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I think people are overcomplicating this. If you're just casually trading skins and occasionally making a small profit, it's hobby income. Report it on Line 8z of Schedule 1 as "Other Income" and call it a day. Only need Schedule C if you're truly running this as a business with regular, consistent activity aimed at making profit.
That's actually incorrect and potentially dangerous advice. The IRS looks at intent and behavior, not just volume. If you're regularly buying items specifically to resell them at a profit (even if it's just a few items a month), that's a business activity that requires Schedule C. The "hobby vs. business" distinction isn't about amount - it's about your profit motive and approach. Even small-scale trading with the intent to make money should be reported as self-employment.
Based on what you've described, you're definitely running this as a business activity since you're systematically buying skins at below market value with the specific intent to resell for profit. The IRS doesn't distinguish between digital and physical goods when it comes to business income. You'll want to use Schedule C to report this activity. Track your gross receipts (all sales - so yes, that $2,000), then subtract your cost of goods sold (what you paid for the skins) to get your net profit. That $300-400 profit will be subject to both regular income tax and self-employment tax. Pro tip: Keep meticulous records going forward. Save screenshots of all transactions, PayPal receipts, and Steam transaction history. Also consider tracking any business expenses like platform fees, internet costs for trading, or storage costs if applicable. The IRS loves detailed documentation, especially for newer types of businesses like digital item trading. Since you're already 6 months in, I'd recommend gathering all your transaction history now before it becomes an overwhelming task. Most platforms let you export your transaction data, which makes record-keeping much easier than trying to reconstruct everything later.
This is really helpful advice! I'm just starting out with CS2 skin trading myself and had no idea about the self-employment tax part. Quick question - when you mention tracking internet costs as a business expense, how do you calculate what percentage of your internet bill you can deduct? Like if I spend 2 hours a day trading but use internet for personal stuff the rest of the time, can I deduct 2/24 of my monthly bill?
I can relate to the frustration! I'm dealing with a similar situation right now - got my federal refund three weeks ago but still waiting on my state (Ohio). What I've learned is that state refunds really have no connection to when you receive your federal. Each state processes at their own pace, and some are just slower than others. Since you're working remotely now, definitely check if you need to file in both your home state and your work state - that could add some complexity. Ohio's website says they're currently processing returns filed in mid-February, so I'm hoping to see mine soon. The waiting game is definitely the worst part of tax season!
The timing between federal and state refunds can be really unpredictable! I'm in a similar situation - got my federal refund about 10 days ago but still waiting on my state (Virginia). From what I've researched, there's actually no connection between when the IRS processes your federal return and when your state processes theirs - they're completely separate systems. Since you mentioned working remotely for a company in another state, that might actually complicate things a bit. You may need to file returns in both your home state and the state where your employer is located, depending on each state's rules. Some states have reciprocity agreements that make this easier, but others don't. I'd recommend checking both states' "Where's My Refund" tools if you had to file in multiple places. Virginia's site has been pretty helpful for tracking progress, though the wait is still frustrating! Hopefully both of ours come through soon.
I'm so sorry you're going through this incredibly frustrating situation. Having dealt with my father's estate last year, I completely understand the helplessness you're feeling after months of generic responses from the IRS. Reading through all the excellent advice here, I want to emphasize a few key points that made the biggest difference in my case: First, definitely use the executor hotline (866-699-4083) and specifically ask for the "Deceased Taxpayer Unit." Regular IRS reps often can't access the same account details or don't know about the specialized departments that handle these cases. Second, the congressional representative route was a game-changer for me. I called my local district office (not DC), asked for constituent services, and had a response from an IRS manager within 5 days. They have direct channels that bypass the normal customer service maze. Third, request your brother's Account Transcript to check for specific transaction codes (like 570 or 971) that might indicate what's causing the hold. In my father's case, we discovered they needed additional documentation that we never received notice about. At 200+ days, you're definitely in the timeframe where these specialized approaches should yield real answers rather than more "wait 30 days" responses. The combination of the right department contacts and having your documentation ready (death certificate, Letters of Administration, certified mail receipt, Form 911 submission) should finally get you the specific information you need. Don't give up - you're closer to resolution than it feels right now!
