What a relief that turned out to be just a tracking mixup! I can completely understand the initial panic though - getting a notification about a mystery 13-pound package from the IRS would have sent me into full anxiety mode too. That's such a specific and heavy weight that really makes you wonder what on earth they could be sending. Your step-by-step investigation really shows the value of staying calm and checking all the details before jumping to worst-case scenarios. The fact that the key information - it was going TO the IRS rather than FROM them - was right there in the tracking details the whole time is such a perfect example of how stress can make us overlook the obvious. I've learned so much from reading through this thread! Had no idea that shipping notification mixups were this common, especially with government deliveries. The explanations about what "GTD" likely stands for and all the insights from people with shipping experience have made this incredibly educational. Thanks for keeping all your updates in the thread instead of just deleting it once you figured out it was nothing. This kind of real-time problem-solving documentation is exactly what makes these community discussions so valuable for everyone!

Wow, what a wild ride this whole experience was! As someone who's relatively new to this community, I found your step-by-step investigation absolutely fascinating to follow. I definitely would have been in full panic mode if I got a notification about a mysterious 13-pound package from the IRS - that specific weight detail would have had my imagination running wild with possibilities! Your methodical approach to actually checking the shipping details instead of just catastrophizing is really admirable. The fact that the key piece of information - that it was going TO the IRS rather than FROM them - was right there in the tracking information the whole time is such a perfect example of how stress can make us overlook obvious details. I've learned so much from reading through all the responses here! Had no idea that shipping notification mix-ups were this common, especially with government facilities. The insights about what "GTD" likely stands for and all the expertise shared by people in shipping have made this thread incredibly educational. Thanks for keeping all your updates instead of just deleting the post once you figured it out. This kind of real-time problem-solving documentation is exactly what makes community forums so valuable - now anyone who gets a similar confusing notification has a perfect roadmap for staying calm and investigating systematically!

I've been following this thread and wanted to share my perspective as someone who works in tax preparation. The discussion here has been really comprehensive, and I appreciate everyone sharing their real audit experiences - that's invaluable information. After reading through all the responses, I think the community has reached the right conclusion: when you have exclusive use of space and regular monthly payments, it's safest to treat this as rental income regardless of the relationship or intent. The IRS guidance is pretty clear that they look at the substance of the arrangement, not just the form. For anyone still on the fence, here's what I typically advise clients in similar situations: Calculate the square footage of the exclusively used space, report the income, and claim proportional deductions for mortgage interest, property taxes, utilities, insurance, and qualifying repairs. Keep detailed documentation of payments received and take photos of the space for your records. The math shared by community members here is spot-on - those deductions usually offset 60-75% of the additional tax liability, making the net impact much smaller than people expect. Plus you get the peace of mind knowing you're fully compliant if you ever face an audit. Thanks to everyone who shared their experiences - this is exactly the kind of real-world guidance that helps people navigate these tricky tax situations!

I've been reading through this entire discussion and wow, what a helpful thread! I'm in almost the exact same situation - my friend from work stayed in my spare bedroom for 6 months and paid me $750/month. I was completely unsure about how to handle this on my taxes. After seeing all the real audit experiences shared here, especially from Leo and Kingston, I'm convinced that reporting it as rental income is the way to go. The fact that both of their situations involved exclusive use of space and regular payments (just like ours) and the IRS treated them as rental arrangements really drives the point home. I calculated that the bedroom/bathroom my friend used was about 200 sq ft out of my 1,300 sq ft house, so roughly 15%. Based on everyone's math here, I should be able to deduct 15% of my mortgage interest, property taxes, utilities, and insurance, which should offset most of the additional tax on the $4,500 income. Thanks to everyone who shared their experiences - this community discussion has been more helpful than any tax website I've found! Better to be safe and compliant than deal with audit headaches later. I'm keeping detailed records of all the Venmo payments and taking photos of the space just in case.

Thanks for sharing your situation - this is actually pretty common with sports betting since most platforms don't issue W-2Gs unless you hit their specific thresholds. You're absolutely right to report this income even without the forms. For your $1,250 in total winnings, you'll want to report this as "Other Income" on Schedule 1, Line 8z. Don't worry about not having the EINs or addresses from each sportsbook - the IRS doesn't require that level of detail when you're self-reporting gambling income. Regarding those signup bonuses, here's how to handle them: The $200 bonus from FanDuel isn't considered income when you receive it - it only becomes taxable when you convert it to withdrawable cash. So if you ended up with $120 after playing through the bonus requirements, your taxable gambling income from that transaction would be $100 ($120 withdrawn minus your $20 deposit). Make sure to keep detailed records of all your transactions - screenshots from each platform, bank statements showing deposits/withdrawals, and any email summaries the platforms sent you. This documentation will be crucial if you ever need to verify your reported amounts. One last tip: if you had any losses during the year, you can deduct them up to the amount of your winnings if you itemize deductions on Schedule A. Just make sure you have documentation for those losses too!

