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To answer your original question - tax isn't ALL about reading codes. The coding part is just the foundation. What makes tax work interesting is figuring out how those codes apply to specific situations. It's like solving puzzles! I started as a VITA volunteer in college and now work at a regional accounting firm. The analytical skills you develop trying to optimize someone's tax situation are valuable even beyond tax work. Plus the client interaction skills you learn at VITA are SO important - explaining complex tax concepts to regular people is an art form.
Thanks for the perspective! Did you find that your VITA experience helped you land your first tax job? I'm hoping it will give me a leg up when I start applying.
Absolutely it helped! I highlighted my VITA experience in all my job interviews. Employers loved that I already had practical experience preparing returns and working directly with clients. Many accounting students graduate only knowing theory, but VITA gives you hands-on experience. It also gives you great stories to tell in interviews. I talked about challenging cases I handled and how I researched solutions. This demonstrated problem-solving skills that firms are looking for. Several interviewers told me my VITA experience was what set me apart from other candidates.
Pro tip: don't try to memorize all the tax codes during training. The point is to understand the concepts and know where to look things up when needed. Even experienced tax pros don't have everything memorized!
This is so true! I've been doing taxes professionally for 8 years and I still look stuff up constantly. The tax code changes every year anyway, so memorization isn't as valuable as knowing how to research.
One thing nobody's mentioned - check if your state has a "redemption period" for tax liens. In some states, even if your property is sold for unpaid taxes, you have a period (sometimes up to 2 years) to "redeem" or pay off those taxes and reclaim your property. Also, tax sales usually require public notice. Have you received any mail about a potential tax sale? If not, you're probably not at that point yet.
Thanks for bringing this up. I haven't received any notices about a tax sale yet, just the regular past due notices. I think I'm still in the penalty/interest phase rather than the actual lien sale process. I'm hoping to get the house sold before it gets to that point.
Then you're likely still in good shape. Most counties go through multiple steps before actually putting a property up for tax sale - first notices, then liens, then more notices, and finally the tax sale process. It usually takes 3+ years of non-payment in most places before they move to sell. Just make sure to disclose the situation to your real estate agent and potential buyers. The title company will find the tax liens during their search anyway, so it's better to be upfront. As others have mentioned, the unpaid taxes will just be deducted from your proceeds at closing.
You might want to check if you qualify for any hardship programs with your county. I lost my job in 2023 and was able to get on a property tax deferral program that paused penalties while I was unemployed. Call your county treasurer's office and ask specifically about hardship provisions. Not all counties advertise these programs.
Seconding this! My county had an "economic hardship" form that reduced my penalties by 75% when I provided proof of medical bills that had caused my financial problems. Definitely worth asking about.
Another free option nobody's mentioned is CreditKarma Tax (now called Cash App Taxes). I've used it for the last 3 years including for crypto transactions. Completely free federal AND state filing with no income limits. It's actually pretty user-friendly and handles most tax situations including Schedule D and Form 8949. The only major limitation is they don't support multiple state filings or foreign income reporting.
Can it import the already completed Sch D and 8949 forms that OP mentioned, or would they have to re-enter all their crypto transactions manually?
Unfortunately it doesn't have a direct import feature for already completed forms. You would need to manually re-enter the information from your Schedule D and Form 8949. This is actually one downside compared to some other options mentioned. If you have a lot of crypto transactions, re-entering everything could be quite time-consuming.
Whatever method you choose, just make sure you keep copies of EVERYTHING. I filed myself last year and didn't keep proper records. Then got a letter from the IRS about my crypto and had NOTHING to refer back to... total nightmare! Take screenshots of every page before submitting, save PDFs of all completed forms, and keep a folder with all your supporting documents. Trust me, future you will thank present you if there's ever a question!
Learned this the hard way too. Also date everything! I wrote notes on some of my forms but didn't put dates and couldn't remember which version was final when I got audited.
One important thing nobody's mentioned yet - make sure you're tracking your quarterly estimated tax payments for 2025 if you're continuing this side work. I got absolutely hammered with penalties last year because I didn't realize I needed to make quarterly payments on my Uber and Etsy income. The IRS wants you to pay as you earn throughout the year, not just at tax time. Since you have both 1099-NEC and 1099-K income, you're definitely on their radar now.
I had no idea about quarterly payments! What's the threshold for when you need to start making those? And how do you even calculate how much to pay each quarter?
The general rule is if you expect to owe $1,000 or more in taxes for the year from self-employment, you should make quarterly payments. With your combined income from both sources around $9,000, you'll likely need to make these payments. For calculating the amount, you can either pay 100% of last year's tax liability divided by 4 (the safe harbor method), or 90% of what you expect to owe this year. I use the IRS Form 1040-ES worksheet to figure it out. The due dates are April 15, June 15, September 15, and January 15 of the following year.
Just wanted to add that the income threshold for receiving a 1099-K changed for 2024. It used to be $20,000 AND 200 transactions, but now it's just $600 total regardless of the number of transactions. That's why so many more people are getting these forms this year and are confused!
QuantumQuest
10 Has anyone tried just showing up at a local IRS office in person? I'm wondering if that's easier than trying to call or using these online services. I'm in the exact same boat (6 years unfiled) and want to get this fixed before they come after me.
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QuantumQuest
ā¢14 I tried that route last year for my unfiled taxes. You can't just walk in - you have to make an appointment through their phone system first... which gets you right back to the impossible phone situation. And when I finally got an appointment 6 weeks out, they couldn't even help with multiple years of returns. They just gave me some forms and told me to mail everything in. Waste of time honestly.
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QuantumQuest
ā¢10 Thanks for letting me know. That sounds super frustrating and not helpful at all. Guess I'll look into the other options mentioned here since showing up in person won't skip any steps in the process.
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QuantumQuest
17 People are overthinking this. I was in the same situation (4 years unfiled), and I just used FreeTaxUSA to file all my old returns. They charge like $15 per state return but federal is completely free even for old years. You just have to print and mail the older returns instead of e-filing. If you're just dealing with W2 income, it's pretty straightforward. I was getting too anxious thinking I needed some special help, but for basic situations, you can totally DIY this.
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QuantumQuest
ā¢22 Be careful with this approach. If you owe money, you need to know how to properly calculate penalties and interest. I tried doing it myself and ended up with the IRS sending me letters saying I calculated everything wrong, which just created more headaches. Sometimes paying for proper help is worth it to avoid mistakes.
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