Don't panic yet! This time of year it could be a simple CP2000 notice if there was a minor discrepancy between what you reported and what was reported to them (like a 1099 that didn't match perfectly). Since you already got your refund, it's likely just a routine notice that needs a response. The fact that it's thin is a good sign - audit packets are usually thick. Keep us posted on what it turns out to be!

I totally get the anxiety! I've been through this exact situation multiple times. Since you already got your refund and it's a thin envelope, it's most likely just a routine notice - maybe they need to verify something minor or there was a small discrepancy they caught after processing. The IRS sends out millions of these notices and most are just informational or require a simple response. Try to breathe easy until you actually see what it says! 📬

Does anyone know if TurboTax handles the calculation of depreciation automatically? I hate math and am terrified of getting this wrong!

Just want to add something that might help - when you're calculating what percentage of your home's value is attributable to the building vs land (for depreciation purposes), you can usually find this info on your county tax assessor's website. They typically break down the assessed value between land and improvements. Also, since this was your primary residence before becoming a rental, make sure you're using the lower of either your original cost basis or the fair market value when you converted it to rental use. This is called the "conversion rule" and can actually save you money if your home decreased in value between when you bought it and when you started renting it out. One last tip - keep really good records of any improvements or repairs you make while it's a rental property. Capital improvements get added to your basis and depreciated, while repairs and maintenance are immediately deductible. The distinction can make a big difference on your taxes!

Big heads up for you: at 16, you might not have to pay self-employment tax at all if this is considered a dependent's unearned income! The rules are different if your parents claim you as a dependent, which I'm guessing they do. You should really have your parents talk to a tax professional about this because it gets complicated with minor's taxes.

Hey Chloe! I totally get the stress - I was in a similar boat when I started freelancing at 17. Here's what helped me get organized: First, don't panic about missing the September deadline. The penalty for late quarterly payments isn't huge, especially on a first-time basis. Calculate what you owe for Q3 and pay it ASAP along with your Q4 payment due January 15th. For record-keeping, I'd suggest setting up a simple system now: - Open a separate checking account for business income/expenses if possible - Track all business expenses in a spreadsheet (internet %, laptop use, software, etc.) - Set aside 25-30% of each payment for taxes The Schedule SE form is definitely confusing - ignore the farm stuff, that doesn't apply to you. You'll report your net profit from Schedule C (income minus expenses) on the SE form to calculate self-employment tax. Since you can't create an IRS account yet, have a parent help you set up online payments or mail estimated tax payments with Form 1040ES. You're actually ahead of many people by catching this now instead of at tax time! Consider getting help from a tax pro for your first filing - it's worth the peace of mind and you'll learn the process for next year.

Something else to consider - you might be eligible for a whistleblower reward if the IRS collects taxes based on your information. If the amount exceeds $2 million, you could get 15-30% of what they collect. Even for smaller amounts, you might still get something. Just use Form 211 instead of or in addition to Form 3949-A.

I reported my previous employer for almost the exact same thing in 2023. They were calling everyone "contractors" even though we worked regular 9-5 schedules in their building using their equipment. Make sure you document EVERYTHING before you leave - copies of schedules, emails about your duties, anything showing they controlled how/when you worked.

Anyone know if this is something the BBB would handle? My grandma swears by reporting everything to them but idk if they actually do anything about tax stuff.

Just wanted to add another perspective - if you're comfortable doing so, consider documenting this with photos or video next time you shop there. Take a picture of the items you're buying, the receipt showing the incorrect tax rate, and maybe even the store's posted prices. This creates a clear paper trail that investigators can use. Also, check if your state has a "whistleblower" protection program for tax fraud reporting. Some states actually offer financial rewards if your report leads to recovered tax revenue, and they provide legal protection against retaliation. Might be worth looking into since this sounds like it could be a significant amount of money they've collected illegally over time. Keep us updated on what happens! These kinds of posts help other community members know what to watch out for.