Does anyone know if Cash App sends 1099-Bs for small amounts of Bitcoin? I only bought like $200 worth last year as an experiment. Do I still need to worry about this tax form?

I went through this exact same situation last year with my Cash App 1099-B! The key thing to understand is that the form shows your gross proceeds (what you received when you sold), but you're only taxed on the actual gain or loss. For your $3,500 in transactions, you'll need to gather records of what you originally paid for each Bitcoin purchase. Cash App's transaction history in the app should have most of this info. When you file, you'll report each sale on Form 8949, showing both the sale price (from the 1099-B) and your cost basis (what you paid). The difference is your actual taxable gain or loss. Don't panic about the disclaimer - it just means Cash App doesn't have complete cost basis info for some transactions, which is totally normal. The IRS expects you to provide the missing pieces. Keep good records and you'll be fine!

I'm in the same boat with TaxAct! One thing nobody mentioned - check your email spam folder. I found an email from the IRS with instructions about my payment plan that got filtered out. It had a link to set up my online account and explained the whole process. Also the letter confirming your payment plan approval (with all the details) comes separately from your tax return confirmation, so watch for that too. Once I got that letter and set up my online account, everything showed up correctly and I could manage my payments there.

Great to see this got resolved! Just wanted to add for anyone else in this situation - if you're still having trouble finding that IRS email or it never came through, you can also call the IRS automated line at 1-800-829-0922 and use the automated system to check your installment agreement status. You'll need your SSN and the exact amount you owe, but it can confirm if your payment plan was approved and when your first payment is due. I had a similar issue where the email never came (even checked spam) and this automated line saved me from waiting on hold. It also gives you the option to speak to a representative if you need to make changes, though as others mentioned, services like Claimyr can help you get through faster if the wait times are crazy.

Has anyone here used TurboTax for this situation? I'm trying to figure out how to enter our mortgage interest correctly when filing. When I try to enter the Form 1098, it assumes I'm claiming the full amount but I only want to claim my 50%.

This is such a common situation! I went through this exact same thing with my partner two years ago. The key thing to remember is that you can only deduct what you actually paid, not what's on the deed or mortgage paperwork. Since you mentioned you've been splitting bills 50/50 but have a 60/40 mortgage split, you'll want to look at your actual payment records. If you can show that you each paid 50% of the mortgage interest and property taxes through bank statements or other documentation, then you can each deduct 50%. One thing that really helped us was keeping a simple spreadsheet showing who paid what each month. We had similar ownership percentages but different payment arrangements, and having clear records made tax time much easier. Also, don't forget to check if itemizing even makes sense for both of you. With the higher standard deduction now ($13,850 for single filers in 2023), you need a decent amount of itemized deductions to make it worthwhile. Sometimes it makes more sense for just one person to itemize and claim all the house-related deductions while the other takes the standard deduction.

Not to be that person but I'm gonna go against what everyone else is saying. DON'T PAY IT YET! Call IRS first. I had literally the same scenario last year. I was about to pay a $750 penalty but talked to the IRS first. They could see my CPA had already filed the abatement and put a 45-day hold on collections activities while they processed it. If you pay now, you might have to wait 6+ months to get that money back, even after the abatement is approved. The IRS is super backed up on processing refunds. Also FYI - the IRS online account system is terrible at showing penalties correctly. Mine showed $0 the entire time too, even though I had multiple notices saying I owed.

I'm dealing with a very similar situation right now! My LLC partnership got hit with a $380 penalty that my accountant said they'd handle with an abatement letter. That was 6 weeks ago and I just got my first collections notice today. Reading through all these responses, I think I'm going to call the IRS first thing Monday morning to see if I can get a collections hold while the abatement processes. If they can't guarantee that, I'll just pay it to be safe. One thing I learned from my research - you can actually check if your CPA really filed the abatement by asking the IRS for a "transcript" of actions taken on your account. They can tell you exactly what correspondence they've received and when. Might be worth asking for that when you call, just to make sure your CPA actually did what they said they'd do. The interest charges are minimal compared to the stress of potential bank levies, especially with your dad's property sale coming up. Better to pay now and get refunded later than risk having accounts frozen during a real estate transaction.

Protip: Print it out and use different colored highlighters for different codes. Makes it way easier to track whats happening

I feel your pain! When I first got mine I literally stared at it for like an hour wondering if it was written in code 😂 The IRS has a master file transcript guide on their website that breaks down what each code means, but honestly it's still pretty technical. Focus on the "Account Transcript" section first - that's where you'll see your refund status. Look for transaction code 846 with a date - that's when your refund was/will be issued!