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Has anyone else noticed that these marketplaces are counting shipping fees in the 1099-K total? So unfair because that money just passes through to the shipping company!
Just went through this exact situation last month! I sold about $650 worth of old clothes and electronics on various platforms and was panicking about the 1099-K. Here's what I learned after talking to a tax professional: You're absolutely right that this is like a digital garage sale. The key thing to remember is that you're selling personal items for less than what you originally paid, so there's no actual "income" or profit to tax. When you get the 1099-K, you'll need to report it on Schedule C (even though it feels weird calling it a "business"), but then you offset it by documenting what you originally paid for the items. For the shipping costs, those get deducted as business expenses. Don't stress too much about not having receipts - I made reasonable estimates based on what I remembered paying and what similar items cost retail. I kept it conservative and documented everything in a simple spreadsheet. The $600 threshold you mentioned is correct for 2024 tax year. TurboTax should definitely walk you through this, but having your documentation ready beforehand makes it much smoother. One tip: if you can remember where you bought some items, you might be able to look up your old purchase history online to get more accurate cost estimates.
Filed 1/27 here and also stuck on processing with 2 checkmarks! This thread is so helpful - nice to know I'm not the only one going crazy waiting for that "issued" status to finally appear. Based on everyone's timelines it looks like we late January filers should start seeing movement any day now. Will definitely come back and update when mine changes! Thanks for starting this thread @Andre Laurent - really helps to track these timelines together š
Just joined this community and wow, this thread is exactly what I needed! Filed 1/24 and have been stressing about the same 2 checkmarks stuck on processing. So relieved to see I'm not alone in this wait. @Charlotte Jones thanks for mentioning how helpful this is - totally agree! @Andre Laurent appreciate you starting this thread, it s giving'me so much peace of mind seeing everyone s similar'timelines. Hopefully we all get that issued status soon! š¤
Filed 1/26 and same situation here - two checkmarks stuck on processing for weeks now! This thread is incredibly helpful seeing everyone's timelines. Really appreciate @Amara Adebayo sharing that success story of moving to issued status - gives the rest of us late January filers hope that we're probably just days away from seeing movement. The waiting is stressful when you're counting on that money, but at least we know we're all in this together! Will definitely update when mine changes status š¤
Welcome to the community @PixelPioneer! Just signed up today and found this thread - what a relief to see I'm not the only one going through this stress! Filed 1/23 and been watching those same two checkmarks for what feels like forever. Really encouraging to see @Amara Adebayo s'timeline and know that movement is happening for late January filers. Thanks @Andre Laurent for creating this space where we can all track our progress together - makes the wait so much more bearable knowing we re all'in the same boat! š
I'm so sorry for your loss, Liv. I went through this exact situation when my uncle passed away last year, and the whole certified copy vs transcript confusion is incredibly frustrating when you're already dealing with so much. One thing I wish someone had told me upfront: make sure to send your Form 4506 package via certified mail with return receipt requested, and keep the tracking number. The IRS processing centers can be slow to acknowledge receipt, and having that proof of delivery gave me peace of mind during the long wait period. Also, I'd recommend setting up a simple calendar reminder system for yourself. Mark the date you mail everything, then set reminders at 30 days, 60 days, and 70 days to check on status if needed. The waiting is agonizing when you're trying to settle an estate, but having those check-in points helped me feel more in control of the process. All the advice here about Form 4506 (not 4506-T), Form 56, and the $43 fee per year is spot-on. The hardest part really is just getting through the wait, but everyone who follows the proper steps does eventually get their certified copies. You're asking all the right questions and you'll get through this.
The calendar reminder system is such a practical suggestion! I can already tell that once I mail everything off, I'm going to be anxiously wondering about the status constantly. Having those structured check-in points at 30, 60, and 70 days will definitely help me stay patient instead of calling the IRS every week wondering where things stand. The certified mail with return receipt is definitely something I'm going to do - especially after reading about how important it is to have proof of delivery. With everything else that's going on with settling the estate, the last thing I need is to worry about whether the IRS actually received my package. Thank you for sharing your experience with your uncle's estate and for the encouragement. It's really reassuring to hear from so many people who have successfully completed this process. I feel like I have a solid roadmap now between all the advice in this thread.
I'm so sorry for your loss, Liv. I went through this exact same process when my mother passed away two years ago, and I completely understand how overwhelming it can feel when you're trying to navigate IRS requirements while grieving. Everyone here has given excellent advice about Form 4506 and the certified copy process. I wanted to add one more tip that helped me avoid a costly mistake: before you submit everything, double-check that your father actually filed a return for 2023. If he passed away early in 2024, his final return might not have been filed yet, which would mean there's no 2023 return on file with the IRS to certify. If that's the case, you might need to file his final return first (Form 1041 for the estate and possibly an amended 1040 for him personally) before you can request certified copies. Your probate attorney should be able to clarify what specific tax years you need and whether all the returns have actually been filed. Also, I'd suggest asking your attorney if they need certified copies of both federal AND state returns - some estate processes require both, and it's much easier to handle everything at once rather than discovering later that you need additional documentation. The process is definitely tedious, but you're asking all the right questions. Having a clear checklist and timeline like others have mentioned will help you stay organized during what's already a difficult time.
