Has anyone used TurboTax for filing when they have an eBay 1099? I'm in the same boat and wondering if the free version can handle this or if I need to upgrade to the self-employed version?

I went through this exact situation last year and wanted to share what I learned! You absolutely need to file even if you sold everything at a loss - the IRS will assume that entire $6,800 is profit if you don't report it properly. Here's what worked for me: I created a simple spreadsheet listing each item I sold, what I originally paid for it, and what I sold it for. Even without receipts, you can use reasonable estimates based on what you remember paying or what similar items cost when you bought them. Bank statements, credit card records, or even photos with timestamps can help support your estimates. The key is reporting this on Schedule C to show your cost of goods sold. If you truly sold everything at a loss, you'll end up with zero taxable income from eBay, but you still need to file to prove this to the IRS. For software, I used FreeTaxUSA's Deluxe version (around $15) and it walked me through everything step by step. Much cheaper than TurboTax's self-employed version and just as good for this type of situation. The software will ask you simple questions about your eBay sales and generate the right forms automatically. Don't stress too much - this is actually pretty common now with the new 1099 reporting requirements. Just make sure you file something to avoid getting a scary notice from the IRS later!

This thread has been incredibly helpful! I'm dealing with a very similar situation where my girlfriend and I split all our housing costs 50/50, but everything's in my name due to her credit history. She sends me $1,200 monthly through Venmo for her half of mortgage, insurance, and utilities. Reading through everyone's experiences here has really put my mind at ease about the new payment app reporting rules. The distinction between personal expense sharing and business income makes perfect sense when explained clearly like @6a16f57c11b1 did. I'm definitely going to implement some of the documentation suggestions from @a6dd59e13835 and @c42dcc408bd5 - keeping a simple digital folder with screenshots of bills and payment records seems like the perfect balance of being prepared without going overboard. One thing I wanted to add for anyone else in this situation: my bank actually has a feature where I can set up automatic payments directly from my girlfriend's account to the mortgage company for her portion. We looked into this option, but decided the Venmo approach was simpler since we're already using it for other shared expenses. Good to know we have that backup option though if we ever want to eliminate any potential confusion. Thanks to everyone who shared their experiences and solutions - this community is such a great resource for navigating these confusing tax situations!

I'm in a nearly identical situation with my partner and our shared townhouse! He sends me $975 monthly through Venmo for his half of the mortgage and HOA fees. I was losing sleep over the new payment app rules until I did some deep research. What really helped me understand this was looking at the actual IRS Publication 525, which covers taxable income. It specifically states that money received from personal relationships for shared living expenses isn't considered income - it's cost sharing. The key is that you're not providing housing as a service or business, you're genuinely sharing the expenses of a home you both live in. I ended up creating a simple one-page agreement with my partner that outlines our arrangement - that we both consider ourselves co-owners despite the legal title, we both contributed to costs, and we're splitting ongoing expenses. I also keep a basic spreadsheet showing the actual mortgage payment and how we split it. The vacation reimbursement situation you mentioned is even more straightforward - that's just paying back money your friend spent on your behalf. The IRS sees millions of these transactions and they're clearly personal reimbursements, not taxable income. I think a lot of us are overthinking this because the new rules got so much media attention, but they're really designed to catch people running businesses through payment apps, not couples sharing household costs!

I'm sorry for the loss of your mom and the added stress of taking over the family business finances during such a difficult time. As others have mentioned, requesting bank statements alongside your P&L is actually standard practice for CPAs - it's their way of doing due diligence to verify that income and expenses in your books match actual transactions. However, the bigger concern here seems to be the overall relationship and communication style. A good CPA should be explaining why they need these documents and working WITH you rather than against you. The fact that they're being inflexible about legitimate business deductions and pushing their own bookkeeping services while being dismissive of your work is problematic. Given that this resulted in late filing last year and you're experiencing the same issues again, it might be worth getting a consultation with 1-2 other CPAs to compare approaches. Many will do a brief consultation to review your situation and explain their process. You deserve to work with someone who respects the work you've done to get the business back on track and communicates clearly about what's needed and why. The documentation requirements won't change with a different CPA, but the experience of working with them certainly can improve significantly.

I'm really sorry about the loss of your mom and having to navigate all this during such a difficult time. Taking over family business finances is overwhelming enough without feeling like your CPA is working against you. What you're experiencing with the bank statement requests is actually completely normal - CPAs are legally required to verify the information they're filing, and bank statements serve as that third-party proof that your P&L numbers are accurate. It's not about not trusting your work, it's about professional liability and audit protection. That said, the way your CPA is handling this sounds problematic. A good CPA should be explaining WHY they need these documents instead of just demanding them. And the fact that they're being inflexible about legitimate business deductions while also pushing their own bookkeeping services feels like a red flag to me. My suggestion would be to get consultations with 2-3 other CPAs in your area. Most will give you a brief meeting to discuss your situation and explain their process. The documentation requirements will be similar everywhere, but you should be able to find someone who communicates better and works collaboratively with you rather than making you feel like you're being interrogated. You've done incredible work getting the business organized after such a loss - you deserve to work with a professional who recognizes that effort and supports you through the process.

Just wanted to add that if you're really strapped for cash while waiting for your refund, there are some other options to consider. Credit unions sometimes offer small emergency loans to members, and some employers have earned wage access programs where you can get advances on your paycheck. Also, if you have a good relationship with your bank, they might work with you on overdraft protection or a small personal loan. The fees are usually way better than those tax advance places. Hang in there - since you filed early, you should hopefully see your refund in the next few weeks once the IRS gets through their backlog!

I've been using Chime for 3 years now and can share some real experience here. They definitely don't do tax advances - that's only through tax prep companies like H&R Block, Jackson Hewitt, etc. But Chime's early direct deposit does work for tax refunds! I usually get mine 1-2 days before my friends with traditional banks. Last year I got my refund on a Thursday morning while everyone else was waiting until Saturday. Since you filed early (even though IRS processing just started Jan 27th), you should be in the first wave of refunds. The "Where's My Refund" tool should update within a few days of them actually processing your return. Hang tight!

Seriously, don't skip professional liability insurance if you're starting a tax prep business! I learned this the hard way when I made a calculation error on a client's Schedule C that resulted in them owing penalties. The client threatened to sue for the penalties plus damages. Insurance saved me thousands. Also, make sure you understand and use proper engagement letters with every client that clearly outline your responsibilities and theirs. This includes what happens if there's an audit, who's responsible for providing accurate information, and your fee structure.

Great advice from everyone here! I'm in a similar position - worked at a regional CPA firm for a few years but thinking about branching out on my own. One thing I'd add is to consider starting very small and growing gradually. Maybe begin with just 20-30 clients your first year to really understand the business side of things. Also, don't underestimate the technology costs beyond just tax software. You'll need secure file storage, client portals for document sharing, appointment scheduling systems, and potentially a separate business phone line. These costs can add up quickly but are essential for running a professional operation. One last tip - consider specializing in a particular niche rather than trying to be everything to everyone. Whether it's small business owners, freelancers, or people with rental properties, having expertise in specific areas can help you command higher fees and build a reputation.