Random tip from someone who's been through this - make sure your husband is taking before and after pictures of everything he fixes up! Not only is this good for sales listings, but if you ever get audited, having visual proof of the improvements made can help justify the expenses. The IRS can be picky about hobby vs business classification for flipping activities.

Great question! I went through this exact same confusion when I started my furniture flipping side business. Here's what I learned works best in TurboTax: The initial purchase price of the motorcycles/tools should definitely go under "Cost of Goods Sold" - these are your inventory items that you're buying specifically to resell. For the repair parts and materials he's purchasing to fix them up, those go under "Materials and supplies" in the expense section. This includes things like replacement parts, paint, cleaning supplies, etc. One thing that really helped me was keeping a simple spreadsheet for each item - purchase price, repair costs, selling price, and profit. This makes it super easy when you're entering everything into TurboTax and gives you great records if you ever need them. Also don't forget about other deductible expenses like gas/mileage for picking up items, any selling fees (eBay, Facebook Marketplace, etc.), and even a portion of your phone bill if he uses it for business calls. These little things add up! The key is treating this as a legitimate business from day one with good record keeping. That way there's no question about hobby vs business classification with the IRS.

One thing no one is mentioning - check your STATE tax too! Federal tax is just part of it. In California, you'd owe another 13.3% on top of federal taxes. But in Texas, Florida, Wyoming and a few others, there's ZERO state income tax. Where you live matters HUGE!

This is a really complex situation for someone in high school! One important thing to consider is that you might want to consult with your parents or guardians about this too, since winning a prize this large could potentially affect their tax situation if you're still claimed as a dependent on their return. Also, beyond just the immediate tax implications, think about the ongoing costs - classic cars often require special insurance, storage, and maintenance that can be expensive. If you do win, you might want to connect with classic car communities or appraisers to get a realistic sense of what these specific cars might actually sell for, since that could be quite different from the stated prize value. The payment plan option with the IRS is real, but they do charge interest and penalties, so it's not free money. Given your age and income level, this could be a great learning opportunity about taxes and financial planning, but make sure you have adult guidance to help navigate it all!

Just want to add that if your parents owe a really large amount, you might want to consider the gift tax implications. Paying someone else's tax bill counts as a gift from you to them. For 2025, you can gift up to $18,000 per person without filing a gift tax return. So you could give $18k to father-in-law and $18k to mother-in-law without any reporting requirements.

I actually went through this exact situation with my grandmother last year. The process is pretty straightforward - you can definitely pay their taxes with your personal check. Make sure to write their SSN, the tax year (2024), and "Form 1040" in the memo line. I also included a brief note saying "Payment made on behalf of [their names]" just to be extra clear. One thing I'd suggest is keeping a copy of the check and any documentation for your records. Also, if they have a payment voucher from any IRS notice, include that with your check - it helps ensure the payment gets applied correctly and quickly. The IRS processed my grandmother's payment without any issues, and she received confirmation that it was properly credited to her account about 2 weeks later. Don't stress too much about it - third-party tax payments are very common and the IRS handles them routinely.

Don't forget you'll probably owe state taxes too! I made that mistake when I amended for a missing 1099 - fixed my federal return but completely forgot about state taxes until I got a notice months later.

Another thing to keep in mind - if you're using TurboTax like you mentioned, they actually have a pretty straightforward amendment process. You can import your original return and then add the missing 1099-NEC income, and it'll automatically generate the 1040X for you. Just make sure when you're entering the 1099-NEC that you select it as self-employment income (which it sounds like it was since it was freelance design work). TurboTax will automatically calculate the self-employment tax for you, which is going to be about 15.3% of that $9,100 on top of your regular income tax. One silver lining - since you already got your refund, you might be able to use part of that $675 toward what you'll owe on the amendment. But definitely don't wait too long to file it, even though you have 3 years technically. The interest keeps adding up!

Make sure you're tracking ALL your business expenses! I'm in construction and these are the categories I deduct: - Materials & supplies - Subcontractor labor - Tools & equipment - Vehicle expenses/mileage - Business insurance - Software subscriptions - Phone & internet (business %) - Home office (if you have one) - Professional services (accounting, legal) Without a 1099-K, you still report the full income on Schedule C line 1 as "Gross receipts or sales" then deduct all expenses. You only pay tax on the net profit. Don't leave money on the table by missing deductions!

i run a small biz and stripe didnt give me a 1099k either. its normal. the 200 transaction rule is why. u still gotta report ALL income even without forms. the irs can see ur bank deposits so dont try to hide it lol i use quickbooks self employed. it connects to stripe and categorizes everything automatically. then export to turbotax. super easy. sounds like ur not entering expenses right in turbotax if ur paying tax on the full 215k. theres no way u should be paying that much!!