One thing no one has mentioned - if you're gambling on sites that aren't legal in the US, reporting those winnings doesn't make the gambling itself legal. You still have to pay taxes on illegal income (IRS doesn't care where money comes from, they just want their cut), but reporting it doesn't protect you from other legal issues related to using those platforms. Most people don't run into problems, but just something to be aware of since you mentioned the platform isn't regulated in the US.

Great question! I went through something similar last year with about $8K in crypto gambling profits. Here's what I learned after consulting with a tax professional: The key thing is that you need to report the fair market value in USD at the time you received each winning, not when you eventually cash out. So if you won 0.5 ETH when ETH was $2,000, that's $1,000 of taxable gambling income even if ETH later drops to $1,500. For your situation with $13.5K in profits, you'll report this as "Other Income" on Form 1040 Schedule 1. Since you haven't converted to USD yet, you're not dealing with capital gains/losses on the crypto holdings themselves - that only comes into play when you sell. One practical tip: start documenting everything now while it's still relatively fresh in your memory. Create a spreadsheet with dates, amounts won in crypto, and the USD value at that time. You can use sites like CoinGecko or CoinMarketCap to get historical pricing data. The IRS expects you to use "reasonable methods" to determine fair market value, so using widely-accepted pricing sources should be fine. Also remember that if you have gambling losses, you can potentially deduct them against your winnings if you itemize deductions, but only up to the amount of your winnings.

Has anyone used TurboTax Self-Employed for their rideshare taxes? Worth the extra cost or should I just use the free version and figure out Schedule C myself?

Great question about tracking deductions! I've been doing rideshare for about 2 years now and learned the hard way that organization is key. Here's my approach: **Mileage is #1** - Like others said, this is your biggest deduction. I use Stride (free app) and it automatically tracks when I'm driving. Don't just track passenger miles - track ALL miles while your app is on, including driving to pickup locations and repositioning to better areas. **Other legit deductions I track:** - Phone mount and car chargers - Portion of cell phone bill (I estimate 30% business use) - Car washes and detailing - Air fresheners and cleaning supplies - Dashcam and any safety equipment - Water/mints for passengers (if you provide them) **Standard vs. actual expenses:** Unless you drive a really expensive car or have major repairs, standard mileage rate is usually better. You can still deduct the other business expenses on top of it. **About those cash tips...** Look, I get it's tempting not to report them, but honestly it's not worth the risk. The IRS has been cracking down on gig economy compliance. I report everything and sleep better at night. Plus, reported income helps if you ever need to show income for loans, etc. Start simple with good mileage tracking and expand from there. Don't let perfect be the enemy of good!

Something else to consider - there are actually TWO potential tax events here: 1) When you receive the Bitcoin (taxed as gambling income at fair market value) 2) When you eventually sell/exchange the Bitcoin (which could trigger capital gains/losses) Be super careful about documenting the value when you received it so you don't end up paying taxes twice on the same money!

Hey everyone, I'm dealing with a similar situation and this thread has been super helpful! I wanted to add one more thing that might be useful - make sure you're also tracking any fees the casino charged for converting your winnings to Bitcoin. From what I understand, those conversion fees can potentially be deducted as gambling expenses if you itemize deductions (though only up to the amount of your gambling winnings). My social casino charged about $50 in fees for the Bitcoin conversion, which isn't huge but still worth tracking. Also, @NebulaNomad - since your casino is overseas, you might want to double-check if there are any additional reporting requirements for foreign financial accounts. I'm not sure if social casino accounts qualify, but it's worth looking into given the amount you won. Better safe than sorry when it comes to international reporting requirements! Good luck with your taxes - sounds like you've got some great guidance from everyone here!

PSA for anyone with a similar situation: The IRS has a "safe harbor" where they sometimes don't charge penalties if the unreported income is under a certain percentage of your total income and you have a history of compliance. That said, definitely file the amendment. I've been in a similar situation and the extra tax I owed on a small 1099 was minimal. The peace of mind from knowing everything is correct is worth it!

Hey Zainab, I totally understand the panic - I've been there! This exact situation happened to me two years ago with a forgotten 1099-MISC for about $200. Here's what I learned: First, breathe! This is way more common than you think, and the IRS deals with amendments all the time. You're absolutely doing the right thing by wanting to fix it. The consensus here is spot-on - wait for your original return to process and receive your refund first. I made the mistake of trying to file an amendment immediately and it just created confusion because the IRS couldn't match it to my original return. For the math: You won't owe tax on the full $140 - you'll owe tax based on your marginal tax bracket. So if you're in the 22% bracket, you'd owe about $31 in additional federal tax (22% of $140). Way less scary than you're probably imagining! I ended up owing about $28 in additional tax plus maybe $2 in interest, and zero penalties because I corrected it myself before they caught it. The whole amendment process took about 16 weeks to process, but I got a letter confirming everything was resolved. Pro tip: When you file Form 1040-X, include a brief explanation of what happened. Something like "Discovered unreported 1099 income after filing original return." The IRS appreciates transparency. You've got this!

Totally agree with filing the amendment. I went through this with forgotten stock sales in 2021. When I amended, I thought it would be a huge deal, but it was pretty painless. One tip: if you use tax software like TurboTax or H&R Block, they usually have an option to prepare an amended return based on your original filing. It makes the process WAY easier because they handle all the calculations and format everything correctly. Just make sure you print and mail the amendment - they can't be e-filed yet in most cases. And be prepared to wait a while for processing. Mine took about 4 months to get processed last year.

I'm a tax preparer and see this situation all the time - you're definitely not an idiot! Interest income reporting is one of the most commonly missed items. For $380 in interest, you're looking at maybe $40-95 in additional tax depending on your bracket. The IRS will eventually match your 1099-INT to your return through their automated system, but it can take 1-2 years. My professional recommendation: go ahead and amend. Here's why - if you amend voluntarily, you'll pay the tax plus minimal interest (calculated from the original due date). If they catch it first, you pay the same amounts PLUS potential penalties. The 1040-X isn't complicated for this type of correction. You'll just be adding the $380 to your income and recalculating your tax. Most tax software can handle this easily if you used it for your original return. One thing to keep in mind - make sure you have your 1099-INT form from the bank showing the exact amount. The IRS already has this information, so your amendment needs to match their records exactly.