Is anyone using a tax software that correctly handles STRs under the 7-day rule? TurboTax seems confused about where to put it - when I try to enter it as a business it keeps pushing me back to the rental property section.

Great discussion here! I've been dealing with STR tax issues for two years and want to add a few practical tips that might help others: 1. **Average stay calculation**: Make sure you're calculating the 7-day average correctly. The IRS looks at the average rental period during the tax year, not just peak season. If you have some longer stays mixed in, it could push you over the 7-day threshold. 2. **Documentation is everything**: Beyond just tracking hours for material participation, also document what specific activities you're doing. "Property management" is too vague - break it down into "guest communication," "cleaning coordination," "maintenance scheduling," etc. This detail matters in an audit. 3. **State tax considerations**: Don't forget that your state might have different rules. Some states don't follow the federal 7-day rule, so you might end up with different treatment on state vs federal returns. 4. **Quarterly estimated taxes**: Since you'll be paying self-employment tax on Schedule C income, make sure you're making quarterly payments if your liability is over $1,000. The underpayment penalties can be steep. The QBI deduction Sara mentioned is definitely a game-changer if you qualify. Just make sure you're working with a tax pro who understands STR taxation - I've seen too many preparers mess this up.

This is such a helpful thread! I'm new to survey sites too and had no idea about all these tax implications. I just signed up for a few platforms last week after seeing how much some people were making. One question I haven't seen addressed - what happens if you cash out through gift cards instead of PayPal or direct deposit? I was planning to take most of my earnings as Amazon gift cards since I shop there frequently anyway. Do I still need to report the full cash value of those gift cards as income, or is there some different treatment since it's not actual money hitting my bank account? Also, for those keeping detailed records throughout the year - are you tracking this manually or using any specific apps? I'm already feeling overwhelmed trying to keep track of earnings across multiple sites, and I've only been doing this for a week!

As someone who's been doing surveys for about two years now, I want to emphasize something that might not be obvious to newcomers - keep track of your time as well as your earnings! I started just like you, earning small amounts here and there, but once I hit that $600 threshold and had to start dealing with Schedule C, I realized I could also deduct certain expenses against this income. The time tracking helped me justify the business use percentage of my home office space, internet, and even my phone plan. Also, a practical tip that saved me during my first tax season: set aside about 25-30% of your survey earnings in a separate savings account throughout the year. Between federal income tax, state tax (if applicable), and the 15.3% self-employment tax, you'll owe more than you might expect. I learned this the hard way when I owed $180 on $800 of survey income and hadn't saved anything! The survey companies will usually send your 1099-NEC by January 31st if you earned $600+, but like others mentioned, you're required to report all income regardless. Good luck with your survey journey - it's actually pretty nice passive income once you get the tax part figured out!

One more thing to note - if you used Column Tax through Nerdwallet last year but create a brand new account directly with Column Tax this year, you won't automatically see last year's info. You need to use the same login credentials you created originally. I made this mistake and ended up with two accounts. Had to contact support to merge them. Save yourself the headache!

Just wanted to share my experience for anyone else dealing with this Column Tax situation. I was panicking like Lucas because I couldn't find it anywhere through the usual channels I used last year. After reading through all these comments, I went directly to columntax.com and was able to log in with my old credentials - everything was there! However, I did run into the same pricing issue that Natalie mentioned. My return that qualified for free filing last year is now requiring the Premium upgrade. I decided to bite the bullet and pay the $89 since all my info was already there and I really didn't want to start over with a new platform this close to the deadline. The filing process was just as smooth as last year, so at least the product quality hasn't changed even if the pricing structure has. For anyone on the fence about paying vs switching to a different service - if you have a relatively straightforward return, it might be worth exploring FreeTaxUSA like Noah suggested. But if you have multiple income sources or more complex deductions, the time savings of having everything pre-populated in Column Tax might justify the cost.

I'm dealing with the exact same issue! My spouse and I both work full-time with similar salaries and we've owed taxes for three years straight despite trying to adjust our withholding each time. Reading through these responses, it sounds like the "Married but withhold at higher Single rate" option might be our solution. I had no idea the old allowance system was completely phased out - that explains why all the advice I was finding online seemed outdated. The point about payroll systems calculating withholding per paycheck without knowing about your spouse's income really makes sense. Each employer thinks we're in a lower bracket individually, but combined we're actually higher. I think I'll try the IRS Withholding Estimator first since it's free, and if that doesn't work out, maybe look into some of the other tools mentioned here. Thanks everyone for sharing your experiences - it's reassuring to know we're not the only ones struggling with this!

I went through this exact same frustration for years! What finally worked for me was a combination of strategies mentioned here. First, I switched both my husband and my W-4s to "Married but withhold at higher Single rate" - this immediately got us much closer to the right amount. The key insight that changed everything was understanding that when both spouses earn similar incomes (like you mentioned), you often hit what's called the "marriage penalty." Each employer's payroll system assumes your spouse either doesn't work or earns very little, so they withhold based on tax brackets that are too low for your actual combined income. Here's what I'd recommend as your action plan: 1) Update both W-4s to "Married filing jointly" but check the "higher withholding rate for single or married filing separately" box, 2) Use the IRS Withholding Estimator with your last paystubs to see if you need additional withholding on line 4(c), and 3) Check your first few paystubs after the change to make sure the new withholding amounts look reasonable. It took me three tax seasons of owing money to figure this out, but once I did, we've been getting small refunds ever since. The peace of mind is worth so much more than the extra few dollars withheld each paycheck!

Friendly reminder that Square fees aren't your only potential deduction! When I got my first 1099-K, I only deducted the processing fees and ended up paying WAY too much in taxes. Don't forget about: - Supplies for your services - Any equipment purchases - Mileage if you travel to clients - Portion of phone bill if used for business - Software subscriptions related to your work - Continuing education or training costs - Marketing/advertising expenses TurboTax walks through all these categories, so don't skip them! Your tax bill could be significantly lower.

I went through this exact same situation last year with my dog walking side business! The good news is TurboTax makes it pretty straightforward once you know the steps. When you get to the business income section, you'll enter your 1099-K information using your SSN as the tax ID. TurboTax will automatically generate Schedule C for your self-employment income. The key thing is to make sure you enter the gross amount from Box 1a of your 1099-K - that's what Square reported to the IRS. One thing that really helped me was keeping a simple spreadsheet throughout the year tracking all my business expenses. Beyond the Square processing fees, don't forget about: - Hair styling tools and equipment - Products you use on clients - Any licensing or certification costs - Transportation to client locations - Even a portion of your home wifi if you use it to manage bookings Also be prepared for the self-employment tax hit - that caught me off guard my first year. You'll owe both regular income tax plus the additional 15.3% for Social Security and Medicare on your net profit. Setting aside about 25-30% of your side business income throughout the year helps avoid a big surprise at tax time. The most important thing is just being honest and thorough with your reporting. The IRS isn't trying to trick you - they just want to make sure the income matches what was reported by Square.