Just a warning about the "keep it under $600 per platform" strategy - the rules are changing! The 1099-K reporting threshold was supposed to drop to $600 across all platforms last year, then got delayed, but it's likely coming soon. Also, the IRS can look at patterns. If they see you're conveniently just under reporting thresholds on multiple platforms, that could trigger questions. Better to just report everything properly and take advantage of all legitimate deductions. Honestly with your situation of low income this year and higher next year, you might even WANT to recognize more income this year while you're in a lower tax bracket!

Great thread everyone! As someone who went through a similar situation last year, I wanted to add a few thoughts that might help. The advice about recognizing income this year while you're in a lower bracket is spot on - that's exactly what I wish I had done. I ended up deferring a lot of sales and got hit harder tax-wise the following year when my regular income kicked in. One thing I learned the hard way: even if you're selling personal items at a loss (which is common with clothes), you still need to be able to reasonably document your original cost basis. I started taking photos of similar items online to show typical retail prices for the brands/styles I was selling. It's not perfect, but it helps establish that you're not just making up numbers. Also, don't forget about state taxes! Some states have different thresholds and requirements than federal, so make sure you're considering both levels. The suggestion about using a dedicated credit card for selling expenses is golden - makes tracking so much easier at tax time. I use a simple spreadsheet too, but having that card statement as backup is really helpful. Good luck with your sales! Sounds like you're being smart about planning ahead.

One thing nobody mentioned - if you owe more than $54,000, the IRS can now revoke your passport or prevent you from getting one! They're required to notify you before doing this, but it's definitely beyond a "financial penalty" and could seriously impact your life if you travel internationally for work or family. Also, if you owe more than $25,000, you can't use the online payment plans and things get more complicated. The bigger your balance gets (with all those penalties and interest compounding), the fewer options you have.

The passport revocation process is actually pretty straightforward from the IRS side. Once you have a "seriously delinquent tax debt" (over $54,000 including penalties and interest), the IRS sends your information to the State Department through an automated system. The State Department then either denies your passport application or revokes your existing passport. You get advance notice - the IRS has to send you a Notice CP508C before certifying your debt to State. But once that happens, you basically can't travel internationally until you either pay in full, set up an approved payment plan, or get the debt declared currently not collectible due to hardship. The scary part is how fast you can hit that $54k threshold when penalties and interest are compounding. If you originally owed $20k and let it sit for a few years, you could easily cross into passport revocation territory without realizing it.

I feel your frustration completely - I went through something very similar with my 2018 amended return a couple years ago. The "3 weeks to show up in system" timeline on their website is honestly outdated and misleading at this point. Here's what I learned from my experience: The IRS processes paper amended returns in batches, and right now they're severely understaffed. Your return is almost certainly sitting in a physical pile somewhere waiting to be manually entered into their computer system. The fact that you have certified mail confirmation of delivery on April 11th is crucial - keep that documentation safe. At 8 weeks, you're definitely within your rights to call and inquire. Try calling early in the morning (8-9 AM) on Tuesday or Wednesday for the best chance of getting through quickly. When you call, have your SSN, filing status, exact dates, and that certified mail tracking number ready. One thing that helped me was asking the representative to put notes on my account about my inquiry. That way if you need to call again, there's a record of your previous calls and concerns. Also ask for a case reference number if they can provide one. The waiting is absolutely the worst part, but in my experience, these "lost" returns usually aren't actually lost - they're just buried in processing backlogs that are much longer than what their website suggests.

I'm going through almost the exact same situation and it's incredibly frustrating! My 2019 amended return was mailed via certified mail on March 25th (so about 10 weeks now) and absolutely nothing is showing up in the "Where's My Amended Return" tool. What really gets me is that the IRS website is still showing that misleading "3 weeks to show up in our system" guidance when clearly that's not even close to reality right now. I've been checking obsessively every few days and getting the same "information currently unavailable" message. Reading through everyone's experiences here, it sounds like the actual timeline is more like 12-16 weeks just to be acknowledged in their system, which is drastically different from what they're telling people. I wish they would just update their website to reflect the real processing times so we're not all sitting here thinking our returns are lost. I'm definitely going to try calling that 866-464-2050 number tomorrow morning using the tips about calling early on Tuesday/Wednesday. Having certified mail confirmation gives me some peace of mind that it's not actually lost, just buried in their massive backlog. Thanks to everyone sharing their experiences - it really helps to know this is a widespread issue and not just my specific return that got misplaced somewhere!

Just wanted to add that if you're ever unsure about your tax code, you can check it online through your HMRC personal tax account. You'll be able to see exactly how they calculated your code and what factors they've taken into account (like benefits, previous underpayments, etc.). Also, don't worry too much if your code changes between jobs - it's actually quite common. When you start a new job, your new employer uses the tax code from your P45 (if you have one) or puts you on an emergency code temporarily. HMRC then sends them your correct code once they've processed your employment details. The 1242L code is indeed the standard one for most people in the 2024-25 tax year, so you're likely on the right track. Just keep an eye on your payslips to make sure the deductions look reasonable for your salary level.

Just to add another perspective - I had the exact same confusion when I switched jobs last year! The 1242L code is definitely the standard one, but what really helped me understand my take-home pay was using a simple salary calculator online to work out exactly what should be coming out. With your £38,500 salary, after the £12,420 personal allowance, you'd be paying 20% tax on £26,080 (which is £5,216 annually). Don't forget National Insurance contributions too - that's 12% on earnings between £12,570 and £50,270, so roughly £3,112 per year on your salary. Your monthly take-home should be around £2,550-£2,600 depending on your pension contributions. If it's significantly different from that, it might be worth checking if you're on an emergency tax code temporarily or if there are other deductions you weren't expecting. The good news is that if you have been overpaying due to an incorrect code, HMRC will refund you once it's sorted!

Have you considered just adjusting the "extra withholding" line on your W-4s instead? My husband and I file jointly with 4 kids, and we found it easier to each claim 2 kids but then have an extra $50 per paycheck withheld on my form. Way simpler than trying to calculate the perfect split.

One thing that helped us tremendously was running a mock tax return halfway through the year to see how our withholding was tracking. We use tax software to estimate our liability based on our year-to-date income and withholding, then adjust our W-4s if needed. Since you mentioned you and your wife have similar incomes, you might find that splitting the kids 2-1 works better than 1-2, depending on who has slightly higher income. The person with higher income should probably claim fewer dependents since they're in a higher tax bracket on that extra income. Also worth noting - if either of you gets bonuses or overtime that varies year to year, that can throw off your withholding calculations. We learned to be a bit more conservative with our dependent claims when we expect variable income.