Do you have a specific organizational system you recommend for keeping track of all these records? I'm filing for the first time and want to set things up right from the beginning.

I create a digital folder for each tax year (e.g., "2024 Tax Filings") with subfolders for each form type. Inside the 1099-NEC folder, I save PDFs of all submitted forms, the confirmation emails, and screenshots of submission confirmations. I also keep a spreadsheet listing each contractor, when their form was submitted, and confirmation numbers. For physical documents, I have a similar system with labeled folders in a fireproof filing cabinet. Everything gets retained for at least 7 years. It might seem like overkill, but the one time the IRS claimed we hadn't filed some forms, I had everything organized and was able to prove we had submitted them within 5 minutes of getting the notice.

We've used TaxBandits for the past two years for about 25 contractors. Overall pretty good experience. The interface is a bit dated but it gets the job done reliably. They handle both federal and state filings, plus distribute forms to recipients. Cost is reasonable too - I think we paid around $2 per form last year.

Thanks for the feedback! That's helpful. The cost seems reasonable for the convenience factor. I'll probably go with them unless I hear any horror stories. My main concern is just making sure everything gets filed correctly since it's my first time handling this.

Oh wow, I hadn't even thought about identity theft! Definitely going to check my credit report tonight. Do you know if your brother was able to get his refund back after proving it was identity theft? And how long did that process take?

Yes, he did get his refund back eventually, but it took about 7 months of back and forth with the IRS and the loan company. He had to file an identity theft affidavit (IRS Form 14039), submit a police report, and provide lots of documentation proving he wasn't the one who took out the loan. The key thing that helped was that he acted quickly and documented everything. Take detailed notes of every call you make - who you spoke with, what they said, reference numbers, etc. This will be crucial if you need to dispute anything. And be prepared for a potentially long process, unfortunately. The IRS isn't exactly known for their speed.

This! Happened to me last year - got a smaller refund than expected because my income jumped and I had to repay some of the PTC. Wasn't technically an "offset" but appeared similar in my account.

The OP said their refund was "seized" though, which usually means a specific debt collection action, not just a recalculation of tax liability. The Premium Tax Credit and Child Tax Credit reconciliations would just reduce the refund amount calculated on the return, not seize a refund that was already calculated.

14 I did equipment financing for my food truck equipment. The key difference is whether it's structured as a true lease or a loan. With a true lease, you deduct the payments themselves as rent expenses. With financing that's basically a loan, you own the equipment and deduct through depreciation or Section 179. My accountant had me review the contracts to determine which type I had - turns out mine was actually a loan despite being called a "lease," so I got to deduct the equipment value upfront with Section 179.

7 That's super helpful, thanks! I didn't realize the contracts might use confusing terminology like calling a loan a "lease." I'll make sure to have someone review the actual terms before signing. Did you find any significant difference in interest rates between traditional small business loans and equipment financing?

4 Exactly right! The principal isn't deductible (that's what you're getting the equipment deduction for), but the interest is absolutely a separate business expense. Good catch - lots of new business owners miss this one.

Thank you so much for this detailed explanation! I was definitely confused about the $600 threshold. One more question - does H&R Block automatically handle the Form 8949 reporting? My form has some wash sales marked but I'm not sure if I need to do something special for those or if the software takes care of it.

H&R Block will handle the Form 8949 reporting when you go through the consolidated 1099 entry, but you need to make sure you enter all the information correctly. When you reach the capital gains section, it will ask you about wash sales. For wash sales specifically, there should be a column or checkbox during the entry process where you can indicate these transactions. The form from MooMoo will have a code "W" next to any wash sale transactions, and you'll need to make sure this is properly marked in H&R Block. The software will then calculate the appropriate adjustments and generate the correct Form 8949. Always double-check the final numbers against your original form to make sure everything transferred correctly.

I'm an H&R Block user for years and it doesn't affect the calculation. The consolidated option just groups your entries together logically but the math is the same. It's way easier to use consolidated for brokerage forms - I tried both ways last year to check.

Totally agree with this. I almost made this mistake. I got all excited about deducting my $4,500 in car sales tax until my accountant pointed out that my total itemized deductions were only around $11,000, way less than the standard deduction. Would've been a bunch of paperwork for nothing!

I actually don't use the car for business, it's purely personal. But that's a really good point for other people in this thread who might have business use. I'm going to look into the sales tax deduction calculator that was mentioned above and see if it makes sense with my other potential deductions. Thanks everyone for all the helpful advice!