Does anyone know which tax software handles this situation best? I'm using TurboTax and it keeps asking me to input a 1099-K that I don't have...

You're absolutely right to be proactive about this! I had the same concern with my online sales last year. The IRS actually expects you to report ALL income regardless of whether you receive a 1099 - it's your legal obligation whether the form shows up or not. Since you have your sales records from Shopify, you're in great shape. Just report your gross income on Schedule C and deduct any legitimate business expenses (Shopify fees, advertising, materials, etc.). The 1099 threshold confusion this year means many people are in your exact situation, and the IRS is well aware of it. One tip: save screenshots of your Shopify dashboard showing your total sales for the year. This creates a paper trail in case you ever need to prove your income reporting was accurate. Don't let the missing 1099 delay your filing - you've got everything you need to file correctly right now!

Don't forget about state taxes too! Federal is only part of the equation. Some states tax capital gains at the same rate as ordinary income, while others have special rates or exemptions. I sold SPP shares last year and was surprised that my state (California) wanted a bigger cut than I expected. The discount portion was fully taxable as regular income at both federal and state levels.

Great thread everyone! As someone who just went through this process, I wanted to add a few practical tips that helped me: 1. **Keep meticulous records from day one** - Don't wait until tax time to organize your SPP transactions. I created a simple spreadsheet tracking each purchase with columns for: date, shares purchased, price paid, fair market value that day, and discount received. 2. **Check if your broker provides tax documents** - Some SPP administrators will send you supplemental tax forms (like Form 3922 for qualified plans) that show the discount amounts. This makes reporting much easier than trying to calculate everything manually. 3. **Consider tax-loss harvesting** - If you have other investments with losses, you might be able to offset some of the gains from your SPP sales. Just be aware of wash sale rules if you're buying and selling similar stocks. 4. **Plan your sales strategically** - Since you mentioned needing money for a house down payment next year, consider selling your longest-held shares first to take advantage of long-term capital gains rates, and maybe spread the sales across tax years if it makes sense for your bracket. The complexity is real, but once you understand the basics it becomes much more manageable. Good luck with the house purchase!

I went through something very similar with an LTR 672C last year. The key thing to understand is that this letter means the IRS has determined you received more refund than you were entitled to, and they're now applying that "overpayment" to cover other tax obligations. Based on what you've described, it sounds like you might have unreported income from 2018 that the IRS recently matched up with their records. This is actually pretty common - they get 1099s and W-2s from employers/clients and use automated systems to cross-reference them with your filed return, sometimes years later. My advice: Don't panic, but don't ignore it either. Pull your 2018 wage and income transcript from the IRS website (irs.gov) to see exactly what income was reported under your SSN that year. Compare that to what you actually reported on your return. You'll likely find the missing piece of the puzzle there. If you do find unreported income, you'll need to file an amended return (Form 1040X) for 2018. The good news is that if your overpayment covers the additional tax owed, you might just owe some interest rather than penalties. Make sure to respond within the timeframe specified in the letter - usually 30-60 days.

Just wanted to add one more important point that I learned the hard way - when you file that amended return (1040X) for the unreported income, make sure you include Form 8857 if you're married filing jointly and your spouse wasn't involved in the unreported income. This can help protect your spouse from penalties and interest. Also, keep detailed records of everything - copies of the original LTR 672C, your wage and income transcripts, the amended return, and any correspondence with the IRS. If they send you additional notices (which sometimes happens even after you've resolved things), having this paper trail makes everything much easier to sort out. One last tip: if you're planning to use a tax professional for future returns, now might be a good time to establish that relationship. They can review your amended return before you file it and help prevent similar issues in the future. Many people don't realize that even small freelance jobs or side gigs need to be reported if you receive a 1099.

One thing nobody mentioned is that the IRS usually sends a SECOND notice before moving to a Notice of Deficiency. So even though you missed the first deadline, you likely have some time before things escalate to real trouble. When I had a CP2000 a couple years ago, I completely missed the first notice (it got delivered to my old address), and only responded after getting the follow-up notice. Everything still worked out fine once I sent in the correct documentation. The IRS mostly wants the right information and their money - they're not trying to penalize people who are making good-faith efforts to resolve issues.

Dont worry too much about the deadline. I had the same panic when I missed mine by almost 3 weeks because I was in the hospital. Just make sure you have PROOF of your cost basis - like statements from your broker showing what you paid for the stocks. The IRS system often doesn't get this data electronically from brokers which is why these CP2000s for stock sales are so common.

Just a heads up that you might face this issue again with future employers. I've been on F1 for 4 years and had to educate EVERY employer about FICA exemptions. I now bring IRS Publication 519 (specifically the sections about FICA for F1 students) to HR during onboarding to prevent this from happening again.

Great advice from everyone here! I went through something similar during my F1 OPT period. One thing I'd add is to make sure you keep copies of everything - your original W2, the W2C, your I-20, EAD card, and any correspondence with your employer about the FICA correction. The IRS processing of amended returns can sometimes trigger additional questions, especially for international students, so having all your documentation organized makes responding much easier if they ask for proof of your visa status or work authorization. Also, if you're planning to stay in the US after graduation, having this paper trail helps establish your tax compliance history for future visa applications. The whole process is definitely frustrating, but you're absolutely doing the right thing by getting it corrected. Those FICA refunds can add up to significant money!