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I'm wondering if I should be worried. I made about $1800 babysitting last year and didn't report it... is the IRS gonna come after me now?
As someone who's been through this exact situation, I can confirm you're on the right track! Yes, you absolutely need to report that $2700 as self-employment income on Schedule C, even without a 1099. The IRS considers all income taxable regardless of whether you receive forms. A few tips from my experience: - Keep detailed records of all your babysitting-related expenses (mileage, supplies, etc.) - they add up quickly - You'll owe self-employment tax (about 15.3%) on your net profit after expenses - Since you earned over $600, you should consider making quarterly estimated tax payments going forward to avoid underpayment penalties next year - The family should have given you a 1099-NEC since they paid you over $600, but their oversight doesn't change your reporting obligation Don't stress too much - this is a common situation and as long as you report everything honestly, you'll be fine. The IRS actually appreciates when people proactively report income that might otherwise go unreported!
This is really helpful! I'm just getting started with understanding all this tax stuff as a newcomer to reporting self-employment income. Quick question - when you mention making quarterly estimated tax payments going forward, how do you calculate how much to pay? Is there a simple way to figure that out, or do you need to estimate your whole year's babysitting income in advance?
Has anyone noticed that FreetaxUSA sometimes doesn't recognize the supplemental tax withholding from RSUs correctly? I had to manually add my state withholding amounts because they weren't pulling in properly from my W-2 entry.
Yeah, I had the same issue! I found that you need to go to the "Federal Taxes Withheld" section and there's an option to add additional withholding that wasn't captured from your W-2 entry. I think the problem is that FreetaxUSA has trouble with supplemental withholding codes on some W-2 forms.
Great thread! I'm dealing with a similar RSU situation in FreetaxUSA. One thing I discovered that might help others - if you have RSUs that vested in multiple tranches throughout the year, FreetaxUSA has a "batch entry" feature in the Capital Gains section that can save you a lot of time. Instead of entering each sale transaction individually, you can group transactions with the same acquisition date and cost basis. This is especially helpful if you had quarterly vestings and multiple same-day sales. Just make sure your total proceeds and cost basis match what's on your consolidated 1099-B. Also, for anyone wondering about ESPP (Employee Stock Purchase Plan) transactions - those follow different rules than RSUs and have their own section in FreetaxUSA under "Other Income." Don't mix them up with your RSU reporting!
Thanks for the batch entry tip! I didn't know FreetaxUSA had that feature. I've been manually entering each RSU transaction one by one, which has been a nightmare with quarterly vestings. Quick question - when you use the batch entry, does it still generate the proper forms (like Schedule D) automatically, or do you need to double-check anything? I want to make sure the IRS gets all the right documentation even with the consolidated entries.
I just went through this process for my 2023 taxes with our November baby, and it was much simpler than our rental property deductions! You'll need to get a Social Security Number for your baby though - the hospital will give you the paperwork, but it takes a few weeks to process. The IRS won't accept your return claiming the credit without a valid SSN for the child.
Isn't there also an adoption credit that's different from the Child Tax Credit? What if someone adopts a newborn instead of having a biological child? Would they qualify for both in the same tax year?
Think of adoption credits like buying a house vs. the Child Tax Credit like your annual property tax benefits. The adoption credit (up to $15,950 for 2024) covers qualified adoption expenses, while the $2,000 Child Tax Credit is an annual benefit for having a dependent child. You can claim both, but they serve different purposes - one for the upfront costs of adoption, the other for ongoing support of raising a child.
Congratulations on your upcoming bundle of joy! π As a parent who just went through this process, I can confirm that the $2,000 Child Tax Credit for 2024 is exactly right. What's great is that even though your baby arrives in June, you'll qualify for the full credit when you file your 2024 taxes next year - no proration needed! With your combined income of $185k, you're well within the safe zone. The phase-out doesn't start until $400k for married filing jointly, so you have plenty of breathing room there. One tip from my experience: start the Social Security number application process at the hospital right after birth. It typically takes 4-6 weeks to receive the card, and you'll need that SSN to claim the credit on your 2024 return. If for some reason it doesn't arrive by April 15, 2025, you can always file an extension to give yourself more time. Also, don't forget that up to $1,600 of that $2,000 credit is refundable, meaning you could get money back even if you don't owe taxes. The remaining $400 can offset any tax liability you have. It's honestly one of the more straightforward tax benefits to claim!
