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This happened to me once and turned out to be related to a phone my wife bought that was added to our family plan. The phone itself was billed to the phone carrier account but for some reason the sales tax posted separately to my credit card. Check if anyone else in your household might have made a purchase?
I actually live alone and don't have any shared accounts with family members. I've never even had a family phone plan - always just had my own individual account. That's what makes this so confusing. There's literally no legitimate reason I should be seeing this charge.
In that case, it definitely sounds like fraud. One other possibility - did you recently buy anything online where you paid through PayPal or another payment service? Sometimes the merchant will process the main payment through the service but charge taxes separately directly to the card.
Watch out for what happens next! These small tax charges are often "test charges" by fraudsters. If they go through without being disputed, they'll hit you with much larger charges. I'd recommend: 1) Dispute the charge immediately 2) Ask for a new card number 3) Check your credit reports at all three bureaus 4) Set up fraud alerts and credit freezes Don't wait on this - I learned the hard way and ended up with $3000 in fraudulent charges after ignoring a strange $15 tax charge.
This is exactly what happened to my sister. Small weird tax charge, then boom - two weeks later her card was maxed out with purchases from electronics stores across the country. Definitely get a new card number ASAP.
Don't overthink this! I've been driving for Lyft and Uber on weekends for 3 years while working my regular 9-5. Here's what I do: 1. Track ALL my miles when the app is on (I use Stride - it's free) 2. Save receipts for car washes, phone mounts, etc. 3. Put aside about 25% of what I make from driving 4. At tax time, I use the 1099 from Uber and fill out Schedule C and Schedule SE I've never done quarterly payments and never had an issue. My regular job withholding covers the extra tax. If you're really worried, just put some money aside in case you owe at tax time.
Do you think 25% is enough to set aside? I've heard people say to save 30-35% for self-employment stuff. Also does the mileage deduction really make that big a difference?
I find 25% is plenty for me, but it depends on your tax bracket and how much driving you're doing compared to your main job. If Uber is a small percentage of your total income, 25% should be more than enough. The mileage deduction is HUGE! Last year I drove about 4,200 miles for rideshare and got a deduction of nearly $2,460. That significantly reduced my taxable income from driving. In fact, after the mileage and other deductions, I only had to pay taxes on about 30% of what Uber/Lyft paid me. That's why I emphasize tracking every single mile you drive with the app on.
As a teacher who also drives for DoorDash during breaks, I recommend using the IRS withholding calculator on their website. Input both your teaching income AND estimated gig earnings, and it'll tell you if you need to adjust your W-4 at school to cover the extra income. I just had my school district withhold an extra $50 per paycheck, which covered my DoorDash earnings so I didn't need to bother with quarterly payments. Way simpler than figuring out estimated payments!
I use Fidelity for my RSUs and they provide a specialized tax statement that shows the proper adjusted cost basis for RSU sales. Is your broker E*TRADE or Morgan Stanley by chance? I know they sometimes send separate supplemental info that's easy to miss. Check your online account for a document called "Supplemental Information" or "Adjusted Cost Basis Report" - it might have exactly what you need!
I'm using Schwab actually. They did send a supplemental document showing the cost basis, but it's not formatted in a way that makes it easy to match up with the 1099-B transactions. There are different dates and lot numbers that don't seem to correspond exactly to what's on the 1099. Did you have to do any manual matching or calculations with yours?
Ah Schwab can be tricky with RSUs. Their supplemental document requires some manual work unfortunately. The lot numbers on the supplemental document should correspond to specific grant dates, not necessarily the sale dates on your 1099-B. You'll need to match each sale on your 1099-B with the appropriate lot(s) on the supplemental document. Look for matching quantities and dates that are close together. Sometimes a single sale on the 1099-B might include shares from multiple lots on the supplemental document, which means you'll need to calculate a weighted average cost basis for that transaction.
Don't forget to check if you had any disqualifying dispositions if these were Incentive Stock Options (ISOs) rather than RSUs! Different tax treatment altogether. Also, if your company withheld shares for taxes at vesting (typically around 22%), make sure you're only calculating basis on the shares you actually received, not the full grant amount!
Not all RSUs have shares withheld for taxes. Some companies give you the full shares and expect you to pay the taxes separately. The OP should check their vesting statements to confirm whether shares were withheld or not before making adjustments.
I'll go against the grain here - I still use TurboTax and haven't had any issues. Yes, it's more expensive than some alternatives, but the interface is super intuitive and I know where everything is. For me, the time saved is worth the extra cost. If you've used it before and are comfortable with it, there's nothing wrong with sticking with TurboTax. Just be aware of the upselling and make sure you actually need the features they're trying to get you to pay for.
Do you use the online version or desktop? I've heard the desktop version is better for military situations because it gives you more control, but it's also more expensive.
I use the online version, but I've used both in the past. The desktop version does give you a bit more control and detailed forms, but honestly for most military situations the online version has worked fine for me. The key is to look carefully at whether you really need the "Deluxe" or "Premier" versions they try to upsell you to. Often the lower-tier version will handle everything you need, especially if you don't have complex investments or rental properties. The military-specific items like combat pay exclusion are actually handled in all versions, even the basic one.
One thing to consider is free options through Military OneSource. They offer free access to tax filing software (I think it's actually a version of H&R Block) for active duty, Guard, Reserve, and recently separated service members. I used it last year and it was pretty good.
Evelyn Rivera
Quick question - if I amend my 2022 return for missed mileage, will that increase my chances of being audited? I've heard that filing amendments raises red flags.
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Julia Hall
β’Filing an amended return doesn't automatically trigger an audit, but significant changes that substantially reduce your tax liability might get more scrutiny. The key is having proper documentation for your mileage claims. If you have good records (or even reconstructed records based on actual evidence like your delivery history), you shouldn't worry too much. The IRS understands that people make mistakes or learn about deductions they missed.
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Evelyn Rivera
β’That makes me feel better, thanks. I have all my delivery records from the apps so I should be able to reconstruct everything if needed. I just didn't want to open a can of worms by amending returns if it meant automatically getting flagged or something!
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Arjun Patel
For those amending multiple years of tax returns for mileage, be strategic about when you file them. Don't send them all at once because that can look suspicious to the IRS. Space them out a few weeks apart. Also, don't forget that if your self-employment net income (after deducting mileage) was over $400 for any of these years, you still owe self-employment tax even if you were below the standard filing threshold. When people say "I made less than the threshold," they're often thinking of income tax, not self-employment tax which kicks in at a much lower level.
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