17 Another important thing to know - starting in 2022, Stripe also includes sales tax in the gross amount on the 1099-K! If you collect and remit sales tax through Stripe, that's also contributing to the difference. For example, if you sold $100 worth of products and collected $8 in sales tax, the 1099-K shows $108 even though the sales tax isn't your income. Make sure you're tracking and deducting any sales tax that's included in the gross amount but that you've remitted to your state.

I went through this exact same nightmare last year! The key thing to understand is that Stripe's 1099-K is essentially a "gross sales" report - it includes everything that flowed through your account before ANY deductions. Here's what I found contributed to my $18k difference: - Processing fees (about 2.9% + 30¢ per transaction) - Refunds and chargebacks (counted as "gross" even though you returned the money) - Disputes and failed payments that were initially processed - Any subscription billing that was later reversed The good news is you can deduct ALL of this on your tax return. I use Schedule C and put the full 1099-K amount as gross income, then deduct processing fees under "Other business expenses" and refunds under "Returns and allowances." Pro tip: Go to your Stripe dashboard → Reports → Balance and download the annual summary. It breaks down exactly where every penny went. Keep this with your tax records - it's your best friend if the IRS ever questions the difference. Don't stress too much about it looking suspicious. This discrepancy is super common with payment processors, and the IRS knows about it. Just make sure you have good documentation!

Has anyone been able to use TurboTax to file an amended return for crypto losses? Their interface is confusing me when trying to enter all my transactions from 2021.

I was in almost the exact same situation! Lost about $8k in crypto in 2021 and completely ignored it on my taxes because I was so frustrated. Finally bit the bullet and filed an amended return (Form 1040-X) last month. The process wasn't as bad as I expected. You definitely should report all crypto transactions even with zero gains - the IRS considers each trade a taxable event regardless of profit/loss. I gathered all my exchange statements, calculated my basis using FIFO method, and filed the amendment. Already got my refund for the $3k loss deduction against my 2021 income, and I can carry forward the remaining $5k to offset future gains or take another $3k deduction next year. Don't let the paperwork intimidate you - it's worth doing especially since you're still within the 3-year window to amend 2021.

Anyone know if having a roommate/partner affects eligibility for home office deduction? My tax guy said something about not being able to take the deduction if I share the apartment with someone else, which sounds wrong based on this thread.

I've been in a similar situation with shared apartment expenses, and one thing that helped me was keeping meticulous records from day one. Beyond what Carmen mentioned, I'd also suggest: - Taking photos of your office setup with timestamps - Keeping a log of business activities conducted in the space (even just a simple calendar noting "client calls," "project work," etc.) - Saving email confirmations or receipts for any office furniture/equipment purchases One mistake I made initially was not separating my business and personal use clearly enough. The IRS really emphasizes "exclusive" use - so if you ever use that room for personal activities (like storing personal items, having guests sleep there, etc.), it could jeopardize your deduction. Also, regarding your work truck parking - since you mentioned the actual expenses are higher than standard mileage, make sure you're consistent with your vehicle deduction method throughout the year. You can't switch between actual expenses and standard mileage for the same vehicle in the same tax year. Good luck with your first year taking the deduction! It's definitely worth getting right from the start.

I'm having exact same problem!!! Last month I sold my grandmother's old china set for $700 that was probably worth thousands when new but I don't have a receipt from the 1970s lol. Also sold some designer clothes I impulse bought and never wore but took a big loss on them. How do u even figure the cost basis on inherited items like that china? Its so confusing and I'm scared PayPal will send a 1099K even though I'm nowhere near the threshold and then the IRS will think I'm running a business or something which I'm definitely not!!!

@Jordan Walker, I completely understand your stress about this! I went through something very similar last year and want to share what I learned that might help ease your worries. First, the good news: you're thinking about this correctly. The IRS distinguishes between personal items sold at a loss versus actual business income, and you won't owe taxes on selling your personal belongings for less than you paid. Here's what I did when I was in your exact situation: 1. Created a simple spreadsheet with columns for: Item Description, Approximate Purchase Date, Estimated Original Cost, Sale Price, and Notes 2. For items without receipts, I researched similar items online to estimate what I originally paid 3. Added notes like "personal designer bag purchased approximately 2019, selling due to financial need" The key insight that helped me: the IRS isn't trying to trap people selling personal items at yard sale prices. They're looking for patterns that suggest unreported business activity. Your situation - selling varied personal items at obvious losses - is clearly not a business. Regarding the thresholds, yes it's confusing! PayPal has been more aggressive with 1099-K reporting, but remember: receiving the form doesn't create a tax obligation. You'll just need to show these were non-taxable personal sales when you file. Don't let this keep you from selling items you need to sell! Just document what you can reasonably document, and you'll be fine.

Based on everyone's experiences here, it sounds like you're still well within the normal timeframe for Colorado state refund checks. I had a similar situation last year where my check was mailed March 15th and didn't arrive until March 31st - exactly 16 days! The waiting is definitely nerve-wracking, especially when you're checking the mailbox every day. One thing that helped me was calling my local post office around day 12 to ask if they were experiencing any delivery delays in my area. They mentioned that tax season puts extra strain on their system and that government checks sometimes get sorted differently than regular mail. Since you're at 9 days now, I'd suggest waiting until you hit the 15 business day mark before taking any action. But definitely keep documenting everything like you're doing - that preparation will be helpful if you do need to contact the Colorado Department of Revenue later. The fact that you can confirm it was officially mailed is a good sign that the process is working normally!

I'm dealing with this exact same situation right now! My Colorado refund was marked as mailed on April 8th, so I'm at day 8 and getting a bit anxious too. Reading through all these experiences has been incredibly helpful - it's reassuring to see that 10-17 days seems to be the normal range for most people. What really stood out to me is the suggestion about checking with your local post office around day 12. I never would have thought of that, but it makes perfect sense that they might have insights about local delivery delays that the state wouldn't know about. I'm also planning to wait until the 15 business day mark before contacting Colorado DOR, based on what everyone here has shared. One thing I learned from this thread is to definitely switch to direct deposit next year - 5 days versus 2-3 weeks is a no-brainer! But for now, it sounds like we just need to practice patience. Thanks for starting this discussion, it's really helped calm my nerves about the timeline.