Don't forget to check if you might qualify for the Earned Income Tax Credit even with low self-employment income! If you're over 25 or have qualifying children, you might get money back even if you don't owe taxes.

You definitely need to file! The $400 threshold for 1099-NEC income applies regardless of your total income level. Since you received $3,000 as an independent contractor, you'll need to file Form 1040 with Schedule C (for business income/expenses) and Schedule SE (for self-employment tax). The self-employment tax will be about 15.3% on your net earnings, but don't panic - you can potentially reduce this by deducting legitimate business expenses. Keep receipts for anything you purchased specifically for the internship (software, equipment, transportation costs, etc.). Also, even though you'll owe self-employment tax, you likely won't owe any federal income tax due to your low total income. You might even qualify for a refund if you had any taxes withheld from other jobs during the year. The filing requirement exists mainly to ensure you pay into Social Security and Medicare through the self-employment tax.

Has anyone here actually received confirmation that their paper return was processed? I mailed mine 4 months ago to the Austin address (I'm in California) and the "Where's My Refund" tool still says "Return Not Processed" when I check. Getting really worried they lost it.

I feel your pain on this address confusion! I went through the same nightmare last year when I had to paper file. The key thing to remember is that the IRS has been consolidating processing centers, which is why you're getting conflicting info from different sources. For 2023 California returns, Sydney Torres gave you the correct addresses above. Just to reinforce: - NO payment: Austin, TX 73301-0002 - WITH payment: Cincinnati, OH 45280-2501 Pro tip: Use certified mail with return receipt so you have proof it was delivered. The IRS can take 6-8 weeks just to acknowledge they received a paper return, so don't panic if you don't see it in their system right away. Also, double-check that you're looking at the 2023 Form 1040 instructions, not older versions. The IRS updates these addresses periodically, and outdated info floating around online is probably why your neighbor and others are giving you different addresses. Good luck with your filing!

Just to add another data point - I received a similar Facebook settlement payment of $412 last year, also through PayPal. I never received any tax forms either. I ended up reporting it on my Schedule 1 as "Other Income" and wrote "class action settlement" in the description field. Had no issues with my return.

I just went through this exact situation with a different class action settlement! The key thing to remember is that even without a 1099 form, you're still responsible for reporting the income. I called the IRS directly (took forever to get through) and they confirmed that settlement payments like these go on Schedule 1, Line 8i as "Other Income." For documentation, I kept screenshots of my PayPal transaction, the settlement notice email, and any correspondence about the lawsuit. The IRS agent told me that's sufficient backup documentation if needed later. One tip: make sure to write a clear description like "Facebook class action settlement" on the form so it's obvious what the income source was. This helps if there are ever any questions down the road.

Has anyone found a good solution for dealing with these K-1s that come after the filing deadline? I got my DBC one on April 20th last year and had to file an extension because of it. Super annoying!

I'm dealing with this exact same situation! Got my first DBC K-1 this year and was completely blindsided. One thing I learned after doing some research is that you should definitely keep records of your cost basis in DBC separate from what's reported on the K-1, because the K-1 income/loss items don't necessarily correspond to your actual economic gain or loss from the investment. Also, if you're using tax software like TurboTax or FreeTaxUSA, make sure to look for the "Partnership K-1" section specifically - don't try to enter it as regular investment income or you'll mess up your return. The software should walk you through each box on the K-1 and ask you what type of income it represents. One more heads up - if this is your first year with commodity ETF K-1s, expect to get it late next year too. I wish someone had warned me that these partnerships almost always file extensions and send out K-1s well after April 15th!

Has anyone suggested filing a police report? My sister's refund was stolen last year and the police report was super helpful for dealing with the IRS. They took her case more seriously once she had that documentation.

I'm so sorry this happened to you - identity theft for tax refunds is incredibly violating and stressful. The good news is that you absolutely can recover your stolen refund, though it will take some patience. Here's what worked for me when I went through this exact situation two years ago: 1. File Form 14039 (Identity Theft Affidavit) immediately - this is your most important step 2. File a police report even if they seem dismissive - you need the report number for documentation 3. File a complaint with the FTC at IdentityTheft.gov 4. Call the IRS Identity Theft hotline at 800-908-4490 (dedicated line for victims) The IRS will assign you a Personal Identification Number (PIN) for future filings to prevent this from happening again. You'll need to file a paper return for this year since the fraudulent one was already submitted electronically. It took about 4.5 months for me to get my refund, but I did get every penny back. The IRS actually has pretty good procedures for this - they deal with thousands of these cases annually. Stay organized with all your documentation and follow up regularly, but don't panic. You will get your money back.