Just wanted to add that your friend should check if they received ANY stimulus payments at all before filing. They can create an account on IRS.gov and view their tax transcript to see what payments (if any) were issued to their SSN. This is super important because the Recovery Rebate Credit is only for the DIFFERENCE between what they were eligible for and what they actually received. For example, if they were eligible for $1,400 but only got $600, they can only claim the $800 difference on their 2021 return. Don't want them to accidentally claim the full amount if they got partial payments!

I helped my brother through this exact situation last year! He was a first-time filer trying to claim missed stimulus payments from 2021. A few key things that made the process smoother: First, have your friend check if they were claimed as a dependent on anyone else's return in 2021 - this affects their eligibility. Second, the Recovery Rebate Credit goes on line 30 of the 2021 Form 1040, and they'll need to use the 2021 Recovery Rebate Credit worksheet to calculate the exact amount. Third, even though they never filed before, they should still try to get a copy of their 2021 Social Security Statement from ssa.gov to verify their earnings - the IRS will cross-reference this. My brother ended up getting $2,800 in missed payments, but it took about 20 weeks to process since it was a paper return. The wait was worth it though! Make sure they send it certified mail so there's a tracking record.

Can you just change your W-4 to withhold less for the rest of the year to make up for the refund you're not getting? That way you'd have more money in each paycheck instead of waiting for a refund that's just going to your debt anyway.

One thing I learned the hard way - make sure you update your withholdings NOW so you don't end up in this same situation next year! I was in a similar payment plan situation and kept getting refunds that would just disappear to my debt. It felt like I was never making real progress. What helped me was using the IRS withholding calculator on their website to figure out exactly how much to withhold so I'd break even (or owe just a tiny bit). That way I got more money in each paycheck throughout the year instead of giving the IRS a free loan that just went straight to my balance anyway. Also, don't forget that once your refund gets applied to your debt, you should get a notice showing your new balance. Keep track of this because it affects how much longer you'll be making payments!

Has anyone else noticed that Venmo's reporting rules changed for 2025? They lowered the threshold for issuing 1099-Ks from $20,000 down to $5,000. But this still only applies to BUSINESS accounts, not personal ones.

The key thing to remember is that your 1099-NEC filing obligation is completely separate from whatever Venmo does or doesn't report. As a business owner, you're required to issue 1099-NECs to any non-employee service provider you paid $600 or more during the tax year - period. The payment method is irrelevant. Whether you paid via personal Venmo, business Venmo, check, cash, or carrier pigeon, your reporting requirement stays the same. Venmo's 1099-K reporting (which only applies to business accounts anyway) is about THEIR obligation to report payment processing volume, not about YOUR obligation to report business expenses. So for your makeup artist ($7,800) and assistant ($5,200), you definitely need to issue 1099-NECs. Get their W-9 forms ASAP and file the 1099s by January 31st. Don't overthink the Venmo aspect - just focus on the basic rule: $600+ to a service provider = 1099-NEC required.

Can u also talk about if viewer gifts like keyboards or gaming chairs count the same way? I got a $900 gaming chair from a viewer last month and idk if I have to pay taxes on that too? Seems weird to pay taxes on gifts?

I'm a newer streamer just getting into the tax side of things, and this thread has been incredibly helpful! I had no idea that viewer gifts like food deliveries were taxable income. Quick question for everyone - what about smaller items? Like if someone sends me a $5 coffee through one of these delivery services, do I really need to track and report that too? I'm worried about the administrative burden of tracking every single small delivery, but I also don't want to mess up my taxes. Also, has anyone found a good system for tracking all these different types of income throughout the year? Between bits, subs, donations, and now apparently food deliveries, it feels overwhelming to keep everything organized.

Don't forget about tax treaties! Depending on what country you're from, there might be provisions in the tax treaty between your home country and the US that could affect your tax status. Some treaties have special rules for students that extend beyond the normal 5-year exemption period. Worth checking if your country has such provisions!

This is such a common confusion for people with complex visa histories! I went through something very similar a few years ago. One thing that might help clarify your situation: the IRS has a specific worksheet in Publication 519 (U.S. Tax Guide for Aliens) that walks you through determining your status step by step. It's called the "Substantial Presence Test" worksheet and includes special calculations for students. Since you mentioned TurboTax classified you as a resident but you expected to be non-resident, I'd recommend double-checking a few things: 1. Did you file Form 8843 in previous years (2013-2016)? This form is required for exempt individuals and helps establish your exemption history. 2. Make sure to count ALL days of physical presence, including partial days (arrival/departure days count as full days for the test). 3. Check if your home country has a tax treaty with the US that might provide additional student exemptions beyond the standard 5 years. The good news is that if you determine you filed incorrectly, you can always amend your return. But getting it right the first time will save you hassle later! Also, keep detailed records of your entry/exit dates - I-94 records are available online and can help you reconstruct your presence history accurately.