Does anyone know if eBay provides any kind of itemized statement with the 1099-K to help with tracking all this? I sold maybe 30 different items last year and I'm dreading having to go back through all the transactions manually.

Thanks for all the helpful advice everyone! I'm in a similar boat with about $800 in eBay sales this year and was stressing about the 1099-K. One thing I learned from reading IRS Publication 544 is that if you're selling personal items, you only report the gains (where you sold for more than you paid), not the losses. So @Andre Laurent is exactly right - you can't deduct personal losses against other income. For anyone still confused about Schedule C vs Schedule D, the key test is your intent when you bought the items. If you bought them for personal use and are just decluttering, use Schedule D. If you bought items specifically to resell for profit, that's Schedule C business income. I've been keeping a simple spreadsheet with columns for: Item Description, Original Cost, Sale Price, Gain/Loss. Makes it much easier to track everything and identify which gains I actually need to report.

I got hit with this last year and found that some of my eBay income was reported TWICE - once on 1099-K from eBay and a separate 1099-NEC from PayPal! Make sure you check if you're getting multiple forms for the same income and don't report it twice.

This is such a common confusion! I went through the exact same thing last year. The key thing to remember is that the 1099-K reporting threshold and your actual tax liability are completely separate issues. You're absolutely right that you only made $4,100 in actual profit, and that's what matters for your taxes. The $6,700 gross amount on the 1099-K is just what eBay has to report to the IRS - it doesn't mean you owe taxes on that full amount. When you file, you'll report the $6,700 as income but then deduct all your legitimate expenses (eBay fees, shipping, PayPal fees, cost of items if you have records, etc.) to get down to your actual $4,100 profit. You'll only pay taxes on that net amount. Also, keep in mind there's no minimum threshold for owing taxes on business income - even if you made $100 profit, you'd technically owe taxes on it. The reporting thresholds are just about when platforms have to send you (and the IRS) the 1099 forms. Make sure to keep good records of all those expenses you mentioned - eBay's transaction history is actually pretty helpful for this!

Has anyone had success resolving this kind of issue through the IRS online account system? I'm dealing with a similar RSU situation but really don't want to mail in physical documents if I can avoid it. The CP2000 notice mentions something about responding online, but I'm not sure if that's effective for this type of issue.

I went through almost the exact same situation with my 2021 return! Got a CP2000 for about $42k in RSU income that was already on my W2. The stress was unreal - I was convinced I'd somehow messed up my taxes and was going to owe thousands. What really helped me was creating a simple chart showing the breakdown. I made three columns: "Source", "Amount", and "Already Taxed". Then I listed my base salary from my W2, the RSU amount from my W2 (which I found in Box 14 like others mentioned), and showed how they added up to my total W2 income in Box 1. Then I showed the same RSU amount on the 1099-DIV and wrote "DUPLICATE - already included above" next to it. I also included a copy of my final 2022 paystub that showed the year-to-date breakdown with RSUs listed separately, plus the tax withholding statements from when the shares vested. The IRS accepted my response within about 6 weeks and sent me a letter saying no additional tax was owed. The key is really just making it crystal clear to whoever reviews your case that this is the same income being reported twice, not two separate income sources. Don't panic - this is totally fixable!

Quick warning to everyone filling out Form 8863 - make sure your school is eligible! My community college didn't qualify because they weren't participating in federal student aid programs. Wasted hours trying to claim AOTC before figuring this out.

I've been following this thread and wanted to share my experience as someone who went through similar Form 8863 confusion last year. The calculation error you described (getting 2,500,000) is actually really common - I made the exact same mistake! What helped me was creating a simple worksheet. For the American Opportunity Credit, it's: - First $2,000 of qualified expenses = 100% credit = $2,000 - Next $2,000 of qualified expenses = 25% credit = $500 - Maximum total credit = $2,500 The tricky part is that some tax software asks for the percentage as a decimal (0.25) while others want it as a whole number (25). Always double-check which format your form or software expects. Also, since you mentioned being an independent student under 24 - that's perfectly fine for claiming the credit. The age restrictions mainly apply to students being claimed as dependents on someone else's return. As long as you meet the other requirements (enrolled at least half-time, haven't completed first 4 years of higher education, meet income limits), you should be good to go. Good luck with your amended 2023 return too - it's definitely worth going back to claim that credit!

PSA: ALWAYS get a copy of any tax document filed on your behalf, whether original or amended. Your preparer should have provided this automatically. The fact that she doesn't even know if an amendment was filed is incredibly unprofessional and potentially fraudulent. I'd be getting a new tax preparer ASAP.

Based on what you're describing, this sounds like the IRS initiated an internal adjustment to your return, not something your tax preparer filed. The 971/977 codes with a February 2025 date are typically system-generated when the IRS finds discrepancies between what was reported to them (W-2s, 1099s, etc.) and what's on your filed return. Your tax preparer's vague response about "maybe her assistant did it" is definitely concerning though. Any professional tax preparer should have complete records of what was filed under your name and when. I'd strongly recommend: 1. Demanding copies of your original return AND any amended returns they may have filed 2. Getting a detailed explanation of any communications they've had with the IRS on your behalf 3. Consider finding a new preparer for future years The good news is that these IRS-initiated adjustments often result in refund releases, especially if they're correcting calculation errors in your favor. Keep monitoring your transcript weekly - you should see additional transaction codes appear that will show exactly what they're adjusting. If you want definitive answers, try calling the IRS directly at 1-800-829-1040 (though be prepared for long hold times). An agent can tell you exactly what triggered the review and what changes are being made.