Don't forget about state requirements! The federal tax treatment as a disregarded entity doesn't necessarily mean your state treats it the same way. Here in California, even single-member LLCs have to pay an $800 annual tax regardless of profit, plus an LLC fee based on gross receipts if over $250,000.
Ugh, California's $800 LLC tax is so ridiculous for small businesses! I moved mine to Wyoming and just registered as a foreign entity doing business in CA. Saved me thousands.
Your cousin is definitely on the right track worrying about deadlines, but she can breathe a little easier! As a single-member LLC, she's considered a "disregarded entity" by the IRS, which means no Form 1065 needed - just Schedule C with her personal return by the April deadline. Even without profit, filing Schedule C is still important because she can deduct business expenses and potentially carry forward any losses to offset future income. Make sure she keeps detailed records of all business expenses like office supplies, equipment, business meals, etc. One thing to watch out for - while federal filing is straightforward with Schedule C, each state has its own LLC requirements. Some states require annual reports or have minimum taxes regardless of profit level. She should check her state's Secretary of State website to make sure she's not missing any state-specific deadlines or filings.
This is really helpful! I'm just starting my own single-member LLC and was getting overwhelmed by all the conflicting information online. The point about state requirements is crucial - I almost forgot to check what my state needs beyond the federal filing. Quick question - when you mention deducting business expenses on Schedule C even without profit, does that include startup costs like legal fees for forming the LLC and initial equipment purchases? Or do those get treated differently?
StarSailor
I can add another data point to help! I've been using Cash App for tax refunds for the past 4 years and they've been incredibly consistent with early deposits. Here's my experience: 2021: DDD 3/19, received 3/17 (2 days early, hit around 5:45 AM) 2022: DDD 3/25, received 3/23 (2 days early, hit around 3:20 AM) 2023: DDD 3/31, received 3/29 (2 days early, hit around 7:15 AM) 2024: DDD 3/22, received 3/21 (1 day early, hit around 11:30 PM) The pattern I've noticed is that Cash App typically releases refunds 1-2 days early, with most deposits hitting between midnight and 8 AM. The notifications are instant and reliable - I've never missed one. One thing to keep in mind is that if your DDD falls on a weekend or holiday, the early deposit might come even sooner since banks often process ACH transfers ahead of non-business days. With your DDD of 3/27 (which is a Thursday), I'd expect your refund to hit sometime between 3/25-3/26. The obsessive checking is totally normal - we've all been there! š Good luck and keep us posted when yours comes through!
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Luca Ricci
ā¢This is incredibly helpful data - four years of consistent early deposits is exactly what I needed to see! Your breakdown shows Cash App is remarkably reliable with the 1-2 day early window. I'm particularly interested in your 2024 example where you got it almost 2 days early with an 11:30 PM deposit time - I didn't realize they could post that late in the evening too. The point about weekends and holidays potentially making it even earlier is something I hadn't considered. Since my DDD of 3/27 is indeed a Thursday, your prediction of 3/25-3/26 arrival makes perfect sense. Thanks for taking the time to compile four years worth of specific dates and times - this level of detail is incredibly reassuring for someone new to Cash App like me! Will definitely update everyone when mine hits! š
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Chloe Mitchell
This thread has been incredibly informative! I'm a new Cash App user this year specifically for tax refunds after hearing about the early deposit feature. My DDD is 3/28, so I'm right in line with several of you. What really stands out to me from reading everyone's experiences is how remarkably consistent Cash App has been - StarSailor's 4-year data showing early deposits every single time is particularly convincing. I was initially skeptical about switching from my traditional bank, but the pattern seems very reliable. One question for those with experience - do you notice any difference in timing based on the day of the week your DDD falls on? My 3/28 is a Friday, so I'm wondering if that might affect the early deposit timing compared to the Thursday DDDs others have mentioned. Thanks to everyone for sharing such detailed timelines and experiences!
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Zainab Ahmed
ā¢Welcome to the Cash App tax refund club! š From what I've observed reading through everyone's experiences, Friday DDDs can actually work in your favor. Since banks typically process ACH transfers before weekends, you might see your deposit as early as Wednesday (3/26) - potentially even earlier than those of us with Thursday DDDs! I've noticed that when my DDD falls on a Friday, Cash App sometimes releases it 2-3 days early instead of the usual 1-2 days. The consistency everyone has shared here really is reassuring - makes the switch from traditional banks seem like a no-brainer for tax season. Keep us posted on your timeline, and don't feel bad about the obsessive checking - we're all doing it! š¤
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