This is definitely confusing, but you're not alone in this situation! A few things to consider that might help solve the mystery: First, check what distribution code is in Box 7 of your 1099-R - this will tell you exactly what type of distribution it was. Code "1" means early distribution, "4" means death benefit, "G" means direct rollover, etc. Each code points to a specific scenario. Second, the $390 amount suggests this could be from a small employer-sponsored benefit you forgot about. Many companies automatically enroll employees in basic life insurance (often 1x your salary) or contribute small amounts to retirement plans. When you leave the company, these small balances sometimes get distributed years later due to administrative costs. Also worth noting - if you've moved recently, you might have missed earlier correspondence from Nationwide explaining the distribution. They're legally required to send notices before distributing funds, but if it went to an old address, you wouldn't have seen it. I'd recommend calling Nationwide's customer service line and asking them to look up the account history. They can tell you when the account was opened, what type it was, and what employer or entity originally set it up. Don't worry about reporting the income on your taxes even if you never received the money - the IRS just needs to see that you're aware of the distribution.

I had almost the exact same thing happen to me two years ago! Got a 1099-R from a company I'd never heard of for around $200. Turned out it was from a previous employer's group term life insurance policy that had a small cash value component I didn't even know existed. What really helped me was creating a timeline of all my previous jobs and any benefits they might have offered. Sometimes HR departments automatically enroll you in things during orientation that you completely forget about, especially if it was a brief employment period. Also, don't stress too much about the tax implications. Even if you never physically received the $390 (which often happens when checks get sent to old addresses), you'll still need to report it as income. But if it turns out to be from a qualified retirement plan and you're under 59½, you might also owe a 10% early withdrawal penalty - so definitely worth figuring out exactly what type of account this came from before filing your return. The customer service route is definitely your best bet. When you call, have your SSN ready and ask them to search by that rather than trying to explain you don't remember having an account. They should be able to pull up the full history and explain exactly where this distribution originated from.

Great advice in this thread! One thing I'd add - make sure you're keeping detailed records of ALL your income, not just what shows up on payment apps. I learned this lesson with my freelance work when the IRS asked for documentation during a review. Keep screenshots of payments, transaction histories, and any correspondence with buyers. Also, don't forget about potential business expenses! If you're buying props, lighting, or even specific nail polish/pedicures for your photos, those could be legitimate deductions. The key is that they have to be ordinary and necessary for your business. I'd recommend consulting with a tax professional at least once to make sure you're maximizing your deductions while staying compliant - it's usually worth the cost when you're dealing with self-employment income for the first time. Good luck with your business!

One thing I haven't seen mentioned yet is the importance of understanding your state tax obligations too! While everyone's focused on federal taxes (which is definitely priority #1), don't forget that most states also require you to report self-employment income on your state return. Some states have different thresholds or rules for small business income, and a few states don't have income tax at all. But if you're in a state like California or New York, you'll want to make sure you're compliant there too. Also, since you mentioned this is your first time with non-W2 income, I'd strongly recommend setting aside 25-30% of your earnings in a separate savings account specifically for taxes. It's better to overestimate and get a refund than to be caught short when tax time comes around. Self-employment taxes can be a shock if you're not prepared for them! The quarterly payment advice from earlier is spot on - once you hit that $1,000 threshold, the IRS really does expect those estimated payments. Missing them can result in penalties even if you pay everything when you file your return.

Don't waste your money on TurboTax Deluxe! You can file with the Retirement Savings Credit for FREE using FreeTaxUSA or the IRS Free File program. TurboTax intentionally locks these credits behind paywalls even though other services include them in their free versions.

This is such a common misconception! I went through the exact same confusion last year. The key thing to understand is that "non-refundable" doesn't mean it can't increase your refund - it just means the credit itself can't go below zero. Think of it this way: you've already paid taxes through payroll withholding all year. The Retirement Savings Credit reduces your actual tax liability, which means more of what you already paid gets returned to you as a refund. I'd definitely pay the $54 for TurboTax Deluxe if that's the route you're going, but as others mentioned, you might want to check if FreeTaxUSA or other free services can handle this credit without the upgrade fee. The credit calculation itself is legitimate though - you're not being scammed!

Has anyone used TurboTax to handle this specific situation? I'm in the same boat with a PayPal 1099-K for gambling but not sure if the software can handle it correctly.

This is a really complex situation that I see come up a lot in tax forums. One thing I'd add to the excellent advice already given - make sure you understand the timing of when PayPal reports these transactions versus when your actual gambling activity occurred. Sometimes PayPal will issue a 1099-K based on when payments were processed through their system, which might not align perfectly with your actual gambling sessions. For example, if you deposited money in December 2022 but it didn't clear until January 2023, there could be timing differences that affect which tax year the activity should be reported in. Also, keep in mind that if you do end up owing taxes on this, the IRS offers payment plans that can help spread out the burden. But definitely get this sorted out correctly from the start - gambling income reporting errors can trigger audits, and you want to make sure your documentation is bulletproof. The separate account strategy mentioned by others is spot-on for future years. It's much easier to handle this when gambling transactions are completely isolated from your regular financial activity.

I've been preparing taxes professionally for 5 years, and I have to echo what everyone else is saying - those YouTube courses are way overpriced for what you get. Here's the reality: I started with the IRS VITA program (completely free), got my PTIN ($35.50), and invested in Drake Tax software ($425 that first year). Total startup cost under $500 versus the $1,350 you're considering. My first year I made $4,800 preparing 42 returns, working only evenings and weekends during tax season. I charged $100-180 per return depending on complexity. Now I consistently make $16,000+ each season. The VITA program was invaluable because you get hands-on experience with real returns under supervision. You'll encounter situations that no video course covers, and having experienced volunteers there to guide you builds real confidence. Plus, the training is always current with the latest tax law changes. Just focusing on tax returns is absolutely viable - that's what I do. The seasonal nature is perfect for a side hustle since you're only committed January through April but can still generate substantial income. My advice: Skip those expensive courses. Start with VITA volunteering to build skills, get your PTIN, invest in legitimate tax software, and begin with simple returns. You'll save over $800 and get much better, more practical training. The word-of-mouth referrals from doing quality work will build your client base naturally. Those YouTube "gurus" are capitalizing on people who don't know about the free IRS resources. Don't fall for it!

I've been a tax preparer for 8 years and I'm glad to see so many people steering you away from those overpriced YouTube courses! The advice here is spot-on. One thing I'd add that hasn't been mentioned much - consider your local market when setting expectations. I'm in a mid-size city where I can charge $150-250 per return, but preparers in smaller towns might need to charge less while those in major metropolitan areas can charge more. My first year I made $5,400 preparing 36 returns after starting with VITA training. The experience you get there is invaluable - I remember my first client who had cryptocurrency transactions that weren't covered in any basic training material, but my VITA supervisor walked me through Form 8949 step by step. For software, I started with TaxSlayer Pro and it was perfect for beginners. The interface is intuitive and they have excellent customer support during tax season. Don't let anyone convince you that you need the most expensive software package when you're starting out. The key is building a reputation for accuracy and good customer service. I still have clients from my first year who refer their friends and family to me. Word of mouth is everything in this business. Save your money, go the legitimate route through IRS programs, and invest in proper software and insurance. You'll be much better prepared and won't waste over $1,000 on questionable training.