I'm an accountant and see this ALL THE TIME. Companies don't know how to properly handle non-employee reimbursements. Technically, the IRS doesn't have a specific reporting mechanism for reimbursing non-employees for expenses, which is why some companies default to the 1099-NEC. The safest approach is to report it on Schedule C if you're already self-employed, or as Other Income if you're not, and then offset it with the corresponding deduction. The IRS matching program will see the 1099-NEC was reported, preventing an automated notice, and the net tax effect will be zero.

This is such a frustrating situation that so many people run into! I went through something similar when a company reimbursed me for parking expenses during interviews and then sent me a 1099-NEC months later. The key thing to remember is that just because they issued a 1099-NEC doesn't mean you automatically owe taxes on it. Since this was a legitimate reimbursement at the standard IRS mileage rate (not payment for services), you can absolutely offset it. I'd recommend going the "Other Income" route on Schedule 1 that others have mentioned, since your husband isn't actually running a business. Report the $650 as other income, then claim the exact same $650 as a deduction for unreimbursed business expenses (which technically these were, since you incurred the expense first and were then reimbursed). This way you avoid any self-employment tax issues. Make sure to keep all your documentation - the mileage log, any emails about the reimbursement arrangement, and records showing it was calculated at the standard rate. The IRS will see the 1099-NEC was properly reported on your return, but the net tax impact will be zero.

Has anyone had their bank account double-charged when using IRS Direct Pay? My payment has been "processing" for 3 weeks but I just noticed they took the money TWICE from my account! Both charges have the same confirmation number. Is this normal?

I can relate to your concern! I went through the same thing about 6 months ago with a $1,200 payment that stayed on "processing" for nearly a month. Like others mentioned, the IRS systems are just incredibly slow to update their status displays. What really helped put my mind at ease was checking my account transcript online (as Ruby mentioned above) - my payment showed up there about 10 days before the Direct Pay status finally changed to "completed." The transcript is really the authoritative source for what's actually been applied to your account. Since you have your confirmation number and the money left your bank account, you're almost certainly fine. The IRS receives thousands of these payments daily and their processing pipeline just moves slowly. I'd only start worrying if it hits the 30-day mark and still shows processing - at that point it might be worth making a call to double-check. Keep those screenshots and confirmation emails safe though - they're your proof of timely payment if any questions ever come up!

Has anyone used FreeTaxUSA for calculating potential tax brackets? I'm in a similar situation to the OP and trying to figure out if I should do some tax loss harvesting before year end to offset gains.

Great question about the 2025 tax brackets! Just to add some practical context to what others have shared - with your $110k income, you'll definitely be in the 24% marginal bracket for federal taxes. But here's what I'd focus on: 1. **Stock options timing**: If you're planning to exercise stock options, consider spreading it across tax years if possible. A large exercise could push you well into the 24% bracket or even higher. 2. **Max out tax-advantaged accounts**: You can contribute up to $23,500 to your 401k in 2025 (if you're under 50). Every dollar you put in reduces your taxable income dollar-for-dollar. 3. **Don't forget FICA**: Remember that Social Security and Medicare taxes (7.65%) apply to your wages regardless of income tax brackets. The strategies to stay in lower brackets really depend on how close you are to the $100,526 cutoff after your 401k contributions and other deductions. If you're right on the edge, maximizing your HSA contributions (if available) and considering a traditional IRA contribution could help. What state are you in? That'll make a big difference in your total tax picture.

Quick question for everyone - if the car is financed, does that change anything? My mom wants to gift me her car but she still owes about $10k on it. The car's worth around $25k. Would she report the full value or just the equity?

I went through something very similar last year when my dad gifted me his Honda Civic. The key thing that gave me peace of mind was getting everything documented properly upfront. A few practical tips from my experience: 1. Get the car appraised or use multiple valuation sources (KBB, Edmunds, etc.) and keep screenshots with dates 2. Make sure your mom keeps records of the gift - the IRS Form 709 if needed, plus any supporting documentation 3. For Texas, you'll definitely want to have the gift affidavit (Form 14-317) ready when you go to transfer the title 4. Don't forget to update your insurance before driving the car - some companies require proof of ownership transfer The whole process was much smoother than I expected, and my dad didn't end up owing any actual taxes. Just make sure you both understand the paperwork requirements beforehand so there are no surprises at the DMV or tax time.

Has anyone here dealt with a partial rollover? My situation is similar but I only rolled over about 80% of my distribution and took 20% in cash. My 1099-R shows the full amount as taxable but I'm not sure how to report that only part of it should be taxed.

Just wanted to add another perspective here - I'm a former school district HR administrator and dealt with TRS rollovers frequently. The code "7" on your 1099-R is unfortunately common when retirement systems don't properly coordinate with the IRS about direct rollovers. What's important is that you have documentation showing it was a direct transfer. Keep any paperwork from both TRS and Fidelity showing the rollover instructions and confirmation. When you file your taxes, you'll report the 1099-R as received, but then correctly indicate it was rolled over to avoid taxation. Also, Fidelity should issue you a Form 5498 by May 31st showing the rollover contribution to your IRA. This form helps the IRS match up that the funds were properly rolled over even if the original 1099-R wasn't coded correctly. Don't panic about the immediate tax liability - just make sure you answer the rollover questions correctly in your tax software!