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.

I'm in a very similar boat! Got my verification letter yesterday (also dated over a month ago - seems like there's a serious mail delay this year) but my transcript updated two days ago. I called the verification line this morning and actually got through after about 45 minutes on hold. The agent told me that since my transcript is already showing processing codes, I don't need to complete verification unless I see those 570/971 codes come back. She said the automated systems caught up and cleared my return without manual verification needed. Might be worth trying the phone line again - I called right at 7am EST and got through relatively quickly compared to other times I've tried.

This happened to me last year! The key thing to understand is that the IRS has multiple verification pathways running simultaneously. Sometimes their automated fraud detection systems will clear your return while the manual verification letter process is still chugging along in the background. If your transcript updated and shows processing codes (like 150 or 846), that's the most reliable indicator that your return is moving forward. The transcript system is updated in real-time, while letters can be delayed by weeks due to printing and mailing backlogs. That said, I'd still recommend completing the verification if you can get through - it only takes about 10 minutes and gives you peace of mind. But don't panic if you can't reach them immediately. Your transcript update is a very positive sign that the system has already authenticated your return through other means.