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Just adding another data point - I sold about $5k worth of stuff on eBay last year (mostly collectibles from my closet that I'd had for years) and didn't get a 1099-K either. I reported it anyway because most of the items I sold for more than I originally paid (I had some vintage Star Wars toys that appreciated a lot lol). My accountant said that technically it should be reported as capital gains since I held them for over a year and they appreciated in value. It's different than if you're running an actual business buying and selling stuff regularly.
Wait, so if I sold my old Pokemon cards for more than I paid 20 years ago, that's capital gains and not just regular income? Does that mean I might pay less taxes on it? I made like $3k selling my childhood collection last year and just wasn't going to report it since I didn't get any forms.
Yes - if you owned those Pokemon cards for personal enjoyment for years and then sold them at a profit, that would be considered a capital gain, not ordinary income. Long-term capital gains (items held over a year) are typically taxed at lower rates than regular income. Since you held them for 20 years, you'd qualify for long-term capital gains rates, which could be 0%, 15%, or 20% depending on your income bracket - often lower than your regular income tax rate. You should definitely report this on Schedule D. Even without a 1099-K, the IRS expects you to report all income, including from casual sales that resulted in a profit.
A bit confused after reading all of these comments. So if I sold some furniture on Facebook Marketplace for like $800 total last year (stuff I just wanted out of my house, sold for less than I paid), I don't need to report anything because 1) it's under the $20k threshold for getting a 1099-K and 2) I didn't make a profit anyway?
I work in payroll (not a tax professional). From our end, we can't stop a garnishment until we receive official notification from the IRS. However, if you bring your payment confirmation to your payroll department, they might be able to help by directly contacting the IRS on your behalf. Some larger employers have dedicated contacts they can reach out to. Also, make sure the garnishment release actually gets sent to your employer. I've seen cases where the IRS released the garnishment in their system but the notice never made it to the employer. In those cases, the employee had to request that the IRS resend the release notice.
Would an employer ever consider holding the garnished amount separately until confirmation rather than sending it to the IRS? It seems unfair to keep taking money when the debt is paid.
Unfortunately, employers generally can't hold the garnished amounts separately. We're legally required to follow the garnishment order until we receive an official release. If we failed to withhold and remit the funds as ordered, the company could be held liable for the full amount of the original debt. That said, some employers might be willing to advance you the equivalent of the garnished amount if you can show proof of payment, essentially treating it as a payroll advance that would be repaid once the duplicate payments are refunded by the IRS. This isn't standard practice, but it doesn't hurt to ask if you're in a tight financial situation due to the continued garnishment.
Has anyone dealt with getting a refund for over-garnished amounts? The IRS took about $350 more than I actually owed before they processed my payment and sent the release to my employer.
Yes, you'll get it back but it can take time. Call the IRS and specifically request a refund for the excess amount. They should apply it automatically, but in my experience, you need to be proactive about requesting it or it can sit in limbo for months.
I'm another F-1 student and I've been using FreeTaxUSA for the past two years. They do have options for non-resident aliens and support the 1040-NR. Much cheaper than Sprintax (federal filing is free, state is around $15). Just make sure you know what you're doing and which forms you need. The software doesn't guide you through non-resident specific situations as thoroughly as specialized options might, but if your case is straightforward (just W-2 income), it works fine!
Do they handle Form 8843? Also curious if FreeTaxUSA properly deals with tax treaties? I'm from a country with education exemptions.
FreeTaxUSA does support Form 8843, but you need to know to include it - it won't automatically suggest it based on your visa status. As for tax treaties, it does have options to enter treaty exemptions, but you need to know the specific article numbers and exemption amounts that apply to your situation. It doesn't guide you through determining eligibility like the specialized software does. For my simple situation it works, but if you have complicated treaty benefits, you might want something more specialized that will help identify which treaties apply to you.
Has anyone used TaxSlayer as a non-resident? My university offers it for free but I'm not sure if it has all the international student forms.
Former small farm owner here. One tip nobody's mentioned: Make sure you're tracking your mileage for farm-related trips! This includes trips to suppliers, farmers markets, deliveries, etc. The mileage deduction adds up fast and many new farmers miss it. Use a simple app or even a paper notebook in your vehicle. Also, look into if your state has any agricultural tax exemptions. In many states, you can get exempt from sales tax on farm supplies and equipment, which can save you a ton over time. You usually need to fill out a form with your state's department of agriculture or revenue.
For farm vehicles, you generally have two options: deduct actual expenses (gas, maintenance, insurance, etc.) OR take the standard mileage deduction. You can't do both. For most small farmers, the standard mileage deduction is simpler and often more beneficial. In that case, you only need to keep a mileage log with dates, destinations, purpose, and miles driven - no gas receipts needed. The log should differentiate between farm use and personal use if it's a vehicle you use for both. If you choose to deduct actual expenses instead, then yes, you'd need to keep all those gas receipts and maintenance records.
Whatever you do, DON'T toss that shoebox of receipts even after filing! I learned this the hard way when I got audited 2 years after starting my small farm. The IRS specifically wanted to see original receipts for all my startup equipment. Also, take photos of your farm setup and equipment. If you're ever questioned, visual evidence that you're actually operating a legitimate farm business (rather than just claiming hobby expenses) is super helpful.
Amara Okafor
Have you contacted the other Jeff Anderson yet? If your tax office will give you his contact info (they might not due to privacy), maybe you could work directly with him. He's essentially gotten a free ride on his taxes thanks to your payment. If he's reasonable, he might be willing to reimburse you directly, which would be faster than fighting with the tax office. He's legally benefited from your mistake, but morally he should make it right.
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Giovanni Colombo
ā¢This is great advice! My friend had something similar happen with utility bills (same name, wrong account) and contacting the other person directly was the quickest solution. The tax office probably won't give out contact info, but they might be willing to forward a letter from you to the other property owner.
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AstroAce
ā¢I actually asked the tax office if they could at least tell me where the other property was located or forward a message to the owner, but they refused citing privacy regulations. I even suggested they could contact the other Jeff Anderson themselves to explain the situation, but they said that wasn't their responsibility. It's so frustrating because somewhere out there, another Jeff Anderson suddenly had a multi-year tax debt wiped clean, and he probably has no idea it was because of my mistake. I feel like the tax office should at least inform him that his bill was paid by someone else by mistake.
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Fatima Al-Qasimi
You should check your state laws about mistaken payments. In most states, there are specific procedures for handling misdirected tax payments. The fact that you paid in cash makes it harder to trace, but you still have a receipt showing you made a payment. Try searching "[your state] tax payment correction" or "erroneous tax payment refund [your state]" to find the specific procedures. Most state tax departments have forms specifically for this purpose.
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StarStrider
ā¢This is important! Also, make sure you're looking at the correct level of government. Property taxes are usually handled at the county or municipal level, so you want to look for county procedures rather than state procedures in most cases. Each county might have slightly different rules for handling misapplied payments.
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