Carmen, you're absolutely not an idiot - these companies are predatory and specifically target people in stressful financial situations. The fact that you're taking action now shows you're being smart about protecting yourself. Here's my step-by-step recommendation based on what others have shared: 1) **Document everything immediately** - gather all contracts, payment records, emails, and notes from phone calls with Optima 2) **Send written termination notice** (email + certified mail) demanding immediate cancellation and an itemized list of actual services performed 3) **Contact your credit card company today** to dispute charges - explain that services were not rendered as promised 4) **File complaints with FTC, BBB, and your state attorney general** - this creates a paper trail and may help others The good news is you've already contacted a local EA/CPA, which is exactly the right move. They can often resolve IRS issues much faster and cheaper than these relief companies ever could. Don't let Optima string you along with more excuses. Be firm about cancellation and don't accept any "retention offers" - they're just trying to extract more money. You have consumer protection rights, especially if you paid by credit card. Stay strong - you're doing the right thing by getting out now before they take even more of your money.

Carmen, I'm so sorry you're going through this - you're definitely not alone, and the fact that you're taking action now shows real strength, not foolishness. Tax relief scams prey on people when they're most vulnerable and stressed. Here's what I'd add to the excellent advice already given: When you contact your local EA/CPA, ask them to request a transcript of your tax account from the IRS (Form 4506-T). This will show exactly what, if anything, Optima has actually filed on your behalf. Having this documentation will strengthen your case for credit card disputes and complaints. Also, many states have specific laws protecting consumers from deceptive tax relief practices. Your state attorney general's office may have additional remedies beyond just filing a complaint - some states can force these companies to provide refunds or face penalties. One more thing - if Optima tries to claim they've done substantial work when you cancel, demand they provide copies of all documents they've filed with the IRS and proof of submission. Most can't produce this because they haven't actually done the work they claim. You're taking all the right steps. The stress and frustration you're feeling is completely understandable, but you're protecting yourself and potentially helping others avoid the same trap. Keep pushing forward - you've got a whole community here supporting you.

Something nobody has mentioned yet - you'll need to pay self-employment tax (Medicare + Social Security) on this income too, which is about 15.3% ON TOP OF regular income tax. It really adds up! If you think you'll make more than $1000 in self-employment income in 2025, you should probably make quarterly estimated tax payments to avoid underpayment penalties next year.

I went through the exact same situation last year! The key thing to remember is that the $600 threshold for 1099-K forms is just when PayPal is required to send YOU the form - but you're required to report ALL income regardless of whether you get a form or not. Here's what I did in TurboTax: Go to the "Federal Taxes" tab, then "Wages & Income," and look for "Self-Employment Income" or "Business Income." You'll create a simple business for your art commissions. For the income amount, just add up all your PayPal payments from your transaction history - PayPal keeps good records that you can download. The silver lining is that you can deduct business expenses like art supplies, software, and even a portion of your internet bill against this income. Keep all your receipts! Also, since you made around $1,400 total ($800 PayPal + $600 from the 1099), you'll owe self-employment tax on that, but it's not as scary as it sounds when you factor in the deductions. Don't stress too much - you're doing the right thing by reporting everything honestly!

These holds are getting rediculous every year i stg. The IRS needs to get it together fr

Same situation here! Filed 1/18 through HR Block and got hit with the CTC verification hold too. They told me 6-8 weeks but seeing some people get theirs in 4 weeks gives me hope. Has anyone tried calling the IRS directly to get more info about the hold status? Getting tired of just waiting around with no real updates 😤

This is exactly the type of complex situation where proper documentation becomes crucial. I went through something similar when I converted my condo to a rental property mid-year. The key insight that helped me was understanding that the IRS views this as two separate "loans" once the conversion happens - even though it's technically the same mortgage. The personal residence portion (those 17-18 days) gets treated under the mortgage interest deduction rules with the $750k limit, while the rental portion goes to Schedule E as a business expense. One thing I'd recommend is taking photos of your move-in date to House B and any documentation showing when you started advertising House A for rent. The IRS likes clear evidence of the conversion date. Also, if you're working with a property management company, get a copy of the management agreement as it establishes the "placed in service" date for rental purposes. Keep detailed records of all expenses during the transition period too - things like cleaning, minor repairs, or staging costs can often be deducted as rental expenses once the property is available for rent, even if you don't have a tenant immediately.

One thing I'd add to all the great advice here is to consider setting up a separate bank account for your rental property expenses once House A is converted. This makes record-keeping much cleaner and helps establish that clear business purpose the IRS looks for. Also, since you mentioned you've been reading IRS publications but getting confused - Publication 527 (Residential Rental Property) has a specific section on converting personal use property to rental use that might help clarify things. It walks through examples similar to your situation with the day-by-day calculations everyone's been discussing. Another consideration: if you're planning to potentially move back into House A someday (like if it's in a great school district for future kids), be aware that there are rules about how long it can be a rental before you lose certain tax benefits when you convert it back to a personal residence. Just something to keep in mind for long-term planning!

Check your wage and income transcript too. Sometimes employers report different numbers than what's on your W2

turbotax has been trippin this year ngl. saw like 5 posts about this same issue just today 💀