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Isn't it interesting how we worry when things go right faster than expected? You got your money without the usual bureaucratic notification process. Isn't that actually the best-case scenario? Many people are still waiting for refunds filed months ago, yet you're concerned about missing an email that would just tell you what you already know - your money arrived. The tax system works in mysterious ways, doesn't it?
I completely understand your concern about proper documentation - it's smart to be thorough with tax matters! This exact scenario happened to me last filing season. The deposit arrived on a Tuesday, but I didn't get the TurboTax notification email until the following Friday. What I learned is that TurboTax's notification system runs on a different schedule than the actual IRS payment processing. The IRS processes refunds in batches and sends them via ACH transfer, while TurboTax's email notifications are generated by their customer service system, which can lag behind. For your records, the most important documentation is: โข Your bank statement showing the deposit with "IRS TREAS" or similar identifier โข Your filed tax return copy โข Your IRS transcript (available online at irs.gov) Since you mentioned being a first-time US filer, I'd recommend setting up an account on the IRS website to access your tax transcript - it shows the complete timeline of your return processing and serves as official documentation. The notification email from TurboTax is just a courtesy and isn't required for any official purposes. You're doing everything right by tracking your return carefully!
Has anyone used TurboTax for this kind of simple 1099-MISC situation? Does it make the Schedule C stuff easier or is it still confusing?
I went through this exact same situation two years ago with some temporary EMT work that generated a 1099-MISC. The confusion is totally understandable! Yes, you do need to file Schedule C even for temporary work like this. The IRS doesn't distinguish between "real businesses" and one-off gigs when it comes to 1099 income reporting. Here's what made it easier for me: For business name, just use your full name. For the business code, since you're doing paramedic work, you can use 621910 (Ambulance Services) or 621399 (All Other Miscellaneous Health Practitioners). Your business address is just your home address. Don't forget about potential deductions! Even for temporary work, you might be able to deduct: - Mileage driving to/from the work location - Any supplies you purchased for the job - Professional licensing fees (prorated if you use the license for other work too) The self-employment tax does sting a bit at 15.3%, but remember you get to deduct half of it on your main 1040 form. For $1,200 of income, you're looking at roughly $184 in SE tax, minus whatever deductions you can claim. It's definitely more complicated than regular W-2 income, but once you do it once, it becomes much clearer for future situations!
One thing nobody mentioned yet - if your spouse is a citizen of a country that has a tax treaty with the US, there might be additional considerations. I'm married to a Canadian citizen who lives in Toronto while I'm in Boston, and we discovered some specific treaty benefits. Check if your spouse's European country has a tax treaty with the US - it could affect your filing options and potential tax benefits. The IRS Publication 901 (U.S. Tax Treaties) has more info on this.
That's a great point I hadn't considered! My spouse is French - do you know if there are any specific benefits under the US-France tax treaty that might help in our situation? I'll definitely check Publication 901, but curious if you have any firsthand experience with European treaties.
France does indeed have a tax treaty with the US. While I don't have specific experience with the US-France treaty, I can tell you that these treaties often address issues like foreign tax credits and how certain types of income are taxed. In my case with Canada, we discovered that certain investment income was taxed differently under the treaty than it would be otherwise. The most important thing is to read the specific articles in the treaty that might apply to your situation. Pay special attention to the sections on residency determination and any special provisions for married couples living in different countries.
Has anyone in this thread actually just filed as Single despite being married to someone overseas? I mean what's the realistic chance of the IRS finding out if your spouse has no US presence, income, or SSN/ITIN? Asking for a friend...
Don't do it. I filed as Single for two years while married to my German wife (who never set foot in the US during those years). Got audited for an unrelated reason and ended up with penalties for filing status misrepresentation. Had to file amended returns plus pay interest and penalties. Totally not worth it.
I understand the temptation, but it's really not worth the risk. The IRS has gotten much better at cross-referencing data, and marriage records are public information that can be accessed during audits or reviews. Even if your spouse never sets foot in the US, if you get audited for any reason (could be completely unrelated to your marital status), they'll verify all aspects of your return including filing status. The penalties for incorrect filing status can be substantial, plus you'd owe interest on any tax difference going back to when you should have filed correctly. Getting the ITIN for your spouse really isn't that complicated - just requires some paperwork and certified copies of documents. Much easier than dealing with the IRS later when they discover the discrepancy. Better to do it right from the start and save yourself potential headaches down the road!
