Just a warning from someone who went through this - make absolutely sure you keep SOME kind of documentation going forward! I got a similar 1099-K last year and thought I could just explain it away, but I ended up getting a letter asking for more information. What saved me was having screenshots of my original listings showing item descriptions that clearly indicated they were personal items (things like "moving sale" or "clearing out my collection"), plus PayPal transaction records showing I wasn't doing this regularly.

This 1099-K situation is so frustrating for people just selling personal items! I went through something similar and here's what I learned from my tax preparer: The key is being very clear about the nature of your sales. For your old personal items sold at a loss, you can report these on Schedule 1 (Additional Income) rather than Schedule C. Write something like "1099-K Personal Items Sold at Loss - Not Business Income" in the description. This avoids the self-employment tax issue entirely. For the blind box splits where you're breaking even, those might need to go on Schedule C since you're buying items specifically to resell (even at cost). But since you're not making a profit, your net income would be zero anyway. The most important thing is documentation. Start gathering whatever you can - PayPal transaction details, screenshots of listings, even photos of the items if you still have them. For older items without receipts, make reasonable estimates based on what you remember paying. The IRS allows "good faith" estimates for personal property. One thing that helped me was creating a simple spreadsheet showing: Item description, original purchase date/price (estimated if needed), sale date, sale price, and profit/loss. This clearly demonstrates you weren't running a profitable business operation. Don't panic about an audit - if you're honest and have reasonable documentation, you'll be fine. The IRS deals with this situation constantly now that the 1099-K thresholds have changed.

Has anyone noticed how tax software doesn't handle these weird K1 scenarios very well? I got stuck on the exact same Box 17 AC with multiple years listed. Ended up calling my tax software's support line and they said to just use the most recent year and ignore the others. For any codes without dollar amounts (like your ZZ code), they said to leave them out completely if possible or enter $0 if the software forces you to enter something.

I've been dealing with S-Corp K-1s for several years now and can confirm what others have said - for Box 17 AC with multiple years listed, you only report the most recent year (2024 in your case) on your current tax return. The prior years are there for informational/tracking purposes only. For the ZZ code with "k3 not included" and no dollar amount, this is totally normal. The Schedule K-3 is for international transactions, and if your S-Corp doesn't have any foreign activities, there's no K-3 form to include. When your tax software asks for an amount with code ZZ, you can safely enter $0. This won't cause any issues with the IRS - they understand that some codes are informational only. One tip: make sure to keep a copy of your actual K-1 with your tax records in case there are ever questions later about why certain codes show zero amounts in your return versus what's printed on the form.

Something nobody's mentioned yet - if your employer is automatically withholding extra tax from your paychecks for the education benefits, make sure they're giving you documentation of the TOTAL education benefits provided, not just the amount over $5250. You'll need the full amount to properly calculate your exclusion. Also, check if your employer coded anything special on your W-2 regarding these benefits. Some employers will note education benefits in Box 14, while others just include them in your total wages without any notation. Knowing how they reported it helps determine how you need to handle it on your return.

I'm in almost exactly the same situation - clinical research job, employer paying for a similar master's program. One thing my tax advisor told me is to keep proof that I'm staying in my current field after completing the degree. Apparently, if you use the degree to switch careers within 12 months of completing it, the IRS might retroactively disallow the working condition fringe benefit exclusion. Just something to keep in mind - save performance reviews, job descriptions, etc. from before, during and after your education program to prove continuity in your career path.

I'm going through the exact same thing right now! Got my 5071C letter in early October, completed ID verification through ID.me about 2.5 weeks ago, and I'm also stuck on that dreaded "processing" status. It's honestly driving me insane not knowing when to expect my refund. Reading through everyone's experiences here has been both helpful and anxiety-inducing - the timeline seems to vary so wildly from 4 weeks to 4+ months! I'm definitely going to check my transcript once I can access it and look for those status codes everyone keeps mentioning (570, 571, 846). The waiting is absolutely brutal, especially when you're counting on that money. But it's somewhat comforting to know so many others are in the same boat. At least we got through the ID verification part which seems to be the biggest hurdle. Fingers crossed we're all on the shorter end of that timeline! Has anyone found that calling actually helps speed things up, or is it just a waste of time trying to get through to them?

I'm dealing with this exact situation right now too! Got my 5071C letter in mid-September and completed ID verification through ID.me about 3 weeks ago. Still stuck on the "processing" status and it's so frustrating not having a clear timeline. From reading everyone's experiences here, it sounds like 6-9 weeks after verification is pretty standard, though some people have waited much longer. The transcript checking seems to be key - I'm counting down the days until I can access mine and look for those status codes (570, 571, 846) that everyone mentioned. One thing that's been helpful from this thread is learning that the WMR tool is basically useless during this phase. At least knowing that saves me from obsessively checking it every day! I'm also considering trying that taxr.ai service once I can access my transcript, since it sounds like it explains everything in plain English rather than cryptic IRS codes. The waiting is absolutely brutal when you're counting on that money, but it's reassuring to see so many others going through the same thing. We'll get through this eventually!

I made the switch from Desktop to QBO about 8 months ago for my landscaping business and wanted to share my experience since I was in a similar situation as you, Sean. The good: Being able to invoice clients immediately after completing a job has been huge for my cash flow. I can create estimates on my tablet while walking properties with customers, and the expense tracking through the mobile app (just snap photos of receipts) has simplified my bookkeeping tremendously. The challenges: QBO's job costing features are more limited than Desktop - I miss some of the detailed project profitability reports I used to run. The inventory tracking for my nursery stock is also more basic, though it handles my needs adequately. And yes, it is noticeably slower, especially when running year-over-year comparisons. Cost-wise, the subscription does add up over time, but I've probably saved 2-3 hours per week on administrative tasks, which more than justifies the expense for me. The automatic bank feeds and simplified reconciliation process alone have been worth it. My advice: If you're heavily reliant on advanced inventory features or complex reporting, stick with Desktop. But if mobility and streamlined workflow are priorities, QBO might be worth the trade-offs. Maybe run them parallel for a month before fully committing?

I've been through this exact transition with several clients, and the key is really understanding your specific business needs before making the jump. One thing I don't see mentioned much is the difference in user permissions and access controls. QBO's user management is actually more granular than Desktop in some ways - you can give your bookkeeper access to enter bills but not see profit margins, or let field staff create estimates without accessing financial reports. This has been really valuable for businesses with multiple employees handling different aspects of the books. However, if you're doing any kind of advanced manufacturing or complex inventory valuation (LIFO, specific identification, etc.), Desktop is still superior. QBO uses average cost only, which can be limiting. For your physical products concern - QBO handles basic inventory tracking fine, but lacks some of the assembly/manufacturing features of Desktop. If you just need to track quantities and basic cost of goods sold, you'll be okay. If you need lot tracking, complex BOMs, or detailed inventory reports, you might want to stick with Desktop or look into a dedicated inventory management add-on. The subscription cost does add up, but factor in the time savings from automated bank feeds, mobile access, and easier collaboration with your accountant. Most of my small business clients find the efficiency gains offset the higher long-term costs.