This is really helpful info! I'm in a similar boat with a PayPal 1099-K from sports betting. One thing I'm still confused about - if I had sessions where I won on some days and lost on others, do I need to report each winning session separately, or can I just report my total net winnings for the year? For example, let's say I had 10 betting sessions: won $500 in 4 sessions (total $2,000 in winnings) but lost $300 in 6 sessions (total $1,800 in losses). My net profit was $200. Do I report $2,000 as gambling winnings on Schedule 1 and then claim $200 worth of losses on Schedule A? Or do I just report the $200 net as gambling income? I've been going back and forth on this and want to make sure I handle it correctly with the PayPal 1099-K showing my total withdrawals.

Great question about the PayPal 1099-K situation! I dealt with something similar last year and wanted to share what I learned from my tax preparer. The key thing to understand is that the PayPal 1099-K is just a third-party payment processor reporting form - it's not actually determining your taxable income. PayPal has to send this form when they process over $600 in payments for you, but it doesn't mean that entire amount is taxable income. For your situation, you're absolutely correct about reporting the $8,200 in actual gambling winnings on Schedule 1, Line 8z. The fact that PayPal's 1099-K shows $12,200 doesn't change this - that's just the gross amount they processed in withdrawals. One tip that really helped me: create a simple spreadsheet showing your deposits, withdrawals, and net winnings by month. This makes it easy to reconcile your actual gambling income with what PayPal reported. If the IRS ever questions the difference between your reported income and the 1099-K amount, you'll have clear documentation showing that the 1099-K includes return of your original stake, not just winnings. Also double-check that you didn't receive any W-2G forms from DraftKings directly for individual large wins (usually $600+ and 300x your bet). Those would need to be reported separately from your Schedule 1 reporting.

I'm so sorry to hear about your unexpected job loss - being blindsided like that after 4 years is incredibly jarring and it's completely understandable that you're feeling shaken up. The good news is that you've been making excellent financial decisions with those consistent $19,500 annual contributions, which puts you in a better position than many people facing similar circumstances. As others have mentioned, the key advantage of your 457(b) is the lack of early withdrawal penalties, but I'd encourage you to think of it as your financial safety net rather than your first option. Before touching those retirement funds, definitely file for unemployment benefits immediately - this can provide substantial income replacement for several months while you job search. One thing that might help reduce your stress right now is to create a simple monthly budget of your absolute essentials versus discretionary spending. This will give you a clearer picture of how long your emergency savings might last and whether you'd actually need to tap into your 457(b) at all. Since this is from a private healthcare company, do consider rolling it over to an IRA or another 457(b) plan when you're ready, as non-governmental plans carry some additional risks if left with your former employer. Remember, this situation is temporary even though it feels overwhelming right now. You've demonstrated the discipline to build substantial retirement savings once - that same financial wisdom will serve you well during this transition. Take care of yourself and don't hesitate to lean on your support system during this difficult time.

I'm really sorry to hear about your unexpected job loss - that kind of shock is incredibly difficult, especially when you thought you were performing well. The stress and uncertainty you're feeling right now is completely understandable. You've received excellent advice about your 457(b) options, and I want to reinforce a key point: take some time to process this news before making any major financial decisions. When you're in shock, it's natural to want to secure every possible resource immediately, but most of these choices don't have tight deadlines. Since you mentioned this is from a private healthcare company, I'd definitely consider the rollover advice others have given. Non-governmental 457(b) plans do carry additional risks if left with your former employer long-term. Before touching your retirement funds, make sure you've explored these options first: unemployment benefits (file immediately if you haven't), any severance package details, and reaching out to your professional network for potential opportunities. These steps can provide both financial relief and job leads while giving you breathing room. If you do eventually need to access some 457(b) funds, remember the key advantage is no early withdrawal penalty, but you'll still owe regular income taxes. Since your 2025 income will likely be lower due to unemployment, this could actually be a more tax-efficient year for any necessary distributions. You've built an impressive financial foundation with those consistent contributions - try to preserve as much as possible while you navigate this transition. This situation is temporary, even though it doesn't feel that way right now. You'll get through this!

The threshold for these payment apps reporting to the IRS was actually supposed to drop to just $600 this year, but they delayed implementing that lower threshold. So we're still at $5,000 for 2024, but be aware it might change for next tax season. Just something to keep in mind if you're regularly getting payments through these apps.

