This is actually really helpful! So the TIN is just the umbrella term? Are there any other types of TINs besides SSN and EIN that regular people might encounter?

Yes, TIN is exactly that - the umbrella term for various tax identification numbers. Besides SSNs and EINs, there are a few other types regular people might encounter. The most common alternative is the ITIN (Individual Taxpayer Identification Number), which is used by residents who need to file taxes but aren't eligible for an SSN, like certain visa holders or non-resident aliens. Another one is the PTIN (Preparer Tax Identification Number) which is used by professional tax preparers - you might see this on your tax return if someone else prepared it for you.

is there ever a case where a normal person (not a business) would have a different TIN than their ssn? like what if someone isn't a citizen?

Thanks for the reminder about responding by the deadline. The due date is in about 3 weeks, so I have a little time. Do you know if I'll get a separate bill for the penalties and interest, or will that be included in what I pay when I agree to the CP2000 assessment?

When you agree to the CP2000 assessment, the response form will show the total additional tax amount they're proposing. This typically includes the 10% early withdrawal penalty for the Traditional IRA portion, but it does not include interest and potential late payment penalties. Those additional amounts will be calculated and included in the actual bill you receive after you've agreed to the assessment. The IRS will send you a separate notice (usually a CP22A) with the final amount including any interest and penalties. Interest continues to accrue until the amount is paid in full. If you're concerned about the total, it's definitely worth requesting an installment agreement either with your CP2000 response or when you receive the final bill. You can use Form 9465 to request a payment plan.

This is such an important point! I did the same thing and it caused all kinds of confusion. The IRS forms change slightly from year to year, and using the wrong one can really mess things up.

This is really helpful advice, thanks! I've been tracking sales but not as formally as you described. Do you have any recommendations for good software or templates to use for this kind of tracking? And do you know if there's a revenue threshold where requirements become stricter?

For your level of business, a well-organized spreadsheet is actually sufficient - that's what I still use. I created columns for purchase date, purchase price, sale date, sale price, platform fees, and profit calculation. I also keep a separate tab for business expenses like software subscriptions. The requirements get significantly stricter once you exceed €22,000 in annual turnover, as you'll lose the Kleinunternehmer status and need to deal with VAT (Umsatzsteuer). Once you hit €60,000 annual profit, you'll need to use double-entry bookkeeping (doppelte Buchführung) instead of simple income-surplus calculation (EÜR). At your current scale, though, the detailed spreadsheet approach should be sufficient for the Finanzamt.

This is such an important point that people miss. My friend got hit with a huge health insurance adjustment bill because he didn't realize his side business income would affect his calculation. The Krankenkasse recalculated two years of premiums retroactively!

I tried that first thing, but it seems my employer set up their ADP account differently. When I log in, I can only see paystubs up until I left, but no tax documents. The ADP rep specifically told me the employer has to grant access to those. I even have my last paystub, but I'm not confident in calculating all the tax amounts correctly from that alone.

That's frustrating! In that case, I'd definitely go with getting the wage transcript from the IRS like others suggested. One more thing - if you have your last paystub of the year, it often has your year-to-date totals which are usually pretty close to what appears on your W2. You could use that as a starting point while waiting for the official transcript. Just make sure to attach a note explaining the situation when you send documents to your state. Most tax agencies deal with this kind of employer non-compliance regularly and have procedures for it.

This is exactly what I did when my former employer wouldn't give me my W2. Filed complaints with both the state labor department and the IRS. Got my W2 mysteriously emailed to me about a week later. Amazing how they suddenly "found" it after ignoring me for months!

Oh man I completely forgot about state taxes! I'm in Minnesota - do you know if they have any special treatment for capital gains or do they just add it to regular income?

Minnesota treats capital gains as regular income and taxes them at your normal state income tax rate. With your income level, you're probably looking at around 7.05% state tax on your gains. So if you're in the 15% federal long-term capital gains bracket, your effective rate is actually more like 22% when you factor in state taxes. It's definitely worth planning for this ahead of time so you don't get surprised by a big tax bill. You might want to consider making estimated tax payments if you're selling a large amount to avoid underpayment penalties.

I've used TurboTax for the past few years with capital gains from stocks and ETFs and it's been fine. Their crypto handling was kinda clunky last year though. If you have a lot of crypto transactions, you might want something more specialized. TT also charges extra for the premier version you need for investments.