Check your transcript for cycle codes - those are way more important than the as of date tbh
where do i find the cycle codes?
look at the numbers on the left side of ur transcript entries. first 2 digits are the cycle week
Same thing happened to me last year - my as of date jumped around like crazy for weeks and I was losing sleep over it. Turns out it was just routine processing and I got my refund exactly when WMR originally said I would. The IRS systems are confusing but try not to stress too much about the date changes alone!
Jasmine Hancock
This is exactly why I always tell people to use certified mail for anything tax-related! But for your current situation, you're not completely out of luck. Here's what I'd recommend: 1. **Request First Time Abatement** - If you haven't had penalties in the past 3 years, call the IRS and request "First Time Penalty Abatement" (FTA). This is often granted regardless of your ability to prove timely mailing. 2. **Document everything you remember** - Write down the exact date, time, post office location, description of the clerk, and any other details about your mailing. Even without a receipt, a detailed sworn statement can help. 3. **Check your bank records** - If you paid by check, the processing date might support your case that it was mailed timely. 4. **Contact the post office** - While they may not have records of your specific transaction, they might be able to provide a statement about their standard collection times from that date. The key is to be persistent and polite when dealing with the IRS. Many taxpayers successfully get penalties removed by explaining their situation clearly, especially for first-time issues. Don't give up - you have options!
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Emma Wilson
β’This is really helpful advice! I'm in a similar boat with proving timely mailing. Question about the First Time Abatement - do you have to call them or can you request it in writing? I'm terrible on the phone and would much rather send a letter if that's an option. Also, when you say "check your bank records," would that include credit card statements if I paid the postage with a card? Maybe that timestamp could help establish when I was at the post office?
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Vanessa Figueroa
β’You can absolutely request First Time Abatement in writing! In fact, many people prefer this approach because you have a paper trail. You can send a letter to the IRS address shown on your penalty notice, clearly stating "Request for First Time Penalty Abatement" and explaining that you have a clean compliance history for the past 3 years. And yes, credit card statements showing the postage purchase could definitely help establish a timeline! If your card statement shows a transaction at that specific post office on April 12th, that's solid evidence you were there on that date. You could also check if you have any other receipts from that day (gas, coffee, etc.) that show you were in that area around the time you claim to have mailed your payment. The more documentation you can piece together, the stronger your case becomes. Even small details like this can make a big difference when you're trying to prove your timeline to the IRS.
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Geoff Richards
I dealt with this exact same situation two years ago! The IRS claimed my payment was late even though I mailed it well before the deadline. Here's what ultimately worked for me: First, don't panic - you have several options even without a certified mail receipt. The most important thing is to act quickly and document everything you can remember about that day. **Immediate steps:** 1. **Call the IRS and request "First Time Penalty Abatement"** - If you haven't had penalties in the past 3 years, they often waive penalties regardless of proof. This is your easiest path to resolution. 2. **Gather any evidence you have** - Check your credit card or bank statements for the postage purchase, look for any other receipts from that day that place you near the post office, and write down every detail you remember (time, clerk description, etc.). 3. **Contact that specific post office** - While they won't have records of your transaction, they might provide a statement about their standard mail collection times for that date. **For your written appeal**, explain the situation clearly and mention that you specifically went early to ensure timely delivery, that you paid for proper postage, and that you watched the clerk place it in outgoing mail. The IRS does consider "reasonable cause" arguments, especially for taxpayers with good compliance history. The key is persistence - don't accept the first "no" if you get one. Many taxpayers successfully get these penalties removed by clearly explaining their situation and being polite but firm with IRS representatives.
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