This whole discussion has been so reassuring! I'm in a very similar situation - received about $2,200 through Apple Pay last year from selling some old camera gear and electronics when I upgraded my setup, friends paying me back for shared concert tickets and group dinners, and a few small payments for doing photography sessions at local events. Reading through everyone's experiences has really helped me understand the distinction between personal transactions and actual business income. The camera gear sales were definitely at a loss (sold my old equipment for way less than I originally paid), and the friend reimbursements were clearly just people paying me back - so those don't sound taxable based on all the great advice here. But those photography payments were actual compensation for services, so I should report them on Schedule C even though they were small amounts. I had no idea there wasn't a minimum threshold for reporting self-employment income! The clarification about the current $20,000 AND 200 transactions threshold still being in effect (not the delayed $600 threshold) has been really helpful too. I was seeing so much conflicting information online and getting confused about what rules actually apply. I'm definitely going to start keeping much better records going forward. Maybe I'll add quick notes to transactions as they happen - "Tom's share of dinner" or "wedding photos for Smith family" - anything to avoid this stress next year! Thanks to everyone for sharing their knowledge and experiences. This community has been such a great resource for navigating these confusing payment app tax situations!

This thread has been incredibly helpful! I'm in a similar situation - received about $1,900 through Apple Pay last year from selling some old furniture when I moved, friends paying me back for shared dinners and trip expenses, and doing some occasional dog walking for neighbors. Reading through everyone's experiences has really clarified things for me. The furniture sales were definitely at a loss (sold everything for way less than I originally paid), and the friend payments were just reimbursements, so those clearly aren't taxable based on all the great advice here. But I should report the dog walking income on Schedule C since that was actual payment for services, even though the amounts were small. I had no idea there wasn't a minimum threshold for reporting self-employment income - that's such important information! The clarification about the $20,000 AND 200 transactions threshold still being in effect (not the $600 threshold) has also been really helpful. I'm definitely going to start keeping better records going forward. Adding quick notes like "Lisa's share of pizza" or "dog walking for the Johnsons" when transactions happen seems like such a simple way to avoid this stress next year. Thanks to everyone for sharing their knowledge and experiences - this community has been a lifesaver for navigating these confusing payment app tax situations!

Based on everyone's helpful responses, it sounds like you've got the right understanding now! Just to add one more perspective from someone who went through this exact situation: The confusion with RSU taxation is super common because most people (including me initially) assume that if shares are sold, that's when you get taxed. But with RSUs, the taxation happens at vesting regardless of whether you keep or sell the shares. Think of it this way: on your vesting date, it's as if your employer handed you $56,150.60 in cash (which gets taxed as regular income), and then you immediately used that cash to buy 220 shares at $255.23 each. The fact that 83 shares were automatically sold to pay taxes doesn't change that fundamental transaction. One practical tip: when you do eventually sell those 137 shares you're holding, make sure to note on your tax return (or tell your tax preparer) that these are RSU shares where the compensation income was already reported in a prior year. This helps avoid any confusion if you ever get audited. Also, keep that release confirmation document you mentioned - it's great documentation showing the vesting details and will be helpful for your records. Good luck with the rest of your tax prep!

I dealt with a very similar RSU situation last year and wanted to share what I learned from my CPA about the reporting process. The key insight is that your 1099-B is only telling part of the story. When you see proceeds of $20,990.58 and cost basis of $21,195.09 on your 1099-B, that's just for the 83 shares that were automatically sold to cover taxes. Your broker calculated the basis as 83 shares × $255.23 = $21,195.09, which is technically correct for those specific shares. However, many brokers don't properly account for the fact that you've already paid ordinary income tax on the full vesting value. This is where you need to be careful on your tax return. When you report this on Schedule D/Form 8949, you should show a small capital loss of about $204 ($21,195.09 - $20,990.58) for those 83 shares. The important thing is that this loss represents the difference between the vesting price and the actual sale price - not any additional compensation income. For your 137 remaining shares, your cost basis is definitely $255.23 per share. Keep this documented because when you eventually sell these shares, you'll need to prove to the IRS that you're not double-counting the compensation income that was already taxed on your W-2. One last tip: if you're using tax software, look for options specifically related to "employee stock plans" or "equity compensation" - most major tax programs have special workflows for this exact situation.

