I'm in a similar boat as an 18-year-old trying to figure this stuff out! One thing that's helped me is understanding that even though you made a profit, you're probably way below the income threshold where you'd actually need to file taxes. The standard deduction for 2024 is $14,600, so unless you're making close to that from all sources combined (gig work + ticket sales + anything else), you likely don't need to file at all. That said, I'd definitely keep records of the transaction just in case. Save your original purchase receipt and the StubHub payment confirmation. If you do end up needing to file taxes later in the year because your gig work picks up, you'll want to have everything documented. The good news is that at our age, the IRS really isn't worried about small amounts like this. They're focused on people who are clearly avoiding taxes on substantial income. But it's smart that you're asking these questions now - understanding this stuff early will make your financial life so much easier as you get older!

As someone who's been helping people navigate these situations for years, I think you're getting great advice here! Just to add a practical perspective - since you're 18 and this is your first time dealing with tax questions, I'd recommend treating this as a learning opportunity even though the amount is small. The $44 profit you made is technically taxable income, but as others mentioned, you're likely well below the filing threshold if this is your main income for the year. However, I'd suggest keeping detailed records of both the purchase and sale (screenshots, PayPal confirmations, etc.) because good documentation habits will serve you incredibly well as you start earning more. One thing I'd add - if you continue doing gig work throughout the year, you might cross that $14,600 threshold and need to file. In that case, having all your income sources documented (including this ticket sale) will make the process much smoother. Also, don't feel bad about not knowing this stuff! The tax system is confusing, and most 18-year-olds haven't had to deal with it yet. You're being smart by asking questions now rather than figuring it out the hard way later. Consider this a good introduction to the world of tax responsibility!

I just went through this exact situation with a client. The most important technical detail: QBI loss carryovers are calculated and tracked at the TAXPAYER level, not the business level. Reg §1.199A-3(b)(1)(iv) states: "If the net QBI with respect to qualified trades or businesses of the taxpayer...is less than zero, the taxpayer has a negative amount of QBI with respect to those trades or businesses. If a taxpayer has a negative amount of QBI, that negative amount is treated as a loss from a qualified trade or business in the succeeding taxable year." Notice it says "of the taxpayer" - not "of the business." This language supports the interpretation that QBI carryovers remain available after disposing of the business that generated them.

This thread has been incredibly helpful! I'm dealing with a similar situation where I closed my consulting business last year but have substantial QBI loss carryovers. My tax preparer wasn't sure about the treatment either, but all the regulatory citations and real-world experiences shared here give me confidence that these carryovers survive business disposition. One thing I'm curious about - has anyone here actually filed returns using QBI carryovers from a disposed business and had them accepted without issue? I know the regulatory language supports it, but I'd love to hear from someone who's actually been through an audit or at least had their return processed normally with this situation. Also, for those mentioning the 2025 expiration of Section 199A, I'm wondering if it makes sense to consider converting my remaining business to a different structure to maximize QBI utilization before then. My current setup only generates modest QBI each year, so it would take forever to use up these carryovers at the current rate.

As a newcomer here, I just wanted to say how helpful this entire discussion has been! I was literally googling "FreeTaxUSA vs TaxHawk" when I found this thread, and I'm so glad I did. The clarification that they're the same company saves me from continuing to compare what are essentially identical products. I've been using one of the expensive tax services for years without really questioning whether I needed all those "premium" features. Reading everyone's experiences with FreeTaxUSA, especially the tax professional's input, has convinced me that I'm probably overpaying for something that could be done just as well for a fraction of the cost. The tip about trying the free federal filing first is brilliant - that takes all the risk out of switching. I'm going to give it a shot this year and see how it goes. Even if I save just $75 compared to my current service, that's money I could put toward something more useful than tax prep software. Thanks to everyone for sharing such detailed, honest experiences!

