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Something I don't see mentioned yet - you'll also need to make quarterly estimated tax payments going forward if you continue getting 1099 income! The IRS expects you to pay taxes throughout the year, not just at filing time.
This caught me off guard my first year freelancing. The estimated tax deadlines are weird too - they're not exactly quarterly (April 15, June 15, September 15, and January 15 of the following year).
As someone who went through this exact same confusion last year, I feel your pain! One thing that really helped me was understanding that the 1099-NEC doesn't get "attached" anywhere - it's just your record of income that you need to report. Here's what worked for me: In your tax software, look for sections labeled "Business Income," "Self-Employment," or "Freelance Work" rather than looking for "1099-NEC" specifically. The software will ask you to enter the income amount from Box 1 of your 1099-NEC, then it automatically generates Schedule C and Schedule SE for you. Don't panic about the additional taxes - yes, you'll owe more than usual since nothing was withheld, but you can also deduct legitimate business expenses like software, equipment, and even a portion of your home internet if you use it for work. Keep all your receipts! If you're really stuck, consider upgrading your tax software or switching to one that includes self-employment features. It's worth the extra cost to avoid mistakes on your first year with 1099 income.
This is such helpful advice! I'm in a similar boat as the original poster - got my first 1099-NEC this year for some freelance writing work. I was also looking for a place to "attach" the form and getting frustrated. Your explanation about looking for "Business Income" sections instead of "1099-NEC" specifically makes so much sense now. Quick question - you mentioned keeping receipts for business expenses. I work from my kitchen table and don't have a dedicated home office. Can I still deduct things like my laptop and internet costs, or do I need an actual separate office space for those deductions?
Im going againts the grain here but tried FreeTaxUSA Pro Support and wasn't impressed tbh. Asked about my specific situation (remote work for a company in another state) and got pretty generic answers. Felt like they were just reading from a script. Ended up going to a local accountant who specializes in multi-state returns. Cost more but worth it for the personalized help.
I used FreeTaxUSA Pro Support for my multi-state situation this past tax season and had a really positive experience! I live in Texas (no state income tax) but work remotely for a company based in California, so I had to deal with CA nonresident filing. The chat support was incredibly helpful - the tax pro walked me through exactly how to handle my situation step by step. They explained how CA taxes remote workers even if they don't live there, helped me understand which forms I needed (540NR), and made sure I was claiming the proper deductions. The whole chat session took about 25 minutes and I felt much more confident about my filing. For the cost difference compared to other services, I think FreeTaxUSA Pro Support hits the sweet spot - you get knowledgeable help without paying TurboTax prices. For straightforward multi-state situations like yours (living in one state, working in another), their support should definitely be able to help you get it right. Just make sure to have all your documents ready when you chat with them so you can ask specific questions about your exact situation.
Has anyone used the HSA section on TurboTax for reporting 1099-SA distributions? I'm having trouble figuring out where to enter my qualified medical expenses to show that my distributions were used appropriately.
TurboTax has a specific section for HSAs under the Deductions & Credits menu. After you enter your 1099-SA information, it will ask you questions about whether your distributions were used for qualified medical expenses. Make sure you have the total amount of qualified expenses ready to enter - and this amount can actually be more than your distribution if you paid for some medical costs out of pocket.
I had a similar situation last year and it turned out my HSA provider was also deducting investment fees that I didn't realize were showing up as distributions. If you have any investments within your HSA (like mutual funds or ETFs), check if there are any management fees or expense ratios that might have been automatically deducted from your account. Also, some HSA providers will automatically reimburse you for certain expenses if you upload receipts through their mobile app, and those reimbursements show up as distributions even if you forgot you submitted the receipt. Check your HSA provider's online portal or app to see if there's a transaction history that breaks down each distribution by date and description - that should help you identify exactly what the $265 represents. The good news is that as long as you have qualified medical expenses to cover the distribution amount, you won't owe any additional taxes on it!
