One thing nobody mentioned yet - make sure you're paying quarterly estimated taxes on your tutoring income! I got hit with an underpayment penalty my first year as a contractor because I didn't realize I needed to make payments throughout the year.

As someone who's been doing freelance consulting work for a few years, I can confirm that the QBI deduction is a real game-changer for independent contractors like yourself! Your tutoring income absolutely qualifies. One thing I'd add to the excellent advice already given - since you're working 30 hours a week, this is clearly a substantial business activity, not just a hobby. That strengthens your position for claiming business deductions. Also, don't stress too much about the complexity. The IRS has Publication 535 (Business Expenses) and Publication 587 (Business Use of Your Home) that explain everything in detail, but honestly, most tax software will walk you through the QBI calculation once you enter your Schedule C information. The key point everyone's made is correct - at your income levels, you should get the full 20% QBI deduction, which on $23,500 would be up to $4,700 in additional deduction. That's significant money! Since your deadline is approaching, focus on getting your Schedule C completed first (your tutoring income and any business expenses), then the QBI deduction will flow from there. You've got this!

Great advice in this thread! One additional consideration for @ApolloJackson - since you mentioned this was your primary residence before becoming a rental, make sure you understand the depreciation recapture rules. If you claimed depreciation deductions during those 2 years when it was a rental property, you'll need to "recapture" that depreciation and pay taxes on it at a rate up to 25% (rather than capital gains rates). This recapture happens regardless of whether you use installment sale treatment - it's required to be recognized in the year of sale. Only the capital gain portion above the depreciation recapture can be spread out over the installment payments. Your CPA will be able to calculate this for you, but it's something to factor into your tax planning since it could affect your 2025 tax liability even though you're receiving payments over 15 years. Also, keep excellent records of all maintenance, improvements, and expenses related to the property during your ownership - these can help reduce your overall taxable gain!

This thread has been incredibly informative! As someone new to this community but dealing with a similar situation, I wanted to add a few practical tips from my recent experience with owner-financing. First, definitely keep meticulous records from day one. I created a simple filing system with folders for: the original sales contract, promissory note, payment records, and tax documents. Each monthly payment gets logged with date received, amount, and the principal/interest breakdown. Second, consider setting up automatic payments if possible - it makes tracking easier and ensures consistent cash flow. I use a separate bank account just for these transactions, which simplifies record-keeping and makes it obvious what's investment income versus other sources. Finally, regarding the tax software limitations others mentioned - I found that even premium versions of popular tax software struggle with owner-financing scenarios. Having your amortization schedule prepared before tax season (either from the tools mentioned here or created yourself) will save you headaches later. @ApolloJackson - sounds like you're on the right track planning ahead! The fact that this was your former residence definitely adds complexity with the potential Section 121 exclusion and depreciation recapture, so having all your documentation ready for your CPA will be key.

This has been such an informative discussion! I'm dealing with a somewhat different situation that I hope someone can help with. My spouse has old tax debt from a business that failed about 8 years ago, but we've never been sure if the debt is still active since we never hear from the IRS about it. Based on what I've read here, I should definitely call that Treasury Offset Program number (1-800-304-3107) to check before we file our return this year. We typically get refunds of around $2,000-3,000, so losing that to old debt would be a real financial hit. One thing I'm curious about - has anyone dealt with a situation where the IRS debt was from a failed business? I'm wondering if business tax debt gets treated differently than individual income tax debt when it comes to offsets and the 10-year collection statute. My spouse was the sole proprietor, so I assume it would be treated as personal debt, but I want to make sure I understand this correctly. Also, if we do need to file Form 8379, should I be concerned about any additional scrutiny from the IRS since the original debt was business-related? I don't want to accidentally trigger an audit or create more problems by filing the injured spouse form. Thanks for all the great advice in this thread - it's given me a much clearer picture of what I need to do to protect our refund!

This thread has been incredibly helpful! I'm a newcomer to this whole injured spouse situation and had no idea how complex it could be. My husband has old child support debt from before we were married, and I was completely confused about whether Form 8379 would even apply to us. A couple of key takeaways that really clarified things for me: 1. The form only makes sense if you're getting a refund - if you owe taxes, there's nothing to protect 2. You need to file it every year you expect a refund, not just once 3. The Treasury Offset Program number (1-800-304-3107) can tell you upfront if there's debt that could trigger an offset One question I still have - if we're married filing separately instead of jointly, does that automatically protect my refund from being taken for his debt? Or would I still need some kind of protection? I'm wondering if changing our filing status might be simpler than dealing with Form 8379 every year, especially since we don't get huge refunds anyway. Thanks to everyone who shared their real experiences - it's so much more helpful than just reading the IRS instructions!

Maybe Im just dumb here but im confused about something - if robinhood sent the 1099 to the IRS, wouldn't they have also sent it to your brother? Didn't he get any tax forms from them for 2021? Those forms should have all the info he needs to fix this

This is exactly why I always tell people to be super careful with crypto taxes from day one. The IRS has been cracking down hard on unreported crypto transactions, and they have access to all the 1099 forms from exchanges. One important thing to add - when you file that amended return, make sure to include a detailed explanation letter with it. The IRS processors appreciate context about why you're amending, especially when there's such a big discrepancy. Something like "Originally failed to report cryptocurrency transactions due to misunderstanding of reporting requirements. Amended return includes complete Schedule D with all crypto transactions and correct cost basis." Also, don't panic about the timeline. You generally have 3 years from the original filing date to amend a return, so you're well within that window for 2021. The IRS will recalculate everything once they process your amendment, including removing those penalties and restoring the earned income credit. The good news is this is totally fixable, and you're definitely not the first person to go through this exact situation!

Quick tip about those missing 1099s - check if you have any settings in your account that might be directing the forms elsewhere. On Twitch especially, the tax documents often go to whatever email/address was set in your payment settings section, not your main account email. Also worth checking if either platform has a tax document portal in your account settings. Sometimes they don't email the forms but expect you to download them from your dashboard.

Hey CosmicCowboy! Congrats on the amazing streaming year - that's incredible income! I went through something similar last year with missing 1099s from multiple platforms. Here's what I learned: You absolutely need to report all that income on Schedule C regardless of whether you get the forms. The platforms are still reporting to the IRS what they paid you. For your mortgage application, you'll want to gather everything now - bank statements showing the deposits, screenshots of your earnings dashboards from both platforms, and any payment processor records (PayPal, etc.). Most lenders will accept these along with your tax returns, but they may want to see 2 years of consistent self-employment income. One thing that really helped me was setting up a dedicated business checking account for all streaming income going forward. Makes tracking so much easier and looks more professional to lenders. Also, make sure you're tracking business expenses! Equipment, software subscriptions, internet portion, home office space - these can really add up and reduce your tax burden significantly. With income at your level, proper expense tracking could save you thousands. Good luck with both the taxes and the mortgage application!