One more tip for Schedule 1 - make sure you're using the 2024 version of the form! I mistakenly used the 2023 version last year and it caused all kinds of confusion because they change the line numbers sometimes. Also double check that your Schedule C profits match exactly what you enter on Schedule SE for each person. Small discrepancies can trigger automatic notices from the IRS.

As someone who went through this exact same confusion last year with my spouse, I can confirm what others have said - you absolutely need separate Schedule SE forms for each of you since they're tied to individual SSNs and calculate self-employment tax separately. But here's something that helped me get organized: create a simple checklist. For each spouse: Complete your own Schedule C (already done ✓), then your own Schedule SE using the Long version (Section B) since you're both over $400 in earnings. Make sure the net profit from Schedule C matches exactly what you put on Schedule SE. Then for your joint return: Use ONE Schedule 1 where you'll combine both of your business income totals and both of your self-employment tax deduction amounts. The key is keeping the individual calculations separate but reporting the combined totals on your joint forms. Don't feel bad about being overwhelmed - the IRS forms really aren't user-friendly! But once you get the pattern down, it's much clearer than it initially appears.

make sure u track ur business expenses!! i'm also a dependent with 1099 income and i saved SO MUCH by tracking my mileage for doordash. the standard mileage rate is like 67 cents per mile for 2024 i think? that adds up fast and reduces ur self employment tax!!!!

Just to add to all the great advice here - don't forget about quarterly estimated tax payments for next year! Since you're self-employed and had no taxes withheld, you'll likely need to make quarterly payments in 2025 to avoid underpayment penalties. The IRS generally expects you to pay as you earn, not just at year-end. You can calculate your estimated payments based on this year's tax liability or use the safe harbor rule (pay 100% of last year's tax if your AGI was under $150k). Form 1040ES has worksheets to help you figure this out. The first quarter payment for 2025 is due January 15th, so you'll want to get on top of this right after you file your 2024 return!

This is such a fascinating area of taxation! One thing that adds another layer of complexity is how different types of compensation within player contracts are treated. For example, signing bonuses are typically amortized over the contract length for cap purposes but may be immediately deductible for tax purposes, while performance bonuses might be contingent liabilities that aren't recognized until earned. Also worth noting that when teams relocate or change ownership, there can be some really complex basis adjustments and recapture issues with previously amortized player contracts. I had a client situation a few years back where a team sale triggered unexpected ordinary income recognition on contracts that had been treated as capital assets. The interaction between salary cap accounting (which follows league rules) and tax accounting (which follows IRS rules) can create some interesting planning opportunities for teams, especially around contract restructuring and the timing of bonus payments.

This has been such an informative discussion! As someone who works primarily with individual returns, I had no idea how complex sports team accounting could be. The roster depreciation allowance aspect is particularly fascinating - I can see why franchise ownership has such strong tax advantages beyond just the appreciation potential. One follow-up question: for teams that have international operations (like MLB teams with academies in Latin America, or NBA teams with G-League affiliates internationally), how does that complicate the player contract accounting? I'm thinking specifically about development costs for prospects who may never make it to the major league level, and whether those can be capitalized or if they're just immediately expensed as training costs. Also, does anyone know if there are different rules for how teams handle contracts for players who retire due to injury vs. those who are simply released? I imagine there could be some interesting insurance recovery vs. loss recognition issues there.

I had the exact same thing happen with Brookfield Renewable Partners! Turned out it was because I invested in a clean energy ETF through my Fidelity account. The ETF held some Brookfield partnership units, which is why I got the Schedule K-1 (Form 1065). One tip - save these K-1s for several years. If you ever sell the investment, you'll need the historical K-1 info to properly calculate your basis. The "tax basis" shown on Box L of your K-1 changes each year based on income, losses, and distributions, which affects your capital gain/loss when you eventually sell.

I'm dealing with this exact situation right now! Got a Schedule K-1 from Brookfield Renewable Partners and had no clue where it came from. After reading through these comments and doing some digging, I found out it was from shares I bought in the Invesco Solar ETF (TAN) last year - apparently that fund has some partnership holdings that generate K-1s. What's really frustrating is that my broker never warned me about this when I bought the ETF. Now I'm scrambling to figure out how to report this stuff before the tax deadline. The K-1 shows income in like 15 different boxes and I have no idea what most of them mean. Has anyone here used the regular TurboTax basic version for this, or do you really need to upgrade to Premier? I'm trying not to spend extra money if I don't have to, but I also don't want to mess up my taxes over a $200 investment that I didn't even know would cause all this paperwork!

Do you know if your tax preparer used a Refund Transfer product or similar service? That makes a big difference. If they did, your refund first went to a temporary bank account they set up, then they transferred your refund minus their fees to you. That temporary account is likely closed now, so any CTC payments sent there will definitely bounce back.

UPDATE: The IRS just announced yesterday that the Child Tax Credit Update Portal will be available starting June 21st, 2024, according to their latest press release. They're specifically urging people who had refunds processed through tax preparer bank accounts to update their information ASAP. The first monthly payments are scheduled for July 15th, and they recommend making any banking changes at least two weeks before that date to ensure proper processing. Here's the link to the official IRS page with instructions: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments