Anyone have experience with using TurboTax for reporting a small 1099-MISC like this? I'm wondering if it's worth paying for the upgraded version just for one small form.

Just want to add that you should also check if the company issued any corrected versions of the 1099-MISC. Sometimes companies realize they made errors and send out corrected forms (1099-MISC-C) but people miss them or they get lost in the mail. Since you found the payment in your bank statements, you're all set to report it normally. But if you're still unsure about anything, the IRS has a pretty good FAQ section on their website about 1099-MISC reporting that covers most common scenarios like delayed payments and corrections. Way easier than trying to get them on the phone during tax season!

As someone who spent 2 hours on the phone with MA Department of Revenue last week, I can confirm it's definitely line 21 they want. BUT also be prepared to explain any big differences between last year's income and your current situation. They asked me a ton of questions because my business is doing much better this year than last year.

I went through this exact same situation with Massachusetts DOR about 6 months ago! Just to confirm what others have said - yes, it's definitely line 21 (Ordinary business income) from your Form 1120S that they want for the DOR-APP form. One thing I wish someone had told me beforehand: if your line 21 shows a loss (negative number), don't panic. The DOR will still work with you on a payment plan, but they'll want to see more recent financial information like current profit/loss statements or bank statements to understand your ability to pay. Also, when you submit the form, include a brief cover letter explaining your situation. I found the MA DOR staff to be surprisingly helpful once I actually got through to them. They even waived some penalties because I was proactive about setting up the payment plan. Good luck!

Thanks everyone for the detailed responses! This has been incredibly helpful. Just to summarize what I'm understanding: 1) All vendor gifts (including those $50 gift cards) need to be treated as taxable income to employees, even though we're just distributing them 2) For our raffle prizes, the food baskets are likely de minimis, but anything electronic (speakers, air fryers, TVs) should be treated as taxable regardless of value 3) The $25-$75 rule of thumb seems to be more about consumable vs. durable goods than strict dollar amounts One follow-up question: For the vendor gifts, do we need to include the fair market value in employees' W-2s, or is there a different reporting mechanism? We're talking about potentially 50+ employees receiving these gifts, so I want to make sure we handle the paperwork correctly. Also, sounds like I should probably get our legal/compliance team involved before we finalize our raffle prize structure. Better safe than sorry with the IRS!

Just wanted to add another perspective on the vendor gift situation. We dealt with this last year when several of our suppliers started sending holiday gift boxes directly to our office for "the team." What we learned is that even if the vendors mark the gifts as "promotional items" or "marketing materials," they're still considered taxable compensation to employees if they're distributed based on employment status. The IRS doesn't care about the vendor's intent - they care about why the employee received the benefit. One thing that helped us was establishing a clear policy upfront: we now require vendors to provide the fair market value of any gifts they want us to distribute to employees, and we include a standard notice that explains the tax implications to recipients. This way employees aren't surprised when they see the additional income on their W-2s. For your raffle question, I'd also consider the administrative burden. Even if some mid-range items might technically qualify as de minimis, the documentation and decision-making process for each prize category can be more work than just treating everything over $25 as taxable. Sometimes the "safe" approach is also the simpler approach from an HR/payroll perspective.

This is exactly the type of complex trust and partnership situation that trips up even experienced tax professionals. Based on what you've described, here are the key steps you need to take: First, you absolutely need to establish the stepped-up basis for your grandfather's partnership interests as of his date of death. This should have been documented in the estate proceedings, but if not, you may need to get a retrospective appraisal of the partnership interests' fair market value on that date. Second, since the trust distributes all income to your aunt, it sounds like a simple trust for tax purposes. This means the gain from the property sale will flow through to your aunt's personal tax return via a Schedule K-1 from the trust. The tricky part is that the partnership's K-1 to the trust likely doesn't reflect the stepped-up basis from your grandfather's death. You'll probably need to file Form 8082 (Notice of Inconsistent Treatment) to report different amounts than what's shown on the partnership K-1, adjusted for the stepped-up basis. I'd strongly recommend getting a CPA who specializes in trust and partnership taxation to help you navigate this. The interplay between the stepped-up basis, trust taxation rules, and partnership reporting requirements is complex enough that you want professional guidance to avoid costly mistakes. Don't rely solely on the partnership managers or even general tax preparers for this - you need someone who understands these specific intersecting areas of tax law.

The complexity you're describing is unfortunately very common with inherited partnership interests in trusts. Here's what I'd focus on given your specific situation: Since your aunt is the sole beneficiary and the trust distributes all income to her, you're likely dealing with a simple trust. The $78,000 distribution will flow through to her personal return, but you need to get the basis calculation right. The key issue is that your grandfather's partnership interests did receive a stepped-up basis when he died - this is crucial for calculating the actual taxable gain. However, the partnership's records still show the original historical basis, not your grandfather's stepped-up basis. This creates a disconnect between what the partnership reports on their K-1 and what should actually be taxable. You'll need three things: 1) Documentation of the fair market value of the partnership interests on your grandfather's date of death (should be in the estate records), 2) The partnership K-1 showing the distribution details, and 3) Form 8082 to report the adjusted amounts that account for the stepped-up basis. Don't feel bad about getting conflicting advice from professionals - this intersection of estate, trust, and partnership tax law is genuinely complex. I'd recommend finding a CPA or tax attorney who specifically advertises experience with inherited partnership interests and trust taxation. Many general practitioners avoid these situations because of the complexity. The good news is that the stepped-up basis will likely reduce the taxable gain significantly compared to what the raw partnership K-1 might suggest.

I completely understand your panic - this is such a stressful discovery, especially when you're studying to work in tax compliance! But please know that this is an incredibly common mistake that many scholarship recipients make. The distinction between qualified and non-qualified educational expenses isn't intuitive, and the IRS knows this. Here's what I'd recommend based on your situation: First, gather all your scholarship documentation from your school's financial aid office for the past three years. You'll need detailed records showing exactly how much was applied to tuition/fees versus refunded to you. Don't forget that qualified expenses can include more than just tuition - required textbooks, lab fees, and even some technology required for your program may qualify. Since you're dealing with multiple years and potentially significant amounts, I'd suggest getting professional help for at least an initial consultation. Many tax professionals offer free consultations for situations like this, and they can help you determine if you qualify for penalty relief programs. The most important thing is that you're addressing this voluntarily. This demonstrates good faith and will work strongly in your favor. As for your career concerns - this experience will actually make you a better accountant and IRS employee because you'll understand firsthand how complex tax compliance can be for regular people. Your integrity in fixing this mistake is exactly what the IRS looks for in employees.

As someone who went through a very similar situation a few years ago, I want to echo what others have said - this is fixable and won't ruin your career prospects! I was also pursuing accounting and made the same mistake with scholarship refunds. A few practical tips from my experience: When you gather records from your financial aid office, also request copies of your student account statements for each semester. These often show exactly what charges were paid by scholarships versus what was refunded to you, which makes calculating the taxable portion much clearer. For finding the right tax professional, I'd recommend contacting your state CPA society - they often have referral services and can connect you with CPAs who specialize in education-related tax issues. You might also check with your accounting department's faculty - many professors do tax work on the side and understand student situations well. One thing that really helped me was creating a spreadsheet tracking all scholarship funds received, what was applied to qualified expenses, and what was refunded each year. This made the amended return process much smoother and gave me confidence that my calculations were accurate. The IRS was actually quite understanding when I filed my amended returns. The key is being thorough and honest in your documentation. You've got this!