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Have you considered doing it yourself with tax software? I have two rental properties and some basic investments, and I use TurboTax Premier. It costs me about $150 including state filing, and it walks you through everything step-by-step. The rental property section is actually pretty comprehensive. For crypto, you can import transactions directly from most exchanges or use a service like CoinTracker to generate the tax forms and then import them to TurboTax. Might save you $800+ if you're comfortable with it.
I've tried using tax software in previous years but always worried I was missing deductions. How confident are you that you're not leaving money on the table compared to what a CPA might find? Also, how much time do you typically spend doing it yourself?
I spend about 4-5 hours total, spread over a weekend. The first year took longer (maybe 8 hours), but now I just update the same information each year, which is much faster. As for confidence in not missing deductions, the software asks you a ton of questions designed to catch all potential deductions. I also read tax articles throughout the year and make notes of anything that might apply to me. I did have a CPA do my taxes one year as a comparison, and they found one additional deduction worth about $200, but charged me $800, so I actually came out ahead doing it myself.
That price isn't out of line for what you described. I pay $1200 for similar situation - personal plus 2 rental properties and some stock transactions. I shopped around and found prices from $800-1500 for similar services. What I suggest is asking exactly what you're getting for that fee. Some questions to ask: - Does it include unlimited questions throughout the year? - Will they represent you in case of audit? - Do they provide mid-year tax planning? - Will they help with estimated tax payments?
This is super helpful! I never thought to ask about those additional services. My CPA charges $900 but includes audit protection and quarterly check-ins, which now seems like a pretty good deal.
I've been doing my taxes with a combo of gig work and regular W-2 for years. Here's my take: If your side hustle stuff is pretty straightforward (like driving or selling things online), TurboTax Self-Employed will do the job fine. Just track your income from TikTok Shop in a spreadsheet if you don't get a 1099. BUT if you have more complicated situations - like home office deductions, inventory, depreciation, etc. - paying a CPA for the first year can be worth it. They'll set you up with a good system and you can probably do it yourself after that. Whatever you do, DON'T use the free or basic versions of tax software. They'll let you start the process and then hit you with "you need to upgrade" once you get to the self-employment forms.
Any recommendations for tracking apps? I have like 5 different side hustles and keeping track of everything is a nightmare.
I've had good results with QuickBooks Self-Employed for tracking throughout the year. It connects to your bank accounts and credit cards, then automatically categorizes expenses. You can also use it to track mileage if you drive for any gigs. It's about $15/month but honestly saves me hours of headaches at tax time. If you want something free, a simple Google Sheet works too - just be disciplined about entering your income and expenses regularly. The key is separating business vs. personal spending, which gets messy fast if you're not tracking consistently.
Don't forget about quarterly estimated tax payments if you're making decent money from your side gigs! I learned this the hard way last year and got hit with a penalty because I didn't know I needed to pay throughout the year.
How much do you need to make before you have to do the quarterly payments? I make maybe $800-1000 a month from my side gig.
In my experience working with clients who have similar issues, it's important to consider a few other factors beyond just the statutes of limitations: 1. If you receive a CP2000 notice from the IRS about the unreported income (which can happen if they received a 1099 for that cash payment), you'll need to respond even if you're past the normal 3-year period. 2. Some states have different statutes of limitations than the federal government, so you might still have state tax implications. 3. The peace of mind of having everything properly filed might be worth more than the hassle of amending. That said, in your specific scenario with such a small amount and being well past the 3-year mark, I'd personally lean toward not amending unless you receive a notice.
Thanks for this additional perspective! I never received any CP2000 notices or any communications from the IRS about this, so I'm guessing they don't have any records of this cash income (it was truly a small cash side gig). As for state taxes, I live in a state with no income tax so thankfully that's not an issue for me. I think I'll follow the consensus advice here and not worry about amending the return at this point. The amount is tiny, I've already overpaid, and it sounds like the assessment period has passed anyway. Really appreciate everyone's input!
You're in a good position then without state income tax concerns and no CP2000 notice. At this point, the administrative burden of filing an amendment likely outweighs any benefit, especially since you've already overpaid. The IRS generally focuses their resources on cases where additional tax is owed rather than situations like yours. Glad you've found clarity on how to proceed! Sometimes the best action is simply moving forward and applying what you've learned to future tax years.
Just want to add one more thing that nobody has mentioned - if that unreported cash income was from self-employment work (like a side gig), technically there's no minimum threshold for reporting it, and the statute of limitations can be different than for regular income. But honestly with the amount being so small (under $10 in taxes owed) and you already overpaid by much more than that, I've never heard of the IRS pursuing something like this. The cost of processing an amended return would be more than what they'd collect!
I think this is a good point. Wasn't there a special rule for self-employment tax though? Like you don't owe SE tax if the amount is under $400 for the year or something?
7 I've had good experience with Credit Karma Tax (now Cash App Taxes). Completely free for federal AND state, and handles W-2s easily. I've used it for 3 years now. TurboTax definitely tries to upsell you constantly. They're owned by Intuit which also owns Credit Karma, but somehow the Cash App version has stayed completely free.
11 Does Cash App Taxes handle 1099 income? I tried using Credit Karma last year but it seemed confused by my freelance income situation.
7 Yes, Cash App Taxes handles basic 1099 income pretty well now. They've improved it a lot since the Credit Karma days. For simple freelance situations, it works fine. However, if you have more complicated self-employment situations with lots of business deductions or inventory, you might want something more robust. For your situation with just one W-2 and one 1099, it should work perfectly and stay completely free. The interface is cleaner now too compared to when it was Credit Karma Tax.
5 Don't forget about the IRS Free File program! If your adjusted gross income is under $73,000, you can use brand-name software for free. The link is on the IRS website. The companies can't upsell you through this program like they can if you go directly to their websites. TaxSlayer and FreeTaxUSA both participate and are good options for simple returns. H&R Block and TurboTax used to be in the program but dropped out (suspicious, right?).
Honorah King
Has anyone tried just hiring a specialized accountant instead of dealing with this themselves? I'm in a similar situation (Portugal resident, paying health insurance in UK) and finding it impossible to get straight answers from either tax authority.
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Oliver Brown
ā¢I did that last year - hired a cross-border tax specialist for my France/Luxembourg situation. It cost about ā¬400 but saved me nearly ā¬2,800 in properly claimed deductions. Make sure you find someone who specializes in BOTH countries though, not just a general "international tax expert.
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Honorah King
ā¢That's helpful, thanks! ā¬400 sounds reasonable for the peace of mind. Did you find them locally or use an online service? I'm having trouble finding someone who knows both Portuguese and UK tax systems.
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Mary Bates
Don't forget about SOCIAL SECURITY TREATIES which are different from tax treaties! In my case (Finnish working in Estonia), I couldn't deduct my Estonian health insurance on my Finnish taxes directly, but I could get a certificate of coverage from Estonia that prevented me from having to pay duplicative premiums in Finland. Sometimes the solution isn't getting a deduction for foreign premiums but rather getting an exemption from having to pay them twice. Worth looking into this angle too!
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