Your gig work from Uber and DoorDash shouldn't go on Line 1h. That income is considered self-employment income and should continue to be reported on Schedule C. The "Other earned income" on Line 1h is generally for earnings that are treated as wages but don't fit in the other categories. As a self-employed gig worker, you'll still report your income and expenses on Schedule C, calculate your net profit or loss, and then that flows to Schedule 1 and ultimately to Form 1040. These changes to Line 1 don't change the fundamental way gig workers report their income.

Tax software companies update their programs every year based on IRS changes. TurboTax, H&R Block, and other major tax software should have all the new form changes implemented before filing season begins. They usually start updating their systems as soon as the IRS finalizes the forms.

1 Oh geez I hadn't even thought about state taxes! Do you know if Missouri has the same 6-year lookback period as the IRS? Or do I need to file all 10 years with the state?

22 Missouri generally follows the federal statute of limitations, so the 6-year lookback period is similar. However, there are some important differences. Missouri's Department of Revenue can be a bit more aggressive about collecting on older debts than the IRS in some cases. The good news is that Missouri offers voluntary disclosure programs that might help reduce penalties if you come forward voluntarily before they contact you. I'd recommend checking the Missouri DOR website or calling them directly after you get your federal situation straightened out. In my experience, state tax agencies are actually easier to reach by phone than the IRS.

8 Most of those "pennies on the dollar" tax relief companies are extremely misleading. What they're referring to is the IRS Offer in Compromise program, which is legitimate but has very strict qualification requirements that most people don't meet. These companies often charge thousands upfront with no guarantee of results. The reality is that if you have assets or a decent income, you likely won't qualify for significant reductions. The IRS has standard formulas they use to determine eligibility. You're better off working directly with the IRS or hiring a reputable local tax professional who charges reasonable fees. The IRS provides payment plans that most people can qualify for without needing a special "tax relief" company.

Does he need to do anything special on his tax forms to show it was his primary residence even though he didn't meet the 2-year test? Is there a specific form or something?

There's no special form specifically for declaring a primary residence that doesn't meet the 2-year test. He would report the sale on Schedule D and Form 8949 like any capital gain, but the key is keeping those supporting documents we discussed in case of questions. If he qualifies for a partial exclusion due to work-related move, health reasons, or unforeseen circumstances, he would need to fill out Form 2119. But from what you've described, planned retirement and moving overseas probably wouldn't qualify as an unforeseen circumstance, so he should plan on paying the full capital gains tax.

Did they use TurboTax or some other tax software to figure all this out? I'm trying to decide if I need an accountant for my situation or if the tax software can handle these kinds of scenarios.

Is there a specific app you'd recommend for tracking cash payments? And do you actually need to take pictures of the physical cash? What does that prove exactly?

I just used the regular notes app on my phone, nothing fancy. The key is consistency - record everything right when you get paid so you don't forget. Taking pictures of cash isn't absolutely necessary for tax purposes, but I found it helpful when I needed to look back and verify amounts. It's more a personal record-keeping tip than a legal requirement. The most important thing is documenting when and how much you earned so you can accurately report it at tax time.

That's actually not completely true. The rules for dependents filing their own returns depend on both earned and unearned income. For 2025, if your earned income is over $12,950, you need to file your own return even if someone claims you as dependent.

Thanks for the clarification. You're right about the filing threshold for earned income. The important thing for the original poster to understand is that being a dependent doesn't mean your parents file for your income on their return - you'd still need to file your own if you meet the thresholds. The point about bank accounts is still relevant though - as a minor, the parents will have visibility into banking activity in most cases, so having a conversation about the cash income is important.

This is the right answer! The full tax return PDFs in TurboTax include all the supporting docs with the employer breakdowns. Just make sure you're looking at the COMPLETE return, not just the 1040 summary.

That sounds perfect! I'll check my TurboTax account tonight. Hopefully they still have the full returns from 5 years ago. Thanks for this tip - would be so much easier than tracking down old employers.