I went through this exact same situation last year with multiple sportsbooks and no W-2Gs. Here's what I learned after consulting with a tax professional: You're absolutely correct that you need to report all gambling income regardless of whether you received forms. For your $1,250 in winnings, report it as "Other Income" on Schedule 1, Line 8z with "Gambling Winnings" as the description. For those promotional bonuses, the key is understanding when they become taxable income. The bonus itself isn't income when credited to your account - it only becomes taxable when you successfully convert it to withdrawable cash. So in your FanDuel example, if you deposited $20, got the $200 bonus, and ended up withdrawing $120, your taxable gambling income would be $100 ($120 withdrawn minus your $20 deposit). One thing I wish I'd known earlier: keep meticulous records even without W-2Gs. Download your transaction histories from each platform before the year ends, take screenshots of your account summaries, and save any monthly/annual statements they email you. These will be invaluable if you're ever audited. Also, don't forget that you can deduct gambling losses up to the amount of your winnings if you itemize deductions. Most platforms provide year-end summaries showing total losses, which the IRS accepts as documentation. The whole process is more straightforward than it initially seems - you just need to be thorough with your record-keeping!

Adding to the conversation - there's a simple way to remember the main exceptions to the "corporations are exempt from 1099s" rule. I use the acronym FLAMES: F - Fishing boat proceeds L - Lawyer/attorney payments A - Awards/prizes M - Medical/healthcare payments E - Excess golden parachute payments S - Settlements If your payment to a corporation falls into one of these categories, you still need to issue a 1099 even though they're a corporation. Since your CPA firm doesn't fit any of these categories (assuming they're incorporated), they would indeed be exempt.

Great question about CPA firm exemptions! Yes, your CPA firm is likely correct that they're exempt from 1099 reporting if they're incorporated as a corporation. This is one of the most common exemptions business owners encounter. Here's what you should do to stay compliant: Even though they're exempt, you should still request and keep a completed W-9 form from them. This serves as your documentation that they claimed exemption status, which protects you if the IRS ever questions why you didn't issue a 1099 to a vendor you paid over $600. The W-9 will show their business structure and tax classification. If they're a corporation (C-corp or S-corp), they'll be exempt from 1099-NEC reporting for services. The main exceptions where corporations DO need 1099s are payments to medical corporations, attorneys/law firms, and a few other specific categories. For future reference, always collect W-9s from all vendors regardless of whether you think they need a 1099. It's much easier to have the paperwork upfront than to chase it down later during tax season. This way, you'll have proper documentation of everyone's status and can easily determine who needs what forms.

I went through almost the exact same situation three years ago - divorce finalized in late December after supporting my ex most of the year. The financial shock of that unexpected tax bill is brutal, especially when you're already dealing with divorce expenses. A few practical tips that helped me get through it: 1. **Quarterly estimated payments for 2025**: Since you now know your withholding will be drastically different as a single filer, start making quarterly estimated tax payments immediately. This prevents the same problem next year. 2. **Payment plan options**: The IRS installment agreement mentioned earlier is definitely worth considering. The setup fee is minimal and the interest rate is usually lower than credit cards. You can even apply online. 3. **Check your divorce decree carefully**: Mine had a clause about splitting certain tax-related expenses that I initially missed. Your attorney might have included provisions about who handles what for the transition year. 4. **Timing lesson learned**: For anyone reading this going through divorce - update your W-4 the moment you know the divorce will be final before December 31st, even if it feels premature. The tax code doesn't care about fairness, just dates. The $7,000 shock is painful but manageable with a plan. You'll get through this!

I'm sorry you're dealing with this stressful situation on top of everything else that comes with divorce. The timing rules for filing status can feel really unfair, especially when you've been financially supporting someone for most of the year. One thing I haven't seen mentioned yet - if you made any direct payments to third parties on behalf of your ex-spouse (like paying her student loan directly to the lender, or medical bills directly to healthcare providers), these might potentially qualify for different tax treatment depending on how they were structured in your divorce agreement. Also, while you can't claim your ex as a dependent, make sure you're not missing any other potential deductions you might be entitled to as a single filer. Sometimes people overlook things like unreimbursed employee expenses, professional development costs, or other itemized deductions that could help offset some of that tax bill. The quarterly estimated payment advice from others here is really crucial for 2025. The IRS safe harbor rule generally requires you to pay 110% of last year's tax liability through withholding and estimated payments to avoid penalties, so calculating what you'll need for next year based on your new filing status will save you from this same shock again. Hang in there - this is definitely manageable with the right plan in place!