Anyone else feel like the government is just trying to squeeze more tax money out of regular people with these new 1099-K rules? Most people using Venmo and CashApp are just normal folks splitting bills, not businesses trying to evade taxes! 😡

This is such a timely question! I went through the same panic last year when I first heard about the 1099-K changes. Here's what I learned after doing a lot of research and talking to a tax professional: The $600 threshold only applies to payments you RECEIVE that are marked as "goods and services" - not personal transfers like splitting dinner bills or paying rent to roommates. So if you're mostly sending money TO friends rather than receiving it FROM customers, you're probably fine. For the money you received from selling stuff on Facebook Marketplace, you'll only owe taxes if you made a profit. If you sold your old couch for $200 but originally paid $500 for it, that's actually a loss and not taxable income. My suggestion is to go through your transaction history ASAP and categorize everything: - Personal transfers (splitting bills, paying friends back) - Sales where you lost money (sold for less than you paid) - Actual profit from sales Keep screenshots and receipts as documentation. The IRS isn't trying to tax you on money that was never really income in the first place, but having good records will save you stress if questions come up later. Don't panic - most casual users aren't going to owe anything significant even if they do get a 1099-K!

19 From my experience as a full-time Uber/Lyft driver, the key thing the IRS is looking for is consistency in your record-keeping method. If you create a system and stick with it all year, you're much less likely to be questioned. What I do: I take a photo of my odometer at the start of each shift and another at the end (with timestamps). I keep a super simple spreadsheet with date, starting miles, ending miles, which app I was driving for, and total business miles. That's it. Been doing this for 4 years, never had a problem with the IRS. The people saying you need origin/destination for every trip are probably mixing up the requirements for reimbursement from an employer (which is more detailed) versus self-employed mileage deduction (which is more reasonable).

As a tax professional who works with a lot of gig drivers, I can confirm that your daily starting/ending odometer readings are actually a solid foundation for mileage deduction! The IRS doesn't require trip-by-trip logging for delivery drivers like some people think. Here's what you should definitely keep: 1) Date of work, 2) Starting odometer reading, 3) Ending odometer reading, 4) Total business miles, and 5) Brief description like "Pizza Hut delivery shift." The key is being consistent with whatever method you choose. One thing I'd add to your current system: keep track of your total annual mileage (both business and personal) so you can show the percentage of business use. Also, if you use your car for both jobs on the same day, try to separate those entries if possible - it makes things cleaner if you ever get audited. You're not doing anything wrong! Your method is actually pretty good compared to some drivers I've worked with who have no records at all.

just fyi transcripts update every tuesday morning if ur checking refund status

Another option if you're having trouble with online access - many public libraries and tax prep offices have computers set up specifically for accessing IRS transcripts. The librarians are usually pretty helpful if you get stuck on the verification steps!

One thing nobody's mentioned yet is that meal deduction rules can differ by business type! My wife has an LLC taxed as an S-Corp and we have completely different rules than when I had a single-member LLC. Also, the actual verbiage in your LLC operating agreement matters. If your wife's LLC operating agreement specifically mentions regular planning meetings as part of operations, you're in a much stronger position to defend those meal deductions. Might be worth having a tax attorney review your operating agreement to see if an amendment would help clarify and support these deductions going forward. The other question is how the LLC is taxed - is it a pass-through entity or does she file separate business returns? That can impact how these deductions are treated too.

Based on my experience with similar LLC situations, your spouse business meal deductions are in a gray area that requires very careful documentation. The IRS doesn't have specific rules prohibiting spouse-to-spouse business meals, but they scrutinize them heavily because they could easily be viewed as personal expenses disguised as business deductions. The key factors that make these deductions defensible are: 1) The meals have a clear business purpose that wouldn't exist without the LLC, 2) You maintain detailed records beyond just receipts (specific topics discussed, decisions made, action items), 3) The frequency is reasonable (occasional planning sessions, not regular dinners), and 4) The expenses are proportional to your business income. Given that your wife's LLC income is only 3-4% of household earnings, these deductions might fly under the radar, but that doesn't make them automatically legitimate. I'd recommend starting to document these meals more thoroughly going forward - keep a business diary with dates, specific article topics discussed, planning decisions made, and concrete outcomes from each meeting. The fact that two different accountants haven't flagged this suggests it's not obviously wrong, but it's still worth getting proper documentation in place to protect yourself if questions ever arise.

your in for a wait fam. they tried sending mine to closed account twice b4 getting it right 💀

Ugh this is my biggest fear! I'm still waiting for my 846 code but my bank account situation is sketchy too. How did you get through to the IRS to update your info? Every time I call it's like a 2 hour wait and then they hang up on me 😤 Hopefully the new DD info processes quick for you!