If you're filing with multiple Schedule Cs, make sure you're using different business codes for each business if they're in different industries! This is on line B of Schedule C. Using the correct business codes helps prevent unnecessary IRS scrutiny. You can find the full list of business codes in the Schedule C instructions. Also, don't forget you might need to file Schedule 2 to report your self-employment tax from Schedule SE, and then the deductible portion of SE tax goes on Schedule 1 as an adjustment to income. Free fillable forms don't automatically carry these numbers over like paid software does.

This is exactly the kind of confusion I had when I started filing my own taxes with multiple businesses! One key thing that helped me was creating a simple checklist: 1. Separate Schedule C for each business (with different business codes as StarSurfer mentioned) 2. ONE Schedule SE that combines the net profit/loss from both Schedule Cs 3. Both Schedule C net amounts should flow to Schedule 1, Line 3 (combined) 4. SE tax from Schedule SE goes to Schedule 2 5. Half of your SE tax becomes a deduction on Schedule 1 The IRS free fillable forms can be tricky because they don't auto-populate like paid software. I always double-check that my Schedule 1, Line 3 equals the sum of both my Schedule C profits/losses before submitting. Don't panic - you're asking the right questions! The fact that you're being careful about this now will save you headaches later. Take your time with each form and make sure the numbers flow correctly between them.

Thanks everyone for all the helpful advice! I was definitely overthinking this. I checked my brokerage account online like Omar suggested and found a tax summary document that shows my dividend amount and confirms they were qualified dividends. I went ahead and manually entered the information in FreeTaxUSA - it was actually pretty straightforward once I found the right section. Better to report the $14 and be compliant than risk getting a notice later like CosmicCadet experienced. Really appreciate everyone taking the time to help a tax newbie navigate this!

Great to see this resolved! For future reference, you can also contact your brokerage directly if you can't find the tax documents online - they're required to provide you with the dividend information even if they don't send a formal 1099-DIV for amounts under $10. Most brokerages have a dedicated tax support line during filing season that can quickly provide you with the details you need. This can be especially helpful if you have multiple small dividend payments from different stocks and want to make sure you're capturing everything accurately.

You might also wanna look into whether u qualify as a real estate professional for tax purposes. If u do, the passive activity loss limitations don't apply to your rental properties, which would make this whole question moot cuz then the losses wouldnt be considered passive in the first place. U need to meet two requirements: 1) more than half ur personal services during the year are in real property trades/businesses, and 2) u perform more than 750 hours of services in real property trades/businesses.

Another consideration for your situation is the timing of when you can use passive losses. If you have suspended passive losses from prior years on the property you're keeping, those can only offset passive income in the current year - they can't offset the depreciation recapture unless you're disposing of that specific property too. However, if you have current year passive losses from your other rental property, those should be able to offset the passive income portion of your gain, including the depreciation recapture. Just make sure you're tracking which losses come from which property, especially if you have suspended losses carried forward from multiple years. Also worth noting - if you're planning any other real estate transactions soon, the timing could affect your overall tax strategy. Sometimes it makes sense to bunch gains and losses in the same year to maximize the offset benefit.

Has anyone used the "cancel payment" feature directly in FreeTaxUSA? I think they have an option to cancel scheduled payments within a certain timeframe. Might be worth logging back into your account to see if you can cancel it there before trying more complicated solutions.

Don't stress too much about this - bank account typos are surprisingly common! I work at a credit union and see this kind of thing regularly. Here's what most likely will happen: When the IRS tries to process your payment, the bank will reject it because the account number doesn't exist or doesn't match your name. Banks have multiple verification steps that prevent money from accidentally going to wrong accounts. Your best bet is to call the IRS Electronic Federal Tax Payment System at 1-888-353-4537 (this is specifically for payment issues, not the general IRS line). They can cancel the pending payment and help you set up a new one immediately. Have your SSN and the exact payment amount ready. If for some reason you can't get through, make a backup payment right now using IRS Direct Pay online. That way you're covered either way. The IRS will see you made a good faith effort to pay on time, which protects you from penalties even if there's a brief delay sorting out the incorrect payment. The key is acting fast - don't wait for the payment to fail and then get a notice weeks later. Being proactive here will save you potential headaches and fees.

Honestly, I think you're overthinking this. I've been selling digital art through PayPal for years and never reported income under $2000. The IRS has bigger fish to fry than small-time artists making a few hundred bucks. PayPal didn't even issue you a tax form!

I went through this exact same situation last year with my freelance graphic design work through PayPal! The confusion is totally understandable because PayPal's reporting thresholds and your actual tax obligations are two completely different things. Here's what I learned after consulting with a CPA: You absolutely need to report that $754 as self-employment income on Schedule C, and you'll owe self-employment tax on it (which is about 15.3% for Social Security and Medicare). The fact that PayPal didn't send you a 1099-K is irrelevant - you're still legally required to report all income. The good news is you can deduct those PayPal fees as a business expense! Keep track of all your art supplies, software subscriptions, and any other legitimate business costs. I was surprised to learn I could even deduct a portion of my phone and internet bills since I use them for client communication. For next year, I'd recommend setting aside about 25-30% of each payment you receive for taxes. It makes filing much less stressful when you're not scrambling to find money to pay what you owe. One more tip: if your art income grows to where you expect to owe more than $1,000 in taxes for the year, you'll need to start making quarterly estimated tax payments to avoid penalties. But at your current income level, you should be fine paying annually.