Do you include things like gas expenses for going to thrift stores and yard sales on this same statement? Or are those tracked separately?

I track those separately as business expenses rather than including them on the sales summary statement. The summary statement is specifically for showing your inventory's cost basis and sales prices. Transportation costs, supplies, platform fees, and other business expenses should definitely be deducted, but they belong in different sections of your tax return. I keep a separate spreadsheet for those business expenses categorized by type (transportation, office supplies, shipping materials, etc.).

This is terrible advice. The IRS absolutely can and does audit small businesses, especially with the new lower 1099-K thresholds. A summary statement needs to show your basis for claiming costs against specific income. If you get audited with just "total sales" and "total costs" with no breakdown, you're asking for trouble.

3 I've heard QuickBooks is expensive though. Are there any free or cheaper alternatives that would work for someone just starting out with one contract?

9 There are definitely more affordable options for beginners. Wave is completely free for basic accounting and receipt tracking. Also check out Stride Tax which is free and designed specifically for tracking expenses and deductions for independent contractors. When you're just starting with one contract, these simpler tools are often enough until your business grows more complex.

1 This is really smart - I never would have thought about separate accounts. Do I need to set up an LLC first or can I just open a business account as myself?

Thanks for these suggestions! We didn't have the LLC for long (formed it about 4 months before converting to C-Corp), so the startup expense angle might be relevant. And yes, we did personally guarantee a business line of credit during the LLC period. How would the at-risk rules potentially help in this situation?

Since your LLC was relatively new, you might be able to classify more expenses as Section 195 startup costs. This allows you to deduct up to $5,000 in the first year (subject to phase-out rules) and amortize the rest over 15 years. While not a complete solution to your problem, it could reduce the immediate tax hit. Regarding the personally guaranteed business debt - the at-risk rules essentially allow you to claim losses up to the amount you have "at risk" in the business. With a personal guarantee on business debt, you may have increased your at-risk amount, potentially allowing you to claim more losses against other income. This is complex territory though, so definitely have your tax advisor look specifically at your at-risk basis during the LLC period.

Doesn't the 199A deduction have income limitations though? If they made $675k in just two months as an LLC, I'm guessing they're well above the phase-out thresholds.

Thank you! This actually worked for me. I disabled uBlock Origin, cleared my cache, and logged back in. My certificate was there waiting in the "Completed Certifications" section. I feel kinda dumb now but also relieved. Guess I'll have to remember this for next year too!

Glad it worked for you! I spent days trying to figure it out last year before a VITA coordinator told me about this trick. They really should mention this somewhere in their instructions. Also, don't feel dumb - their system should be designed to work regardless of common browser extensions.

Check if you can edit your profile info in the VITA portal. I had a similar issue and discovered my own profile had my name misspelled somehow. After fixing it, I had to request a new certificate, but they sent a corrected one within 48 hours.

Thanks for the suggestion. Just checked my profile and you're right - somehow my last name was entered incorrectly (no idea how that happened). Fixed it and submitted a help ticket requesting a corrected certificate. Hopefully it won't take too long!

What about income from selling stuff on eBay or Facebook Marketplace? Does that count as "other income" on Schedule 1?

It depends on whether you're selling items as a business or just occasionally selling personal items. If you're regularly buying things to resell for profit, that's considered business income and should go on Schedule C, not as "other income" on Schedule 1. If you're just occasionally selling personal belongings (like cleaning out your closet), and selling them for less than you paid originally, you generally don't need to report it at all since there's no gain.

DoorDash/UberEats delivery people are considered independent contractors, not employees. Your tips are part of your self-employment income and should be reported on Schedule C along with your other earnings from these platforms. You don't use Form 4137 for these types of tips.