11 Just want to clarify something I learned the hard way: the "5-year property class" the IRS uses actually spans 6 calendar years if you purchase mid-year! The first year is a partial year (depending on which quarter you purchased), then you have 4 full years, and then a partial 6th year. So if you bought your car in October 2023, your depreciation actually extends into 2028 calendar year. This mistake cost me big time on a business vehicle I sold "after 5 years" but technically before the recovery period was complete.

There's another important consideration that hasn't been mentioned yet - the Section 179 recapture rules if your business use percentage drops below 50% during the recovery period. Even if you keep the vehicle for the full 5-year recovery period, if your business use falls below 50% in any year during that period, you'll face recapture of the excess Section 179 deduction you claimed. This is separate from the depreciation recapture that occurs when you sell the vehicle. Since you mentioned you use it 100% for business now, just make sure you can maintain at least 50% business use throughout the entire recovery period. The IRS requires you to track and report the business use percentage each year on Form 4562. This is especially important for consulting businesses where your travel patterns might change over time. Keep detailed mileage logs to protect yourself from any potential recapture issues down the road.

Has anyone used TurboTax for filing when they have an eBay 1099? I'm in the same boat and wondering if the free version can handle this or if I need to upgrade to the self-employed version?

I went through this exact situation last year and wanted to share what I learned! You absolutely need to file even if you sold everything at a loss - the IRS will assume that entire $6,800 is profit if you don't report it properly. Here's what worked for me: I created a simple spreadsheet listing each item I sold, what I originally paid for it, and what I sold it for. Even without receipts, you can use reasonable estimates based on what you remember paying or what similar items cost when you bought them. Bank statements, credit card records, or even photos with timestamps can help support your estimates. The key is reporting this on Schedule C to show your cost of goods sold. If you truly sold everything at a loss, you'll end up with zero taxable income from eBay, but you still need to file to prove this to the IRS. For software, I used FreeTaxUSA's Deluxe version (around $15) and it walked me through everything step by step. Much cheaper than TurboTax's self-employed version and just as good for this type of situation. The software will ask you simple questions about your eBay sales and generate the right forms automatically. Don't stress too much - this is actually pretty common now with the new 1099 reporting requirements. Just make sure you file something to avoid getting a scary notice from the IRS later!

Another thing to consider - if you end up having to make the payment again while this is being sorted out, make sure to request abatement of any penalties and interest when you file your tax return. The IRS has a "reasonable cause" exception for situations like this. Form 843 is what you'd use to request abatement, and you'd include all your documentation showing you attempted to make the payment on time. I've seen cases like this where the IRS approved the abatement because it was clearly the payment processor's fault, not the taxpayer's.

I'm going through something very similar right now with a different payment processor! Reading through all these responses has been incredibly helpful. I used DirectPay to make a $4,200 estimated payment back in February and it's been missing for over 8 weeks now. What's really frustrating is that these third-party processors charge convenience fees (I paid an extra $35) but then can't even guarantee the payment actually reaches the IRS. At this point I feel like paying directly through the IRS website is the only safe option, even though their system is clunkier. I'm definitely going to try the bank dispute route based on what others have shared here. Has anyone had success getting the convenience fees refunded too when disputing these charges? It seems unfair to pay extra for a "service" that didn't work. Also planning to file complaints with both the BBB and CFPB as suggested. These payment processors need to be held accountable for these systemic issues that are clearly affecting multiple taxpayers.

I filed my MD tax return electronically on March 31, 2025, and I received confirmation the same day that it was accepted. It has now been 11 weeks, and I still have not gotten my refund. I filed several requests with the Comptroller's office for information, the first over 4 weeks ago. I have received no response, even though the website says that most inquiries will be responded to in 2-3 business days. I have had no contact, not even an inquiry for more information (assuming that there might have been a problem with my submitted return). Beyond frustrating!

Wow, 11 weeks is completely unacceptable! I'm dealing with the same thing - filed in January and still waiting. It's really frustrating that they're not even responding to your inquiries. Have you tried reaching out to your state delegate or senator? Sometimes they can put pressure on the tax office to actually respond. Also might be worth filing a complaint with the Maryland Attorney General's office if you haven't already. This level of delay without any communication is just wrong.

The different copies thing confused me so much my first time filing! Here's a quick breakdown of what they're all for: - Copy A: Goes to Social Security Administration (employer sends this) - Copy B: For Federal tax return - Copy C: For your records - Copy D: For employer's records - Copy 1: For State/City/Local tax authorities - Copy 2: For your State/City/Local tax return When using tax software though, just enter the info once and you're good. The software doesn't care which physical copy you're looking at since all the data is identical!

The multiple copies confused me so much last year! I actually mailed in Copy C with my paper return and the IRS sent me a notice saying I didn't attach my W-2. Turns out I was supposed to use Copy B. But since you're using tax software, you don't mail anything. Just type in the info from any copy (they're identical) and keep all the paper copies for your records. The software will transmit everything electronically.