does anyone know if doing doordash delivery for like 3 months would count the same way? i made maybe 6k total but didnt have any taxes taken out cuz its 1099 work. should i still file?

Just wanted to add that you should also keep an eye out for your W-2 form, which should arrive by January 31st. This will have all the exact numbers you need - your total wages in Box 1 and federal income tax withheld in Box 2. Even though you only worked 6 months, employers are required to send W-2s to anyone who earned income during the tax year. Once you have that form, you'll know exactly how much was withheld and can determine your potential refund amount. Most free tax software can handle your straightforward situation, and with your income level, you should qualify for free filing through the IRS Free File program. Don't let the partial year of work discourage you from filing - it's actually pretty common and the process is the same as filing with a full year of income!

Don't forget that for gambling, you have to itemize deductions on Schedule A to claim losses. This means giving up the standard deduction which is $14,600 for single filers in 2025. If your total itemized deductions (including gambling losses, mortgage interest, charitable contributions, etc.) don't exceed your standard deduction, it might not make sense to deduct gambling losses at all.

For your 2024 situation where you didn't report small winnings under $600, you're probably fine since the amounts were minimal and you didn't receive any tax forms. The IRS typically focuses on larger unreported income. For this year with the $20,000 PayPal 1099-K, that's reporting gross payment volume, not taxable income. You'll need to separate your actual gambling winnings from deposits/withdrawals. Since you're only up $135 on FanDuel and didn't get a 1099 from Prizepicks, your actual taxable gambling income is likely very small. The key is keeping good records going forward. Download transaction histories from both platforms showing all bets placed and winnings received. Your tax professional should be able to help you properly report the actual winnings as income while ensuring you don't overpay based on the inflated 1099-K amount. Most importantly, don't panic - this is a common situation with payment processors issuing 1099-Ks for gross transactions rather than net gambling profits.

Question for anyone who's done this - does grouping require amending previous returns? I'm in a similar situation with a property LLC and operating business, and filed separately for the last two years.

This is exactly the kind of situation where activity grouping can be a game-changer! Since you have common ownership of both LLCs and clear operational interdependence (PropCo exists primarily to serve OpCo), you should have a strong case for grouping. The key thing to remember is that once you group these activities and you materially participate in the restaurant business, the entire grouped activity becomes non-passive. This means those $78,000 in historic rehabilitation credits would no longer be trapped as passive credits - you could use them against your restaurant income or even your wife's non-passive income. Make sure to document the business reasons for grouping (shared management, operational interdependence, common ownership) in your election statement. Given the substantial credits at stake, it might also be worth getting a second opinion from a tax professional who specializes in passive activity rules before making the election, just to ensure you're maximizing the benefit and meeting all requirements.

Hey Sienna! I went through this exact same situation last year with my side gig income. Your friend was wrong - you absolutely do need to pay self-employment tax on that $6,400. The $400 threshold is correct, and it's completely separate from regular income tax rules. Here's what you're looking at: - Self-employment tax: 15.3% on your $6,400 = about $980 - Regular federal income tax: $0 (since you're under the $13,850 standard deduction) The confusing part is that there are two different tax systems at play here. Self-employment tax covers your Social Security and Medicare contributions (normally split between you and an employer), while income tax is what most people think of as "regular" taxes. Since you'll owe close to $1,000, you should definitely set up quarterly estimated payments for next year to avoid underpayment penalties. You can base them on this year's tax - so roughly $245 per quarter. One silver lining: you can deduct half of that self-employment tax ($490) as an "above-the-line" deduction, which reduces your adjusted gross income even while taking the standard deduction. Also, don't leave money on the table! Even though you said you had minimal expenses, think about any business use of your phone, gas for equipment, cleaning supplies, or small tools. Those $5-20 purchases really add up over a year and reduce your taxable SE income. The learning curve is steep at first, but once you understand the basics, it gets much easier. Good luck with your filing!

Just wanted to add my experience as someone who was in almost the exact same situation! I made $6,200 doing freelance graphic design work last year and had the same confusion about the thresholds. Everyone here is absolutely right - you do owe self-employment tax on that $6,400. I learned this the hard way when I initially thought I was under some magical threshold and didn't set aside money for taxes. Ended up scrambling to pay about $950 when I filed. A couple of practical tips that helped me: - Open a separate savings account and put aside 20-25% of each payment you receive for taxes. I wish I had done this from the beginning instead of treating all the money as spendable income. - For quarterly payments next year, you can actually make them online through the IRS website (EFTPS system). It's way easier than mailing checks and you get confirmation right away. - Don't forget about state taxes if applicable! Even though you mentioned Texas (which has no state income tax), it's worth double-checking any local requirements. The self-employment tax hit is definitely painful when you're not expecting it, but at least now you know what to plan for going forward. And honestly, once you get the system down and start making quarterly payments, it feels much more manageable than getting hit with one big bill at tax time. Good luck finishing up your taxes!

I can totally relate to that panic feeling! I made a similar mistake last year when I accidentally put "Johnathan" instead of "Jonathan" on my return. I was convinced it would delay my refund for months, but it turned out to be much less dramatic than I expected. Here's what happened in my case: My refund processed completely normally because my Social Security Number was correct. The IRS agent I eventually spoke with explained that their systems are really good at handling minor spelling variations - they see millions of these every year during tax season. For your situation with "Alexandr" vs "Alexander," you have a few solid options: 1. **Wait it out** - Your refund will likely process fine since your SSN matches their records 2. **Call the IRS** at 1-800-829-1040 to have them note the correct spelling in your account 3. **File Form 8822** to officially correct the name spelling Honestly, I'd recommend option 2 if you can get through. The agent can confirm your refund status and add the correction note all in one call. It gave me huge peace of mind when I was in your shoes. The bottom line is that your $2,850 refund should arrive on schedule. This kind of typo is super common and definitely not audit-worthy. Try to relax - you're going to be just fine!

I totally understand your panic - I've been there! Last year I made the exact same mistake and put "Alexandar" instead of "Alexander" on my return. I was absolutely convinced it would mess everything up, but it turned out to be much less scary than I thought. Here's what I learned: Your Social Security Number is the key identifier the IRS uses, not your name spelling. As long as your SSN is correct (which it sounds like it is), your $2,850 refund should process normally without any delays. The IRS systems are actually pretty sophisticated at handling minor spelling variations - they deal with millions of these every tax season. I ended up calling the IRS taxpayer line at 1-800-829-1040 about a week after I noticed my mistake. The agent was really understanding and confirmed that my refund wasn't affected at all. She also added a note to my account with the correct spelling for future reference, which gave me peace of mind. For what it's worth, you could also file Form 8822 to officially correct the spelling, but honestly for such a minor difference, many people just wait and make sure to spell it correctly next year. Your return has already been accepted, which is actually a good sign that their systems matched your information successfully. Try not to stress too much about this - it's incredibly common and definitely not something that would trigger an audit. You're going to be just fine!