Has anyone compared Free Tax USA to TurboTax for business filers? I've been using TurboTax for years but the price keeps creeping up every year. Now they want $170 just for the basic self-employed version before adding state filing!

I've been using Free Tax USA for my consulting business for two years now and it's been solid. One thing I'd add to what others have said - if you're worried about making mistakes, their customer support is actually pretty responsive via email. I had questions about how to handle some equipment depreciation and they got back to me within a day with clear guidance. The learning curve isn't too steep if you have your records organized. I keep a simple spreadsheet throughout the year tracking income and expenses by category, so when tax time comes I just reference that while filling out the forms. Takes me about 3 hours total now, compared to the 2-hour meeting + back-and-forth with my old CPA that cost 10x more. One heads up - make sure you understand the difference between business expenses and personal deductions before you start. The software will ask about both, but it's on you to categorize things correctly. When in doubt, err on the conservative side or do a quick Google search about what's deductible for your type of business.

I actually just went through this process myself about two weeks ago and can share some recent experience! You definitely don't need to wait for the verification letter - I never received mine either. I went directly to idverify.irs.gov and completed the verification online. The process was straightforward but here are some tips that helped me: 1) Have your 2023 AGI ready (line 11 from your 2023 tax return), 2) Pull up your credit report beforehand so you can reference account details and previous addresses, 3) Make sure you're in a quiet space since some questions require careful thought about dates and amounts. The knowledge-based questions weren't too tricky - mostly about previous addresses, credit accounts, and loan information from the past few years. What really surprised me was how quickly it moved after verification - my return went from "under review" to "refund approved" in just 5 days! Given your financial aid situation, I'd definitely recommend being proactive rather than waiting for mail that might be delayed or lost. The IRS mail system has been particularly slow this season, and many people are successfully verifying online without ever receiving the physical letter. Good luck with both your verification and your financial aid disbursement!

I was in your exact situation last month - submitted my return in early February, got the identity verification notice, but no letter showed up for weeks! Don't wait any longer - I went straight to idverify.irs.gov and completed the verification without the physical letter. The system worked perfectly. You'll need your 2023 AGI (from line 11 of last year's return), your current filing status, and be ready for some knowledge-based questions about your credit history and previous addresses. Pro tip: have your credit report pulled up in another tab - it really helps with the verification questions about account details and dates. My return moved from "under review" to processing within 2 days of completing the online verification, and I had my refund a week later. Given your financial aid timeline, being proactive here is definitely the right move. The IRS mail system has been incredibly slow this season, and many of us have successfully verified online without ever seeing that letter. Don't let bureaucratic delays impact your education funding!

Has anyone mentioned that if the house was the father's primary residence, he might have qualified for the $250,000 capital gains exclusion? Might not need to worry about basis at all.

The property tax assessment approach should work fine for your situation, especially since the difference between your 2021 assessment ($187,500) and 2024 sale price ($195,000) is relatively small. That $7,500 gain over 3 years actually suggests the assessment was pretty close to market value at the time of death. A few practical tips from someone who's been through this: First, make sure you have a copy of the official 2021 property tax assessment document - not just the amount, but the actual assessment notice. Second, consider pulling a few comparable sales from late 2021/early 2022 in your neighborhood as supporting documentation. You can find these on sites like Zillow, Redfin, or your county's property records website. The IRS generally accepts property tax assessments for establishing FMV, especially when they're reasonable compared to eventual sale prices. In your case, the numbers tell a logical story. Just keep good records and you should be fine. The stepped-up basis is one of the few tax breaks that actually works in your favor!