This thread has been incredibly informative! I was in the exact same position as the original poster - completely confused about whether FreeTaxUSA and TaxHawk were competitors or the same thing. Now I understand they're both operated by the same parent company, which explains why their websites and features looked so similar when I was comparing them. I've been using TurboTax for the past several years and getting increasingly frustrated with their rising prices - I paid $119 last year for federal and state filing when my tax situation is honestly pretty straightforward (W-2, some investment income, mortgage interest). Reading everyone's experiences here has me convinced that I'm throwing money away on features I don't really need. The fact that FreeTaxUSA offers free federal filing and only charges around $15 for state is amazing compared to what I've been paying. I'm definitely going to take advantage of that free federal preview that several people mentioned - being able to test drive the entire process before committing to pay for state filing removes all the risk of switching. Thanks to everyone who shared their real-world experiences, especially regarding customer support, import functionality, and even audit support. It's exactly the kind of detailed feedback that helps make these decisions. Looking forward to potentially saving $100+ this year that I can put toward my retirement savings instead of overpriced tax software!

As a tax professional, I want to add some important considerations that haven't been fully covered yet. While the strategies discussed here are technically legal, there are some nuances worth understanding: **Safe Harbor Calculations:** The 110% rule applies if your prior year AGI exceeded $150,000. But this percentage applies to your TOTAL tax liability, including self-employment taxes if applicable. Many people forget to include SE tax in their calculations and end up short. **State Variations:** States have wildly different rules. California, for example, has its own safe harbor thresholds and some states don't follow federal safe harbor rules at all. Always check your specific state requirements. **Payroll Tax Limitations:** You cannot eliminate FICA withholding (Social Security/Medicare), but there's also a limit to how much you can reduce income tax withholding if your employer suspects tax avoidance. Some companies require documentation justifying large withholding reductions. **Alternative Minimum Tax (AMT):** If you're subject to AMT, your safe harbor calculations become more complex since AMT has different rules for estimated payments. **My recommendation:** Start conservatively. Reduce withholding by 50-60% your first year while learning the system. The interest you'll earn on the float rarely justifies the stress and potential penalties if you miscalculate. Most of my clients who try this end up reverting to normal withholding after a year or two because the administrative burden outweighs the modest financial benefit. If you're determined to proceed, I'd strongly suggest running your specific situation by a tax professional first rather than relying on online calculators or general advice.

I've been following this thread with great interest since I'm in a similar situation. After reading everyone's experiences, I think I'm going to take the conservative middle-ground approach that several people have suggested. My plan is to adjust my W-4 to reduce federal withholding by about 60% for next year, while leaving state and FICA alone. This should give me an extra $150-200 per paycheck to put in my HYSA without the complexity of quarterly estimated payments. I did some quick math based on my current tax situation, and even with this modest reduction, I could earn an extra $200-250 in interest annually while still having enough withheld to avoid penalties. Not huge money, but it's something, and the risk/complexity seems much more manageable. Thanks to everyone who shared their real-world experiences - especially those who provided actual dollar amounts. It really helped me understand that while the "earn interest on your tax money" strategy can work, the practical benefits are often smaller than you'd expect once you factor in time and complexity. I think starting small and conservative makes the most sense for someone new to this approach. If it goes well this year, I can always optimize further in the future.

Has anyone actually tried setting up a Roth IRA for a minor? Which companies make this easy? My son is interested but I'm not sure where to start with the actual account setup.

Great question! I've been researching this exact scenario for my own kids. The key distinction the IRS makes is between "chores" (which are considered part of normal family responsibilities) and legitimate business activities. For your specific situation with the $20 lawn mowing, if it's just your family's lawn as part of regular household chores, it typically won't qualify as earned income for IRA purposes. However, there are a few ways to make this work legitimately: 1. Help your son start an actual lawn service business where he services multiple properties in the neighborhood, not just yours. This creates genuine self-employment income. 2. If you have a business (even a side business), you could formally employ him to do lawn maintenance, office cleaning, or other legitimate business tasks at reasonable wages. 3. Consider other entrepreneurial opportunities - many teens successfully run small businesses like pet sitting, tutoring younger kids, or selling items they make. The important thing is that the work and payment need to have genuine business purpose beyond just family chores. Once he has legitimate earned income, he can contribute up to 100% of that income to a Roth IRA (up to the annual limit of $7,000 for 2025). Keep detailed records of any payments and work performed. This early start on retirement savings is an amazing gift - compound interest over 50+ years will be incredible!