That's good to hear! Their accounting department is pretty responsive usually, so hopefully they can fix it quickly. Is there a deadline for when they need to issue a corrected form?

The company technically should issue a corrected form as soon as they discover an error, but there's no strict deadline for corrections like there is for the original forms. If you're filing your return before they send a correction, just make sure you report the income correctly on your Schedule C regardless of what box it appears in on the incorrect form. The important thing is that you're properly reporting all your income and paying the appropriate taxes on it.

I used TurboTax last year with a wrong-box 1099 issue. You just enter the income correctly on your Schedule C as business income. There's no specific place to note the box discrepancy. TurboTax has you enter the total amount from each 1099, but the Schedule C is where you categorize everything properly. Never had an issue with the IRS questioning it.

Thanks for the info! That makes me feel better about just going ahead with my filing. Seems like as long as we report the total income correctly, the specific box issues aren't a dealbreaker.

Thanks for this info! I had no idea there were "marketplace facilitator" laws. Do you know if there's an easy way to check what my state requires? I've been collecting and remitting sales tax on the full amount (including their commission) which sounds like it might be wrong.

The easiest way to check is to google your state name plus "marketplace facilitator sales tax law" - most states have published guidance specifically for restaurants dealing with delivery apps. In most states that have these laws, the delivery apps should be giving you reports that show what portion of sales tax they collected vs what you need to collect. If you've been remitting tax on the full amount including their commission, you might actually be overpaying! You might want to look into filing an amended return to get that money back. Some of my restaurant clients have received significant refunds after realizing this mistake.

On the tax-exempt topic - be super careful with catering orders for churches and non-profits. I learned the hard way that in my state, they need to provide their exemption certificate BEFORE the sale, not after. Had to eat the tax cost on a $2000 order because they gave me their certificate a week later!

Thanks for mentioning this! I was leaning toward Section 179 anyway since my business income is pretty healthy this year, but I wasn't aware that bonus depreciation was down to 80% now. Is there any advantage to using bonus depreciation instead of Section 179 in my situation?

Section 179 is probably your best bet in this case. The main difference is that Section 179 is optional on an asset-by-asset basis and limited by your business income, while bonus depreciation is automatic unless you elect out and doesn't have the same business income limitation. The other consideration is that if your business income is relatively small, a large Section 179 deduction could potentially create a loss, which might be limited. Bonus depreciation doesn't have that same restriction. But for a $2,400 laptop, Section 179 is usually the simplest approach unless you have other reasons to preserve income on your return.

Did your accountant have you fill out Form 4797 for the disposition of the old laptop? I'm using TurboTax and it's asking me to complete that form, but it seems complicated for just a laptop trade-in.

This is helpful, thanks! Where exactly can I find if there's a tax treaty between my country (India) and the US? And how do I track my days present - is there an official way to do this?

You can find information about tax treaties on the IRS website under "Tax Treaties" - specifically look for "Table 1" which summarizes the withholding tax rates. For India, there is indeed a tax treaty and the reduced rate for interest income is 15% instead of the standard 30%. For tracking days present in the US, you can use the entry/exit stamps in your passport, your I-94 travel history (which you can download from the CBP website at i94.cbp.dhs.gov), or your travel records like flight confirmations. For tax purposes, you'll need to apply the Substantial Presence Test which counts full days you were physically present in the US across a three-year period using a weighted formula.

The difference in timing exists because of regulatory requirements. Financial institutions must issue 1099 forms by January 31st, but they have until March 15th to issue 1042S forms. This extended deadline allows institutions more time to apply the complex withholding rules and tax treaty provisions that apply to non-resident accounts. Additionally, 1042S processing often requires manual review to ensure proper withholding rates based on tax treaties, which varies by country. Some institutions actually prepare these forms through separate departments or even third-party specialists rather than their regular tax document systems.

Thanks for explaining! So I shouldn't be worried that something's wrong with my account? I'll just have to be patient until mid-March I guess.

Did you ever make any big mistakes during those learning years? That's my biggest fear.

I made one significant mistake my third year doing taxes. I messed up reporting some stock sales and ended up paying about $600 more than I needed to. I only discovered it two years later when I was learning more about capital gains. The good news is most tax software now has really strong error checking. The review process will flag anything unusual or incomplete. The key is to start early so you have time to research anything that seems confusing. Don't wait until April 14th when you're rushed and stressed!

Do you think TurboTax is worth the money? I've been using the free options but wondering if paying for the deluxe versions actually helps.