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Random question - does anyone know if Robinhood reports cost basis to the IRS or just the sales amount? I've heard different things and I'm not sure if the IRS will know if the numbers are wrong.
Robinhood does report cost basis to the IRS for most securities purchased after 2011. You can verify this on your 1099-B - if Box 1e (Cost or other basis) is filled in, then yes, the IRS is receiving that information. They know exactly what your gain/loss should be.
Don't stress too much about this! You're definitely not the first person to forget about small investment accounts when filing taxes. The key thing is that you're addressing it now rather than ignoring it. For the Robinhood 1099-B showing $28, that's likely the gross proceeds from sales, not necessarily your taxable gain. If you bought stocks for $30 and sold them for $28, you'd actually have a $2 loss to report, not $28 in income. Same principle applies to your Cash App bitcoin - the $4.75 is probably what you received when you sold, but your actual gain/loss depends on what you originally paid. The IRS definitely receives copies of these 1099s, so filing an amended return is the right move. Given the small amounts involved, any additional tax owed will be minimal - probably less than $10 total. The peace of mind is worth it, and if you actually had losses on these transactions, you might even get a slightly bigger refund. File Form 1040-X once your original return finishes processing. Most tax software can handle this easily for such straightforward additions.
Has anyone used the free file fillable forms on the IRS website with zero income? Wondering if there are any special instructions or if it gets confused when you put zeros everywhere.
I tried it last year with very minimal income. It works fine but can be confusing since there are so many zeros. Make sure you still fill out all required fields even if they're zeros. For some reason, the system sometimes flags $0 as an error until you actually type in the zero rather than leaving it blank.
Great question! As others have mentioned, you can absolutely file with zero income, and there might actually be some good reasons to do so in your situation. Since you mentioned being a student, here are a few things to consider: Even if your parents claim you as a dependent, you might still qualify for education-related credits like the American Opportunity Tax Credit if you paid for qualified education expenses (tuition, fees, required books). This can potentially get you money back even with no income. Also, filing establishes a paper trail with the IRS that can be helpful for future financial aid applications, loan applications, or other situations where you need to prove your tax filing history. Some programs require tax returns even if you had no income. The filing threshold for someone your age who can be claimed as a dependent is pretty low anyway - if you had even a small amount of income from odd jobs, interest, or other sources during the year, you might need to file regardless. Since you're graduating soon and entering the workforce, getting familiar with the tax filing process now (when it's simple) isn't a bad idea either. Better to learn when there's less at stake!
This is really helpful advice! I'm actually in a similar situation as a student. One question though - how do you know if you qualify for the American Opportunity Tax Credit? Is there an income limit or other requirements I should be aware of? I did pay for some textbooks and lab fees this year but wasn't sure if those count as "qualified education expenses.
Anyone else notice that the IRS seems to be auditing way more returns lately? I've had more clients get audit notices in the past 6 months than the previous 3 years combined.
I've heard they're focusing on high income returns (over $400k) and those with Schedule C business income after getting that increased funding. Targeting where they think they'll recover the most unpaid taxes.
I'm dealing with a similar situation right now - my 2024 return got flagged for audit in February and the examiner assigned to my case has been completely unresponsive. My tax preparer has tried calling the practitioner priority line at least a dozen times over the past two months with zero success. What's worked for me so far is documenting everything. I keep a detailed log of every call attempt, including dates, times, and how long we waited on hold before giving up. This documentation has been crucial when escalating the issue. A few things that might help in your situation: 1. Request a case transfer if your examiner continues to be unresponsive. You can do this in writing and cite the lack of communication as grounds for reassignment. 2. The Taxpayer Advocate Service threshold is usually when you can demonstrate that normal IRS procedures aren't working. Two months of no response definitely qualifies. 3. Make sure your written response includes a statement about the communication attempts and requests a phone conference within a specific timeframe (like 30 days). 4. If you have TurboTax audit defense, make sure they're documenting all of this for potential escalation to higher levels within the IRS. The whole system is overwhelmed right now, but persistence and good documentation usually pay off eventually. Don't let the silence make you panic - keep pushing through the proper channels.
Has anyone tried Credit Karma Tax (now called Cash App Taxes)? It's completely free for federal and state filing. I switched from TurboTax last year and it was pretty good, handled my somewhat complicated return with no issues. No hidden fees or fake guarantees.
I used it this year! It's definitely more basic than TurboTax but gets the job done. The interface isn't as polished but I saved like $120 and my refund was exactly the same as what TurboTax calculated when I did a comparison before submitting. Only downside is they don't support some more complex tax situations like multi-state filing or foreign income.
I'm dealing with this exact same issue right now! Filed with TurboTax online three weeks ago and discovered they miscalculated my child tax credit. When I called about their "satisfaction guarantee," the rep told me it only applies to desktop software. But their website shows the guarantee right on the online filing pages with no clear distinction! I've been going back and forth with customer service for days. They keep saying "we stand behind our products" but won't actually do anything to fix the error or refund my fees. It's so frustrating because I specifically chose TurboTax because of that guarantee. Thanks for posting this - at least I know I'm not the only one dealing with their misleading marketing. Definitely looking into those alternative services people mentioned here for next year.
Sophia Russo
lol meanwhile im still waiting on my 2022 return... pain š„²
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Evelyn Xu
ā¢same boat fam... same boat š
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Luca Esposito
Thanks for sharing this update! It's really helpful to know the timeline. I filed my Kansas return about 3 weeks ago and it's been stuck on "processing" - this gives me hope that things might be moving behind the scenes even when the website doesn't reflect it. Did you e-file or mail yours in?
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