As someone completely new to dealing with estate tax issues, I can't thank everyone enough for sharing such detailed and practical advice in this thread. I'm currently helping my elderly parents prepare for these kinds of situations, and reading through all these experiences has been incredibly educational. What really stands out to me is how many people found success once they knew about the specialized departments - the executor hotline and Deceased Taxpayer Unit seem to be game-changers that regular customer service doesn't mention. The congressional representative route also appears to be surprisingly effective based on multiple success stories here. I'm taking detailed notes on all the specific steps, phone numbers, and documentation requirements mentioned. The Account Transcript tip to look for transaction codes 570 and 971 is particularly useful - having concrete things to ask about rather than accepting vague responses seems crucial. It's honestly shocking that navigating IRS bureaucracy requires this level of detective work, but I'm grateful this thread exists as a roadmap. For anyone reading this in the future dealing with similar delays, this conversation should be required reading before making your first call! Thank you to everyone who took the time to share your experiences and specific tactics. This kind of community knowledge-sharing makes such a difference when dealing with these overwhelming situations.
I'm going through this exact same nightmare with my mother's estate - it's been 7 months now and I feel completely helpless. Reading through all these detailed experiences has been incredibly eye-opening about resources I had no idea existed. The most valuable takeaways for me are: 1) Call the executor hotline (866-699-4083) instead of the regular IRS number, 2) Specifically request the "Deceased Taxpayer Unit" when calling, 3) Contact your congressional representative's local office for constituent services, and 4) Request Account Transcripts to identify specific transaction codes causing delays. What really frustrates me is how regular IRS customer service gives you generic "wait another 30 days" responses without mentioning any of these specialized departments. It's like they're designed to wear you down rather than actually help solve the problem. I had no idea about Form 911 or the Taxpayer Advocate Service either. I'm definitely going to file one this week along with trying the congressional representative route. The success stories here give me hope that there's actually a path forward after months of feeling completely stuck. One question - for those who got resolution, what was the typical timeline from when you first contacted your congressional rep to getting actual movement on your case? I want to set realistic expectations as I try these approaches. Thank you to everyone who shared such detailed experiences. This thread should honestly be required reading for anyone dealing with deceased taxpayer returns. It's community knowledge-sharing like this that makes all the difference when navigating these bureaucratic nightmares!
Great question! I went through this exact same confusion when I bought my Tesla Model 3 last year. The $7500 is indeed a tax CREDIT, not a deduction - meaning it reduces your actual tax bill dollar-for-dollar, which is much better than a deduction would be. At $130k income, you're well under the income limits for single filers ($150k), so you should qualify. The "non-refundable" part just means if you only owe $5000 in taxes for the year, you can only use $5000 of the credit (you don't get the extra $2500 back as a refund). But with your income level, you'll almost certainly owe more than $7500 in federal taxes, so you should be able to use the full credit. One important thing to double-check: make sure the specific Tesla model and trim you're buying meets the price cap requirements ($55k for cars, $80k for SUVs/trucks). Some higher-end configurations don't qualify. Also verify that Tesla still qualifies for the full $7500 - the credit amount can change based on battery component sourcing. Good luck with your purchase! The credit really does make a significant difference in the total cost.
Thanks for the detailed explanation! I'm actually looking at the Model Y Long Range which should fall under the SUV category with the $80k price cap. One thing I'm still confused about though - when you say "non-refundable" and needing to owe more than $7500 in federal taxes, are you talking about the total tax liability before any withholdings, or the amount I'd still owe after my employer's withholdings throughout the year? I usually get a small refund each year because my employer withholds slightly more than I actually owe.
