Hey there! I went through something very similar when I was starting out with my YouTube channel. One thing I'd add to all the great advice here - definitely consider opening a business bank account once you turn 18 and before you cash out. Even if it's just a simple business checking account, it makes tracking everything so much cleaner. When I first started, I mixed my creator income with my regular personal spending and it made tax prep a nightmare. Having that separation from day one makes it super easy to track business income and expenses, and it looks more professional to the IRS if they ever have questions. Also, since you mentioned your parents only know W-2s - maybe sit down with them and explain what you're doing? They might be able to help with things like estimated quarterly payments once you understand the process yourself. My parents were initially confused too, but once I walked them through it, my mom actually became my unofficial bookkeeper for tracking expenses! One last thing - don't be afraid to start small with deductions your first year. Focus on the obvious ones (software, equipment, Premium subscriptions) rather than trying to maximize every possible deduction. You can always get more aggressive as you learn the system and become more comfortable with what's legitimate.

This is such a smart question to ask ahead of time! I'm a tax professional who works with a lot of young creators, and you're absolutely on the right track thinking about this before you cash out. A few additional points that might help you plan better: **Timing Strategy**: Since you're turning 18 later this year, consider the timing of your DevEx carefully. If you cash out in December vs January, it could affect which tax year you report the income. Sometimes it makes sense to split large amounts across two tax years to manage your tax brackets better. **Record Keeping**: Start documenting everything NOW, even before you cash out. Screenshots of your Roblox developer stats, records of when you earned specific amounts, and any business expenses you've already incurred. The IRS loves good documentation, and it'll make your life so much easier. **Business vs Hobby**: With $40K in earnings, this is clearly a business, not a hobby. This is actually good news because business losses can offset other income, and you have more deduction opportunities. **State Taxes**: Don't forget about state income taxes if you live in a state that has them! The rules can be different from federal taxes. I'd strongly recommend consulting with a tax professional for your first year, especially with this amount of income. The cost of professional help is usually worth it to make sure everything is done correctly and to learn the process for future years. Feel free to ask if you have any other questions!

I went through a similar situation last year and want to share what I learned from my tax professional. The most important thing is understanding that the 1099-K reporting threshold and your actual tax obligations are completely separate issues. When you receive a 1099-K, you're not automatically taxed on that full amount. You only pay taxes on actual income - money you earned, not money that just passed through your account. For your situation with family transfers and moving money between your own accounts, those transactions aren't taxable income even though they count toward the 1099-K threshold. Here's my practical advice: Start documenting everything now. Create a simple spreadsheet with columns for date, amount, source/destination, and purpose. For family help, note things like "helped Mom with medical bills" or "transferred to Dad's account for car repair." For your own account transfers, note "moved from PayPal to checking" or similar. The key is being able to show the IRS that these weren't income-generating transactions. Bank statements showing money flowing in and immediately back out are great supporting evidence. Keep any text messages or emails that explain the purpose of transfers, especially larger ones. When you file your taxes, you'll report the 1099-K but then subtract the non-taxable portions with proper documentation. Most tax software now has specific sections for this exact scenario since it's become so common with payment platforms.

This thread has been incredibly helpful - I'm dealing with almost the exact same situation with PayPal transfers for family help and moving money between accounts. The documentation advice everyone's shared is spot on. One thing I'd add from my experience: if you're helping elderly family members who aren't tech-savvy, consider keeping a simple written log of when and why you're moving money for them. I help my grandmother pay bills online, and I started noting things like "transferred $800 to help with utility bills" with the date. It's saved me so much stress during tax time having that clear record. Also, for anyone worried about the paperwork burden - it's really not as overwhelming as it seems once you start. I was dreading going through a year's worth of transactions, but once I sat down with a spreadsheet and the simple categories mentioned above, it only took about 2 hours to sort through everything. The peace of mind knowing I won't overpay on taxes for money that wasn't even income is totally worth that small time investment.

I went through this exact same situation about a year ago and completely understand the anxiety! Here's what I learned that might help ease your mind: Form 9143 is actually pretty routine - it just means they need your signature to complete processing your return. Everything else on your return was fine, which is why they're not asking for additional documentation. Here's exactly what you need to do: 1. Sign BOTH the Form 9143 and your original 1040 return using today's date (not your original filing date) 2. Use blue or black ink and make sure your signature is legible 3. Return everything they sent back to you - don't add new W-2s or other docs unless specifically requested 4. Send it back using certified mail with return receipt for tracking The key thing that helped me was realizing this isn't a rejection - it's more like a "pause" in processing while they wait for your signature. Once you send it back, they resume processing from where they left off. I didn't get any intermediate confirmation from the IRS after sending back my signed forms - I just had to wait for the refund to show up, which took about 3 weeks. The certified mail receipt was my only proof they received it, which is why I'd definitely recommend that route. Don't overthink it - you're just completing one missing administrative step so they can finalize your refund!

