Quick tip if you're preparing Form 8919 - make sure you enter code G in box c since you've filed the SS-8 but haven't received a determination. Also, you'll need to fill out the employer information in boxes d through f (name, EIN, and address). The other thing people often miss is that the amount from the 1099-NEC goes in column d (Total wages) of Form 8919, and then that same amount needs to be reported on Schedule 1 as "other income" with a note that it's also being reported on Form 8919. This prevents duplicate taxation while ensuring it's properly reported. If the software doesn't seem to be handling this correctly, try entering your 1099-NEC information, but then go back and look for a section about "Forms" or "Miscellaneous Forms" and specifically add Form 8919.

Just wanted to share my experience since I went through this exact situation about 8 months ago. The key thing that helped me was understanding that Form 8919 needs to be treated as a separate form in your tax software, not just an adjustment to your 1099-NEC. In FreeTaxUSA specifically, after you enter your 1099-NEC information, go to the "Federal Taxes" section and look for "Less Common Income" or "Other Tax Situations." There should be an option for "Unreported Social Security and Medicare Tax" or something similar - that's where you'll find Form 8919. When you complete Form 8919, make sure you: 1. Use reason code G (you filed SS-8 but no determination yet) 2. Enter your employer's full information 3. Put the full amount from your 1099-NEC in the wages section The software should then automatically reduce your self-employment tax and only charge you the employee portion of FICA taxes. If it's still showing the full self-employment tax, double-check that the 1099-NEC amount isn't being counted twice in different sections. One last tip - print out your completed return before filing to verify the numbers look right. You should see Form 8919 attached and your total tax should be significantly lower than if you filed as self-employed.

Hey Jacob! Don't stress too much - your situation is actually pretty common and manageable. Since this is your first time filing, here are the key points to focus on: You're right that you'll likely need to report the eBay income, but the good news is you only owe taxes on actual profit, not the full $1,300 in sales. Since you originally paid around $650-700 for those items, your profit is roughly $600-650. However, personal items like clothes and electronics depreciate over time, so your actual taxable profit might be even less. eBay will probably send you a 1099-K since you exceeded $600 in sales, but don't panic when you see that form - it just shows gross sales, not what you actually owe taxes on. For tax software, I'd recommend FreeTaxUSA (as others have mentioned) - it's free for federal filing and only $15 for state. It will walk you through reporting this type of income step-by-step without the expensive upsells that TurboTax pushes. Keep simple records of what you estimate you originally paid for the items you sold. Even rough estimates are fine for the IRS - they understand most people don't keep receipts for old personal items for years. Since these were personal belongings you were clearing out (not items bought specifically to resell), the IRS treats this very differently from running an actual business. You're not accidentally becoming a business owner by selling old stuff on eBay! Take a deep breath - you've got this, and it's way less complicated than it initially seems.

Jacob, I can totally relate to that first-time filing anxiety! I was in a very similar spot last year - working a regular job plus selling random stuff on eBay and having no idea how to handle it tax-wise. Here's what I learned: Since you made $1,300 in sales but originally paid $650-700 for those items, you're looking at around $600-650 in profit on paper. But here's the key thing everyone's touched on - those personal items (clothes, old gaming stuff, electronics) have definitely depreciated since you bought them. So your actual taxable profit is probably much smaller than that initial calculation. The fact that you weren't buying stuff specifically to resell makes this so much simpler. You're just clearing out personal belongings, which the IRS treats very differently from running a business. No need to worry about accidentally becoming a business owner! You'll likely get a 1099-K from eBay, but like others said, that just shows gross sales - the tax software will help you calculate the actual taxable amount by letting you deduct what you originally paid. For software, I'd definitely echo the FreeTaxUSA recommendations. I used it last year for my eBay sales and it walked me through everything without trying to upsell me like TurboTax did. The federal filing is free and it's only $15 for state filing. Keep basic records of what you think you paid for items originally - even estimates are fine. The IRS understands people don't keep receipts for every old t-shirt or gaming console they eventually sell years later. You're going to do great - this is way more straightforward than it seems when you're stressing about it!

@Mia Roberts - I went through this exact same situation two years ago! The transition from married filing jointly to head of household can definitely be confusing. Here are the key things that helped me: 1. **Head of Household**: You likely qualify since you're providing more than half the cost of maintaining a home for your kids. This gives you better tax rates than filing single. 2. **Child Tax Credit**: With two kids under 17 and your $58k income, you should definitely claim the full credit. Put $4,000 in Step 3 of your W4 ($2,000 per child). 3. **Don't forget about childcare**: If you're paying for daycare or after-school care so you can work, look into the Child and Dependent Care Credit. This won't affect your W4 but will help at tax time. 4. **Consider quarterly estimated payments**: If you have any side income or irregular earnings, you might need to make estimated payments to avoid underpaying. The biggest mistake I made my first year was not adjusting my withholding enough to account for losing the "married filing jointly" benefits. Better to have a little extra withheld than owe a big chunk next April! You've got this - being a single mom is tough but you're taking all the right steps by asking for help.