Has anyone actually been audited because of trading activity? I'm in the same boat with hundreds of pages of transactions and wondering if the IRS really looks at this stuff or if it's just a formality.
Yes, I got audited two years ago specifically for options trading. They questioned several wash sales and some transactions where my reported cost basis didn't match what my broker reported. Had to provide all documentation and ended up owing an additional $3800 plus interest. Don't mess around with this stuff.
I feel your pain with the massive 1099-B! I'm a day trader too and dealt with this exact situation last year with my broker's 600+ page document. One thing I learned is that you should definitely keep a copy of your certified mail receipt or delivery confirmation - the IRS processing centers can be slow to update their systems, and having proof of delivery saved me when I got a notice months later claiming they never received my documents. Also, make sure you're sending it to the correct IRS processing center address listed in your TurboTax instructions - different states have different mailing addresses for Form 8453 submissions. I initially sent mine to the wrong center and had to resend everything, which was a nightmare. The good news is that once they process it (which can take 6-8 weeks), you shouldn't have any issues as long as your summary data matches what you e-filed. Just budget for the shipping costs as part of your trading expenses - it's deductible!
Great point about the certified mail receipt! I'm definitely going to use that when I send mine in. Quick question - when you say it's deductible as a trading expense, do you mean I can write off the shipping costs on Schedule C or is it somewhere else on the return? I'm still learning all the ins and outs of tax deductions for active trading.
Ruby Knight
I'd strongly recommend reporting the $500 even though it's a small amount. Here's why: the IRS has been increasing their data matching capabilities, and many online platforms are required to report payments to them even if they don't send you a 1099. If you use PayPal, Venmo, CashApp, or similar services, they're now reporting transactions over $600 total per year to the IRS. Even if your feet pic income stays under that threshold, it's better to be transparent. The good news is that for $500 in self-employment income, you likely won't owe any self-employment tax (since that kicks in at $400 net income, and you can deduct legitimate business expenses). You'd just report it as other income on your tax return. My advice: keep detailed records of all transactions, set aside about 20-25% of what you earn for taxes just in case, and consider any expenses you can legitimately deduct (portion of phone/internet bills, any equipment, etc.). Better to over-report than under-report when it comes to the IRS.
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Chloe Harris
โขThis is really solid advice, especially about the payment platform reporting! I had no idea that PayPal and those other apps were reporting to the IRS now. That definitely changes things - even if the feet pic platform doesn't send a 1099, if the payments go through one of those services, the IRS might still see the income anyway. Better to report it upfront than get caught later. The 20-25% setting aside for taxes is smart too, even if you end up not owing much. Thanks for breaking this down so clearly!
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Anastasia Sokolov
I've been following this thread and wanted to add something that might help. As someone who works in tax preparation, I see situations like this all the time. The $500 threshold is actually pretty common for people testing out online side gigs. Here's what I tell my clients: even though $500 seems small, reporting it correctly from the start establishes good habits and protects you down the line. The IRS has gotten much better at cross-referencing data from payment processors, social media platforms, and other digital sources. For your specific situation, since you're planning to stop after making $500, you're probably looking at reporting this as "Other Income" on Schedule 1 of your Form 1040, assuming your net earnings stay under $400 after any legitimate business deductions. Keep receipts for anything related to this activity - even small expenses like a portion of your internet bill or phone costs can help reduce your taxable income. The key is documentation. Screenshot every transaction, keep records of any expenses, and track dates. Even if you never get audited, having clean records makes filing so much easier. And honestly, for $500 in additional income, you're probably looking at maybe $50-75 in extra federal taxes depending on your bracket, so it's not going to break the bank. Good luck with the car repair fund!
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Dmitry Popov
โขThis is incredibly helpful, thank you! As someone who's never dealt with any kind of side income before, it's reassuring to hear from an actual tax professional. The point about establishing good habits makes a lot of sense - even though $500 feels small now, if I ever do other side work in the future, I'll already know how to handle it properly. I really appreciate the specific guidance about keeping screenshots and tracking expenses. I hadn't even thought about deducting things like internet costs. And honestly, knowing it might only be $50-75 in extra taxes makes this feel much more manageable. That's way less scary than I was imagining! One quick question - when you say "portion of internet bill," how do I figure out what portion is legitimate to deduct for something like this?
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