Has anyone used TurboTax for this situation? I'm trying to figure out how to actually enter this on my return. Do I just put in half the amount shown on the 1098? Will that trigger a mismatch flag with the IRS since they received the full amount under my SSN?

This is really helpful information everyone! I'm in a similar boat but wanted to add something important that my CPA mentioned - make sure you understand the "traceable proceeds" rule. The IRS cares about whether the borrowed money was actually used to buy, build, or improve your home. Since you both are on the deed and mortgage, and the loan proceeds went toward purchasing your shared home, you should be fine. But if either of you later refinances or takes a home equity loan, be careful about what those funds are used for. Only interest on money used for the home itself qualifies for the mortgage interest deduction. Also, keep those bank transfer records showing your boyfriend's payments to you - not just for this year, but going forward. The IRS could ask for documentation years later during an audit, and having a clear paper trail of the payment arrangement from day one will save you headaches down the road.

Be very careful how you proceed. I had a client who found himself in a similar situation, but he made the mistake of posting accusations about the tax preparer on social media before verifying all the facts. The preparer sued him for defamation and it turned into a legal nightmare. First, absolutely verify your refund status directly with the IRS. Then document all your attempts to contact the preparer. If you confirm the refund was issued and the preparer has it, send a formal demand letter via certified mail before taking any other steps. This creates a paper trail that will be crucial if you need to escalate to legal action or file complaints with regulatory agencies. While you should absolutely report fraud, making sure you have solid evidence first will protect you from potential counteractions.

I'm so sorry you're dealing with this - it's absolutely infuriating when someone you trusted with your taxes pulls a disappearing act! 😤 Based on what others have shared, here's what I'd recommend as your immediate next steps: 1. **Verify your refund status first** - Use the IRS "Where's My Refund" tool online or call their refund hotline at 1-800-829-1954. This will tell you if your refund was actually issued and when. 2. **Document everything** - Screenshot all your unanswered calls/texts, save voicemails, etc. This creates a paper trail you'll need later. 3. **Send a certified letter** - Give them one final written demand with a 10-day deadline to respond. This shows you tried to resolve it professionally. 4. **File the complaints simultaneously** - Don't wait! Submit Form 14157 to the IRS, file with your state's attorney general consumer protection division, and report to local police if the refund was actually issued and cashed. The key is acting fast and hitting multiple angles at once. These preparers often count on people giving up, but when they see formal complaints from multiple agencies, they usually cave quickly. You've got this! 💪 Keep us updated on how it goes - your experience could help others in the same boat.

One important thing nobody's mentioned yet - make sure you're tracking your quarterly estimated tax payments for 2025 if you're continuing this side work. I got absolutely hammered with penalties last year because I didn't realize I needed to make quarterly payments on my Uber and Etsy income. The IRS wants you to pay as you earn throughout the year, not just at tax time. Since you have both 1099-NEC and 1099-K income, you're definitely on their radar now.

Just wanted to add that the income threshold for receiving a 1099-K changed for 2024. It used to be $20,000 AND 200 transactions, but now it's just $600 total regardless of the number of transactions. That's why so many more people are getting these forms this year and are confused!

anyone else notice the massive amount of 570/971 codes lately?

@Liam O'Sullivan check your account transcript on the IRS website - look for the 8-digit cycle code (usually starts with 2025). If it ends in 01-04 you get daily updates, if it ends in 05 you're on weekly (Fridays). The cycle code tells you which processing center you're at and when they batch your return. Don't panic about no movement - some returns just take longer especially if there are any reviews or verifications needed. Keep checking Friday mornings if you're on weekly cycle!

One other consideration for LLC vs S Corp that nobody's mentioned: state taxes and fees. In California for example, LLCs pay an annual $800 minimum tax PLUS a gross receipts fee that starts at $900 when your revenue hits $250k. S Corps just pay the flat $800 regardless of revenue. Meanwhile, in states like Texas or Wyoming, the fees are much lower for both. Worth checking your state's specific rules since they can make a big difference in the overall math.

Everyone's focusing on taxes, but consider liability protection too! I had an LLC for my consulting business and got sued by a client. Found out my LLC protection wasn't as strong as I thought - the plaintiff's lawyer was able to "pierce the corporate veil" because I hadn't kept perfect separation between personal/business finances. S Corps typically have stronger liability protection since they're more formally structured. Just something to think about beyond just the tax implications. Whatever you choose, be SUPER disciplined about keeping separate accounts, formal documentation, etc.