ur gonna need to setup state tax withholding with ur employer asap if u havent already

Also worth noting that Arkansas allows you to deduct your federal income tax paid from your state taxable income, which can help reduce what you owe. It's one of the few states that does this! Make sure your tax preparer knows about this deduction or look for it if you're filing yourself.

Something important that hasn't been mentioned yet: If you agree with the IRS's findings on the 4800C, you typically have payment options. You can pay in full immediately, set up an installment agreement, or potentially qualify for an Offer in Compromise if you can't pay the full amount. The key is to respond within the timeframe they specify (usually 30 days) even if you can't pay right away. Ignoring the notice will only result in additional interest and potential penalties. Also, keep in mind that if you disagree, the burden of proof is on you to show why the IRS determination is incorrect.

Hey Andre! I totally understand your panic - I had the same reaction when I got my first 4800C notice! 😅 The good news is that everyone here has given you excellent advice. Since you mentioned you sold stocks this year and tried doing your own taxes, there's a very high chance this is related to those stock transactions. Here's what probably happened: When you sold your stocks, your broker reported the sale proceeds to the IRS on a 1099-B form. But sometimes the cost basis (what you originally paid for the stocks) isn't reported correctly or at all. So the IRS thinks you made more profit than you actually did. Before you do anything else, grab your original tax return and compare it line by line with what the IRS is showing on the notice. Look specifically at Schedule D if you reported capital gains. The discrepancy might be obvious once you see them side by side. Also, definitely keep all your brokerage statements and purchase records handy - you'll likely need them to prove your actual cost basis if you disagree with their calculations. Don't let the tax jargon intimidate you - you've got this! 💪

Has anyone actually had the IRS contact them about this kind of duplicate 1099 situation? I'm wondering how likely it is that this would trigger an audit or something.

This is such a frustrating situation that happens way too often with online gambling platforms! I went through the same thing last year with DraftKings and Venmo. The key thing to remember is that you absolutely need to report both 1099s on your return, but you only pay taxes on the actual income once. When you're in TurboTax, enter both forms exactly as they appear, then look for the "duplicate income" or "adjustment" section where you can subtract out the duplicated amount. Make sure you keep detailed records showing the money flow - screenshot your PrizePicks withdrawal, your PayPal deposit, and any confirmation emails. If the IRS ever questions it, you want to be able to show a clear paper trail that it's the same funds. Also pro tip: if the amounts are slightly different due to processing fees, report the higher amount (usually from the gambling platform) as your income, and you might be able to deduct those transfer fees if you itemize. The most important thing is being consistent and having good documentation to back up your filing.

Pro tip: set up alerts with your bank. way better than refreshing wmr every 5 mins like a clown 🤡

Congrats on getting your 0405! I'm still waiting on mine but this gives me hope. Quick question - did you file early or around the usual time? Trying to figure out if filing date affects when the 0405 shows up. Also curious if anyone knows what happens if your bank rejects the deposit - does it automatically switch to a paper check or do we have to do something?

Quick tip on the PayPal/1099-K situation - PayPal is required to issue 1099-Ks for annual payments over a certain threshold, but that doesn't mean you have to pay taxes twice! When I enter my tax info, I always: 1) Enter the 1099-NEC first 2) When TurboTax asks about 1099-K, I say yes, I received one 3) When it asks if this income was already reported elsewhere, I say YES 4) It'll then ask you to identify which income it duplicates This way everything is properly documented but not double-counted. Hope that helps!

Based on your situation, here's what I'd recommend: **For the teaching income ($1,875.50):** You're absolutely right to only report this once. Use the 1099-NEC from the makerspace and ignore the PayPal 1099-K for the same payments. **For the $31.75 reimbursement:** This shouldn't be included as income since it was reimbursement for out-of-pocket expenses you incurred for the classes. You can subtract this from your total income, but then you also can't claim those material costs as expenses. **For the $25 hobby sale:** Unfortunately, yes, you need to report this as "Other Income" even though you lost money overall. The elimination of hobby expense deductions really stings in situations like yours. **Consider the business angle:** Given that you teach classes regularly at the makerspace, keep records, and have expertise in woodturning, you might actually qualify to treat this as a business rather than a hobby. This would let you use Schedule C and deduct your teaching-related expenses against your income. The key is showing profit motive - even if you're not profitable yet, if you're operating in a businesslike manner, it could qualify. I'd suggest talking to a tax professional about whether your teaching activities meet the business criteria. It could save you money and better reflect the reality of what you're doing.