A bit confused after reading all of these comments. So if I sold some furniture on Facebook Marketplace for like $800 total last year (stuff I just wanted out of my house, sold for less than I paid), I don't need to report anything because 1) it's under the $20k threshold for getting a 1099-K and 2) I didn't make a profit anyway?

Just to clarify something that might help others reading this - the key distinction everyone's touching on is between *reporting requirements* and *tax obligations*. The 1099-K threshold only determines whether platforms like StubHub have to send you (and the IRS) a form. It doesn't change your underlying obligation to report taxable income. For your specific situation with the concert tickets, if you sold them for less than you paid (which sounds like the case), you actually had a loss, not income. Personal losses like this aren't deductible, but they're also not taxable income you need to report. The bottom line: No 1099-K required under current thresholds, and no taxable income since you sold at a loss. You should be good to file your return. Just keep your records showing what you originally paid vs. what you sold them for in case you ever need to demonstrate there was no profit.

I've been dealing with payroll tax issues for years as an accountant, and this thread has some excellent advice! Just wanted to add one more resource that might help - if you're still having trouble getting through to the right people at your county tax offices, you might want to check if they have a taxpayer advocate or ombudsman office. Many counties have these departments specifically to help resolve disputes and errors like this. They often have more authority than regular customer service reps and can directly interface with employer payroll systems. In my experience, they're also much more responsive than the main tax office lines. You can usually find contact info for taxpayer advocate services on your county's main website under the tax department section. They're particularly helpful when you need official documentation to present to stubborn HR departments - they can provide letters confirming which county you should actually be paying taxes to. Good luck getting this resolved! Don't give up - you're absolutely entitled to get your money back from this payroll error.

I've been following this thread and wanted to share another angle that might help - if you're getting pushback from HR about processing refunds for past incorrect withholdings, you can also file a claim directly with Madison County for a refund while simultaneously working on getting your employer to fix the ongoing issue. Most counties have a fairly straightforward refund process for taxes that were paid in error. You'll need to provide documentation showing you don't actually live or work in their jurisdiction (utility bills, lease agreements, employment verification from Jefferson County, etc.). This gives you two paths to recovery instead of being completely dependent on your employer's cooperation. The key is to pursue both options simultaneously - get Madison County to refund the incorrectly paid taxes while also pressuring your employer to fix their payroll system so it doesn't keep happening. Some counties even have online refund request forms that make the process pretty simple. Just make sure to keep detailed records of everything in case there are any issues with double-refunds or timing conflicts between what your employer processes and what the county processes.

This is such a helpful thread! I've been dealing with a similar situation after relocating from New Jersey to Florida for my job. What's been tricky is that I still travel back to NJ frequently for work and to visit family, so I'm probably there about 80-90 days per year. One thing I learned the hard way is that New Jersey has what they call a "safe harbor" rule - if you can prove you were a non-resident for the entire tax year AND you spent fewer than 183 days in NJ, you're generally in the clear. But they're really strict about the day counting, and they include any part of a day as a full day. I started keeping a detailed travel log in a simple Excel spreadsheet with dates, locations, and reasons for travel. My tax preparer said this kind of documentation is gold if you ever get audited. Also found out that flight records and hotel receipts can serve as backup documentation for your physical presence claims. The other thing that caught me off guard was that NJ looks at whether you maintained a "permanent place of abode" in the state. Even if you rent out your old house, if you have access to it (like keeping keys or having family there), they might still consider it available for your use. Had to get a formal rental agreement that explicitly prohibited my access to the property to clean this up.

This has been such an eye-opening discussion! As someone who's been considering a move from a high-tax state to a low-tax one, I had no idea the residency determination process was this complex and thorough. The detail about keeping a daily log of physical presence is something I never would have thought of, but it makes total sense from an audit perspective. And the fact that states can look at everything from Amazon delivery addresses to veterinary records for pets is honestly both impressive and a little concerning from a privacy standpoint. One question I have after reading all these experiences - for people who work remotely and have genuine flexibility about where they live, are there any states that are particularly "friendly" to new residents in terms of not being overly aggressive with residency audits? Or conversely, are there states that are known for being especially difficult even when someone has legitimately moved? It sounds like California, New York, and New Jersey are pretty notorious for aggressive enforcement, but I'm curious if there are states on the other end of the spectrum that are more welcoming to newcomers establishing residency. Also, has anyone dealt with the situation where you need to file as a part-year resident in multiple states during a move year? I'm wondering how complicated that gets and whether it's worth timing a move to coincide with the tax year.

Has anyone tried the new IRS Direct File program? I heard it's completely free regardless of income and doesn't have any of these hidden fee issues.

I work as a tax preparer and see this confusion every year. The key thing to understand is that many tax companies have multiple tiers of service, and it's easy to accidentally get bumped into a paid tier without realizing it. Here's what I'd recommend: First, completely log out of FileYourTaxes.com and go directly through the IRS Free File portal at irs.gov/freefile. Don't use any bookmarks or go directly to their site. The Free File version is often completely separate from their commercial product. Second, double-check what forms or schedules you're including this year. Did you have any cryptocurrency transactions, gig work income, or new deductions? Even something as simple as claiming educator expenses can sometimes trigger an upgrade to their paid version. If you still can't get free filing through FileYourTaxes, don't feel locked in just because your previous years' data is there. Most tax software can import prior year returns or you can manually enter the key info pretty quickly. FreeTaxUSA, TaxAct, and several others have genuinely free federal filing for most situations. The most important thing is don't pay for something you should be getting for free just out of convenience!

As someone who's dealt with non-dividend distributions for several years now, I wanted to share a few additional tips that might help newcomers to this situation. First, don't panic if you receive these distributions - they're actually quite common, especially with certain types of investments like REITs, MLPs, and some utility stocks. The key is understanding that you're not being "taxed twice" on this money; you're simply receiving back part of your original investment. One thing I wish I had known earlier is that some companies provide guidance documents or FAQ pages on their investor relations websites explaining their distribution policies. If you're confused about a specific distribution, checking the company's investor materials can often provide clarity about whether it's a return of capital, a special dividend, or something else entirely. Also, if you're working with a financial advisor, make sure they're helping you track these basis adjustments. Some advisors are great at picking investments but not as focused on the ongoing tax implications. Having someone help you maintain accurate records from the beginning can save you a lot of headaches down the road. Finally, consider the timing of when you sell investments that have had basis adjustments. Since your cost basis is now lower, you'll have higher capital gains when you sell. This might influence your decision about which investments to sell first for tax loss harvesting or other tax planning strategies.

This entire thread has been incredibly helpful! I'm actually in a very similar situation to Edison - I received my first non-dividend distribution this year and was completely lost when my tax software started asking about it. After reading through everyone's experiences, I feel much more confident about how to handle this. The explanation about how these distributions reduce your cost basis rather than being immediately taxable income really cleared things up for me. I was worried I was missing some major tax obligation, but now I understand it's more about proper record-keeping for future capital gains calculations. I especially appreciate the practical tips about using the search terms "Return of Capital" and "Box 3 distributions" in tax software - that's exactly the kind of specific guidance I needed. And the advice about checking company investor relations pages is brilliant - I never would have thought to look there for clarification. One thing I'm still curious about - for those of you who have been dealing with this for multiple years, do you find that companies tend to be consistent with their distribution policies? Or should I expect that my investments might switch between regular dividends and non-dividend distributions from year to year? I'm trying to plan ahead for better record-keeping going forward. Thanks again to everyone who shared their experiences - this community is incredibly valuable for navigating these confusing tax situations!