Do you happen to know if health insurance premiums for yourself (the sole prop) count as eligible expenses for the remaining 40%? I've been getting conflicting information.

For sole proprietors with no employees, health insurance premiums for yourself do NOT count as an additional eligible expense for the 40% portion. This is because health insurance for the owner is already factored into your net profit calculation on Schedule C. The eligible expenses for the 40% portion are limited to business mortgage interest, rent or lease payments, and utilities that were in place before February 15, 2020. The rules are a bit different for businesses with employees, which is probably why you've been seeing conflicting information. Always best to check with your specific lender since they'll be the ones processing your forgiveness application.

I got PPP for my sole prop photography business while having a full-time W2 job. Your bank is wrong - there's nothing in the PPP rules that disqualifies you for having W2 income. Try applying through a smaller bank or credit union, or one of the fintech lenders like BlueVine or Kabbage. I applied through BlueVine after BofA gave me similar pushback and was approved in 3 days.

Thanks for this advice! Do we need to do anything special for sales tax collection? The items were sold to buyers in different states.

Good news - you don't need to worry about sales tax collection. eBay now automatically collects and remits sales tax in all states that require it. That's one headache they've taken off sellers' plates in recent years. Just focus on your income tax obligations - reporting the income on Schedule C, deducting your costs and expenses, and paying tax on the net profit. If you continue selling regularly, you might need to make quarterly estimated tax payments, but for a one-time cleanout of old inventory, you'll likely be fine just reporting it on your annual return.

Would it be better to just ignore the 1099-K and not report it? My cousin did that last year and nothing happened.

Thanks so much for this suggestion! Did you need to create a new account with H&R Block or could you somehow import your return from TurboTax? I'm worried about having to re-enter all my information from scratch.

You do need to create a new H&R Block account, and unfortunately there's no direct import from TurboTax. However, you don't have to re-enter everything from scratch either. What I did was download my tax return transcript from the IRS website (the "Get Transcript" tool), which had all my basic info already included. Then in H&R Block, I just had to enter the main details from my original return based on that transcript, plus the correct 1099-NEC information. It took maybe 30-45 minutes total, which was worth it to avoid paying TurboTax's premium fee. They make the amendment process pretty straightforward, especially for correcting income on a 1099-NEC.

That's actually not a great approach because the IRS will charge you interest and penalties if they catch the mistake first. When you file your own amendment, you can often avoid the penalties (though you'll still owe interest on any unpaid tax). Plus, having the IRS send you notices can increase your audit risk.

Woah really? That's super sketchy. What about if you use incognito mode? I wonder if they're basing it on your browsing history too.

I didn't try incognito mode, but that's a good idea! I did notice when I cleared my cookies and came back, the price was different again. I think they might be tracking how many times you visit or what features you use before buying. Definitely feels manipulative. I ended up using my roommate's laptop with a fresh browser history and got it for $59 instead. Same exact service, just different device and browsing history. Really makes me question their ethics.

Do you need to wait for the federal to be accepted first before filing state, or can you do them at the same time?

8 Does that apply even if you occasionally used the car for work and claimed mileage deductions? I'm in a similar situation but I used my car for both personal and some business travel.

3 That's a good question. If you used the car for business and claimed mileage deductions, then it's considered a mixed-use asset. In that case, you might be able to deduct a portion of the loss that corresponds to the business use percentage. For example, if you can document that 30% of your vehicle use was for business (through mileage logs), you might be able to deduct 30% of the loss. However, this gets complicated because you've already received tax benefits through the mileage deductions during ownership. It's definitely one of those situations where having good documentation of your business use percentage is crucial, and you might want to consult with a tax professional for your specific case.

5 There's no minimum threshold for reporting capital gains like this. Technically, any profit should be reported on your tax return, even small amounts.