2 What kind of side gig do you have? I found that the complexity of my taxes really depended on what type of self-employment I was doing. When I was just doing simple freelance writing, TaxAct's regular version was fine without any upgrades. But when I started an Etsy shop with inventory and supplies to track, I definitely needed more help.

I used TaxAct Xpert Assist last year when I had a similar situation - W-2 income plus freelance work and a cross-state move. The upgrade was definitely worth it for me. The live agent helped me identify several deductions I hadn't considered, like the moving expense deduction (which I thought was eliminated but still applies in certain situations) and helped me properly allocate my freelance income between states. They also walked me through estimated quarterly payments for this year, which saved me from underpayment penalties. For your income level and complexity, I'd say it's worth the upgrade cost. The agent I spoke with was knowledgeable and patient, and I felt like I got personalized advice rather than generic responses. Just make sure to have all your documents ready when you call - the more organized you are, the better they can help you maximize your deductions. One tip: schedule your call during off-peak hours if possible. I called on a weekday morning and got through quickly with plenty of time to discuss everything thoroughly.

im confused bout something - if im on a full-ride scholarship that pays tuition + housing + meal plan, do i need to report any of that as income??? cuz im also working part time on campus and using the 99 dependents thing!

Hey @GalacticGuru! Your employer giving you the "99 dependents" advice is unfortunately pretty common but not the correct approach. As others mentioned, you should use the "Exempt" checkbox on your W-4 instead if you qualify. Here's the key thing about your financial aid refund - you mentioned it was "substantial" which makes me think it might include money for living expenses beyond just tuition/fees. The IRS treats scholarship/grant money differently depending on what it covers: - Tuition, required fees, required books/supplies = NOT taxable - Room, board, personal expenses, transportation = IS taxable If your refund included money for housing or other living expenses, that portion would be taxable income and could affect your ability to claim exempt status. You'd need to add that taxable portion to your work income when determining if you'll owe taxes for the year. For FICA taxes on summer work - you're correct that students get an exemption, but only when working for the school where they're enrolled AND actively taking classes. Summer jobs at outside employers (like retail, restaurants, etc.) would still be subject to FICA taxes even if you're a student. I'd strongly recommend getting your specific situation reviewed since the combination of work income + potentially taxable financial aid could push you over the threshold where you'd actually owe taxes!

One thing to remember is that your NAICS code should reflect your primary business activity. If more than 50% of your revenue comes from selling video games, choose the code that best represents that activity. I made the mistake of choosing too general a code my first year and missed out on some industry-specific deductions. When I switched to a more specific code that actually matched my primary business activity, I was able to take advantage of deductions I didn't even know existed!

For your eBay business selling vintage video games and collectibles, I'd recommend looking at 451120 - "Hobby, Toy, and Game Stores" since video games seem to be your primary focus. This code specifically covers retailers of video games and would be most accurate for your business. If you're selling a really mixed variety where no single category dominates, then 454110 - "Electronic Shopping and Mail-Order Houses" would be the safer general e-commerce option. The key is to track your sales by category for a month or two and see what makes up the majority of your revenue. That should guide your NAICS code selection. And don't worry too much - you can always update it as your business evolves! One tip: make sure you're keeping detailed records of your inventory costs and shipping expenses. These are often the biggest deductions for eBay sellers regardless of which NAICS code you choose.

I went through this exact scenario two years ago and learned some hard lessons. The IRS matching system is incredibly efficient - they'll catch the missing 1099-C within 6-12 months and send you a CP2000 notice. Here's my recommendation: file the amended return (1040-X) immediately. Yes, it adds 16+ weeks to your processing time, but it's better than waiting for the IRS to find the discrepancy. When they do, you'll owe the additional tax PLUS interest calculated from your original filing deadline. I ended up paying an extra $340 in interest because I waited. The 1099-C shows forgiven debt as taxable income, so with $5,800, you're probably looking at $1,000-2,000 in additional tax depending on your bracket. File the amendment now, include Form 982 if you qualify for insolvency exclusion, and save yourself the headache later.

I'm dealing with a similar situation right now and this thread has been incredibly helpful! Based on everyone's experiences, it's clear that filing the 1040-X immediately is the smartest move. I had a question about the timeline though - if I file my amended return now, will the IRS process my original refund first and then handle the amendment separately? I'm wondering if I'll still get my original refund while they work on processing the additional tax from the missing form. Also, has anyone tried using the IRS online tools to check if their missing document has already been flagged in the system before filing the amendment? I want to be proactive but also don't want to create unnecessary complications if there's a chance the discrepancy might not be caught immediately.

Anybody know how this affects state tax returns? If I amend my federal return for this Roth IRA excess contribution issue, do I need to amend my state return too?

I went through this exact same situation two years ago with a PJ distribution code. Here's what I learned from my experience: You absolutely need to amend your 2023 return, not report it on 2024. The key is understanding that the excess contribution was made FOR 2023 (confirmed by your 5498), so that's the tax year that needs to be corrected, regardless of when you actually received the 1099-R. The $650 shown on your 1099-R represents the earnings on your excess contribution - this is what's taxable and needs to be reported as income on your 2023 amended return. The actual excess contribution amount comes back to you tax-free since you already paid taxes on it. You'll need to file Form 1040-X for 2023 and include Form 8606 to properly report the Roth IRA distribution. You'll also likely need Form 5329 for the 6% excise tax on excess contributions unless you removed them before the deadline. Don't try to just include it on your 2024 return - the IRS computer systems will flag the mismatch between the 1099-R year and when you report the income. Better to do it right the first time than deal with IRS notices later.