Oh no, I didn't realize I'd owe self-employment tax too! How much should I expect to pay roughly on $4,800? I haven't saved anything specifically for taxes since this is the first I'm hearing about this.

For $4,800 in 1099 income, you'll owe approximately $735 in self-employment tax alone (15.3% of your net earnings). Then you'll also owe your regular income tax on top of that, which depends on your tax bracket and other income you might have. If this is your only income for the year, some of it might be offset by your standard deduction, but you'll definitely still owe the self-employment portion. There's a small deduction for half of your self-employment tax, but you'll still need to prepare for a tax bill. Consider making an estimated tax payment if possible to avoid underpayment penalties.

I used FreeTaxUSA last year for a very similar situation (research stipend on 1099-MISC). Federal filing WITH Schedule C was completely free. State filing was $14.99, but that was it - no surprise upgrades or "premium" features needed for the 1099 income. Their interface for Schedule C was actually pretty straightforward too.

What about amended returns? I'm in a similar situation but need to amend my 2023 return. Should I wait until my original 2023 return finishes processing before filing the amendment?

Yes, for amended returns you absolutely need to wait until the original return has been processed before filing the amendment. The IRS can't process an amendment to a return that hasn't been processed yet - it would just create more confusion in the system. If you file an amendment before the original return is processed, it will likely be rejected or get stuck in processing limbo. Wait until you can verify your original return has been processed (check your transcript or account online) before submitting Form 1040-X.

I tried using the Taxpayer Advocate Service but they're completely overwhelmed right now. I submitted my request 3 months ago and still haven't been assigned an advocate. Might be better in some locations than others though.

So does that mean I need to prove I bought the other collectibles as investments rather than for personal enjoyment? How exactly do I demonstrate that to the IRS? I never formally tracked anything as "investment" vs "personal" when I was buying stuff.

You would need to show evidence that suggests investment intent rather than personal use. Things that help establish this include: keeping detailed records of purchases and sales, maintaining an inventory system, researching market values before buying, having a dedicated space for your collection, and having a history of actually selling items for profit rather than just accumulating them. The IRS looks at factors like frequency of transactions, effort to improve marketability of items, and whether you depend on income from sales. You don't need formal designation documents, but consistency in how you've treated the items. Even documenting that you've been researching values and market trends can help establish investment intent.

Is there like a specific number of items that triggers this? I sold maybe 30-40 things on eBay last year but most were just stuff from around the house, not really collectibles.

$325 a month actually seems reasonable for everything you described. Does your CPA also help with tax planning throughout the year or just the compliance stuff? I'm trying to figure out if I'm overpaying at $450/month.

He does provide some tax planning, but it's fairly basic - mostly around estimated quarterly payments and year-end strategies like equipment purchases. We have two scheduled check-ins during the year specifically for tax planning. For more complex planning or when I have specific questions, I pay an additional hourly rate ($175/hr). So if you're getting comprehensive tax planning included in your $450, that actually might be a pretty good deal depending on the complexity of your business. My business is fairly straightforward though - single-member LLC with about $280K in revenue.

I tried the Upwork route last year. Found a decent bookkeeper for $35/hr who helped clean up my QuickBooks mess. Quality varies WILDLY though. Make sure they have actual accounting credentials and not just "I know how to use QuickBooks" experience.

Do tax liens still show up on credit reports? I thought they changed that rule a few years ago.

You're right, and I should have been more clear. In 2018, the credit bureaus removed tax liens from credit reports as part of the National Consumer Assistance Plan. However, tax liens are still public records that can appear during background checks and mortgage applications. While they don't directly impact your credit score anymore, they definitely still affect your ability to get certain loans - especially mortgages. Lenders typically check for tax liens during underwriting. My situation happened before this change, but even today, a tax lien would prevent you from refinancing with most lenders until it's resolved.

My brother got an OIC approved last year, but he had to prove serious financial hardship. They look at your assets, income, expenses - everything. He ended up settling about $45k for around $12k, but only because he had medical issues that prevented him from working full time and very few assets. If you have a decent income or any significant assets (home equity, retirement accounts, etc), you probably won't qualify. The IRS has a pre-qualifier tool on their website that's pretty accurate.