make sure to check if they're using a legitimate PTIN (preparer tax identification number)! many of these sketchy tax preparers dont even have proper credentials. you can verify if they have a valid PTIN on the IRS website. if they dont, thats another violation to add to your report!!

This is exactly why I always tell people to be extremely cautious with tax preparers who promise unusually large refunds. As a general rule, if someone is guaranteeing you'll get way more money back than you've ever received before, that's a huge red flag. Beyond filing police reports in both jurisdictions (which is solid advice), make sure you also report this to the IRS Office of Professional Responsibility if the preparer claimed to have any professional credentials. They take unauthorized filings very seriously, especially when preparers are intercepting client refunds. Also document EVERYTHING - save all text messages, emails, voicemails, and any promotional materials they used to advertise their services. The more evidence you have of their fraudulent practices, the stronger your case will be. This kind of documentation can help other victims too if this becomes a larger investigation. You might want to check if there are other victims by searching online reviews or social media for complaints about this company. Sometimes these operations target multiple people with the same scheme.

Wait im confused. I've been selling on Etsy for years and never worried about this. I just report whatever is on my 1099k. Are you guys saying im doing it wrong??? Now im stressing that I've been doing my taxes incorrectly this whole time!

As someone who's been dealing with this exact issue across multiple platforms (eBay, Etsy, Amazon), I can confirm this timing difference is incredibly frustrating. What helped me was creating a simple reconciliation spreadsheet that tracks three columns: 1) Sale date, 2) Payment received date, and 3) Platform payout date. This way I can easily see which sales fall into different tax years based on when funds were actually available. I decided to stick with cash basis accounting to match my 1099-Ks, even though it means some December sales don't show up as income until the following year when the platforms release the funds. The key thing I learned is that consistency matters more than which method you choose. Pick either cash or accrual and stick with it year after year. I keep detailed notes in my records explaining any timing differences, which gives me peace of mind if I ever need to explain the numbers to the IRS. For what it's worth, my CPA told me that most small online sellers use cash basis specifically because it eliminates this headache. The platforms are essentially acting as your payment processor, so treating income as received when they release it makes perfect sense from an accounting standpoint.

Another option for your FAFSA situation - if your parents absolutely cannot file their taxes in time, you can file the FAFSA as a "provisional independent student" in certain circumstances. This is rare but possible if you can document that you have no contact with your parents or there are other extreme circumstances. You'd need to work directly with your school's financial aid office and provide documentation. It's not easy to qualify for this, but worth asking about if your parents' tax situation won't be resolved soon.

Just to add some clarity on the dependent vs independent status: The key tests for dependency include whether your parents provide more than half your support, whether you're a full-time student under 24, and whether you live with them (temporarily living away for school still counts as living with them). Each tax year stands alone. So you absolutely can be independent in 2023 and dependent in 2024 if your circumstances changed. The IRS only cares about the facts for each specific tax year.

Tbh most of my clients just send me the blank W9 form when they ask for it. Makes it easier for everyone. Not everyone knows where to find the form or which version to use. If u want it done fast just attach the PDF in your email.

From an administrative perspective, you're not required to provide the blank W9 form, but it's often the most practical approach. I work in government contracting and we always include the current W9 form with our initial request - it eliminates confusion about which version to use and removes any barriers for the contractor. The key thing to remember is that you need this information for your 1099-NEC filing, and the contractor is legally obligated to provide it when you've paid them $600 or more. I'd recommend sending one polite email with the blank form attached and a clear deadline: "Please complete and return the attached W9 form by [date] so I can properly report your payment for tax year 2024." If they still refuse after that, document the refusal and proceed with backup withholding as others have mentioned. Most contractors will comply once they understand it's a legal requirement, not just a favor you're asking.

Quick tax tip from a bookkeeper studying for the CPA too: track your study hours! If you can show you spent X hours studying specific topics directly related to your bookkeeping services vs Y hours studying audit/topics not related, you might be able to deduct a proportional amount of the expenses. Better than nothing if the IRS questions the full deduction!

Great advice from everyone here! I'm actually dealing with a similar situation with my tax prep business. One thing I'd add - make sure you're keeping detailed records of exactly what topics your CPA courses cover and how they relate to your current bookkeeping work. I created a simple spreadsheet tracking each course module and noting which ones directly applied to services I already offer clients (like tax prep, financial statement preparation, etc.) versus completely new areas. This documentation really helped when my CPA reviewed my deductions. Also, since you mentioned you're in startup phase - consider whether some of these expenses might qualify as startup costs under Section 195 rather than regular business expenses. Sometimes the startup cost treatment can be more favorable, especially if you're not generating much income yet to offset the deductions against. The international contractor payment is definitely deductible as others mentioned - just keep good records of the work performed and invoices received. No 1099 needed for foreign contractors working outside the US.