Cash App and 1040 Tax Form Question - Identical Amounts on Line 12 and 14?

Wait, I'm confused. So if my husband and I both file separately, would we still have the same amount on line 12? We have different jobs with different salaries.

If you and your husband file separately (Married Filing Separately status), you would each get the same standard deduction amount of $13,850 for 2024 taxes. The standard deduction is based on filing status, not on your income or job situation. Your different salaries would affect your tax brackets and total tax owed, but not your standard deduction amount. That's why you're seeing identical numbers on line 12 if you both took the standard deduction rather than itemizing.

Does taxr.ai work if you've already filed? I'm worried I might have made mistakes with my Cash App reporting and wondering if it could help identify if I need to file an amendment.

How does it handle cash app business transactions specifically? I've been selling stuff and accepting payments through cash app but I'm not sure if I'm handling the tax part correctly.

Yes, it absolutely works on already-filed returns! It can analyze your submitted forms and highlight potential issues that might require an amendment. I actually used it after I had already submitted and it caught a mistake with my Cash App business income that would have caused problems. Regarding Cash App business transactions, it's super helpful because it differentiates between personal transfers (which generally aren't taxable) and actual business income. It flagged several transactions I had incorrectly categorized and explained exactly how they should be reported on Schedule C versus what shouldn't be reported at all.

Wait how does this even work? The IRS never answers their phones. Is this legit or just another scam?

I'm super skeptical about this. I've tried calling the IRS like 20 times over the past three months and always get disconnected. How would some random service get you through when the IRS literally hangs up on people because their call volume is too high?

It works by basically waiting on hold for you and calling you back when an actual IRS agent picks up. It's completely legitimate - they don't ask for any personal tax info or anything sketchy. Regarding your skepticism, I totally get it - I felt the same way! What they do is use technology to navigate the phone tree and stay on hold in your place. They have some way of detecting when a human actually answers, then they connect you directly. I was connected to an IRS agent within about 75 minutes instead of spending hours redialing and getting disconnected.

Omg yes! I thought I was just being dense but the instructions are so much worse this year. I actually called my tax preparer friend to explain the Cash App reporting requirements and she was like "yeah the IRS made everything more confusing this year for some reason.

Right?! I'm glad it's not just me! I think they rewrote a bunch of the instructions to account for the new tax law changes, but in the process they made simple things like understanding your standard deduction way more complicated than necessary. I miss the clear flowcharts they used to have. I think the Cash App reporting is especially confusing because they don't clearly explain the difference between personal transfers and business income.

Yes, they do report to the IRS, but there's a threshold. For 2024 taxes (filed in 2025), you should receive a 1099-K if you received more than $5,000 in payments. But even if you don't receive a form, you're still legally required to report all income, even if it's below the reporting threshold.