Don't forget that if you have foreign financial accounts with aggregate value over $10,000 at any point during the year, you also need to file an FBAR (FinCEN Form 114). That's separate from the Section 988 currency gain issue but often applies to people in similar situations. The penalties for not filing FBAR are way worse than messing up the currency gain reporting.

Make sure you're keeping good records of the exchange rates on the exact dates of your transactions. The IRS wants to see that you're using either the actual exchange rate from your bank statements or an official government rate source. I learned this the hard way when they questioned my Section 988 calculations during a review.

I think we're missing something important here. The sharks aren't just passive investors - they're using their TV fame to promote these businesses. That's why they often talk about "opening doors" or using their "platform." Wouldn't the IRS consider that material participation? Like when Lori gets something on QVC or Robert promotes a fitness product on social media?

This is a fascinating discussion! One thing that might complicate the tax picture even more is that some of these Shark Tank deals involve multiple revenue streams. For example, a shark might get equity, royalties, AND licensing fees all from the same investment. The IRS would likely treat each income stream differently - the royalties as passive income on Schedule E, licensing fees potentially as active income if there's ongoing involvement, and equity distributions based on the material participation test we discussed earlier. Also, I think the promotional aspect @NebulaNinja mentioned is huge. When Mark Cuban tweets about a company or Lori gets a product on QVC, that's not just casual promotion - that's strategic business development that could easily qualify as material participation. The sharks are essentially using their personal brands as business assets, which makes the active vs passive classification even more complex. It would be interesting to know if they track their promotional activities and social media posts as "business hours" for tax purposes!

One thing to consider - the American Opportunity Tax Credit your parents claimed might actually have been correct if they were supporting you. That credit can be claimed by whoever claims you as a dependent. But the taxable portion of scholarships above qualified education expenses is always taxable to the student, regardless of dependent status. A lot of students and parents don't realize these are separate issues. If I were you, I'd file the late return for 2023 and request first-time penalty abatement. The IRS is generally pretty understanding for first-time issues, especially with students who didn't understand the filing requirements.

Just wanted to add that the standard deduction for 2023 was $12,950 for single filers. So even if you had $14,700 in taxable scholarship income, your actual taxable income after the standard deduction would be around $1,750, putting your tax liability much lower than you're calculating. Also, don't forget that scholarships that go toward qualified education expenses (tuition, fees, books required for courses) aren't taxable. Only the portion that exceeds these expenses or goes toward room and board is taxable.

11 Has anyone actually received their 1099-K from Venmo yet for last year? I've sold way more than the $600 threshold but nothing has shown up in my account or email. Getting a bit nervous as I want to file my taxes soon.

Just wanted to share my experience for anyone still waiting on their 1099-K forms. I was in the same boat as the original poster - made about $850 through Venmo selling various items on Facebook Marketplace. I found my 1099-K in my Venmo account under Settings > Tax Documents about a week ago. It wasn't emailed to me automatically, so definitely check your account directly. The form lumps everything together as one gross amount, which initially freaked me out because I thought I'd owe taxes on money I made selling my old couch and textbooks at a loss. The key thing I learned is that the 1099-K is just an informational document - it doesn't mean you automatically owe taxes on that full amount. You'll need to determine on your own which transactions were actual taxable income versus personal property sales. Keep good records of what you originally paid for items you sold, especially if you sold them for less than you bought them for. For anyone still having trouble accessing their forms or getting through to customer service, the suggestions about third-party services in this thread seem legitimate based on other people's experiences. Tax season is stressful enough without fighting with payment app customer service!

I successfully resolved this exact issue last month! I created an online account at IRS.gov which gave me access to my tax records and allowed me to update my address electronically. The change was reflected in their system within 3 business days according to the agent I spoke with later. You'll need to verify your identity through ID.me first, which requires a government ID and facial recognition. The whole process took about 20 minutes and I've been receiving all IRS correspondence correctly since then. Much faster than waiting for paper forms to process!

I went through this nightmare last year! What worked for me was doing BOTH Form 8822 AND calling the IRS directly to update it over the phone. The form takes forever to process, but the phone update was immediate. I also recommend requesting a "centralized authorization file" (CAF) number if you work with a tax professional - it helps ensure all your correspondence goes to the right place. One thing nobody mentions is that different IRS departments sometimes have different addresses on file for you, so you might need to update it in multiple places. Also, keep detailed records of when you submitted everything because if you get penalized for missed notices, you'll need proof that you properly notified them of your address change. The IRS has a "reasonable cause" provision for penalties if you can show you never received the notices due to their error.