Thanks for mentioning that! I had no idea about needing a PTIN or the software costs. Are there any decent budget options for software when just starting out with a few clients, or do you really need to invest in the professional versions right away?

There are definitely budget-friendly options when you're just starting out. TaxAct Professional and TaxSlayer Pro offer lower-cost entry packages for new preparers with a small client base. Some even have pay-per-return options which might be more economical if you're only doing a handful of returns. Drake also offers a "pay-per-return" option that might work better for your first season than their full package. I'd recommend trying the demos of a few different software options before committing - they all have different interfaces and workflows. ProSeries and Lacerte are more expensive but very popular if your business grows.

This is great advice. What resources did you use to learn that specific niche? Were there courses specifically for gig worker taxes or did you piece it together from general tax knowledge?

How can you tell if a CP2000 is legit? I got one recently but now I'm worried it might be fake. Are there specific things to look for?

A legitimate CP2000 will always come by U.S. mail (never email), include your tax ID number, the tax year in question, and a detailed explanation of the proposed changes. It will have specific contact information for the IRS, including a toll-free number. The notice will also include your rights as a taxpayer and explain the appeals process. Fake notices often have spelling/grammar errors, demand immediate payment (especially via gift cards, wire transfers, or cryptocurrency), don't provide clear explanation of the discrepancies, or direct you to unofficial websites. You can always verify a notice by calling the IRS directly at 800-829-1040 (not using any number on the suspicious notice itself).

Does asking for an extension stop the interest from continuing to accrue though? I'm worried about making the amount owed even higher by delaying.

Is that actually allowed by the IRS though? Wouldn't they want the payment to come from the person who owes the tax?

The IRS doesn't actually care who makes the payment as long as it's properly credited to your tax account. You just need to make sure the payment includes your name, tax ID number, form type (1040-NR), and tax year. This is common for married couples where one spouse pays both tax bills, parents paying for their kids, or employers paying for employees in some cases. The key is making sure the payment information correctly identifies whose tax account should be credited.

This is terrible advice. The IRS absolutely tracks everything, even small amounts. My friend ignored a $12 balance and two years later got a notice with penalties and interest that had grown to over $40. Just pay what you owe.

Does this mean I should be using Schedule D instead of Schedule C for reporting ticket resales? I'm so confused now...

For occasional, non-business ticket reselling, Schedule D (Capital Gains and Losses) is typically appropriate since you're selling a capital asset. You'd report the sale price as proceeds, the original ticket cost as your basis, and the difference as your gain. If you're regularly buying and reselling tickets as a business activity, then Schedule C would be more appropriate. The IRS looks at factors like frequency of sales, intent when purchasing, and whether you're running it like a business to determine which is correct. When in doubt, consult with a tax professional who can look at your specific situation.

This is an interesting approach, but risky. The IRS would likely question why the "gifts" were sold so quickly, which makes the gift argument look like tax avoidance. Plus, the 1099-K will still be issued in OP's name since they handled the transaction. I wouldn't recommend this route without proper documentation from the very beginning.

That makes sense. I was thinking there might be a workaround, but you're right - it would look suspicious if the "gifts" were immediately sold. Probably best to just report all the income and deduct the costs as others have suggested. Better to pay the proper taxes than risk an audit!

Thanks for the suggestion! Does TurboTax handle foreign income well? I have earnings from two different countries plus some US investments, so my situation is a bit complicated.

TurboTax does handle foreign income pretty well in my experience. They have specific sections for foreign earned income exclusion (Form 2555) and foreign tax credits (Form 1116). They'll walk you through determining which is better for your situation. For multiple countries, they can handle that too, though you'll need good records of how much you earned in each place and what taxes you paid to each country. The investment income adds another layer, but their premium version specifically covers investment income scenarios. Just be prepared to pay more for the versions that handle international situations.

I used OLT for my 2021 return and it worked fine, but when I tried to do my 2020 return, they only offered paper filing. This was about 6 months ago though, so maybe things have changed. Their customer service was pretty responsive when I asked about it.

Thanks for the info! Guess I'll check with their customer service directly to see if anything's changed. Really hoping to avoid paper filing if possible.