This is a really common concern that a lot of people have been asking about! The good news is that your regular paycheck direct deposited into Cashapp won't be affected by the 1099-K reporting rules at all. Here's why: The $5,000 threshold applies specifically to payments for goods and services made through third-party payment networks. Your employer's payroll direct deposit is processed completely differently - it goes through the ACH system with payroll-specific codes that clearly identify it as wages, not as a payment app transaction subject to 1099-K reporting. Your employer is already reporting your wages to the IRS on your W-2, with all taxes properly withheld. The payment app reporting is designed to catch unreported business income from people selling goods or services, not to double-report income that's already being tracked through traditional payroll systems. So you can keep using Cashapp for your direct deposit without any worries about affecting your taxes or being taxed twice on the same income. The systems are designed to work together, not create duplicate reporting.

I've been using Cash App for my tax refunds for the past three years and wanted to share my experience since there's so much mixed feedback here. Overall, it's worked for me, but definitely not without some stress and learning curve. Year 1 (2022): $2,400 refund - went smoothly, arrived in about 2 days Year 2 (2023): $3,800 refund - got held for 24 hours for "verification," nearly gave me a heart attack Year 3 (2024): $4,100 refund - smooth again, but I was fully verified and had been using the account regularly What I've learned: • Refunds under $3,000 seem to have fewer issues • Having regular transaction history beforehand really helps • Complete ALL verification steps at least a month before filing • The name on your tax return MUST match exactly - even middle initial differences can cause problems The biggest downside is definitely the customer service. When my refund was held in 2023, I couldn't get any real information about why or when it would be released. I was basically just refreshing the app every hour hoping it would appear. Honestly, after reading everyone's experiences here, I'm considering switching to a traditional bank next year too. The convenience isn't worth the anxiety, especially as my refunds have been getting larger. Sometimes the "boring" option is the right option for important financial matters like this. If you do decide to go with Cash App, definitely follow the verification advice others have shared and maybe do a test direct deposit first if possible!

As someone who's been lurking in this community for a while, I really appreciate everyone sharing their real experiences with Cash App for tax refunds. Reading through all these stories has been incredibly eye-opening and honestly saved me from potentially making a stressful mistake. What really stands out to me is how even the people who had successful experiences with Cash App still mention feeling anxious or stressed during the process. That underlying uncertainty about whether your refund will get flagged, held, or delayed seems to be a common theme regardless of the outcome. The lack of customer service is definitely the biggest red flag for me. The idea of having my tax refund stuck in some automated review process with no way to speak to an actual person is just too risky, especially since I'm planning to use my refund for some important home repairs that can't be delayed. I think I'm going to follow the advice from several folks here and open a basic checking account at a local credit union. Yes, it's an extra step, but after reading about people's refunds being held for days or even a week with no communication, the peace of mind seems absolutely worth it. Thanks to everyone who took the time to share their experiences - both positive and negative. This kind of honest community feedback is exactly what newcomers like me need to make informed decisions about important financial matters!

Slightly different question - I'm a union electrician and I get travel pay which is different from per diem. My company is also including that in my W-2 Box 1. Is travel pay also supposed to be non-taxable, or is that different from per diem?

This is such a common issue in construction! I went through the exact same thing with my roofing company last year. The key thing to understand is that your per diem CAN be non-taxable, but only if your employer is handling it as an "accountable plan." This means: 1) The per diem rates don't exceed federal GSA rates for your work locations 2) You provide adequate documentation of your travel (dates, destinations, business purpose) 3) You return any excess amounts you don't use If your company just gives you a flat $135/day regardless of where you travel, and some locations have lower federal rates, the excess becomes taxable. Also, if they don't require you to document your travel or return unused amounts, the IRS considers it a "non-accountable plan" and the entire amount becomes taxable wages. Check the GSA per diem rates for your specific work locations at gsa.gov/perdiem. If your $135/day exceeds those rates, or if your company isn't following accountable plan rules, then yes - it should be included in your W-2. But if everything checks out and it should be non-taxable, definitely push for a corrected W-2. Don't try to handle this on your tax return yourself - that's a red flag for audits.