One mistake I made last year - I only reported my net winnings from betting (winnings minus losses) instead of reporting the full 1099 amount as income and then deducting losses separately. Got a letter from the IRS a few months later! The system flags discrepancies between reported 1099 income and what you put on your return. Make sure you report the FULL 1099 amount on Schedule 1 as income, then deduct eligible losses on Schedule A if itemizing.

This is exactly the situation I found myself in last year! Here's what I learned from my tax preparer: You absolutely must report the full 1099 amounts from PrizePicks and Underdog as income - there's no way around that. The IRS gets copies of those 1099s and will expect to see that income on your return. For your losses from other sportsbooks, you can deduct them on Schedule A, but only up to the amount of your gambling winnings. So if you had $5,000 in 1099 winnings but $8,000 in total losses, you can only deduct $5,000 of those losses. The key decision is whether itemizing (to claim those losses) gives you a bigger deduction than taking the standard deduction. For 2023, the standard deduction was $13,850 for single filers. So unless your gambling losses plus other itemizable deductions (like mortgage interest, state taxes, charitable donations) exceed that amount, you're better off taking the standard deduction and just paying tax on the full 1099 income. Keep every record you can - screenshots, bank statements, anything that shows your betting activity. Even if you don't itemize this year, you might need those records later.

idk if this helps but when I had this problem it was bc my birth certificate had my middle name spelled different than my ss card

Another thing to check - make sure you're using the exact same name format that appears on your W-2 forms. Sometimes employers use your old name on tax documents even after you've updated your info with them. If your W-2 shows your maiden name but you filed with your married name, that could cause the mismatch. You might need to file with your maiden name this year and update everything for next year's filing.

I'm dealing with a similar situation right now - my business partner passed away 3 months ago and I'm in the process of buying his shares from his estate. Reading through all these responses has been incredibly helpful, especially the points about Section 754 elections and proper documentation. One thing I wanted to add based on my experience so far: if you're working with the deceased partner's estate, make sure you understand the estate tax implications on their end too. In my case, the estate had to pay estate taxes on the value of the partnership interest, which affected the timing of when I could complete the purchase. The estate attorney recommended we coordinate our transaction timing to minimize the overall tax burden for everyone involved. Also, definitely keep detailed records of all your communications and agreements with the spouse/estate. The IRS will want to see that the purchase price you paid was based on legitimate fair market value and not some kind of sweetheart deal. Having that paper trail has already proven valuable when my accountant was preparing the documentation for the basis step-up. Thanks to everyone who mentioned the various online resources and services - I'll definitely be looking into those as I navigate this process.

I'm sorry for your loss - dealing with the death of a business partner is never easy, and having to navigate complex tax issues on top of grief makes it even harder. Based on what you've described, it sounds like you're on the right track with the step-up basis concept. When your partner passed away, his 50% interest in the LLC received a step-up in basis to fair market value at the date of death ($730,000). By purchasing that interest from his widow at that amount, you essentially acquired his portion at the stepped-up basis. However, I'd strongly recommend getting professional guidance on a few specific points that could significantly impact your tax liability: 1. **Section 754 Election**: As mentioned by others, this election can be crucial for partnerships. It allows the partnership to adjust the basis of its assets to reflect the step-up, which could save you substantial taxes when you sell the properties. 2. **Inside vs. Outside Basis**: There's a difference between your basis in the partnership interest itself and the partnership's basis in the underlying assets. The step-up applies to your partnership interest, but whether it translates to the property basis depends on elections and how the transaction is structured. 3. **Timing of the Election**: If you're planning to sell properties soon, the Section 754 election needs to be made with your partnership's tax return for the year the transfer occurred. Given the complexity and the substantial amounts involved ($1.2M sale with potential $270K+ in capital gains), this is definitely a situation where spending money on a qualified tax professional who specializes in partnership taxation will likely save you much more than it costs. The nuances here can make a significant difference in your final tax bill.

3 Does anyone know if the March 2 deadline applies to the 1095-B form too? My insurance is through my wife's employer but we get a B form instead of C for some reason.

Thanks for all this helpful info everyone! I'm a newcomer here but dealing with the same 1095-C issue. My employer's HR department has been giving me the runaround about when the form will be available, and I was getting really stressed about filing my taxes. Reading through this thread has been super reassuring - especially learning that the March 2nd deadline hasn't passed yet and that I can actually file without waiting for the form. I had no idea the federal penalty for not having coverage was eliminated, so I was worried about getting all the health insurance details perfect. I think I'm going to go ahead and file this weekend since I know I had employer coverage all year. Really appreciate this community sharing their experiences - saved me a lot of unnecessary worry and probably weeks of waiting for my refund!

The complexity you're facing with Form 8960 is incredibly common, and you're asking all the right questions. Based on your description of actively managing commercial properties through your LLC, you're in a gray area that requires careful analysis. Here's my take: Your rental activities likely DO qualify as a Section 162 trade or business under the Groetzinger standard (regular, continuous activity with profit motive), especially given your hands-on management approach. However, the passive activity determination is separate and more restrictive. For line 4b adjustments, you can only reduce NIIT for income from trades or businesses that are NOT passive activities. Unless you qualify as a real estate professional (750+ hours annually in real estate activities AND more than half your total working time), your rentals remain passive regardless of your involvement level. The expenses you mentioned (mortgage interest, taxes, repairs) already reduce your Schedule E income before it flows to Form 8960 - they're not additional line 4b adjustments. Your investment advisor fees also don't qualify for line 4b treatment under current rules. My recommendation: Start documenting your time and activities meticulously NOW. Track every hour spent on property management, tenant relations, maintenance coordination, etc. If you can demonstrate you meet the real estate professional thresholds, you could potentially exclude significant rental income from NIIT through line 4b adjustments. Consider consulting with a tax professional who specializes in NIIT and real estate taxation - this area has evolved significantly with recent court cases and the stakes are high enough to justify expert guidance.

The confusion you're experiencing with Form 8960 is completely understandable - this is one of the most complex areas of tax law right now. Let me break down your situation based on what you've described. Your commercial rental properties managed through your single-member LLC likely DO qualify as a Section 162 trade or business under current case law, especially given your hands-on involvement. The Groetzinger standard looks at whether you're engaged in regular, continuous activity with a profit motive - which clearly describes your situation. However, here's the critical distinction that trips up many taxpayers: qualifying as a Section 162 business and being "non-passive" are two separate determinations. For Form 8960 line 4b adjustments, you need BOTH conditions to be met. Unless you can qualify as a real estate professional (750+ hours annually in real estate activities AND it represents more than half your total working time), your rental activities will be treated as passive regardless of how actively you manage them. This is different from the "active participation" standard used for the $25,000 rental loss allowance. Your expenses (mortgage interest, property taxes, maintenance) already reduce your net rental income on Schedule E before it flows to Form 8960 - these aren't separate line 4b adjustments. Similarly, investment advisor fees don't qualify for line 4b treatment under current NIIT regulations. My advice: Start meticulously documenting your real estate activities immediately. Track every hour spent on tenant management, property maintenance coordination, market research, financial analysis, etc. If you can demonstrate you meet the real estate professional thresholds, you could potentially exclude significant rental income from NIIT through line 4b. Given the complexity and potential tax savings involved, consulting with a tax professional who specializes in NIIT and real estate taxation would be a wise investment.