This is such a helpful thread! I'm in a similar situation - just started monetizing my gaming channel last month and feeling overwhelmed by the tax implications. One thing I've been wondering about is digital vs physical game purchases. Most of my games are digital downloads from Steam, Epic, etc. Do digital receipts work the same way for tax purposes as physical receipts? I'm worried the IRS might question why I don't have traditional paper receipts. Also, what about games I get for free through press kits or review codes? I assume those can't be deducted since I didn't pay for them, but do I need to report their value as income somehow? The record-keeping advice here is gold. I'm definitely going to start that spreadsheet tracking system right away. Better to be over-prepared than scrambling later!

Great question! As someone who's been through this transition from hobby to business, I can definitely confirm that video games are legitimate business deductions for content creators. The key things to remember: 1. Keep detailed records of every purchase - game title, cost, purchase date, and which videos/content you used it for 2. You can only deduct the business portion if you also play for personal enjoyment (be honest about the split) 3. Make sure you're treating this as a real business - separate bank account, proper bookkeeping, genuine intent to profit Since you just got into the YouTube Partner Program, now's the perfect time to start organizing your finances properly. You'll be filing Schedule C as a sole proprietor once you start earning revenue. One heads up - don't go crazy buying every new release just for deductions. The IRS wants to see that your purchases are "ordinary and necessary" for your specific type of content. If you're doing horror game reviews, buying the latest sports games might raise questions. Good luck with your channel! The tax side gets easier once you establish good habits from the start.

I filed on January 29th this year. Got PATH message immediately. Stayed that way until March 2nd. Then it changed to approved. Got my deposit on March 7th. No verification needed. The PATH message is normal. It's just frustrating. The IRS won't even look at returns with certain credits until February 15th. Then they process in order received. Your date matters.

Just wanted to add my perspective as someone who went through this exact situation! I had the same "still being processed" with PATH message appear around this time last year. Like others mentioned, it's almost certainly just the standard PATH Act delay if you claimed EITC or Child Tax Credit. The key thing that helped me was understanding that this is completely separate from identity verification - those requests come with very specific instructions to visit ID.me or call a special number. The PATH delay is just the IRS following federal law to prevent fraud. I know it's stressful when you have plans for your refund, but in my experience, once the delay period ends, processing usually moves pretty quickly. Hang in there!

Don't forget that with self-employment income, even just from occasional speaking gigs, you'll need to pay the self-employment tax (15.3%) on top of income tax. That can come as a shock if you're not prepared for it. The good news is that you can deduct half of the self-employment tax on your 1040, and you can also take deductions for business expenses that will reduce the taxable amount.

Just to add to all the great advice here - don't stress too much about making it sound like a "real business" when filling out Schedule C. The IRS understands that people have occasional 1099 income that doesn't constitute an ongoing business. For your husband's situation, I'd suggest: - Business name: You can just put his name or leave it blank - Principal business code: 611430 (Professional and Management Development Training) works well for academic speaking - Business address: Your home address is fine - Accounting method: Cash (unless he invoiced but wasn't paid until later) The key thing is to be honest about any expenses he had. Did he travel to these symposiums? Buy books or materials for his presentations? Even things like printing handouts or a new shirt for the presentations could be deductible. Also, keep in mind this will likely increase your tax liability since it's subject to both income tax AND self-employment tax. But the deductions can help offset some of that impact. Your FreeTaxUSA software should handle all the calculations once you input the information - it's really not as complicated as it initially seems!

Has anyone tried just using an SSN instead of an ITIN on the W9? I'm in a similar situation and my cousin told me I could just apply for an SSN instead since the process is supposedly easier.

I went through this exact same situation with Chase about 6 months ago! The key thing that helped me was being proactive with communication. As soon as I submitted my W-7 form for the ITIN application, I called Chase's customer service and explained the situation. They were actually pretty understanding once I explained that I was a new resident who needed an ITIN for banking purposes but wasn't earning US income yet. The representative put a note on my account and extended my deadline to 90 days instead of 30. One tip that really helped: when you submit your ITIN application, ask the IRS (or your Certifying Acceptance Agent if you use one) for a receipt or acknowledgment letter. Chase accepted this as proof that I was actively working on getting my ITIN, which stopped the threatening letters. Also, make sure to keep detailed records of all your communications with both Chase and the IRS throughout this process. It'll save you headaches later if there are any mix-ups!

Has anyone dealt with the opposite problem? My LLC got a 1099-NEC but the work was actually done by me personally before I formed the LLC. Payment processor refuses to change it saying "we paid the entity listed on your invoice." Now I'm stuck figuring out how to report it.

I deal with business entity transitions all the time in my tax practice, and you're absolutely right to be concerned about this. The payment processor needs to void that S corp 1099-NEC immediately. Here's what's happening: The IRS computer systems will match 1099s against tax returns filed. Since your S corp is dissolved and won't be filing a return, that 1099-NEC will show as "unmatched income" in their system. This can trigger automated notices demanding a tax return for the dissolved entity, even years later. When you contact them again, be very direct: "You have issued a 1099-NEC reporting $X income to [S Corp Name], TIN [number]. This entity was dissolved in 2019 and performed no work in 2024. This form must be voided/corrected to show $0 income, not just transferred to my personal information." If they still won't cooperate, document everything and consider having a tax professional send a letter on letterhead - sometimes that gets better results than individual requests. You might also need to attach an explanation to your personal tax return documenting the error and your attempts to correct it. Don't let this slide - I've seen clients get IRS notices for dissolved entities years after the fact due to uncorrected 1099 issues.