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Has anyone used TurboTax for this situation? I'm in the same boat with no 1099 from PayPal and wondering if the software handles it smoothly or if it gets confused when you report income without a corresponding form.
This is a great question and you're absolutely on the right track by wanting to report everything properly! I went through this same situation last year with my freelance work. You definitely want to report all $8,000 as self-employment income on Schedule C, even without a 1099-K. The IRS expects you to report all income regardless of whether you receive tax forms. In fact, they're well aware that many people earn income below the various reporting thresholds. Here's what I did that worked well: - Downloaded my complete PayPal transaction history for the tax year (you can export this as a CSV file) - Created a simple spreadsheet tracking each client payment with date, amount, and client name - Kept screenshots of key transactions as backup documentation The lack of a 1099-K won't trigger any red flags - it's actually very common. What would cause problems is NOT reporting income that the IRS might later discover through their data matching systems. Make sure you also track any business expenses related to earning that income (equipment, software subscriptions, etc.) since those can be deducted on your Schedule C. Every little bit helps when you're paying self-employment taxes! You're doing this exactly right by being proactive about proper reporting.
This is exactly the kind of detailed advice I was hoping to find! Thank you for breaking down the specific steps. I'm definitely going to export my PayPal transaction history as a CSV - I hadn't thought about creating my own spreadsheet backup but that makes total sense for organization. Quick question about business expenses - I use my personal laptop and phone for client work but also for personal stuff. Can I still deduct a portion of those costs, or does it need to be equipment used exclusively for business?
10 Professional athletes and entertainers have a special tax situation called the "jock tax" where they often have to file tax returns in EVERY state/country they perform in. Some tennis players might have to file 15+ tax returns each year! Their tax bill can vary hugely depending on where tournaments are held.
15 That's crazy! So do they have to track exactly how many days they spend training in each location too? How detailed does it get?
10 It gets incredibly detailed. They often have to track not just tournament days but practice days, appearances, and even endorsement income that might be allocable to different locations. Their accountants typically create schedules showing exactly which days were spent in which tax jurisdictions. They don't just pay tax on tournament winnings either - they're taxed on a portion of their endorsement income based on where they played/appeared. This is why tax planning is huge for top athletes. Some even schedule their exhibition matches and appearance schedule to minimize time in high-tax locations.
22 This is why so many athletes establish residency in places like Monaco, Switzerland, or Dubai. The tax savings can be millions per year for top earners. But the US is one of the few countries that taxes worldwide income for citizens, so American athletes can't escape US tax even if they move abroad.
4 I heard that's why Rory McIlroy in golf never took US citizenship despite living here - he'd get hit with worldwide taxation. Smart financial move I guess.
Exactly! And it's not just about current earnings - US citizens also face exit taxes if they renounce citizenship after reaching certain wealth thresholds. The IRS treats it as if you sold all your assets on the day you renounce, so you'd owe capital gains on unrealized gains. It's designed to prevent wealthy people from just ditching US citizenship to avoid taxes. For athletes who've built up substantial wealth, renouncing citizenship can actually trigger a massive tax bill even if they never plan to earn another dollar in the US.
To all those having trouble reaching a human at the IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/wMf29SmRU-I
I'm seeing the same message too! It's been showing for about 2 weeks now and it's so frustrating not knowing what's actually going on. Based on what others are saying here, it sounds like this is pretty common right now and we might just need to wait until after the 15th for any real updates. At least it's reassuring to know I'm not the only one dealing with this vague message. Thanks for posting this - sometimes it helps just knowing you're not alone in the tax refund limbo! π
Has anyone used Credit Karma Tax (now Cash App Taxes) to file an amended return for a missed 1099-R? I'm in a similar situation but don't want to pay TurboTax's fees again just for an amendment.
I used Cash App Taxes to amend a return last year for a missing 1099-R. It was fairly straightforward but you need to have your original return handy. The interface walks you through what changed from your original return. Just make sure you enter the full distribution amount and then the taxable portion separately (they're different for excess contribution returns).
Just wanted to share my experience since I went through something very similar last year. I also had a job change situation where I over-contributed to 401k plans and received a corrective distribution in 2022 that I completely forgot to include on my return. The good news is that since you found the 1099-R and can see it shows code "P" with only $276 taxable, your tax impact should be pretty minimal. I was in a similar boat - my taxable portion was only around $300 and the additional tax owed was less than $100. I filed the 1040-X amendment myself and it was processed without any issues. The key things I learned: 1) File the amendment as soon as possible to show good faith, 2) Include a brief explanation that you're self-reporting an omitted 1099-R, and 3) Make sure to pay any additional tax owed with the amendment to minimize interest charges. The IRS was actually pretty reasonable about the whole thing since I caught and corrected it myself before they sent any notices. Don't stress too much - this happens more often than you'd think with job changes and retirement account corrections.
This is really reassuring to hear from someone who went through the exact same situation! I was honestly panicking thinking I was going to owe thousands in penalties. The fact that your additional tax was under $100 makes me feel so much better about moving forward with the amendment. Quick question - do you remember roughly how long it took for your 1040-X to be processed? I'm hoping to get this resolved quickly so I can stop worrying about it. Also, did you have to mail in the paper form or were you able to file it electronically somehow?
Libby Hassan
Has anyone noticed that verification cases seem to follow a pattern? My tax preparer handles about 50 clients who needed verification this year. Almost all of them had their transcripts update within 14-21 days after verification. The ones who verified online through ID.me were faster (average 14 days) than those who had to call in (average 19 days). And here's the interesting part - returns with Child Tax Credit seemed to take 3-5 days longer than those without. Anyone else seeing similar patterns in their experience?
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Rebecca Johnston
β’Could you clarify if these timelines are business days or calendar days? And did any of your tax preparer's clients have to verify by mail rather than phone or online? I'm trying to understand all the variables.
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Nathan Dell
β’I'm wondering if return complexity is also a factor in these processing times? For example, do self-employed returns with Schedule C take longer after verification than simple W-2 only returns?
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Hunter Hampton
After going through verification three years in a row (yes, really!), I can tell you that the April timeline is the worst-case scenario. The IRS tells everyone the maximum time to manage expectations. My personal experience: 2022 took 8 weeks (during COVID backlog), 2023 took 4 weeks, and this year took only 17 days from verification to deposit. The system is getting more efficient. Just make sure you've actually completed verification correctly - check your email for confirmation and log into your IRS account to confirm your identity status shows as verified.
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Sienna Gomez
β’Your three-year verification streak is both impressive and unfortunate! It's encouraging to see the processing times improving each year. Quick question - do you know why you keep getting flagged for verification? Is it something specific about your return that triggers it, or just bad luck with their fraud detection algorithms?
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Kristian Bishop
β’Three years of verification sounds exhausting! I'm curious about your IRS account login tip - when I check mine, it just shows my basic info but doesn't specifically say "verified" anywhere. Where exactly should I be looking to confirm my identity status? I want to make sure I'm not missing something important that could be holding up my processing.
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