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!

Honestly, I think you're overthinking this. Lots of people get small amounts through cashapp and venmo and don't report it. The IRS is way too busy going after big fish to care about your $3k unless you're already being audited for something else. Not saying you SHOULDN'T report it, just being realistic about the situation. I have friends who do OF and similar stuff and they don't report anything under like $10k with no issues.

I understand the awkwardness of this situation - tax questions about sensitive income sources can be really stressful when you can't ask your usual help! Just to reinforce what others have said: yes, this is taxable income that needs to be reported. The key factor is that there's a clear relationship between your content and the payments received, which makes it business income rather than gifts. A few practical tips for your situation: - Keep detailed records of all payments received, even without official forms - Track any expenses related to content creation (equipment, internet portion, etc.) as these are deductible - Consider setting aside about 25-30% of future earnings for taxes (income + self-employment tax) - You can describe the income generically as "digital content creation" on your tax forms The good news is that $3,300 over 3 months isn't a huge amount tax-wise, and with proper deductions, your actual tax liability will be much less than the gross income. Filing correctly now also protects you from potential penalties and interest if the IRS catches unreported income later. Don't let the awkwardness of the situation lead to tax problems - it's much easier to handle this properly upfront than deal with IRS issues down the road!

Dont forget to consider the pro-rata rule if you have both pre-tax and after-tax money in your IRA's. Thats the whole point of the reverse rollover strategy - to get the pre-tax money out of your IRA's so you can do a clean backdoor Roth contribution without triggering pro-rata calculations.

Great question about reverse rollovers! Just to add some clarity to the excellent advice already given - when you do a reverse rollover from IRA to 401(k), you're essentially moving money from one pre-tax retirement account to another, so there's no immediate tax consequence. However, reporting is still required. You'll receive Form 1099-R from your IRA custodian showing the distribution. The key is making sure Box 7 shows the correct distribution code (should be "G" for direct rollover to qualified plan). You'll report this on your Form 1040, and if you had any non-deductible contributions in your IRA, you'll also need Form 8606. The good news is that your strategy worked perfectly - by clearing out the pre-tax IRA money, you've eliminated the pro-rata rule complications for your backdoor Roth conversion. Just make sure all your tax forms reflect the transactions correctly, and you should be all set!