Might be an unpopular opinion, but I just reported all my babysitting income as "other income" on line 8 of Schedule 1 for years. No W2, no Schedule C, just reported the income and paid income tax on it. Never had an issue with the IRS. Sometimes the simplest solution works fine if the amounts aren't huge.

I went through this exact situation two years ago working for three different families as a nanny. Here's what I learned the hard way: First, don't panic - you're not the first person to discover this late in the game. The key is to act quickly since tax season is upon us. I'd recommend contacting each family with a brief, professional explanation of the situation. Most families genuinely don't know about household employment tax obligations. I found that sending them a simple email with a link to IRS Publication 926 helped them understand it wasn't just me making demands - it's actual tax law. Two of my families worked with their accountants to issue corrected W2s within about 3 weeks. The third family refused, claiming I was an "independent contractor" even though they controlled my schedule and provided all supplies. For that situation, I ended up filing Form 4852 (Substitute for Form W-2). It was actually not as complicated as I expected. The form walks you through calculating what should have been withheld, and I attached a letter explaining the situation and my attempts to get a proper W2. The most important thing is to NOT just report it as self-employment income if you were truly a household employee. You'll end up paying double the FICA taxes, and technically it's incorrect classification. The IRS has specific rules about household employees vs contractors. Start reaching out to those families this week - even if they drag their feet, you'll have documentation that you tried to resolve it properly before filing.

Anyone else think it's totally ridiculous that retail investors can buy something like USO thinking it's a normal ETF and then get hit with all this K-1 nightmare? Maybe I'm just being dramatic but there should be huge warnings before you buy these things. I clicked "buy oil ETF" and now I need to learn partnership tax law?? Not cool.

I completely understand the panic! I went through the exact same thing when I first received a K-1 from USO. Here's what helped me get through it: First, take a deep breath - you're not going to get audited just for having a K-1. The IRS expects these forms and knows they're confusing for new investors. For your specific situation with USO, the good news is that most of the income will likely be straightforward. The main items you'll see are: - Ordinary business income/loss (goes to Schedule E) - Capital gains/losses (goes to Schedule D) - Possibly some Section 199A deduction info TurboTax Premier can definitely handle this - I've used it successfully for USO K-1s. When you get to the investment section, look for "Partnerships and S-Corps" and select "Schedule K-1." The software will walk you through each relevant box. One important tip: Don't try to rush through this. Take your time reading what each section is asking for, and don't hesitate to use the help features in TurboTax. Also, for future reference, if you want to avoid K-1s entirely, consider oil ETFs structured as corporations like XLE (energy sector ETF) or funds that track oil through futures but are structured as RICs. You'll just get a simple 1099 instead of a K-1. You've got this! The first K-1 is always the scariest, but it gets much easier once you've done it once.

Just wanted to chime in as someone who went through this exact situation! You're absolutely right to be concerned about reporting the income even without the 1099-NEC form. The IRS expects you to report all income regardless of whether you receive tax documents. For FreeTaxUSA, when you get to the income section, look for "Business Income" or "Self-Employment Income" rather than trying to enter it as a 1099-NEC. You'll use Schedule C to report your $2,780 in delivery earnings. The earnings summary from Uber Eats is perfectly acceptable documentation - just make sure to save a copy for your records. One thing I wish I had known earlier: you can deduct business expenses like the business use portion of your phone bill, insulated bags, and most importantly - mileage! The standard mileage deduction can significantly reduce your tax liability. Even if you didn't track miles perfectly, you can make reasonable estimates based on your delivery history. Also, don't forget you'll need to file Schedule SE for self-employment taxes (Social Security and Medicare). FreeTaxUSA should automatically prompt you for this once you enter your Schedule C information. Good luck with your filing!

I went through this exact same situation last year with Uber Eats! You're definitely on the right track - even without the 1099-NEC form, you absolutely need to report that income. Here's what worked for me in FreeTaxUSA: Don't try to enter it as if you have a 1099-NEC. Instead, go to the "Business Income" section and select "Schedule C - Business Income or Loss." Enter your $2,780 as gross receipts from your Uber Eats earnings summary. The platform will walk you through the rest. A few important things I learned the hard way: - Save that earnings summary! It's your proof of income if the IRS ever asks - You can deduct business expenses like phone usage (I claimed about 30% of my monthly bill), delivery bags, and car expenses - The mileage deduction is HUGE - I wish I had tracked miles better, but even conservative estimates helped a lot Also, FreeTaxUSA will automatically generate Schedule SE for your self-employment taxes once you complete Schedule C. The self-employment tax hit was a surprise for me (about 15.3%), so just be prepared for that. One last tip: consider setting aside money quarterly this year for estimated taxes if you plan to continue gig work. It's much easier than getting hit with a big bill next April! You've got this! The hardest part is just getting started with that Schedule C.

I've been following this thread with great interest since I had the exact same panic moment when I first saw "Less Other Cafe 125" on my W-2! Like many others here, I had zero recollection of signing up for any "cafeteria plan" and was convinced there was an error. What really clicked for me was when someone mentioned checking your benefits portal for historical enrollment data. I logged into our company's system and discovered I had been automatically enrolled in what they called our "Essential Benefits Package" during onboarding - which included basic health coverage, a small life insurance policy, and even a wellness program fee I never used. None of these were labeled as "Cafe 125" anywhere in our system, so I never made the connection. The relief I felt when I realized this actually SAVED me over $800 in federal taxes that year was incredible. Now I actually pay attention during open enrollment and understand what I'm signing up for. For anyone still confused: this is almost certainly a good thing that's helping your tax situation, even if the terminology is unnecessarily confusing. The IRS really could do better with making these labels more intuitive!

I totally understand your frustration! This is one of those tax document mysteries that trips up so many people. After reading through everyone's experiences here, it's clear that "Less Other Cafe 125" is just the IRS's confusing way of showing pre-tax benefit deductions that were automatically taken from your paycheck. Since you mentioned your HR is slow to respond, here are a few quick ways to solve this yourself: First, grab all your 2019 paystubs and look for ANY deductions labeled as "Health," "Medical," "Insurance," "Life Ins," "EAP," or similar - these often don't say "Cafe 125" directly but that's what they become on your W-2. Second, if your company has an online benefits portal or payroll system, log in and look for a "Benefits Summary" or enrollment history section - you might find records of what you were signed up for that you completely forgot about. The good news is this deduction actually SAVED you money on federal taxes, so even though it's confusing, it's working in your favor. Don't let the terminology stress you out - most employers automatically enroll new hires in basic coverage during onboarding, and it sounds like that's exactly what happened to you!

Does anyone know if HR has to process your W-4 change immediately? I submitted a new form 3 weeks ago to stop being "exempt" but my paycheck today still had no federal taxes taken out!

This is exactly the kind of confusion that trips up so many people! You're definitely not alone in misunderstanding the W-4 exempt status. Just to reinforce what others have said - claiming "exempt" means NO federal income tax gets withheld from your paychecks. You'll still pay Social Security and Medicare taxes, but zero federal income tax. This almost always results in owing money when you file your return. The good news is this is totally fixable! Submit a new W-4 to your HR/payroll department right away and DO NOT check the exempt box. Fill out the rest of the form based on your actual situation - single/married, dependents, etc. Since you've potentially missed several paychecks worth of withholding, you might want to add some extra withholding in the "additional amount" section of the new W-4 to help catch up. Even an extra $50-100 per paycheck could save you from a big surprise bill next April. Don't stress too much - this happens more often than you'd think, and as long as you fix it promptly you should be fine!