Def use taxr.ai before submitting! I almost missed out on some credits but it caught them. Best dollar I ever spent ngl

$20,677 is definitely on the higher end, but not impossible for 2021 COVID situations. A few things to consider: 1. **Verify your entries** - Since you mentioned being sick and having to close your business, make sure you correctly entered: - Sick leave credits for self-employed individuals - Business loss calculations - Any Employee Retention Credits if applicable 2. **Use TurboTax's built-in tools** - You mentioned having Priority Support right there on your dashboard. Their review service might be worth it for this amount. 3. **Document everything** - Keep records of your business closure dates, medical documentation for your illness, and any other supporting documents. 4. **Consider a second opinion** - For a refund this large, it might be worth having a tax professional review your return before submitting. The fact that TurboTax calculated this specific amount based on your inputs is a good sign, but double-checking never hurts when we're talking about $20K+. Better to be thorough now than deal with IRS questions later!

The community wisdom here is pretty clear: attempting to avoid 1099 reporting is a short-term strategy that creates long-term headaches. With the direction of IRS enforcement, almost all electronic payments will eventually be reported. The smarter approach is to embrace proper bookkeeping and separation of business/personal finances. Remember, the April 15th deadline is approaching fast, and sorting through mixed personal/business transactions takes time you probably don't have. Better to set up proper systems now than scramble later. Most small business owners I know who've switched to proper accounting systems say they wish they'd done it years earlier.

This is such a timely question! I went through the exact same PayPal surprise last year with my freelance graphic design work. What I've learned is that trying to game the system by staying under reporting thresholds is like playing whack-a-mole - the rules keep changing and you'll eventually get caught. I ended up switching to a dedicated business bank account and using simple invoicing through PayPal's business service (not friends & family). Yes, I still get 1099s, but now my records are clean from day one. The key insight for me was that the 1099 isn't the problem - poor record keeping is the problem. One tip that saved me hours: I photograph every business receipt immediately and store them in Google Drive with the date and project name. When tax time comes, everything's already organized. The peace of mind is worth way more than trying to dodge reporting requirements that are only getting stricter anyway.

I think there's some confusion in this thread. The tax treatment depends on whether these convertible notes have a readily ascertainable fair market value. If they don't (which is common for pre-seed startups), Section 83(b) of the tax code potentially applies. Your wife might be able to elect to recognize the income now based on the current (potentially very low) valuation, then any future appreciation would be capital gains. But she'd have only 30 days from receiving each note to make this election.

This is definitely a complex situation that requires careful attention. The company lawyer saying there are "absolutely no tax implications" is a major red flag - convertible notes received as compensation are almost always taxable events. Here's what you need to know: When your wife receives these notes monthly, she'll likely need to report their fair market value as ordinary income. The challenge is determining that fair market value for a pre-seed startup. The IRS typically looks at the face value of the notes as a starting point, especially when they represent compensation for services rendered. The 15% coupon rate adds another layer - she may also need to report accrued interest annually as income, even if it's not paid out until conversion. I'd strongly recommend getting a second opinion from a tax professional who specializes in startup compensation. Don't rely solely on the company's lawyer, whose primary concern is protecting the company, not your personal tax situation. You'll want to understand the immediate tax implications and plan for quarterly estimated tax payments if needed. Also consider whether your wife should make any elections (like Section 83(b) if applicable) within the required timeframes to potentially minimize future tax impact.

Did the company that ran the class provide any kind of detailed receipt that breaks down the cost? Sometimes these business courses on cruises will actually itemize what portion covers materials, instruction, meals during sessions, etc. If they did that, you might be able to deduct more than just the base cost.

I went through something very similar last year with a continuing education course on a cruise. Here's what I learned after consulting with my CPA and getting through to the IRS: The $850 course fee is definitely deductible as a business education expense on Schedule C, assuming it directly relates to skills needed in your current business. Keep that certificate and any course materials as documentation. However, since you mentioned it was a Caribbean cruise, the vessel was almost certainly foreign-flagged, which means the cruise costs themselves (the $1,875 fare plus $450 in fees) are not deductible under IRC Section 274(h). This applies even though the course was the primary reason for your trip. One thing to watch out for - make sure you can demonstrate that this course maintains or improves skills for your existing business, not training you for a new line of work. The IRS can be picky about that distinction. Also, don't try to get creative with allocating cruise costs based on time spent in class - with foreign vessels, those costs are simply excluded regardless of the business purpose. Your best approach is to claim the clean $850 deduction and have solid documentation ready. It's a legitimate business expense that shouldn't raise any red flags.

Y'all I was so confused by all this until I used taxr.ai. Breaks down everything in plain english and tells you exactly whats happening with your refund. Best dollar I ever spent ngl

Code 150 is actually one of the good ones to see! It just means your return was successfully received and processed into their system. Think of it like a "we got it" confirmation. The date next to it shows when they processed it. You're all set - no action needed on your part. Just wait for any refund if you have one coming!