21 Has anyone else noticed that the IRS instructions for the 1099-NEC form specifically exclude "payments made with a credit card or payment card and certain other types of payments, including third-party network transactions"? That seems to clearly indicate that PayPal business payments don't need 1099s from you. But then there's confusion about what qualifies as a "third-party network transaction" versus a direct payment. From what I understand after researching this extensively: PayPal business/goods & services = No 1099-NEC needed from you PayPal friends & family = Yes, 1099-NEC needed from you Venmo business = No 1099-NEC needed from you Venmo personal = Yes, 1099-NEC needed from you Bank wire/Zelle = Yes, 1099-NEC needed from you

This thread has been incredibly helpful! I'm a freelance graphic designer who also occasionally hires subcontractors, so I'm on both sides of this 1099 issue. One thing I wanted to add based on my experience: make sure you're documenting the payment method clearly in your records. Last year I had a contractor who I paid through both PayPal Business (for most payments) and Venmo personal (for a small rush job). When tax time came, I almost forgot about that Venmo payment and would have missed issuing a 1099 for it. Also, for anyone using multiple payment methods with the same contractor throughout the year - you still need to aggregate all payments when determining if you hit the $600 threshold. So if you paid someone $400 through PayPal Business and $300 through Venmo personal, you'd need to issue a 1099 for the $300 Venmo portion since the total exceeded $600. The IRS doesn't care that part of their income will be reported on a 1099-K from PayPal - you're still responsible for reporting the direct payment portion on a 1099-NEC.

Sorry if this is a bit off-topic, but has anyone claimed the credit for a used EV or PHEV? I'm looking at a 2022 Chevy Bolt and wondering if I can get any tax benefits for buying used instead of new?

Thanks everyone for all the detailed responses! This has been super helpful. Just to summarize what I've learned for anyone else in a similar situation: 1. Regular hybrids (like a standard Prius) DON'T qualify - only plug-in hybrids (PHEVs) do 2. PHEVs need at least 7 kWh battery capacity to qualify 3. The credit amount varies by vehicle due to battery sourcing requirements - could be $3,750 or $7,500 4. You can either claim it on your taxes OR get it as an immediate discount at the dealership 5. Always verify with the IRS list rather than just trusting what dealers tell you I'm definitely going to check out that IRS qualified vehicles list before I go shopping this weekend. Sounds like I need to focus on plug-in hybrids specifically, not regular hybrids. Really appreciate everyone sharing their real experiences - way more helpful than the generic info I was finding online!

The IRS systems r so broken its actually hilarious. Why cant they just let us add forms after submission like normal people 🤮

This happened to me two years ago! The rejection came back in about 36 hours, and then I had to wait another 3 weeks for processing after resubmitting with the correct forms. Definitely frustrating, but at least you caught it early. Make sure your preparer double-checks everything before resubmitting - you don't want to go through this twice!

I work at a tax prep office and can share some insider info - H&R Block releases new promotional codes throughout tax season, but they're usually tied to specific marketing campaigns or partnerships. The codes that work best are usually: 1) Military/veteran discounts (these rarely expire), 2) Student discounts through .edu email verification, 3) Partner codes from banks, credit unions, or employers, and 4) Social media flash codes they post on their official accounts. One thing most people don't know is that if you're filing multiple state returns, you can often get a bundle discount by calling their sales line directly. They have quotas to meet and will sometimes negotiate, especially later in tax season. Also, if you're already deep into your return like you are, try reaching out to their chat support and explaining you're a returning customer who's comparing prices with competitors. They often have "retention codes" they can apply to keep you from switching to another service.

For retention codes, I've found it works best to be specific but not aggressive. Something like "I've been using H&R Block for 3 years but I'm seeing TurboTax advertised at $X less for the same filing level. Is there any discount you can offer to match that price?" Usually gets better results than just saying you're shopping around. For bank/credit union partnerships, it depends. Some require you to start from their website (like chase.com/taxes or whatever), while others just give you a standalone code you can use directly. Check your credit union's website under "member benefits" or "partner discounts" - that's usually where they list tax prep deals. One more tip from our office: if you're filing late in the season (after March), they often have "tax deadline rush" promotions that can be better than the early season codes. H&R Block would rather get your business at a discount than lose you to a competitor entirely.

My sister was a surrogate in 2022 and she DID report the income on her taxes. She reported it as self-employment income on Schedule C, and yes, had to pay both income tax and self-employment tax on it. She was able to deduct some business expenses like special maternity clothes she wouldn't have otherwise needed, mileage to medical appointments, and a portion of her phone bill for surrogacy-related communications. But the base compensation was definitely treated as taxable income.

As someone who's been through a similar situation, I'd strongly recommend consulting with a tax professional who has experience with unusual income situations. The general consensus here is correct - surrogacy compensation is taxable income that should be reported on Schedule C. One thing I learned is that you'll want to keep detailed records of everything related to the surrogacy arrangement. This includes the contract, payment records, any medical expenses you incurred that weren't reimbursed, and documentation of business-related expenses like travel to appointments. The fact that the agency casually mentioned that "most surrogates don't report it" is concerning. Even if that's true, it doesn't make it legal. The IRS considers all income taxable unless there's a specific exclusion, and there's no exclusion for surrogacy compensation. Better to pay the taxes now than face penalties, interest, and potential legal issues later if you're audited. Also consider setting aside about 25-30% of the compensation for taxes if you haven't already, since you'll owe both income tax and self-employment tax on the full amount.