Just want to point out that for 2024, the threshold for payment apps to send 1099-Ks is $5,000, not the $600 threshold they were initially planning. So depending on how much you paid your babysitter, they might not even get a 1099-K from Venmo at all. Also, make sure your payroll service marked these payments as household employee wages, not independent contractor payments. That classification makes a big difference in how everything is handled tax-wise.

Does anyone know if this impacts household employees who didn't receive a W-2? I paid my house cleaner through Venmo all year (about $6,000 total) but didn't use a payroll service. Now I'm worried they'll get a 1099-K and have to pay self-employment taxes when they're technically a household employee.

OMG I FINALLY GOT THROUGH! After 4 failed attempts and hours of my life I'll never get back, I called at EXACTLY 7:00am Eastern on Tuesday and only waited 18 minutes! The agent was actually super helpful and fixed my issue in like 5 minutes once I got through. Keep trying different times and don't give up!

Be careful about what information you share when you do get through. Last year I reached an agent who asked me for information I wasn't comfortable sharing over the phone. Turned out it was legitimate, but always verify you're actually speaking with the IRS before providing sensitive details. They will never ask for full bank account numbers or passwords.

something nobody mentioned is that you might qualify for qsbs exemption (qualified small business stock) if ur business is structured as a c-corp and meets certain requirements. could save u a TON in taxes, my cousin sold his business last yr and didn't pay any tax on like the first million dollars of gain. not sure if laundromats qualify but worth checking! think you need to have owned the stock for at least 5 yrs which you def have. google "section 1202 qsbs" for more info.

I'm going through something similar with selling my small business, and one thing that really helped me understand the tax implications was getting a professional asset appraisal done early in the process. When you sell your laundromat, the buyer and seller need to agree on how to allocate the $300k purchase price among different assets - equipment, goodwill, customer lists, etc. This allocation directly affects your tax liability. Having a professional appraisal gives you solid documentation for the IRS and helps you negotiate the allocation more effectively. The appraiser will determine the fair market value of your equipment separately from other business assets. If your equipment is worth $80k but you've depreciated $230k over the years, you'll only pay depreciation recapture on the $80k (assuming it's fully depreciated). The remaining $220k of the sale price gets allocated to other assets, which might qualify for more favorable capital gains treatment. This approach saved me thousands in taxes compared to just accepting whatever allocation the buyer initially proposed. Most buyers want to allocate more to equipment since they can depreciate it quickly, but that's often not in your best interest as the seller.

I'm curious about the timeline here...when did you file your original return and how long do you typically have to amend? My tax guy always says "don't worry about small stuff" but reading these comments has me wondering if that's good advice.

I went through this exact same situation a couple years ago with a part-time retail job I'd forgotten about. The amount was similar to yours - around $1,100. I was tempted to just ignore it since it seemed so small, but I'm really glad I didn't. Here's what I learned: the IRS matching system is pretty sophisticated. They get copies of all W-2s and 1099s, and their computers automatically flag when reported income doesn't match what employers submitted. You'll likely get a CP2000 notice in 12-18 months asking about the discrepancy, and by then you'll owe penalties and interest on top of the additional tax. Filing the 1040-X now while it's still voluntary shows good faith and typically results in minimal or no penalties. Plus, if they withheld any federal taxes from your paychecks (which many part-time jobs do), you might actually end up with a small additional refund rather than owing money. The amended return process isn't as scary as it sounds - just recalculate your tax with the additional income included and submit the form. Much better to handle it proactively than wait for the IRS to find it themselves!

just make sure u keep checking ur mail. i verified my identity online in May and thought i was good to go, but then they mailed me ANOTHER form to fill out two weeks later. the IRS is notorious for not communicating between departments.

I went through identity verification last month and it took exactly 6 weeks to get my refund, so definitely faster than the 9 weeks they quoted. The Where's My Refund tool updated after about 3 weeks showing "still processing" and then suddenly switched to "refund approved" one day. Definitely get that IP PIN - it's super easy to set up and gives you peace of mind. I wish I had done it years ago. The whole verification process is stressful enough without worrying about someone else filing under your SSN. One thing I learned is that the 9 weeks is their worst-case scenario timeframe. Most people seem to get their refunds within 4-6 weeks if there are no other issues with their return. Just be patient and don't stress too much about calling - the confirmation screen you got means everything went through properly.