Just wanted to chime in as someone who went through this exact situation a couple years ago! I worked what felt like a regular retail job but got hit with a 1099-NEC at tax time. One thing I wish I'd known earlier - even though you have to file Schedule C and pay self-employment tax, you might qualify for the Qualified Business Income (QBI) deduction under Section 199A. This can give you up to a 20% deduction on your self-employment income, which helps offset some of that extra tax burden. Since your income was only $2,100, you should definitely qualify (the income limits are much higher). Most tax software will calculate this automatically once you enter your Schedule C info, but it's worth double-checking that it's being applied. Also, definitely track ANY expenses related to this work - even small things like work shirts, phone usage, or gas for work trips add up. I missed out on probably $200-300 in deductions my first year because I didn't think they mattered. Every little bit helps when you're dealing with that 15.3% self-employment tax on top of regular income tax!

I'm dealing with something similar right now! Got a 1099-NEC from a landscaping company where I basically just showed up, used their tools, and worked the hours they told me to work. Feels exactly like being an employee but here we are with contractor paperwork. One thing that's been helpful is keeping really detailed records of everything work-related, even stuff that seems minor. I started tracking mileage to job sites, work boots I had to buy, even bottled water on really hot days since we worked outside. It all adds up when you're trying to offset that self-employment tax. The whole Schedule C thing was intimidating at first, but once I realized I could just use my name as the "business name" it felt less scary. Still annoying that we have to deal with all this extra paperwork for what was basically a regular job, but at least there are ways to minimize the tax hit. Hope you get it figured out! The community here has been super helpful for navigating these weird contractor situations.

Does anyone know if TurboTax has a specific place where u enter 1095-B info? I know we dont need to "file it" but does the software ask about it somewhere?

Just wanted to add my experience as someone who went through this exact same confusion last year! I had Texas Medicaid too and was totally stressed about the 1095-B form. Everyone here is absolutely right - you do NOT need to file it with your return. What helped me was understanding that the 1095-B is basically just a receipt showing "hey, you had qualifying health coverage this year." The IRS uses it to verify you weren't uninsured (which could trigger a penalty in some cases), but YOU don't need to do anything with it when filing. TurboTax will ask if you had health insurance coverage - just answer yes. It won't ask for any specific numbers or info from your 1095-B. Keep that form safe with your other tax records, but don't stress about entering anything from it into your tax software. You're good to go ahead and file!

I'm surprised nobody mentioned IRS Publication 525! It specifically addresses this on page 12 under "How to report stock option income." It clearly states you need to adjust your basis by the amount included as income. The trickier part is making sure you account for the reverse split correctly. When I went through this, I created a simple spreadsheet that tracked: - Original shares and exercise price - FMV at exercise (from 3921) - Amount included in income that year - Post-split shares and adjusted basis Also, if you're in a state with income tax, make sure you're adjusting your state basis too! Many people forget that part.

This is such a helpful thread! I'm dealing with a similar situation but with a twist - my company did multiple corporate actions (a reverse split AND a spinoff) between when I exercised my ISOs and when I sold. From reading everyone's responses, it sounds like the key principle remains the same - adjust my cost basis to include what I already paid taxes on from the Form 3921. But I'm wondering how to handle the spinoff portion. Did anyone here deal with spinoffs in addition to splits? Also, @AstroAce, your math example really helped clarify things for me. I was getting confused about whether to adjust the total basis or the per-share basis, but seeing it broken down like that makes it crystal clear. One more question for the group - has anyone had success explaining these adjustments directly in their tax software's notes section, or is it better to attach a separate statement? I'm using TurboTax and want to make sure I document everything properly.

Hey don't forget about potentially adjusting your retirement contributions too. My husband and I discovered that when we got married and started filing jointly, we could leverage our income difference to max out his 401k and IRAs differently than before. Ended up saving us about $4,200 in taxes while building retirement faster.

Great question about marriage and taxes! As others have mentioned, with your income split ($87k and $28k), you'll likely see a marriage bonus rather than a penalty when filing jointly. One thing I'd add - don't forget to consider the impact on any tax credits you might be eligible for. The Earned Income Tax Credit, Child and Dependent Care Credit, and education credits all have different income thresholds for married couples. Sometimes these can create unexpected benefits or phase-outs depending on your combined income. Also, since you mentioned buying a house next year, keep in mind that as a married couple you'll have a higher gift tax exclusion limit if family helps with the down payment, and you can potentially exclude up to $500k in capital gains if you ever sell a primary residence (vs $250k for singles). I'd definitely recommend running a tax projection for 2024 now that you're married to avoid any surprises. Most tax software lets you do this, or you could work with a tax professional to make sure you're optimizing everything for your new situation.

I handle payroll for a company that does relocation grossups and this is normal. Your W-2 will show the TOTAL - both the $15k you received plus the additional amount the company paid in taxes on your behalf. The full amount is taxable income. Check your last paystub of the year and look at the "YTD" column for federal withholding. It should be higher than normal because of the extra withholding for the relocation. If your company did the gross-up correctly, they would have withheld around 22% federal (supplimental rate) plus Medicare/SS taxes on the full grossed-up amount. If TurboTax is saying you owe more, it might be because your overall tax bracket is higher than 22% so you need to pay the difference.

As a newcomer to this community, I really appreciate all the detailed explanations here! I'm dealing with a similar situation where my employer offered a relocation package, but I haven't accepted the job yet. Reading through these comments, it sounds like the tax implications are pretty complex. For someone who hasn't gone through this before, would you recommend negotiating for the company to handle the relocation expenses directly with vendors instead of giving me a lump sum? Or does it not really matter since either way it ends up being taxable income? Also, are there any questions I should ask HR upfront to make sure I understand exactly how they calculate the gross-up and what will show up on my W-2? I'd rather avoid the confusion that several people here experienced!