Does anyone know if this 1099-K threshold is going to stay the same for next year? I heard rumors it might change?

Just wanted to chime in as someone who dealt with this exact scenario two years ago. The advice here is spot-on - you definitely need to report the full 1099-K amount and then deduct your losses separately if you itemize. One thing I'd add is to check if your gambling sites provide annual win/loss statements. Most legitimate online poker and sports betting sites will generate these for you if you request them, and they're incredibly helpful for documenting your actual losses. I had to contact customer service for a couple of sites, but they were able to provide detailed breakdowns that made filing much easier. Also, if you're thinking about using any of the services mentioned here, just make sure you understand the costs upfront. Sometimes the stress of dealing with tax issues makes spending money on help seem worth it, but you want to make sure it actually saves you money in the long run. Good luck with your filing!

Another crucial factor that hasn't been mentioned yet is timing - don't submit an OIC while your client is in an active bankruptcy proceeding or if they have unfiled tax returns. The IRS will automatically reject it. Also, make sure all current year estimated taxes are being paid if your client has ongoing tax obligations, otherwise they'll consider it a bad faith submission. One thing that really helped me on my first few OICs was creating a detailed timeline of my client's financial hardship. If there was a specific event (job loss, medical emergency, business failure) that created their inability to pay, document exactly when it happened and how it impacted their finances. The IRS revenue officers appreciate seeing a clear narrative of how someone went from being able to pay their taxes to genuinely unable to do so. Also, don't be afraid to request a payment plan for the offer amount if your client truly can't come up with a lump sum. The monthly payment option (paid over 24 months) often makes acceptance more likely since it shows good faith effort to pay what they can afford.

I have a client who owes tax debt for 2022-2024 for $13000, and I am trying to prepare an OIC for them as Doubt of Collectability, as well as a low-income certification. Tax liability is SE due to being a freelance writer on Schedule C who is unmarried, has no car or any assets, and only made $10875.00 this year. Her grandfather helps her pay her half of the utilities and helps with other things she needs since she isn't paid regularly. This is my first one, and after entering all the income for the RCP, it only shows 336 future income. I was wondering what a reasonable offer should be. Since it is a Schedule C, I would send 6 months of bank statements, correct?

Wait, I thought capital gains tax is like 15%? If u have a $20k gain that would be $3k in tax. R people saying u don't have to pay anything at all???

As someone who just went through this exact process, I can confirm what others have said about the Section 121 exclusion being a lifesaver! Just wanted to add a couple practical tips from my recent experience: 1) Make sure you can prove you actually LIVED in the home as your primary residence for 2 years, not just owned it. The IRS looks at things like voter registration, driver's license address, where you received mail, etc. 2) If you're cutting it close on the 2-year mark, count carefully. The IRS uses the exact date - so if you bought on March 15th, you need to wait until at least March 15th two years later to qualify for the full exclusion. 3) Keep your closing documents from when you purchased! You'll need them to calculate your basis properly when you file taxes next year. With only $20k in gains and being married, you're definitely well under the $500k exclusion limit. Sounds like you should owe zero capital gains tax if everything checks out. Good luck with your move!

question - if I estimate now using FreeTaxUSA 2023 software and create an account, can I just log back in when I have my actual W-2 and 1099 forms and file from there? or would I need to start over?

Thanks for the heads up about the early release! I've been using FreeTaxUSA for the past few years and really appreciate being able to do tax planning before the rush. One tip I'd add - if you're estimating now, make sure to save different scenarios. I usually create versions with conservative estimates and then more optimistic projections to see the range of what I might owe or get back. Also worth noting that if you have any major life changes planned (marriage, new job, etc.), you can model those too to see how they'd impact your taxes. Really helps with financial planning for the year ahead.

Just to clarify something important - TurboTax itself isn't usually making calculation errors. What typically happens is either: 1) users enter information incorrectly, 2) users misunderstand eligibility requirements, or 3) the IRS makes adjustments based on information they have that wasn't included in your return. For example, if you have unreported income that shows up on a 1099 the IRS received but you didn't include, they'll adjust your return accordingly.

I appreciate everyone sharing their experiences here. As someone who's been doing taxes for family members for years, I can confirm that most discrepancies aren't actually TurboTax errors but rather eligibility issues or data entry mistakes. That said, I always recommend using the IRS's own Interactive Tax Assistant (ITA) tool on their website to verify credit eligibility before filing. It's free and walks you through the exact same qualification questions the IRS uses. Also, for peace of mind, you can request a tax transcript after filing to see exactly what the IRS processed vs what you submitted. The key is understanding that tax software is only as accurate as the information you provide and your actual eligibility for credits.