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Have you tried checking your transcript on the IRS website? When this happened to me, I was able to see that someone had indeed filed a return using my SSN. Go to IRS.gov and access your account (or create one if you don't have it). Then view your transcript for 2022. If you see a return was filed but you didn't file it, that's confirmation of the issue.
Online transcripts saved me so much time when I had a similar issue! So much faster than calling. One thing to add - make sure you check BOTH your transcript and your spouse's. In my case, my transcript showed nothing unusual but my wife's showed someone had filed using her SSN.
This happened to me two years ago and it was absolutely panic-inducing! Turned out my ex-husband had mistakenly used my SSN as primary on his new return (we had been married filing jointly for years and he just went on autopilot). Here's what I learned from that experience: First, definitely check both your and your spouse's online transcripts as others mentioned - this will show you immediately if a return was actually filed. Second, the amendment you filed recently could be creating a temporary glitch in their system, especially if it's still processing. If the transcripts show a fraudulent return was filed, don't panic about the identity theft process - it's actually pretty straightforward once you get started. The IRS has gotten much better at handling these cases. File Form 14039 and submit your return by paper with a cover letter explaining the situation. One tip that saved me time: if you do need to call the IRS, have your spouse's information ready too since they might need to verify details about her SSN usage. And keep detailed notes of every conversation - case numbers, agent names, dates, etc. You'll likely need to reference them later in the process.
Has anyone used FreeTaxUSA for reporting Twitch income? TurboTax keeps trying to charge me for the self-employment version even though I just need to file a Schedule E for royalties.
I switched to FreeTaxUSA last year after getting fed up with TurboTax's pricing. It handles Schedule E just fine and actually has a specific section for royalty income. Saved like $90 compared to TurboTax's "self-employment" package which I didn't even need!
This is exactly the kind of confusion I had when I first started getting 1099s from my side income! The distinction between royalties and self-employment income is really important and can save you money. Just to add to what others have said - since you're operating at a net loss, make sure you keep detailed records of all your streaming-related expenses (equipment, software subscriptions, games, internet upgrades, etc.). Even though you're reporting on Schedule E for the royalty income, you can still deduct ordinary and necessary expenses against that income. Also, don't let TurboTax upsell you into the self-employment package if you don't need it! The basic version should handle Schedule E just fine. If your tax software is pushing you toward Schedule C, it's probably because it's seeing "1099" and assuming it's all self-employment income, but as others have explained, the 1099-MISC Box 2 royalties are different. One last tip - keep good documentation about the hobby vs. business question. The IRS looks at factors like whether you're trying to make a profit, how much time you spend on it, and whether you have the expertise to make it profitable. Since you mentioned you're still in the "costs money" phase, documenting your efforts to grow the channel and become profitable could be helpful if this ever comes up.
Look at it this way - you're not "losing" money by reporting all your income. You're just paying the taxes you actually owe. Your refund is just the difference between what you already paid through withholding and what you actually owe. A smaller refund just means your employers' withholding was more accurate.
I totally get your confusion - this happened to me my first year filing with multiple jobs too! The key thing to understand is that your refund isn't really "money you're getting back" - it's just the IRS returning the extra taxes you overpaid during the year. When you only entered your first W-2, TurboTax calculated your tax liability based on just that income. But when you added the second W-2, your total income increased, which means your actual tax liability for the year is higher than what either employer withheld individually. Think of it like this: if you owe $3,000 in total taxes but your employers only withheld $2,500 combined (because they each calculated withholding as if their job was your only income), then you'd actually owe $500 rather than getting a refund. For next year, definitely look into adjusting your W-4 withholding using the IRS multiple jobs worksheet or their online estimator. And remember - a smaller refund isn't necessarily bad! It just means you got to keep more of your money in your paychecks throughout the year instead of giving the government an interest-free loan.
Anyone know if there's a diff between transcript updates for ppl who e-filed vs paper filed? Like do paper filers see different codes or take longer to update or smth?
Paper filers typically see significantly longer processing times - usually 6-8 weeks compared to 21 days for e-filers. The transcript codes themselves are the same, but paper returns have to go through manual data entry first before they even show up in the system with a 150 code. E-filed returns can show transaction codes within days, while paper filers might not see any transcript activity for weeks. The IRS has to physically process and scan paper returns before they enter the digital workflow.
Based on my experience working with taxpayers, here's what to specifically look for when your transcript updates: First, you'll see TC 150 which means your return was accepted and entered into the system. Then look for your cycle code (like 20241605) - this tells you which weekly processing batch you're in. If you see TC 570, that's a hold on your refund, but don't panic - it's often routine and gets resolved with TC 571. The big moment is TC 846 with a date - that's your actual refund being issued. Also check if your refund amount matches what you calculated, as any difference could indicate an adjustment. The transcript gives you the real story behind those vague "still processing" messages on Where's My Refund.
This is really helpful! I'm new to checking transcripts and have been so confused by all the different codes people mention. Quick question - when you see TC 570 followed by TC 571, how long does that usually take? I just noticed I have a 570 on my transcript from last week and I'm worried something's wrong with my return.
Tami Morgan
Another option is to report this on Line 8z (Other Income) on Schedule 1 and just write "misc income" or "gig work" next to it. That's what my accountant told me to do for my $175 in dog walking money. He said for very small amounts that aren't your primary business, this is acceptable.
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Kolton Murphy
ā¢I have to respectfully disagree with your accountant's advice here. The IRS is pretty clear that income from services you provide (like dog walking) is considered self-employment income regardless of the amount, and should be reported on Schedule C. Using line 8z for self-employment income isn't technically correct and could potentially cause issues if you were audited. The main problem is that line 8z income isn't considered earned income for purposes of certain credits and retirement contributions. I'd suggest double-checking with your accountant or getting a second opinion.
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Edward McBride
I was in almost the exact same situation last year - made $238 from some freelance graphic design work and was totally confused about the reporting requirements. After doing a lot of research and talking to a tax preparer, here's what I learned: You absolutely need to file Schedule C for that $215, even though it seems like overkill for such a small amount. The IRS considers any income from services you provide to be self-employment income, and Schedule C is the only proper way to report it. You can't just lump it in with "other income" elsewhere on your return. The good news is that your Schedule C will be super simple - basically just reporting the $215 as income with maybe a line or two for any related expenses you might have had (gas, supplies, etc.). And as others mentioned, since you're under $400 in net earnings, you won't owe any self-employment tax on it. I know it feels annoying to fill out a whole form for such a small amount, but it's really not that complicated and it's the right way to do it. Better to spend 10 minutes filling it out correctly than potentially having issues with the IRS later!
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Jayden Reed
ā¢This is really helpful, thanks! I'm actually in a similar boat with some tutoring income I made last year. Did you end up having any deductible expenses for your graphic design work? I'm wondering if things like software subscriptions or even a portion of my internet bill could be deducted for such a small amount of income. It seems like it might not be worth the hassle to track all that for under $250, but I don't want to miss out on legitimate deductions either.
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