Don't make this harder than it needs to be! The food delivery apps should have sent you a 1099-NEC or 1099-K showing your income. Just report that on Schedule C. For the vehicles, if youre using standard mileage, you just track miles and multiply by the rate (65.5 cents per mile for 2023). no need to worry about all this complicated trade-in stuff unless your accountant says so!!!!

As someone who's dealt with business vehicle trades recently, I want to emphasize how crucial it is to get the depreciation recapture calculations right. When you trade in business vehicles, you need to account for any depreciation you've previously claimed (or deemed to have claimed with standard mileage). For your Honda Civic with 20% business use, you'll need to calculate the business portion of any gain/loss. Same with the Elantra at 85% business use. The key is determining your adjusted basis for each vehicle - original cost minus accumulated depreciation for the business portion. One thing that caught me off guard was that even with the standard mileage method, the IRS considers you to have taken depreciation based on the depreciation component built into the mileage rate. This affects your basis calculation when you dispose of the vehicle. I'd strongly recommend keeping detailed records of each vehicle's purchase price, trade-in value, business use percentage, and total business miles driven. You'll need all this information for proper reporting on your Schedule C and potentially Form 4562.

Has anyone tried the IRS Free File Fillable Forms for this? I know it's not as user-friendly as the guided software, but it should theoretically support all tax forms and codes including Schedule D with Code L on Form 8949, right?

I ran into this same issue last tax season! After trying several free options that didn't support Code L, I ended up using the IRS Free File Fillable Forms that Zoe mentioned. Yes, it's more manual work, but it's completely free and supports all codes. For anyone going this route: you'll need to calculate your own gains/losses and manually enter each transaction on Form 8949. Code L is for when basis wasn't reported to the IRS (which is typically the case with 1099-K from personal property sales). The key is documenting your original cost basis - even rough estimates are acceptable for personal items you sold at a loss. One tip: keep detailed records of how you determined your cost basis in case of questions later. I made a simple spreadsheet showing item descriptions, estimated original purchase dates/prices, and sale amounts. Made the whole process much smoother.

22 Quick question - does anyone know if the threshold for 1099-K reporting is staying at $600 for 2025 filing, or is it going back up? I sell stuff on eBay occasionally and I'm trying to figure out if I need to worry about this for next year.

I've been dealing with a similar situation and wanted to share what I learned from my tax preparer. The reason most tax software pushes you toward Form 8949 instead of Schedule 1 line 24z is that line 24z is typically reserved for specific types of income adjustments that don't involve capital transactions. For personal items sold at a loss (like your furniture and electronics), the IRS considers these capital transactions, even though they're personal property. This means Form 8949 is technically the correct form, despite feeling overly complicated for what should be simple. One thing that helped me was realizing I could summarize similar items rather than listing every single transaction. For example, "Various household items sold on PayPal - 15 transactions" with total proceeds and estimated cost basis. As long as you can reasonably justify your basis estimates and keep any receipts or records you do have, this approach is acceptable and much more manageable than itemizing everything separately. The good news is that once you set it up correctly in the tax software, it automatically handles all the calculations and transfers the information to the right places on your return.

You can also request your wage and income transcript online through the IRS website if you don't want to wait on the phone. You need to create an account on irs.gov if you don't already have one. Sometimes the verification process can be a bit difficult, but once you're in, you can download your transcripts right away (assuming they're available for the year you need).

One thing nobody mentioned - even when your wage and income transcript becomes available in July, it might not include EVERYTHING right away. I've had situations where some 1099s didn't show up until August or even September! If you're using the transcript to verify you have all your documents, just be aware it might not be 100% complete even when it first becomes available.

Just wondering - how much is the payment plan setup fee? I'm in a similar situation (owe about $800) and wondering if it's worth setting up a plan or just waiting until I file in a few weeks.

I completely understand your anxiety about this - the "jeopardy" language is definitely designed to get your attention! Here's what I'd recommend based on your situation: **Don't wait** - even though you're only waiting for one W2, that lien/levy notice means the IRS is ready to take action. A few key points: 1. **Call the IRS immediately** at the number on your notice. Explain you're waiting for a missing W2 and plan to file soon. They can often put a temporary hold (60-90 days) on collection actions. 2. **Request your wage transcript** from IRS.gov while you wait - this shows all reported W2 info and might have enough detail to file without the physical W2. 3. **Set up a minimal payment plan** if you can't reach them by phone. Even $25/month stops collection and shows good faith. Online setup is only $31 vs $107 by phone. The key thing is **communication** - the IRS doesn't know you plan to pay with your refund. From their perspective, you're just ignoring a debt. Once you make contact and explain your situation, they're usually reasonable about working with you. Don't risk a lien on your credit report over $650 - it's not worth the long-term damage for a relatively small amount. Take action today!