One thing nobody has mentioned: KDP (kindle direct publishing) and other platforms will send a 1099-K if your husband makes over $600, and that gets reported to the IRS. they expect to see that income on your return somewhere. If you report as hobby, make sure you list "self-published book" in the description so it matches the 1099. Nothing triggers audits faster than income reported to IRS that doesn't show up on your return!

As someone who went through this exact decision last year with my husband's self-published poetry collection, I'd strongly recommend going with Schedule C from the start. Here's what I learned: Even though we had minimal expenses (just some basic editing software and a simple book cover), treating it as a business allowed us to deduct a portion of our home office, internet costs, and even mileage to a local bookstore event. These small deductions added up. The record-keeping really isn't as scary as it seems - I just use a simple Excel spreadsheet with columns for date, description, amount, and category. Takes maybe 10 minutes a month to update. Most importantly, starting with Schedule C gives you flexibility. If your husband's book takes off and he decides to write more, you're already set up properly. If it stays small, no harm done - you're just getting legitimate tax benefits you'd miss with hobby classification. The key is showing profit motive, which it sounds like you have - he completed and published the book with the intent to sell it. That's business activity, not just a hobby. Don't overthink it!

Heads up - I missed filing 1065 forms for two years for my "zero activity" LLC with my sister, and the IRS hit us with penalties of over $2,500! Definitely file even if you did nothing. The penalties are per partner, per month.

I went through this exact situation two years ago with my consulting LLC partnership! Even though we had zero revenue, we still had to file Form 1065. What helped me was breaking it down into steps: 1. First, gather all your documentation - LLC formation docs, EIN confirmation, and receipts for those startup expenses 2. The $475 in expenses you mentioned (filing fees + domain/hosting) are legitimate business deductions that will create a small loss to pass through to both partners 3. Each partner reports their 50% share ($237.50 loss) on Schedule E of their personal returns One thing that caught me off guard was the filing deadline - partnerships have to file by March 15th (vs April 15th for individuals), but you can request an automatic 6-month extension if needed. Since you mentioned being a tax newbie, I'd also recommend keeping detailed records of any future business expenses, even if the business stays inactive. Having everything organized from the start makes subsequent years much easier if you do get the business going again when circumstances improve with your brother's health. The good news is once you get through the first filing, you'll understand the process much better for future years!

Have you checked your tax transcript from the IRS website? That will show exactly what was filed and processed. It's possible what they sent you isn't even what they submitted to the IRS. Go to irs.gov and request your tax record/transcript. It's free and only takes a few minutes if you can verify your identity online.

This is a frustrating situation and unfortunately more common than it should be. The combination of poor communication and a significant fee for what appears to be a straightforward return is concerning. A few thoughts based on your description: 1. **The estimate vs. actual difference**: Initial estimates during consultations are often rough calculations, but a $900+ difference is substantial. They should have contacted you before finalizing if they discovered the estimate was significantly off. 2. **That $650 fee is excessive**: For a W2 + investment documents with standard deduction, most reputable preparers would charge $150-300 max. The high fee combined with poor communication suggests they may be targeting inexperienced filers. 3. **Next steps**: Since they've already filed, I'd recommend: - Send one final email stating you need a detailed explanation of the refund calculation within 48 hours or you'll file complaints with relevant authorities - Request your IRS transcript online (free at irs.gov) to verify what was actually submitted matches what they showed you - Document everything for potential complaints to your state's tax preparer licensing board The fact that DIY software showed $800 and they got you $1865 suggests they did find legitimate deductions, but you deserved transparency about what changed from the estimate. Don't let them continue ignoring you - you paid for professional service and communication.

Just a warning about the "keep it under $600 per platform" strategy - the rules are changing! The 1099-K reporting threshold was supposed to drop to $600 across all platforms last year, then got delayed, but it's likely coming soon. Also, the IRS can look at patterns. If they see you're conveniently just under reporting thresholds on multiple platforms, that could trigger questions. Better to just report everything properly and take advantage of all legitimate deductions. Honestly with your situation of low income this year and higher next year, you might even WANT to recognize more income this year while you're in a lower tax bracket!

Great thread everyone! As someone who went through a similar situation last year, I wanted to add a few thoughts that might help. The advice about recognizing income this year while you're in a lower bracket is spot on - that's exactly what I wish I had done. I ended up deferring a lot of sales and got hit harder tax-wise the following year when my regular income kicked in. One thing I learned the hard way: even if you're selling personal items at a loss (which is common with clothes), you still need to be able to reasonably document your original cost basis. I started taking photos of similar items online to show typical retail prices for the brands/styles I was selling. It's not perfect, but it helps establish that you're not just making up numbers. Also, don't forget about state taxes! Some states have different thresholds and requirements than federal, so make sure you're considering both levels. The suggestion about using a dedicated credit card for selling expenses is golden - makes tracking so much easier at tax time. I use a simple spreadsheet too, but having that card statement as backup is really helpful. Good luck with your sales! Sounds like you're being smart about planning ahead.

Based on what you've described with the Republic Bank RT Fee and Technology Fee that weren't disclosed, you definitely have grounds for a complaint. I had a similar experience where my preparer used electronic signatures to get authorization for fees they never verbally explained. What worked for me was first sending a formal written demand (email works) to the tax office referencing the specific IRS regulations about fee disclosure. I mentioned Publication 1345 which covers tax preparer responsibilities for clear communication of all charges. Give them 7-10 business days to respond before escalating. If they don't make it right, definitely file Form 14157 with the IRS. I also reported mine to my state's consumer protection agency since this falls under deceptive business practices. The combination of potential IRS penalties and state investigation usually gets their attention quickly. Document everything and keep pushing - preparers who pull this stuff are counting on people just giving up and eating the loss.

This is exactly why I always insist on reviewing every single document before signing, even if it takes an extra 30 minutes. Tax preparers who use electronic signature systems often rush clients through multiple forms hoping they won't read the fine print. For your situation, I'd suggest taking screenshots of those text conversations where the $285 fee was agreed upon - that's your smoking gun evidence. The fact that he's gone radio silent after you questioned the discrepancy is a huge red flag and shows he knows he messed up. One thing that might help speed up resolution: many tax prep offices are franchises or work under larger companies. If this is the case, try contacting the corporate office or regional manager directly. They often have more authority to issue refunds quickly to avoid bigger problems, and they definitely don't want complaints going to the IRS or state agencies. Keep us posted on how this turns out - stories like yours help other people recognize these tactics before they get burned.