Quick question - if my bank interest is reported on my 1099-INT as $3,500 for 2024, should I be setting aside additional money for taxes on that? My regular job already withholds income tax, but obviously nothing is withheld on the interest. Do most people make estimated tax payments for this?

Yes, you should definitely set aside money for taxes on that $3,500 interest income! Since it's not subject to FICA taxes (as others have confirmed), you'll only owe regular income tax on it, but that can still be a decent chunk depending on your tax bracket. For $3,500 in interest, if you're in the 22% bracket, that's about $770 in additional tax owed. The IRS generally wants you to make estimated payments if you'll owe more than $1,000 when you file, so you might be getting close to that threshold. Like Dylan mentioned, adjusting your W-4 withholding at your main job is often easier than quarterly payments for smaller amounts like this. You can use the IRS withholding calculator to figure out exactly how much extra to have withheld. Just remember - no FICA on the interest, but definitely plan for the income tax hit!

2 Has anybody used Drake Tax for this kind of situation? My accountant uses it and claims it's the best for complex investment scenarios, but I'm wondering if it's worth switching to them from my current guy who uses Lacerte.

For high-volume traders like yourself, I'd strongly recommend considering FreeTaxUSA Deluxe. I know it doesn't get mentioned as much as the big names, but it handles complex investment scenarios surprisingly well for the price point. What sets it apart is that it properly imports broker data while preserving transaction details that other software often strips out. The wash sale calculations work across multiple brokerages, and it handles Form 8949 entries efficiently even with thousands of transactions. The real advantage is in the user interface - when you need to review or adjust imported data (which you will with that volume), FreeTaxUSA makes it much easier to navigate and edit individual transactions compared to TurboTax or H&R Block. For Form 6781 straddle reporting, it provides clear guidance and proper categorization. At $15 for the Deluxe version, it's worth trying as a backup option even if you go with something else as your primary software. You can import your data and see how it handles everything before committing to file with it.

Just wanted to share what I learned from my accountant about this exact issue. For nearly all 1099-NECs from businesses (including Google/YouTube): 1. The Payer's Federal Tax ID is always an EIN for businesses 2. It should follow the xx-xxxxxxx format 3. Google often prints it without the dash, but it's still an EIN 4. Only individual payers (like if a person hired you directly) would use an SSN If you're making decent money on YouTube, consider getting an accountant who specializes in creator income. There are so many deductions available that most people miss! I was able to write off a portion of my internet, my editing software, equipment, and even part of my home as a studio space.

Another creator here - wanted to add that Google's EIN is actually publicly available information. Their EIN is 77-0493581, so you can verify your 1099-NEC has the right info. Most big tech companies' EINs can be found online.

Has anyone actually had the IRS question them about personal items sold at a loss? I'm curious if this is something they're actively pursuing or if we're all just worrying about something that rarely happens.

I've been dealing with this exact situation and wanted to share what worked for me. Like you, I was selling personal items at a loss - old furniture, clothes, electronics - and was stressed about the 1099-K reporting. What I ended up doing was creating a simple spreadsheet with columns for: item description, approximate purchase date, estimated original cost, sale price, and platform sold on. For items I couldn't remember the exact purchase price, I looked up similar items online to get a reasonable estimate of what I likely paid originally. The key thing I learned is that the IRS isn't trying to catch people selling their personal belongings at a loss. They're targeting folks who are essentially running businesses but not reporting it properly. When you receive your 1099-K, you'll report it as "other income" but then offset it by showing these were personal items sold below cost. I kept screenshots of my listings and any email confirmations from sales just as backup documentation. Most tax software now has specific sections for handling 1099-K income from personal item sales, which makes the process much easier than I initially thought it would be. The peace of mind from having everything documented properly was totally worth the couple hours it took to organize everything!

I'm so glad I found this thread! I'm a tax preparer and I see this exact confusion with Medicaid clients every single tax season. You absolutely do NOT need Form 1095-A if you only have Medicaid coverage. That form is exclusively for marketplace insurance purchased through Healthcare.gov or state exchanges. Here's what's happening: Tax software companies are legally required to ask about all possible tax scenarios, so they ask EVERYONE about 1095-A forms even though most people don't need them. It's frustrating because they don't explain this context. For Medicaid recipients like yourself: Simply answer "No" when asked about receiving a 1095-A and continue filing. Your Medicaid coverage satisfies all health insurance requirements. You might receive a 1095-B form for your records, but you don't need to wait for it or attach it to your return. The reason you didn't encounter this in previous years is likely because tax software has become more comprehensive in their questioning, but the actual tax rules for Medicaid haven't changed. You're perfectly fine to file your taxes right now with just your standard documents!

I'm really glad I stumbled across this discussion! I'm also on Medicaid and have been dealing with the exact same confusion about Form 1095-A. My tax software (Credit Karma Tax) has been persistently asking about this form, and I was starting to think I had somehow missed an important mailing or deadline. Reading through all these experiences has been incredibly reassuring - it's clear that this is a widespread issue that affects many Medicaid recipients every tax season. The explanations from the tax professional and Medicaid office worker really helped me understand that this is purely a software design issue, not an actual gap in my documentation. What I found most helpful is learning that the tax software companies are required to ask comprehensive questions to cover all possible scenarios, which means they ask everyone about 1095-A forms even though the vast majority of Medicaid recipients will never receive one. It would be so much better if they included a brief explanation like "Skip this if you have Medicaid" to avoid all the unnecessary stress. I'm going to follow everyone's advice and confidently select "No" when asked about receiving a 1095-A form, then proceed with my filing knowing that my Medicaid coverage fully satisfies all health insurance requirements. Thanks to this amazing community for turning what could have been weeks of anxiety into a clear path forward!