Great question! When we talk about the $7500 tax liability requirement, we're referring to your total federal income tax liability BEFORE any withholdings or payments you made throughout the year. So even if you typically get a refund because your employer over-withholds, you can still use the full $7500 credit as long as your actual tax liability (the amount calculated on your return before considering withholdings) is at least $7500. For example, let's say your total tax liability for the year is $12,000, but your employer withheld $13,000 from your paychecks. Normally you'd get a $1,000 refund. With the $7,500 EV credit, your tax liability drops to $4,500, so now you'd get an $8,500 refund instead ($13,000 withheld minus $4,500 owed). The credit effectively increases your refund by the full $7,500 amount. At your income level, your total tax liability will definitely be well above $7,500, so you should be able to take advantage of the full credit regardless of your withholding situation!
One more thing to consider - timing matters! If you're planning to buy in the next few months, be aware that the point-of-sale rebate option is now available for many dealers. This means instead of waiting until you file your taxes to get the $7500 benefit, you can potentially get it applied as a discount right at the dealership when you purchase. However, not all dealers participate in this program, and if you use the point-of-sale option, you can't also claim the credit on your tax return - it's one or the other. The upfront discount can be nice for cash flow, but make sure you understand how it works with your specific dealer. Also, keep all your paperwork! You'll need the dealer's certification that the vehicle qualifies, along with your purchase agreement showing the VIN, to properly claim the credit if you don't use the point-of-sale option.
This is really helpful info about the point-of-sale option! I had heard about this but wasn't sure how it worked. Do you know if there are any downsides to taking the discount upfront versus waiting to claim it on taxes? Like, does it affect your tax situation differently, or are there any risks if the IRS later determines the vehicle didn't actually qualify for some reason? Also, how do you find out which dealers in your area participate in this program? Is it something Tesla handles directly or do you have to ask each individual dealer?
Mateo Rodriguez
Just joined this community as a newcomer and had to share - I'm experiencing the exact same thing as everyone else! Logged into my IRS account this afternoon and was amazed to actually get in without any errors. Seeing that $0.00 balance across all tax years (2022-2024) just like everyone else is reporting. What's really striking me as someone new to tracking all this is how the system performance has completely transformed. Usually I'd give up after getting timeout errors, but today everything loaded perfectly. Reading through all these comments, the fact that literally every single person is having this identical experience after maintenance can't be random. I'm trying not to get too excited since I know we've all been disappointed before, but the combination of major system improvements + universal $0.00 balances + that disclaimer about recently processed returns really does feel like they might be actively working on our returns behind the scenes. As a newcomer, should I be checking my transcript too like others mentioned, or is the improved account access alone a good sign? Either way, it's just nice to finally log in without wanting to throw my phone across the room! š¤
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Aisha Abdullah
ā¢Welcome to the community! I'm also pretty new here but from what I've learned reading through all these posts, definitely check your transcript too if you can access it. The account balance page (showing those $0.00 amounts) really only tells you what you owe the IRS, not what they might owe you in refunds. Your transcript will show more detailed info about your actual return processing status. But honestly, the fact that we're ALL having this exact same experience today - better performance + identical balances after maintenance - really does feel significant! I'm cautiously optimistic this means real progress is happening behind the scenes š¤
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Avery Davis
Just joined as a newcomer and wow, I'm experiencing the exact same thing as everyone else! My IRS account is finally working after being completely inaccessible this morning, and I'm seeing that $0.00 balance across all tax years (2022-2024) that everyone's talking about. What really stands out to me is how much faster everything is loading now. As someone who's been fighting with error messages and timeouts for weeks, being able to actually log in and navigate smoothly feels almost too good to be true! Reading through all these comments, the fact that literally EVERYONE is reporting identical experiences after this maintenance period seems like way more than just coincidence. The improved system performance + universal $0.00 balances + that disclaimer about recently processed returns not being reflected yet really has me thinking they might be actively working through our returns behind the scenes. I know we shouldn't get our hopes up too much given past disappointments, but this feels different somehow. The timing of everything just seems too coordinated to be routine maintenance. At minimum, it's just amazing to be able to check my account without getting frustrated! Has anyone noticed if other IRS tools like "Where's My Refund" are working better today too? Curious if the improvements are system-wide! š¤
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