Has anyone mentioned Form 4797? You'll need to fill this out when reporting the sale. Part of your gain might be subject to depreciation recapture at ordinary income tax rates, while another portion might qualify for capital gains treatment. TurboTax should walk you through this, but it needs those basis figures first.

I went through this exact same situation last year with my contractor van! The key thing to remember is that you need to look at ALL your past tax returns to add up the total depreciation you've claimed over the years. For your "Basis for gain/loss" - take your original $15,000 cost and subtract every penny of depreciation you've claimed on that van since you bought it. If you claimed $10,000 total in depreciation over those 6-7 years, your basis would be $5,000. For the "AMT Basis" - this is trickier because AMT uses different depreciation schedules (usually slower depreciation), so your AMT basis will likely be higher than your regular basis. One tip: since you used it 95% for business, make sure you're only entering the business portion when TurboTax asks. The personal use portion (5%) gets handled separately. Don't stress too much about audit flags - as long as you're reporting the sale and have reasonable documentation of your depreciation over the years, you should be fine. The IRS expects business vehicles to be sold eventually!

i'm so confused after reading all this lol. so does reducing my income mean i get more money back or not?? i made like $42k last year and already filed but now i'm worried i messed up

Hey Heather! Your confusion is totally understandable - taxes can be really overwhelming. The simple answer is yes, reducing your taxable income can increase your refund, but let me break it down in plain terms. Think of it this way: throughout the year, your employer withheld taxes from each paycheck based on your gross income. But when you file your tax return, the IRS only taxes your "taxable income" - which is your gross income minus deductions. So if you can legitimately reduce that taxable income number, you've essentially overpaid taxes all year, and the IRS owes you that money back as a refund. With your situation ($62k job starting in August, $43k before that, 7% to 401k, $2,100 student loan interest), you're already doing some good things! Your 401k contributions and student loan interest are both reducing your taxable income right now. Since you're still within the filing deadline, you could potentially contribute to a traditional IRA for 2024 (up to $7,000 if you're under 50) and designate it as a 2024 contribution. This would directly reduce your 2024 taxable income and likely increase your refund. Don't stress too much - you're asking the right questions and already on a good path!

Just want to add - KEEP GOOD RECORDS of everything! Create a simple spreadsheet tracking: - Exact dates/times you babysit - All payments received - Any expenses related to childcare - Portion of your home used for childcare - Photos of areas used for childcare - Receipts for anything you buy for childcare The IRS loves to audit self-employed people with cash businesses, and childcare is definitely on their radar. Good records are your best defense if you ever get questioned!

Great advice from everyone here! I'm a tax preparer and just wanted to add a few quick clarifications: 1. Yes, you absolutely need to report this income - the $400 threshold for self-employment tax applies to you. 2. For home deductions, you can use either the simplified method ($5 per square foot up to 300 sq ft) or actual expense method. Given that you're only babysitting part-time, the simplified method might be easier. 3. Document everything NOW - create that spreadsheet Oliver mentioned and go back through your Zelle history to reconstruct the dates/amounts. The IRS allows reasonable reconstruction of records. 4. Consider setting aside about 25-30% of future payments for taxes (income tax + self-employment tax). This will help avoid a surprise bill next year. Your sister doesn't need to do anything on her end since this is a personal expense for her, not a business deduction. You're handling this correctly by taking full responsibility for reporting the income yourself!

I completely understand your frustration - I went through this exact same situation last year with an offset for unpaid state taxes from a business partnership that went sideways. The waiting is absolutely nerve-wracking, especially when you're used to fast refunds. Here's what worked for me: First, get your IRS Account Transcript online (not the return transcript). Look for Transaction Code 898 - that shows when the offset was actually processed and sent to your state. Then check your state's Department of Revenue website for an online account portal. Most states have them now, and the payment usually shows up there 7-14 days before you'll see any updates on the federal side. The offset hotline is basically useless for timing - all it does is confirm WHO is taking your money, which you already know. What you really need is to track the payment from both ends. Once I could see the offset payment posted in my state tax account as "Federal Tax Offset Applied," I knew my remaining federal refund would be processed within about a week. Three weeks is unfortunately pretty normal for offsets, especially if there's any manual review involved. The system treats offset refunds differently than regular refunds, so your usual 9-day turnaround doesn't apply here. Hang in there - once you see that state payment post, the remainder should follow pretty quickly.

I went through this exact situation in 2023 with a state tax offset from an old business debt. The frustrating part is that the Treasury Offset Program operates like a one-way street - they can grab your refund instantly, but tracking where it goes requires playing detective across multiple systems. Here's what finally worked for me: Check your IRS account transcript online for Transaction Code 898 (that's your offset being processed) and note the cycle date. Then, create an account on your state's Department of Revenue website if you haven't already. The offset payment typically shows up in the state system 10-14 business days after the TC 898 date, usually labeled as "Federal Offset Payment Applied" or similar. The 1-800-304-3107 number is basically worthless for timing - I called it dozens of times and it just robotically repeats WHO is taking your money. What you really need is confirmation that your state has actually received and applied the payment, which only their system can tell you. In my case, once I saw the offset payment posted in my state account, my remaining federal refund (TC 846) was issued exactly 6 business days later. Total time from filing to getting the remainder was 4 weeks and 2 days. It's a painful wait, but the money does eventually show up. The key is being able to track it through both systems so you're not just staring at "processing" status indefinitely.

Based on my experience serving on multiple non-profit boards, I can confirm that you don't need to directly notify the IRS about your resignation. The organization will handle this through their annual Form 990 filing. However, I'd strongly recommend taking a few additional steps beyond just the resignation letter: 1. Request written confirmation of your resignation acceptance and effective date 2. Ask to be removed from all organizational documents, including any state registrations where you might be listed as a responsible party 3. Ensure you're removed from bank signature cards and any financial accounts 4. Get a copy of the board meeting minutes that officially record your departure The key thing to remember is that as a board member, you have fiduciary responsibilities that continue until you're officially removed from all records. Just submitting your resignation isn't always enough - you want documented proof that the organization has processed your departure completely. Also, keep all your resignation documentation for at least 3-4 years. If there are ever any questions about when your board responsibilities ended, you'll have clear evidence of your departure date.

I'm glad you're being so thorough about this! As someone who's served on several non-profit boards, I can confirm that the organization handles IRS reporting through their Form 990, not individual board members. One thing I'd add to the excellent advice already given - make sure to clarify your insurance coverage timeline. Many non-profits carry Directors & Officers (D&O) insurance that covers board members for actions taken during their tenure. You'll want to understand how long this coverage extends after your resignation, especially for any decisions you participated in while serving. Also, if your organization receives federal grants or contracts, there might be additional reporting requirements beyond the IRS filings. Some grant agreements require notification of board changes within specific timeframes. While this isn't your direct responsibility as the departing member, it's worth mentioning to the remaining board to ensure they don't miss any deadlines. The key is documenting everything clearly so there's no ambiguity about when your responsibilities ended. It sounds like you're already on the right track with the written resignation approach!