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!

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.

Just wondering if anyone has tried Credit Karma Tax? I've been using it for the past two years. It doesn't have a fancy "find all deductions" feature, but it's FREE and does ask a pretty comprehensive set of questions. Found a few deductions I didn't know about last year.

As someone who's been doing my own taxes for over a decade, I can relate to this struggle! The frustrating thing is that you're absolutely right - there ARE tons of deductions buried in the tax code that most people never discover. I've found that the best approach is actually a combination of tools rather than hoping for one perfect app. I use TurboTax for the basics, then cross-reference with IRS Publication 17 (it's free online) which lists pretty much every individual deduction with examples. It's dry reading but worth it. Also, don't overlook state-specific deductions! Many apps focus on federal but miss local opportunities. For example, my state has deductions for energy-efficient home improvements that saved me $300 last year. The taxr.ai recommendation from Keith sounds promising though - might have to check that out before next tax season. An AI that actually cites tax code sections would be a game changer.

Did you submit your reasonable cause statement via certified mail with return receipt? This is crucial for dealing with the IRS, especially for something with potential large penalties like Form 3520. If you didn't, you have no proof they actually received your materials. I learned this the hard way when the IRS claimed they never received my response to a similar issue. Now I send everything certified and keep a copy of EVERYTHING. Its annoying but worth it.

I went through almost the exact same situation with Form 3520 penalties for educational gifts. After 9 months of silence, I finally got through to the IRS and learned that my case was actually resolved months earlier - they had accepted my reasonable cause statement but never sent confirmation due to what they called a "correspondence processing error." The key thing that helped me was getting my Statement of Account (different from regular transcripts) which showed the internal case activity. You can request this by calling and specifically asking for a "Statement of Account for Form 3520 submissions" - it shows processing codes that regular transcripts don't include. Also, I'd recommend documenting everything from this point forward. Create a timeline of all your submissions, the May 28th letter, and any attempts you've made to contact them. If you do end up needing to escalate to the Taxpayer Advocate Service, having this documentation ready will speed up the process significantly. The fact that you haven't received any penalty assessment notices after 10 months is actually encouraging - in my experience, the IRS is pretty quick to send penalty notices when they're rejecting reasonable cause statements.