16 Stupid question maybe but do I need to include the payment processor fees when determining if I've hit the $600 threshold for issuing a 1099? Like if I paid someone $590 but with fees it was $608 total cost to me, do I need to issue a 1099?

This is really helpful information! As someone who's been struggling with similar payment processor fee questions, I appreciate everyone sharing their experiences. Just to clarify my understanding - so if I pay a contractor $1,000 through Stripe and Stripe takes a $30 fee, I would: 1. Issue a 1099-NEC for $1,000 (the full amount I intended to pay) 2. On my Schedule C, deduct $1,000 as contractor expense 3. Separately deduct the $30 Stripe fee as a business expense Is that correct? And would this same logic apply to other payment methods like Venmo Business or Zelle?

This is actually really common with TT and their banking partner SBTPG. They hold onto refunds for weird reasons sometimes. Best thing to do: 1. Call SBTPG directly (not TT customer service) 2. Check your IRS transcript 3. Make sure your bank info is correct There's also a TT forum specifically for these issues that might have more specific advice.

I had the exact same thing happen to me last year - filed early February, got accepted, then suddenly status switched to pending with zero explanation from TurboTax. Turns out the IRS was doing additional processing on my EITC claim (even though everything was correct). The whole thing took about 4 weeks to resolve, but I eventually got my full refund plus interest for the delay. The most frustrating part is that TurboTax customer service acts like they have no visibility into what's actually happening once your return hits the IRS systems. I ended up having to check my IRS account transcript daily to see any updates. Don't panic though - a status change doesn't mean anything is wrong with your return, it just means the IRS needs more time to process it. The advance refund feature definitely makes it more confusing because you can't track it the normal way.

Just a heads up to the original poster - be aware that if you do file as married (common law or otherwise), you'll need to continue filing that way unless you legally separate or divorce. That's true even for common law marriages - you can't just go back to filing single next year if you decide the tax benefits aren't worth it! Common law divorce isn't really a thing in most places - you'd need to go through regular divorce proceedings just like formally married couples. So make sure you're ready for that commitment before changing your filing status!

This is really helpful information! I'm actually in a similar situation in Colorado with my partner of 2.5 years. We've been hesitant to file jointly because we weren't sure if we'd need some kind of official paperwork first. One thing I'm curious about - if we start filing as married jointly this year, does that create any kind of official record of our common law marriage with the state? Or is it purely for federal tax purposes? I'm wondering if filing jointly would affect things like health insurance through employers, since some companies require proof of marriage for spousal coverage. Also, has anyone here ever been asked to provide documentation during an actual audit? I'd love to know what kinds of evidence the IRS typically looks for to verify common law marriage status.

Does anyone know if theres a diff between "exemptions" and "allowances"? My hr dept still uses an old form that says exemptions but everyones talking about allowances and the new W4... so confused right now lol.

Hey Everett! I was in almost the exact same situation last year - 24, single, making around $45k. The confusion is totally understandable since they changed everything recently. Here's what I learned: forget about "exemptions" - that's old terminology. The current W-4 (redesigned in 2020) doesn't use allowances or exemptions anymore. Instead, it asks specific questions about your situation. For someone like you (single, one job, $42k), you'd typically just fill out Steps 1 (personal info) and 5 (signature). That's it. This gives you standard withholding that should get you close to breaking even at tax time. If you want to factor in your student loan interest deduction, you could add that estimated amount in Step 4(b) "Deductions" to reduce your withholding slightly and get a bit more in each paycheck. The key is finding the sweet spot where you don't owe much or get a huge refund. At your income level, even a $1,500 refund means you're missing out on $125/month that could go toward paying down those student loans faster. But you also don't want to owe more than you can handle come April. I'd recommend starting with the basic form (just Steps 1 and 5) and see how your first few paystubs look, then adjust if needed.

Does anybody know if eBay still sends those 1099-K forms if you sell over a certain amount? I thought the threshold changed recently.

Great question! I was in a similar boat when I started selling my old baseball card collection. Just to add to what others have said - make sure you keep good records of all your sales, even if you don't think you'll owe taxes on them. I use a simple spreadsheet tracking what I sold, when I sold it, the sale price, and what I originally paid (or my best estimate). Even for items sold at a loss, having documentation can be helpful if you ever get questions later. Plus it makes it much easier to see which sales actually resulted in gains that need to be reported. I learned this the hard way after scrambling to recreate records during tax season! Also worth noting - if you start doing this regularly and making decent money, you might want to consider if it's becoming a business rather than just casual selling. That changes how you report things significantly.