8 Has anyone used FreeTaxUSA for filing 1099-NEC income? Their NAICS code selection seems more limited than TurboTax and I'm not sure if that matters. My spouse also does admin work for an arts organization and we're using code 561110 but FreeTaxUSA keeps suggesting arts-related codes instead.

I went through this exact same headache last year! My sister does similar work - coordinating events and handling admin for a local arts council. After going back and forth with our tax preparer, we settled on 561110 (Office Administrative Services) because that's really what the work is - administrative support services. The fact that it's for an arts organization doesn't change the nature of the work itself. One thing that helped us decide was looking at it from the IRS perspective: they care more about accurately reporting the income than getting the perfect NAICS code. As long as you're in the right general category and not trying to claim deductions that don't make sense for your actual work, you should be fine. We've filed with 561110 for two years now with no issues.

This is exactly the kind of situation where having good documentation practices pays off! Since you caught this mistake relatively early, you're in a much better position than if you had discovered it years later. One additional tip - when you file your 2024 tax return next year, make sure to keep a copy of your amended 2023 return and any correspondence from the IRS in the same folder. If there's ever any confusion down the line about this income being reported twice, you'll have the paper trail showing you corrected the error properly. Also, don't beat yourself up over this mistake! Rental property income timing can be tricky, especially when you're dealing with payments that come in right around year-end/New Year. I've seen seasoned real estate investors make similar errors. The important thing is that you caught it and are taking the right steps to fix it.

I went through almost this exact same situation two years ago with rental income that came in on December 30th but I didn't receive it until January 2nd due to bank processing delays. The confusion about which tax year it belonged to had me second-guessing everything! What really helped me was keeping a simple spreadsheet tracking when rent payments were actually received vs. when they were due. This has prevented similar mix-ups since then. For rental properties, I now make it a habit to double-check any December/January payments to make sure they're being reported in the correct tax year. The 1040-X process that others mentioned is definitely the right approach. One thing I'd add is to file your amendment as soon as you can rather than waiting. I procrastinated on mine and it just made me more anxious about the whole thing. Once I finally submitted it, the relief was immediate even though I had to wait months for the actual refund. You're being really responsible by catching and correcting this early. Many people don't realize their mistake until much later, which makes it more complicated to fix.

One thing nobody has mentioned yet - the self-employment tax might seem painful now, but remember half of it is deductible on your federal return. Also, paying self-employment tax means she's building Social Security credits for retirement. If she consistently avoids self-employment tax by using Schedule 1 incorrectly, she could find herself with reduced Social Security benefits in retirement. Plus, proper Schedule C filing allows her to deduct legitimate business expenses related to her athletic activities - equipment, travel to events, training costs, etc. This can often offset a significant portion of the self-employment tax burden.

Based on all the great advice here, it sounds like you definitely need to file your sister's 1099-NEC income on Schedule C with self-employment tax. I went through something similar with my freelance graphic design work - my accountant initially suggested Schedule 1 to "save money" but after doing more research, I realized that was completely wrong. The fact that your dad filed it incorrectly last year and didn't get caught doesn't mean it was right - as Miguel mentioned, the IRS often catches these things later with automated matching. Better to file correctly now than deal with penalties and back taxes later. One practical tip: make sure to track all her business expenses related to her athletic activities throughout the year - training equipment, travel to competitions, coaching fees, etc. These deductions on Schedule C can really help offset that self-employment tax burden. I wish I had started tracking my business expenses earlier!

Just wanted to chime in as someone who went through this exact situation last year! I inherited $15,000 from my grandfather and was absolutely panicking about taxes. After doing a lot of research and even consulting with a tax professional, I can confirm what others have said - you do NOT need to pay federal income tax on that $13,500 inheritance, and you don't even need to report it on your tax return. The key thing to remember is that inheritance tax and income tax are completely different. Your grandmother's estate may have been responsible for estate taxes (though unlikely given the high federal exemption), but that's separate from your personal income tax situation. One piece of advice - keep good documentation of the inheritance (like the estate paperwork or bank transfer records) just in case you ever need to prove the source of those funds to the IRS in the future. But you can definitely stop worrying about owing taxes on the inheritance itself!

I went through something very similar when I inherited $16,000 from my aunt two years ago. The anxiety about potential tax obligations was overwhelming! After consulting with a CPA and doing extensive research, I can confirm what others have shared - you're in the clear federally. Here's what I learned that might help ease your mind: The $13,500 you inherited is not considered taxable income under federal law. You don't report it on your Form 1040, and you don't owe any federal income tax on it. The estate tax exemption is so high ($12.92 million for 2023) that your grandmother's estate almost certainly didn't owe any federal estate taxes either. The confusion you're experiencing is totally normal - the terminology around "estate tax," "inheritance tax," and "death tax" gets thrown around interchangeably online, but they're actually different things. What matters for you is that as a beneficiary receiving an inheritance, you have no federal tax liability on that money. My advice: Keep all the documentation from the estate (bank records, attorney letters, etc.) for your records, but you can stop worrying about setting aside money for taxes on this inheritance. Use that $13,500 however you planned - it's yours free and clear!

Your son might have filled out the W-4 incorrectly. I'm a summer camp counselor and the first year I worked, I didn't understand what "exemption from withholding" meant, so I accidentally checked that box. No federal taxes were taken all summer and I had to pay it all at tax time. Make sure your son didn't check any exemption boxes on his W-4!

Great advice from everyone here! Just to add another perspective - this exact situation happened with my nephew last year. The no federal withholding was correct initially, but what caught us off guard was when he picked up extra shifts during Christmas break. His earnings jumped significantly in December and suddenly he was going to owe federal taxes. What we learned is that it's worth having a conversation with your son about tracking his total earnings throughout the year. Maybe set up a simple spreadsheet or even just a note on his phone where he logs his paychecks. That way if he's approaching that $15,000 threshold, you can proactively have him submit a new W-4 to start withholding before he gets too far over the limit. Also, even if no federal taxes are being withheld, he should still file a tax return to get back any overpaid Social Security/Medicare taxes if his total earnings end up being very low. A lot of teenagers don't realize they might be owed a refund!