Has anyone here used TurboTax to report a lemon law settlement? I'm trying to figure out where to even put this on my tax forms and the software isn't clear about it.

Based on what everyone's shared here, it sounds like you really need to get clarity on what your $17k settlement was specifically compensating you for. The fact that your paperwork just says "settlement amount" without breaking it down is going to be problematic. I'd recommend a two-pronged approach: First, contact your attorney immediately and request a detailed breakdown letter specifying what portions of the settlement were for vehicle value recovery versus other compensation. Most lemon law settlements are primarily for diminished value (which isn't taxable), but without documentation, the IRS could assume it's all taxable income. Second, if you can't get your attorney to respond, consider using one of those document analysis tools people mentioned or getting professional tax advice. Don't guess on this - a $17k mistake could cost you thousands in unnecessary taxes or penalties if you get it wrong. The key thing to remember is that you're still making payments on the truck, so this isn't a completed sale transaction where you could claim a loss. The settlement and your ongoing loan are separate issues for tax purposes.

I went through this nightmare back in January! What worked for me was filing Form 9465 (Installment Agreement Request) with my tax return. No phone call needed. Just filled out the form with how much I could pay monthly, attached it to my return, and they approved it automatically. Worth a shot if you're still having trouble reaching someone!

I completely understand your frustration - I went through the exact same thing last year! The IRS phone system is absolutely maddening during tax season. Here's what finally worked for me: Try calling 1-800-829-0922 instead of the main number. This is specifically for payment-related issues and tends to have shorter wait times. Call right at 7 AM Eastern when they open - I know it's early, but it's your best shot at getting through. If you keep getting stuck in the automated system, try this sequence: Press 1 for English, then 2 for personal income tax, then 3 for payment issues, then when it asks what you're calling about, say "payment plan" clearly. Sometimes the voice recognition picks it up better than pressing buttons. Also, don't give up on the online option at IRS.gov - I know it can be glitchy, but clear your browser cache and try again. Make sure you have your prior year AGI handy from last year's return. One last tip: if you absolutely can't get a plan set up before April 15th, still file your return on time even if you can't pay. The failure-to-file penalty is way worse than the failure-to-pay penalty. You can always set up a payment plan after filing. Hang in there - you'll get through this!

This thread has been incredibly helpful! I'm in a similar situation but with a twist - I buy vintage electronics from US estate sales and auctions, then sell them to collectors in Japan and Germany through online marketplaces like eBay and specialized forums. Like Anastasia, my contracts specify that ownership transfers when items leave my US shipping location, but I'm wondering if the fact that I'm using international shipping platforms changes anything about the sourcing determination. The platforms handle some of the payment processing and currency conversion, so I'm not sure if that creates any complications. Also, does anyone know if there are different considerations when you're selling collectibles versus regular retail products? The items I sell are often unique pieces, not mass-produced inventory, so I'm curious if the IRS has different rules for this type of business model.

I've been following this discussion closely since I'm dealing with a somewhat similar situation. I import handmade crafts from artisans in Mexico and Guatemala, then sell them at craft fairs and farmers markets here in California. What's interesting about this thread is how consistent everyone's advice has been about the title transfer rule. My tax preparer told me the same thing - it's all about where legal ownership passes to the buyer, not where the goods originated or where payments come from. One thing I'd add for anyone in similar situations: keep really detailed records of your contracts and shipping documentation. The IRS wants to see clear evidence of where title transfers, especially if your business grows and you get audited. I learned this the hard way when I had to reconstruct my records for last year's return because I hadn't been documenting the transfer terms properly. @Anastasia - based on everything discussed here, it sounds like you're in good shape with your contracts specifying title transfer in the US. That should make your sourcing determination pretty straightforward for tax purposes.

Don't forget to check your state tax authorities too! I had an identity theft situation and focused only on the IRS, but then got a nasty surprise when my state started coming after me for unpaid taxes on the fraudulent income. Most states automatically receive the federal 1099 information.

This is a serious situation that requires immediate action on multiple fronts. The advice about filing with IdentityTheft.gov and contacting the IRS Identity Theft Hotline is spot-on, but I want to emphasize a few additional steps: Document everything meticulously - keep records of every attempt to contact META, including screenshots, dates, and any reference numbers. This paper trail will be crucial for both the IRS and any potential legal proceedings. Consider contacting your state's Attorney General office as well. Many states have consumer protection divisions that can help with unresponsive companies, especially when it involves tax fraud. Some AGs have direct lines of communication with major tech companies. Also, don't overlook checking if META has reported this income to other agencies. Sometimes these fraudulent earnings show up in Social Security wage reports too, which could affect future benefits calculations. The suggestion about checking for unknown Facebook accounts is excellent. Also search for your name on Facebook publicly to see if someone created a fake profile using your identity. Scammers sometimes create creator accounts using stolen identities to collect payments from Facebook's various monetization programs. Stay persistent - identity theft cases can take months to resolve, but the sooner you start the process, the better protected you'll be.

I went through this exact same situation last year - the 4-hour drive requirement feels impossible when you're already dealing with financial stress from delayed refunds. One thing that helped me was calling the main IRS customer service line (not the identity verification hotline) and asking to speak with a manager about hardship accommodations. I explained that the travel distance created a genuine financial hardship, and they were able to flag my case for review by a specialist who had more flexibility with verification options. The key was being persistent but polite, and documenting everything. I also sent a written request via certified mail to the IRS office that was handling my case, explaining the hardship and requesting alternative verification methods. While I still ended up having to make the trip eventually, they did provide me with a very specific list of documents that ensured my verification was completed in one visit. Another suggestion - if you do have to make the trip, try to schedule it for a day when you can combine it with other errands in that area to make the travel more worthwhile. Some people also coordinate with others in similar situations to share gas costs, though I know that's not always practical.

I completely understand your frustration with this situation! The 4-hour drive requirement is really unreasonable, especially after you've already been waiting 14 weeks past their promised timeline. Here's what I'd recommend based on what others have shared: 1. **Document the hardship**: When you call the IRS, be very specific about why the 8-hour round trip creates a genuine hardship (not just inconvenience). Mention job constraints, transportation costs, or any other factors that make this particularly difficult. 2. **Try multiple approaches**: Don't just call the identity verification hotline - try the main customer service line and ask for a manager. Also consider submitting a written hardship request via certified mail to create a paper trail. 3. **Contact the Taxpayer Advocate Service**: They specifically help with cases where IRS processes are causing hardship. The extended delay plus the travel requirement could qualify you for their assistance. 4. **Get everything in writing**: If you do have to make the trip, call ahead to confirm your appointment and get a detailed list of required documents. Ask them to email or mail you the list to avoid any miscommunication. The fact that you're already 5 weeks past their promised timeline gives you additional leverage when requesting hardship accommodations. Don't give up on finding alternatives before making that long drive!