That's a really good point about the investment fees! I never even thought about that. I do have some money invested in index funds through my HSA but I honestly have no idea if there are fees being deducted. I just checked my HSA provider's app and you're absolutely right - there's a detailed transaction history that shows way more information than what I remembered. It looks like I can see the exact date and description for each withdrawal. This should help me figure out exactly what made up that $265 total. Thanks for the tip about the automatic reimbursements too. I did upload a few receipts through the app last year so that could definitely explain some transactions I forgot about!
Thought I'd chime in - I bought a new car last year too and tried to claim it on my taxes. H&R Block software actually walked me through the whole process for my Kia EV6. Needed the VIN, purchase date, and sale documents showing the purchase price. The most important document was the manufacturer's certification stating the battery capacity, which determines the credit amount. The dealer should have given you this, but if not, call them and ask specifically for the "EV tax credit certification" for your Prius Prime.
This is wrong advice. I just went through this with my RAV4 Prime. The IRS doesn't require manufacturer certification anymore for vehicles with final assembly in North America. They have a pre-approved list and you just need your VIN to verify eligibility.
@Chloe Zhang is right about the manufacturer certification - the requirements have been simplified. The IRS maintains a list of qualifying vehicles on their website, and you can verify eligibility just with your VIN. For the Prius Prime specifically, you ll'mainly need your purchase agreement showing the VIN, purchase date, and final sale price. The battery capacity info is already in the IRS database for approved vehicles, so you don t'need separate certification paperwork from Toyota anymore. Just make sure to double-check that your specific model year and trim are on the qualifying vehicles list before filing Form 8936.
Just want to add another perspective here - I work in tax preparation and see a lot of confusion about vehicle tax benefits. The key thing to understand is that there's a big difference between a tax deduction (which reduces your taxable income) and a tax credit (which directly reduces the tax you owe). For personal vehicle purchases like yours, you're not getting a deduction - you're potentially eligible for a credit if it's an electric or plug-in hybrid vehicle. The Clean Vehicle Credit can be worth up to $7,500, but for plug-in hybrids like the Prius Prime, it's typically less based on battery capacity. Also worth noting - if you bought the car from a dealer in 2024, you might have had the option to transfer the credit to the dealer at the point of sale for an immediate discount instead of waiting to claim it on your tax return. Check your purchase paperwork to see if this happened, because if the dealer already claimed it, you can't claim it again on your return. The documents you'll need are your purchase agreement with VIN, and make sure your specific model is on the IRS qualified vehicle list. The rules have changed several times recently, so definitely verify current eligibility before filing.
Isabella Santos
this happened to me 2 years ago! first call ur state unemployment office ASAP!!! i had to fill out an identity theft affidavit (IRS form 14039) and send it in. also get a credit freeze at all 3 bureaus right away!! don't report the income on ur taxes!! wait for the corrected 1099-G that shows $0. my state took about a month to send the new one after i reported it.
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Ravi Gupta
ā¢Did you have any issues with the IRS after you filed without reporting the 1099-G? I'm worried they'll flag my return if I don't include it but I know I didn't get any unemployment.
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CosmicCrusader
I work as a tax preparer and see this fraudulent 1099-G issue frequently. Here's what you need to do immediately: 1. Contact your state unemployment office to report the fraudulent claim - don't delay on this step 2. Request a corrected 1099-G showing $0 in benefits 3. File IRS Form 14039 (Identity Theft Affidavit) to notify the IRS 4. DO NOT amend your already-filed return yet - wait for the corrected form Since you've already filed your return without including this income (which is correct since you never received it), the IRS may send you a notice asking about the discrepancy between your return and the 1099-G they received. When this happens, respond with documentation from your state showing the benefits were fraudulent and include a copy of your corrected 1099-G. Also freeze your credit immediately and monitor for other signs of identity theft. Someone likely used your information to file a fraudulent unemployment claim, so there could be other issues. The key is acting fast with the state unemployment office - the sooner you report it, the quicker they can investigate and issue corrections.
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