What about expenses though? I deliver for multiple apps too and spend so much on gas and car maintenance that I barely make any profit. Do I still need to pay taxes if my expenses basically cancel out the income?

This is a really common misconception! The $600 threshold only determines whether a company has to send YOU a 1099 form - it has nothing to do with whether the income is taxable. Every dollar you earn from any source is technically taxable income that needs to be reported to the IRS. So yes, you absolutely need to report that $480 from UberEats along with your $780 from Instacart. The fact that they're from different companies doesn't matter - you'll combine all your gig income on Schedule C as self-employment income. Make sure you're tracking your expenses too! Since you're doing delivery work, your biggest deduction will likely be mileage. Keep a log of your business miles for both apps - you can use the standard mileage rate which is currently 67 cents per mile for 2024. Also track other business expenses like phone bills, delivery bags, etc. One more thing - since you're earning over $400 in self-employment income total, you'll also need to pay self-employment taxes (Social Security and Medicare) on top of regular income tax. Consider making quarterly estimated tax payments to avoid penalties next year!

Question about depreciation on these 1031 properties - do you have to continue the same depreciation schedule from the old property or can you start fresh with the new one? I've been told different things by different people.

Nina, you're absolutely right to be concerned about handling this correctly! I went through a similar situation with my first 1031 exchange two years ago and here's what I learned: The paper filing route is actually pretty straightforward if you're comfortable with your regular tax software. I used FreeTaxUSA just like you, completed everything normally, then selected the "print and mail" option instead of e-filing. The Form 8824 gets attached to your printed return - just make sure you sign everything and mail it certified mail so you have proof it was received. For a no-boot exchange like yours, Form 8824 is manageable if you have good records. The key information you'll need: exact dates of the sale and purchase, property addresses, sale price of the old property ($285k), purchase price of the new property ($310k), your adjusted basis in the old property (original cost plus improvements minus depreciation), and details about your qualified intermediary. Since you're dealing with rental property, don't forget you'll also need to handle the depreciation recapture calculations when you eventually sell the replacement property down the road. Keep excellent records of everything - you'll thank yourself later! The $25k difference between your sale and purchase prices shows you put additional cash in, which is good - no boot to worry about on the tax side.

The most important thing I learned from my tax debt situation is DONT IGNORE IT!! I buried my head in the sand for 2 years and my original $15k debt ballooned to over $28k with penalties and interest. For real tho, call the IRS yourself first. The people on the phone are actually pretty helpful if you're honest and polite. At minimum, get on a basic payment plan to stop the penalties from getting worse while you figure out your options.

I'm dealing with a similar situation - about $19,000 in back taxes from a consulting business that went under in 2022. The constant mail from the IRS was giving me panic attacks, but I finally called them directly last week using the number Isabella mentioned (1-800-829-1040). The IRS agent was actually really understanding and explained that I could set up an installment agreement for around $320/month based on my current income. She also mentioned that once I get current on payments, I might qualify for penalty abatement which could reduce the total amount. What really helped was having all my financial documents ready before calling - bank statements, pay stubs, and a list of monthly expenses. The whole process took about 45 minutes and I walked away with a manageable payment plan instead of the crushing anxiety I'd been carrying for months. Emma, definitely try calling them directly first before paying thousands to a tax relief company. The worst they can say is no, but in most cases they'd rather work with you than go through the collection process.

I think a lot of people are missing that there's a difference between the penalty for late FILING and late PAYMENT. Since you're a nonprofit that doesn't owe taxes, you're only dealing with the late filing penalty, which might give you more flexibility. Also worth checking if you qualify for first-time penalty abatement (FTA) which the IRS offers for organizations with a clean compliance history. You don't even need reasonable cause for that - just a clean record for the past 3 years.

Actually, @Jake Sinclair raises an important question about FTA for nonprofits. From my understanding, first-time penalty abatement is primarily available for income tax penalties, employment tax penalties, and certain excise tax penalties - but NOT for information return penalties like the Form 990 late filing penalty. The IRS treats information return penalties (which is what Form 990 falls under) differently from tax penalties. For Form 990 late filing, you really need to establish reasonable cause rather than relying on FTA provisions. That said, your situation does have some strong elements for reasonable cause: volunteer status, small organization with limited resources, and a significant life event (new baby). I'd focus your letter on those factors rather than trying to pursue FTA, which likely won't apply to your Form 990 situation.

Anyone know if there's a penalty for filing a prior year return this late? I'm in a similar situation with my 2023 taxes and wondering how much extra I'm gonna have to pay 😬

Just to add some context to what others have mentioned about penalties - if you're getting a refund on your 2023 return, you're actually in a pretty good position despite filing late. The IRS doesn't penalize you for filing late when they owe YOU money, so you won't face any failure-to-file penalties. However, if you owe taxes, the penalties can add up quickly. The failure-to-file penalty is much steeper than the failure-to-pay penalty (5% vs 0.5% per month), so even if you can't pay what you owe right away, it's always better to file the return to minimize penalties. One more thing - if this is your first time filing late and you end up owing penalties, you might qualify for "first-time penalty abatement" that someone mentioned earlier. The IRS will often waive failure-to-file and failure-to-pay penalties for taxpayers with a clean compliance history. You'd need to call them after your return is processed to request this, but it's definitely worth knowing about. Good luck with your mailed return! Make sure you use the correct mailing address for your state - it's different from regular IRS correspondence addresses.