I'm actually not sure! In the first service I think I just followed the prompts about having received a 1099-MISC and entered the numbers. In the second one I might have categorized it differently without realizing. That could explain the difference. Do you know if mediation work should be considered self-employment income or something else?

Mediation work reported on a 1099-MISC should typically be treated as self-employment income, which means you'd need to pay self-employment tax on it (an additional 15.3% covering both employer and employee portions of Social Security and Medicare). If one service is calculating it as self-employment income and the other isn't, that would explain a big difference. The service showing you owe money is probably calculating it correctly with self-employment tax, while the other might be missing that. Check box 7 on your 1099-MISC - if there's an amount there for "Nonemployee compensation," that's definitely self-employment income.

Second this advice about the local tax preparer. Online services have improved but they're still not perfect with state-specific regulations. I found a small local accounting office that reviewed my self-prepared return for $65 and found several errors that would have cost me hundreds.

Does the Fresh Start program work if you already have a payment plan from a previous tax issue? I set one up in 2022, then had another problem with my 2023 taxes.

Yes, you can still use Fresh Start provisions if you have a previous payment plan, but you'll likely need to renegotiate your existing agreement to include the new tax debt. The IRS typically combines all outstanding tax debts into a single payment plan. If your total debt is under $50,000, you can usually handle this online through the IRS payment agreement application. If your debt is now over $50,000 with the addition of the new tax issue, you might need to provide more financial information and work with an IRS representative directly. The key is contacting them before they contact you about the new debt - being proactive always looks better and gives you more options.

I used a tax attorney last year for a $15k back tax issue. Cost me $2,500 but he negotiated my penalties down by about $3,200 so it was worth it. The free consultation helped me understand my options before committing to anything. If your situation is pretty straightforward though, you might be fine handling it yourself with an installment agreement.

That's helpful to know about the free consultation option. Did they require payment upfront or could you pay in installments? I'm already stressed about the tax bill so coming up with a big attorney fee right now would be tough.

Is the PTIN requirement just for CPAs or does it apply to all tax preparers? My aunt does taxes on the side and I'm not sure she has this number you mentioned.

The PTIN requirement applies to ALL paid tax preparers, not just CPAs. This includes enrolled agents, tax attorneys, and anyone who prepares tax returns for compensation. The only exception is if someone is preparing returns as an unpaid volunteer. If your aunt charges money for tax preparation services, she legally needs a PTIN. It's not optional - it's a federal requirement. The IRS uses these identification numbers to track preparers and hold them accountable for the returns they submit. Without a PTIN, she shouldn't be charging for tax preparation services at all.

This happened to my coworker too! Their preparer claimed random deductions they weren't eligible for and their refund was huge. They got audited two years later and had to pay everything back plus penalties. The preparer was nowhere to be found by then.

That's a really good point I hadn't considered! I did spend about $350 on shipping everything to the refiner since some of the materials were pretty heavy. And there was a small assessment fee they charged before processing. I'm guessing those would go under "shipping" and "professional services" on Schedule C?

Exactly right. The shipping costs would go under "shipping and delivery" expenses on Schedule C, and the assessment fee would typically go under "professional services" or possibly "fees" depending on the nature of the charge. Don't forget to also include any other closing costs you incurred - things like final utility payments for your workspace, any termination fees for services or rentals, and even costs for storing business records. These are all legitimate business expenses in the year you close shop. Every deduction helps offset that final tax bill!

When I closed my business last year, I had to check a box on Schedule C indicating it was my final return for this business. I think it's in the top section near where you enter your business name and info. There's literally a box that says "If this is your final return, check here" or something similar.

Thank you so much for this specific advice for Robinhood! I just sent the email with that exact subject line and all the details you mentioned. I don't have Twitter but might create an account just for this purpose if I don't hear back soon. Did you have to wait long after sending the email before they responded? I'm getting really nervous as the deadline gets closer.

I got a response within 2 business days to the email. The Twitter route was actually faster - got a response same day, though it took about 3-4 days total to fully resolve the issue. They'll likely ask you to resubmit the form through their secure message center inside the app, which is fine. The important thing is getting your case flagged in their system so it doesn't just sit in the general queue. Once the right department has it, they're actually pretty efficient.

I've had success with this approach too. Most brokerage agreements have an arbitration clause, and just mentioning that you're "reviewing the dispute resolution section of your account agreement" can suddenly make things move much faster. They don't want to deal with the hassle and cost of formal arbitration.