me to a paid service. Just successfully filed through Cash App Taxes and you're absolutely right - it's the exact same interface I remember from Credit Karma. All my previous year information was there, and it walked me through everything step by step. Filed federal and state completely free, even with my rental property income and deductions. It's frustrating that this change isn't more widely publicized. I only found out about Cash App Taxes through your post after spending an hour confused about why Credit Karma was suddenly charging me. The IRS Free File website should really be updated to reflect these changes more clearly.

This is incredibly helpful information! I had no idea about the Cash App Taxes option and almost fell into the TurboTax trap myself. I've been a Credit Karma user for years and was completely blindsided when they started pushing me toward paid services. I'm particularly interested in the fact that previous Credit Karma data transfers over. Does this include things like prior year AGI that's needed for identity verification? I always worry about having to dig up old tax returns when switching services. Also, for anyone considering this - I'd recommend double-checking that Cash App Taxes supports all the forms you need before you start. While it handles most situations, some of the more specialized forms (like foreign tax credits or certain business forms) might still require paid software. Better to know upfront than get halfway through filing! Thanks again for sharing this - you probably saved a lot of people from unnecessary fees.

Hey there! I went through fire academy training about 3 years ago and had the exact same question. Unfortunately, as others have mentioned, the 2017 tax changes really hurt people like us who invest in career training. One thing that helped me was setting up a separate savings account specifically for ongoing training costs - EMT recertification, specialized rescue courses, etc. Even though we can't deduct the initial investment, having a dedicated fund makes the financial planning easier. Also, once you get hired, definitely ask about their continuing education budget during your first week. Many departments have funds allocated for advanced certifications that they don't always advertise during the hiring process. Keep your head up - the skills and knowledge you gained are worth way more than any tax deduction!

I'm dealing with something similar right now - just finished my fire academy last fall and was really counting on those deductions. It's such a bummer that the tax laws changed right when so many of us are trying to get into public safety careers. One thing I've been doing while job hunting is keeping a detailed spreadsheet of all my expenses (uniforms, books, equipment, etc.) because some departments will ask about what you've already invested during the hiring process. Also found out that a few local credit unions offer special loans for first responders that have better rates than regular personal loans - might be worth looking into if you need to finance any additional certifications. The whole situation is frustrating but we're all in this together!

Just wanted to share my experience from last year - I had the exact same confusion with my Honda financing! What helped me was looking at my loan documents more carefully. There's usually a section that breaks down the total amount financed, which includes the vehicle price, taxes, fees, and sometimes extended warranties or other add-ons. For TurboTax purposes, you want just the actual vehicle purchase price (not the total loan amount) and the sales tax you paid. The sales tax might be rolled into your loan, but it's still considered "paid" for tax purposes. My dealership actually had this broken out clearly on the purchase agreement - look for something called a "buyer's order" or "sales contract" that shows the vehicle price separate from taxes and fees. One thing that caught me off guard was that some dealerships include things like extended warranties or service packages in the financing, but those aren't part of the vehicle purchase price for tax reporting. Make sure you're only reporting the actual car price and applicable taxes/fees, not the total financed amount.

I went through this exact same situation when I bought my Toyota last year! The key thing to remember is that from a tax perspective, you "purchased" the car the moment you signed the papers and drove it home, regardless of how you're paying for it. Here's what I learned: Enter the full purchase price of the vehicle (before taxes and fees) and the sales tax you paid. This info should be on your purchase agreement or sales contract - look for line items that say something like "Vehicle Price: $X" and "Sales Tax: $Y". Don't include the loan interest, extended warranties, or other add-ons in the purchase price. Even if the sales tax was rolled into your financing, it still counts as "paid" for tax purposes. TurboTax uses this info to calculate whether itemizing deductions (which would include the sales tax) saves you more money than taking the standard deduction. In many cases, especially with the higher standard deduction amounts, you'll still end up taking the standard deduction anyway, but it's worth letting TurboTax do the math for you. If you can't find your paperwork, call your dealership - they should have copies of everything. The financing bank might also have these details in your loan documents.

Quick tip from someone who's been through this: keep REALLY good records of this whole process. Save all statements showing your original contribution, the exact earnings calculation from your broker, and the full withdrawal. The IRS sometimes sends automated notices for retirement account distributions even when you've reported everything correctly. Having clear documentation makes it much easier to respond if you get a letter. I learned this the hard way and had to dig through old emails to find confirmation of exactly when I made the correction.

Just wanted to add my experience since I went through this exact same situation last year as a married filing separately filer. The advice here is spot-on, but I'll share a few additional details that might help. When you call your broker for the earnings calculation, ask them to provide it in writing (email is fine). Some brokers can be slow to respond or give you different numbers if you call multiple times. Having it documented helps ensure consistency. Also, don't panic if your tax software doesn't have a specific category for "excess Roth contribution earnings" - many don't. You'll manually enter it on Schedule 1, Line 8z as others mentioned. I used TurboTax and had to override some of their automated suggestions because it kept trying to categorize it as a regular early distribution. One thing that surprised me was that my state (Texas) didn't have any additional requirements, but definitely check your state's rules as others have mentioned. The whole process was much less scary than I thought it would be once I got organized with the documentation. Good luck with your filing - you caught the mistake and you're handling it correctly, which is the important part!