Just so you know, the IRS has started getting reports from payment processors like PayPal and Venmo for transactions over $600 starting in 2023 (was supposed to be 2022 but they delayed it). So even though you might not have received 1099s for previous years, going forward they'll have more visibility into your online sales income.

I've been through a similar situation and want to share some practical advice. First, take a deep breath - filing amended returns voluntarily is actually the right thing to do here, and the IRS generally views this favorably compared to discovering unreported income during an audit. Since you were buying collectibles specifically to resell at a profit, this would indeed be considered business income subject to both regular income tax and self-employment tax (15.3%). However, you can deduct all legitimate business expenses: the cost of items purchased for resale, eBay/PayPal fees, shipping supplies, packaging materials, mileage for inventory purchases, and even a portion of home internet costs if you were listing from home. The key is thorough documentation. Gather all your eBay sales records, PayPal transactions, receipts for items purchased, and any other business-related expenses. The more organized you are, the smoother the process will be. Regarding penalties, yes, there will likely be failure-to-pay penalties (0.5% per month up to 25%) plus interest (currently around 7-8% annually), but these are calculated only on the net tax owed after deductions. An accuracy penalty of 20% might apply, but this can sometimes be waived for reasonable cause - especially since you were following advice from a professional. Don't let anxiety paralyze you. The longer you wait, the more interest accrues. Consider consulting with a new tax professional who specializes in amended returns to ensure everything is filed correctly and to help minimize your liability through proper deduction strategies.

Has anyone had any issues with the print quality from places like FedEx or UPS? I'm worried the DMV might reject it if it doesn't look "official" enough.

I went through this exact same situation last year with my first job using Gusto! The anxiety is totally understandable, but I can confirm that printing your W2 from Gusto works perfectly for the DMV. Here's what worked for me: I logged into my Gusto account, went to the "Documents" section, downloaded my W2 as a PDF, and printed it at home on regular printer paper. When I went to the DMV, they accepted it without any questions at all. A few tips that made the process smoother: - Print it in color if your printer supports it (some W2s have colored elements) - Make sure all the text is clear and readable - Bring a backup form of address proof just in case (like a bank statement or utility bill) - Double-check that your address on the W2 matches what you're putting on your license application The DMV clerk told me they see printed electronic W2s all the time now since most companies have gone digital. You're definitely not alone in this situation, and you shouldn't have any problems! Good luck with getting your license!

Cycle codes are just part of the puzzle. You really need to look at your entire transcript - processing codes, freeze codes, reference numbers etc. With all the delays this year, its getting harder to predict anything based just on cycle codes tbh

The 01 vs 05 cycle thing is real but don't stress too much about it! I'm also an 01 cycle and yeah, we typically see updates on Mondays. The wait times this year have been brutal for everyone regardless of cycle code. Since you filed in February, you're still within the normal processing timeframe (21+ days). Keep checking your transcript on Monday mornings and look for any 846 refund issued codes or 570/971 notice codes that might explain delays.

To all those having trouble reaching a human at the IRS. I just ran across this video that gave me a shortcut to reach a human. Hope it helps! https://youtu.be/wMf29SmRU-I

This is a really frustrating situation! I went through something similar last year. The 846 code with a DDD followed by Tax Topic 203 usually means there's definitely going to be an offset, but the timing of when it shows up on your transcript can vary. Sometimes the 898 code appears within a day or two, other times it takes up to a week after your original DDD. Since student loans are still in forbearance until May 1st, it's most likely the NY Labor debt that's triggering this. Even if they didn't take it last year, state agencies can be unpredictable about when they decide to collect. You might want to call the Treasury Offset Program at 800-304-3107 to see exactly which debt is being offset and for how much. Keep checking your transcript daily - once that 898 code posts, you'll know exactly how much is being taken and what your actual refund amount will be. Hang in there!

Has anyone here actually gone through an audit after reporting a lemon law settlement? I reported mine last year and got a letter from the IRS saying they're reviewing my return. Now I'm freaking out that I did something wrong.

I'm dealing with a similar situation with my neighbor who just received a $85K lemon law settlement. Like your cousin, she's convinced the whole amount is tax-free because "it's just getting my money back for a broken car." From what I've learned researching this, the key is understanding that only the portion that represents getting back what you originally paid is truly tax-free. Everything above that original purchase price is generally taxable income. One thing that might help convince your cousin - she should look at whether she'll receive a 1099 form from the defendant's insurance company or legal team. If the settlement is over $600, they're required to issue one, and that's a pretty clear signal that the IRS expects it to be reported as income. The timing aspect you mentioned is crucial too. Even if only part of it ends up being taxable, a sudden $50K+ in additional income could bump her into a much higher tax bracket for that year. She might want to consider making estimated quarterly payments to avoid underpayment penalties. Has she gotten any paperwork yet that breaks down how the settlement amount was calculated? That could give you both a clearer picture of what portions might be taxable vs. non-taxable.