Sorta related - what software are you guys using to track all this stuff? I've been using a spreadsheet but it's getting unwieldy with all the different categories and percentages.

As someone who just went through my first year of self-employment taxes for my woodworking business, I wanted to add a few things that caught me off guard: 1) **Quarterly estimated taxes** - If you're making decent money on Etsy, you'll likely need to pay quarterly estimated taxes to avoid penalties. The IRS expects you to pay as you earn, not just at year-end like with W-2 income. 2) **Self-employment tax** - This was a shock! On top of regular income tax, you'll owe self-employment tax (about 15.3%) on your net business income. This covers Social Security and Medicare that your old employer used to pay half of. 3) **Business bank account** - Open a separate business checking account even if you're just a sole proprietor. It makes tracking so much easier and looks more professional if you ever get audited. 4) **Mileage tracking** - Don't forget to track mileage to lumber yards, craft fairs, shipping stores, etc. At 65.5 cents per mile for 2023, this adds up fast. The good news is your first year is a learning experience, and it gets easier once you have systems in place. Just keep every receipt and document everything!

I'm going through the exact same situation right now, so reading all these responses has been incredibly helpful! I discovered unreported income from a part-time tutoring job while putting together my bar application documents, and I've been losing sleep over it for weeks. What's giving me the most anxiety is the uncertainty - I keep going back and forth between "maybe it's not a big deal" and "this could ruin everything I've worked for." But seeing so many people share similar experiences where the bar committees actually viewed their proactive disclosure positively is really reassuring. I think the key takeaway from all these responses is that it's not about being perfect, it's about how you handle mistakes when you discover them. The fact that we're both catching these issues ourselves while preparing our applications shows we're taking the responsibility seriously. I'm planning to follow the step-by-step approach several people mentioned: get the IRS transcript, file the amended return regardless of what it shows, and be completely transparent on the bar application with full documentation. The consensus seems to be that honesty and proactive correction will be viewed much more favorably than trying to hide anything. Thanks to everyone who shared their experiences - it's really helping both of us realize we're going to get through this!

I just want to echo what everyone else has been saying - you're handling this exactly the right way by addressing it proactively. I went through something similar during my nursing license application when I discovered I'd missed reporting income from a weekend clinic job. The most important thing I learned is that licensing boards across all professions deal with these situations regularly. They're not looking for perfection - they're evaluating how you respond when you discover a mistake. The fact that you found this yourself while preparing your bar application actually demonstrates the kind of diligence and integrity the legal profession requires. Your timeline is actually working in your favor here. Discovering this during the application process (rather than after you're already licensed) gives you the opportunity to address it completely before your character and fitness review. That shows incredible responsibility and attention to detail. Don't let the anxiety overwhelm you - I know it's easier said than done, but you're doing everything right. Get that transcript, file the amended return, document everything, and be completely transparent on your application. The bar committee will likely view this as evidence of your professional character, not a disqualifying issue. You've got this! Focus on the positive - you caught an honest mistake and are taking immediate steps to correct it. That's exactly what they want to see in future attorneys.

I work in financial services (not for Schwab). The account summary you're seeing is something we call an "information statement" - it's for your reference but not an official tax document. Usually this happens when: 1. The amounts don't meet reporting thresholds for the specific entity 2. There's a consolidation happening with reporting 3. They're planning to issue a corrected/consolidated form later If it explicitly says it's not reported to IRS, you MUST still include it on your return. The IRS requires taxpayers to report all income regardless of whether they receive a form. This is one of those weird situations where the burden is on you even though it seems like it shouldn't be.

I went through something very similar when Charles Schwab acquired TD Ameritrade. What you're experiencing is actually pretty common during these large brokerage mergers. The "Account Summary" they're providing is essentially their way of giving you the tax information without issuing a formal 1099. Here's what likely happened: Schwab is treating your account as part of a transitional reporting period. Even though you had significant dividend income ($1,300+), they may be consolidating reporting or waiting to issue corrected forms later in the year. Some brokerages do this when accounts transfer mid-year to avoid duplicate reporting issues. Regardless, you absolutely need to report that income on your tax return. Use Schedule B for the dividend income and report the interest on Form 1040. The fact that they explicitly state it's "not being reported to the IRS" actually protects you - it shows you're aware of the income and are voluntarily reporting it correctly. I'd recommend keeping that Account Summary with your tax records and maybe calling Schwab one more time to ask if they plan to issue any corrected forms later. But don't delay your filing - report the income now using the summary information.

Does anyone know if you need to collect sales tax for garage sales? My neighbor said her cousin got fined in California for not collecting sales tax at her yard sale.

I had a similar situation last year and ended up consulting with a tax professional just to be safe. They confirmed what others have said here - if you're selling personal items at a loss (which is almost always the case with garage sales), there's no taxable income to report. The key test is whether you made a profit. Since you mentioned selling items for way less than you originally paid, you're dealing with personal losses, not income. The IRS doesn't allow you to deduct these losses, but they also don't tax them as income. Keep some basic records of what you sold and approximate original costs just in case, but you shouldn't need to complicate your tax return with this. A one-time garage sale of personal household items is very different from running a business or regularly buying/selling for profit.

This is absolutely a scam - you were smart to trust your instincts! The IRS never initiates contact via email, period. They only communicate through official postal mail for legitimate tax matters. That "Dear Taxpayer" greeting is a dead giveaway since the real IRS would use your actual name if you had a legitimate online account. What's particularly manipulative about this scam is how they included that line about "We won't initiate email contact without your consent" - they're basically trying to preemptively address the exact red flag they're creating! It's psychological manipulation designed to make you think they're being transparent when they're actually doing the opposite. The vague "new notification" language is classic phishing - meant to create urgency without giving you anything specific you could verify. Real IRS communications are detailed and reference specific forms, tax years, or account activities. Delete this immediately and go straight to IRS.gov if you need to check your account status. You can also forward it to phishing@irs.gov to help them track these scams. Your caution here probably saved you from a lot of trouble - always trust that gut feeling when something seems fishy!

This is 100% a scam! You absolutely made the right call being suspicious and checking here first. The IRS has a very strict policy - they NEVER initiate contact through email, ever. All legitimate communications from them come through regular postal mail only. That "Dear Taxpayer" greeting is a massive red flag since the real IRS would use your actual name from their records if you genuinely had an online account. What's particularly devious about this scam is that line claiming "We won't initiate email contact with you without your consent" - it's actually a psychological manipulation tactic where they're acknowledging the exact red flag they're creating to try to seem legitimate! The vague "new notification" wording is classic phishing designed to create curiosity and urgency without providing any verifiable details. Real IRS notices are specific about tax years, forms, or account activities. Delete this email immediately and never click any links. If you need to check your account status, go directly to IRS.gov and log in manually. You can also report this to phishing@irs.gov to help them track these fraudulent attempts. Your instincts were spot on - when something about tax communications feels off, it usually is. The golden rule is simple: if it's claiming to be from the IRS and it's not snail mail, it's fake!