@Mia Roberts - As someone who went through a similar transition last year, I wanted to add a few practical tips that really helped me navigate the W4 as a newly single parent: **Double-check your qualifying dependents**: Make sure your divorce decree specifies who claims the kids each year. Even if you have physical custody, sometimes there are agreements about alternating years for tax purposes. **Consider your new marginal tax rate**: At $58k as head of household with two kids, you're likely in the 12% bracket, but it's worth running the numbers. The child tax credit will significantly help, but don't forget about the earned income credit if you qualify - it phases out around $50k for HOH with 2 kids, so you might still get some benefit. **Timing matters for mid-year changes**: Since you started this job after your divorce, make sure your withholding accounts for the partial year. If you worked part of the year under different circumstances (married, different job, etc.), your annual withholding calculation needs to reflect that. **Keep good records**: Start tracking any work-related childcare expenses, as these can be deductible. Also, if you're paying health insurance premiums for the kids, those might be deductible too. The learning curve is steep, but you'll get the hang of it! Feel free to ask if you have specific questions about any of these points.

This is exactly the type of complex partnership liquidation issue that trips up many practitioners. You're absolutely right that Partner C's capital account should zero out upon complete liquidation. The key is understanding that when a partner with a negative capital account receives a liquidating distribution, they're essentially receiving more than their "share" of partnership assets. The $33,000 distribution plus the forgiveness of their $38,000 negative capital account results in a $71,000 economic benefit, which is taxable gain. On the K-1 Section L, you'll show: (1) the $33,000 cash distribution as a negative adjustment, and (2) a positive $71,000 adjustment labeled something like "gain recognition on liquidation of negative capital account." This brings the ending capital account to zero, which is correct for a fully liquidated partner. Don't forget to check if the partnership has any "hot assets" under Section 751 that would cause part of this gain to be ordinary income rather than capital gain. Also verify your partnership agreement doesn't have any special provisions for deficit restoration that might affect this treatment.

I've been preparing partnership returns for over 15 years, and negative capital account liquidations are definitely one of the trickier areas. Your analysis is spot on - Partner C should recognize $71,000 of gain and their capital account should zero out. One additional consideration that hasn't been mentioned yet is the timing of when to report this. Make sure you're treating this as a liquidating distribution in the year it actually occurred, not spread over multiple years. The entire gain recognition happens in the year of liquidation, even if there were installment payments or other complications. Also, double-check that Partner C's original capital account calculation was correct. Sometimes negative capital accounts result from errors in prior year allocations of income, loss, or distributions. If there were mistakes in earlier years, you might need to consider amended returns before finalizing the liquidation treatment. The Section L entries you're planning are exactly right - negative adjustment for the cash received, positive adjustment for the gain recognition to zero out the account. Just make sure your gain calculation considers the partner's outside basis as well, since that affects the ultimate tax consequences to Partner C personally.

Maxwell, you definitely need to report this $20K sale on your tax return. Since it's a collectible (baseball cards), any gain will be taxed as a collectible capital gain, which has a maximum rate of 28% - higher than regular capital gains. The tricky part is determining your "basis" in the cards since you don't have receipts. If you inherited them from your grandfather after he passed away, your basis would be their fair market value on the date of his death (called "stepped-up basis"). If he gave them to you while alive, your basis would be what he originally paid for them. Since you don't have documentation, you'll need to research what similar cards were selling for during the relevant time period. Look at price guides, auction records, or consult with a sports memorabilia appraiser. The IRS expects a "good faith" estimate when original records aren't available. Report the sale on Schedule D of your tax return. Even without a 1099 from the auction house, you're still required to report it - the IRS can potentially discover large bank deposits through other means. Better to be proactive and report it correctly than risk issues later.

Just want to add one important detail that hasn't been mentioned yet - the timing of when you sell matters for tax purposes. Since you've held these cards for years, any gain would qualify as long-term capital gains, which is good news even though collectibles have that higher 28% maximum rate. Also, keep detailed records of the auction house's commission and any other selling expenses (insurance, shipping, etc.) because these costs can be deducted from your sale proceeds when calculating your actual gain. So if you received $20K but paid $2K in fees, your actual proceeds for tax purposes would be $18K. One more thing - if this puts you in a higher tax bracket for the year, you might want to consider timing any other asset sales or tax strategies accordingly. The 28% collectibles rate only kicks in if you're already in higher tax brackets, so depending on your other income, you might pay less than that maximum rate.