I just went through this exact situation a few months ago and want to share what worked for me! Getting Form 9143 definitely feels scary at first, but it's actually one of the more straightforward IRS issues to resolve. Here's what you need to do: 1. Sign BOTH documents - the Form 9143 itself AND your original 1040 in the taxpayer signature line 2. Use today's date when signing (not your original filing date) 3. Use blue or black ink and make sure your signature is clear and legible 4. Return everything they sent back to you - the 9143, your 1040, and any attached schedules 5. DON'T send new copies of W-2s or other supporting documents unless they specifically ask for them The most important thing to understand is that Form 9143 means the IRS has reviewed your return and everything else looks good - they literally just need your signature to complete processing. Think of it as hitting "pause" rather than "reject." I strongly recommend using certified mail with return receipt when you send it back. It costs a few extra dollars but gives you proof of delivery, which is invaluable with IRS correspondence. After I sent mine back, it took about 3 weeks for my refund to be processed. You won't get an intermediate confirmation - the refund will just show up once they complete processing. Keep copies of everything you send back, and don't stress too much about it. This is really just completing one administrative step they need to finalize your return!

Has anyone here dealt with selling a Treaty of Amity company? I'm considering buying one from another American, and wondering about tax implications of the purchase/sale transaction.

This is such a helpful thread! I'm in a similar situation - American looking to start a business in Thailand under the Treaty of Amity. Reading through all these responses, it sounds like the key takeaways are: 1) It's a Thai company with special ownership privileges, not a US company 2) Form 5471 is definitely required for CFC reporting 3) FBAR and Form 8938 likely needed for bank accounts 4) GILTI and Subpart F rules can apply 5) FEIE is still possible but gets complicated with company ownership One question I haven't seen addressed - does the type of business matter for these reporting requirements? I'm looking at starting a consulting business vs. my friend who wants to do e-commerce. Would both have the same IRS filing obligations, or do certain business types trigger additional requirements under the Treaty of Amity structure? Also, has anyone worked with a US tax professional who specializes in Treaty of Amity businesses? It seems like regular expat tax preparers might not be familiar with this specific structure.

I went through this process about two years ago and can share some insights that might help with your decision. The person I reported was a contractor who was very openly bragging about taking only cash payments and "never reporting a dime to the government" - they were making it sound like some kind of clever game rather than tax evasion. What really helped me get past the guilt was talking to a tax professional who explained that the IRS isn't out to destroy people's lives - they primarily want to collect the taxes owed. Most cases end up with payment plans and penalties rather than criminal prosecution, unless we're talking about massive, systematic fraud over many years. The reporting process itself was pretty straightforward using Form 3949-A. I included their business information, timeframe of suspected evasion, and estimated amounts based on their own public statements about income levels and cash transactions. The key is sticking to information that came from their own bragging rather than private details that would make you an obvious source. Never got any direct feedback from the IRS, but about 10 months later the person suddenly started accepting credit cards and stopped making those comments about cash-only payments. They also seemed much more stressed during tax season. Whether my report caused it or not, I'll never know for sure, but the timing was pretty coincidental. My take: if someone is openly bragging about breaking tax laws, they've already made their choice. You're just making sure there are appropriate consequences for that choice, which ultimately helps maintain fairness for everyone who does pay their taxes honestly.

I reported someone about 14 months ago and wanted to share my experience since you're clearly wrestling with the same concerns I had. The person was a real estate agent who was constantly bragging at social events about how they structured deals to hide commission income and avoid "giving the government their cut." What finally pushed me to file the report was when they started openly encouraging other agents at networking events to use their "methods." It went from personal tax evasion to actively spreading illegal practices to others in their professional network. I used Form 3949-A and focused exclusively on information from their public statements - their boasting about hidden income, the approximate amounts they mentioned, and their advice to others about avoiding taxes. I was very careful not to include any details that would make it obvious the report came from me specifically. The process was actually less stressful than I expected. The hardest part was getting over the guilt, but I kept reminding myself that honest taxpayers shouldn't have to subsidize someone else's illegal behavior. When people openly brag about cheating the system, they're essentially stealing from everyone who follows the rules. Like others have mentioned, I never heard directly from the IRS about what happened. But about 8 months later, the person became much more private about their business practices and stopped giving that "tax avoidance advice" at professional events. Could be coincidence, but the timing seemed pretty telling. My advice: if you have clear evidence of someone openly bragging about tax evasion, trust your instincts and file the report. They made their choice to break the law publicly - you're just ensuring there are consequences for that choice.