I actually went through something very similar with my old Twitch affiliate account! Had about $35 sitting there that I couldn't access because I stopped streaming and never hit the $100 payout minimum. When I got the 1099, I was so confused because I literally never received any money. After doing some research, I learned that platforms like YouTube, Twitch, etc. are required to report earnings once they reach certain thresholds (usually $600+ total), even if they haven't paid you yet due to their internal payout minimums. It's frustrating because you're paying taxes on money you may never see, but legally you do have to report it. The silver lining is that if you ever do reactivate your channel and reach the payout threshold, that $24 is already "tax-paid" so you won't owe anything additional on it when you finally receive it. Still annoying though - wish these platforms would just pay out everything when accounts go inactive!

This is such a common frustration for small creators! I had a similar situation with my old blog's ad revenue - ended up with about $40 stuck in an ad network that I'll never be able to access since I took the blog down years ago. The key thing to remember is that even though it feels unfair, the IRS treats this as "constructively received" income since it was credited to your account, regardless of payout thresholds. You're legally required to report it on your tax return. One thing that might help for the future - some creators I know will occasionally post a simple video or reactivate their channels just to try to reach those payout thresholds before completely abandoning them. Not always practical, but it's an option if you have multiple small balances adding up across different platforms. For your current situation with the $24, definitely report it. The good news is that when dealing with such small amounts, any tax owed will be minimal, and as others mentioned, if you ever do reactivate and get paid, you won't owe taxes on that portion again.

Quick question - I accidentally stapled my federal return in both the top-left AND top-right corners. Should I remove one of the staples or just leave it? I'm worried about tearing the paper if I try to remove a staple...

As someone who's been filing paper returns for over a decade, I can confirm that the single staple method is definitely the way to go. I learned this the hard way after having a return delayed because I used multiple staples and paper clips. One thing I'd add to the great advice already given - make sure you're using a standard office staple, not those heavy-duty staples or colored ones. The processing equipment is calibrated for regular staples, and anything else can cause jams. Also, when you staple, make sure the staple goes through cleanly and the legs are flat against the back. If it's a partial staple or the legs are bent weird, it can catch on the processing equipment. For state returns, I've found some states have slightly different preferences, so it's worth checking your state's specific instructions. But the general rule of one staple, top-left corner works for most. And definitely agree on the certified mail recommendation - I've used it for years and it's saved me twice when returns got lost in transit.

This discussion has been incredibly valuable! As a newcomer to small business ownership, I've been completely overwhelmed by 1099 requirements and was about to make the same mistakes many of you described. I started my business mid-2024 and have been using PayPal for most of my vendor payments because it seemed simpler than setting up ACH transfers for everyone. But I had no idea about the distinction between PayPal handling 1099-K reporting versus my responsibility for direct payments. I was literally planning to issue 1099s for every single payment over $600, regardless of how I paid! The clarification about goods vs. services is huge for me too. I run a small e-commerce business, so probably half of my PayPal transactions are actually inventory purchases from suppliers - which apparently don't need 1099s at all. The other half are service payments (web developers, marketing freelancers, photographers), and now I understand that PayPal handles the 1099-K reporting for those. @Liam O'Sullivan's point about the recent threshold change really explains why I was getting conflicting advice from different sources. And @Carmen Ortiz, I love your idea about notifying vendors - that seems like such a professional way to handle the transition and avoid confusion. Thank you all for sharing your real experiences (especially the cautionary tales about double-reporting). This has saved me from what could have been a major headache come tax season!

This has been such an educational thread! As someone who's been struggling with this exact PayPal 1099 question, I really appreciate everyone sharing their experiences and clarifications. What I'm taking away from this discussion is that the key is understanding who has the reporting responsibility for each type of payment. PayPal acts as the third-party payment processor and handles 1099-K reporting when thresholds are met, which means I don't need to duplicate that effort with my own 1099s for those transactions. The distinction between goods and services payments is also really important - I hadn't realized that inventory/merchandise purchases generally don't require 1099s regardless of payment method. That alone eliminates a huge chunk of the payments I was worried about. I'm definitely going to implement some of the organizational suggestions mentioned here, especially tracking payment methods and categorizing by goods vs services. And @Carmen Ortiz, your idea about notifying vendors is brilliant - I think that kind of proactive communication really shows professionalism and helps everyone stay organized. Thanks to everyone who shared both their successes and their mistakes. Learning from others' experiences is so valuable, especially when it comes to avoiding the double-reporting nightmare that several people described!

This has been such a valuable discussion! As someone who works with taxpayers daily, I want to emphasize a few key points that have come up: The 3-year rule is indeed the standard, but the exceptions mentioned here are crucial. I see too many people get caught off guard when they need documentation for amended returns, business expenses, or investment basis calculations years later. One thing I'd add - if you're married and file jointly, make sure both spouses are on the same page about document retention. I've seen situations where one spouse cleaned out files without realizing the other had claimed business expenses or investment losses that required longer retention periods. For those going digital, consider the "3-2-1 backup rule": 3 copies of important data, on 2 different types of media, with 1 stored offsite. Tax documents are too important to lose to a hard drive crash or house fire. And please, please shred everything properly! I've helped taxpayers deal with identity theft from improperly disposed tax documents. It's a nightmare that's completely preventable with a good crosscut shredder. The hybrid approach many of you mentioned is exactly what I recommend to clients - keep it simple for basic returns (3 years) but err on the side of caution for anything complex (7 years). Better to store a few extra boxes than to scramble for missing documentation during an audit.

This thread has been incredibly helpful! I'm actually dealing with a similar situation - I have tax returns going back to 2009 and wasn't sure what I could safely get rid of. After reading through everyone's advice, I think the key insight is that the "7 years vs 3 years" debate really depends on your individual tax complexity. The hybrid approach that several people mentioned makes perfect sense - keep basic returns for 3 years, but anything with business income, investment activities, or unusual deductions should be held longer. I'm particularly grateful for the tips about crosscut shredders vs regular shredders. I had no idea there was a difference! Identity theft from tax documents is definitely not a risk worth taking. One thing I wanted to add - for anyone who's hesitant about going fully digital, you might consider keeping just the signed tax return pages in paper form while scanning all the supporting documentation. That way you have the original signatures but dramatically reduce the physical storage space needed. Thanks to everyone who shared their experiences, especially the professionals who chimed in with industry insights. This has given me the confidence to finally tackle my overflowing filing cabinet!

This is a really concerning situation, and I'm glad you're questioning it now. As others have mentioned, while legitimate depreciation add-backs are a real thing in mortgage underwriting, what your loan officer suggested crosses into fraud territory. The key issue is that you can ONLY claim business mileage for miles you actually drove for legitimate business purposes. If you amended your return to include fictional miles just to boost your mortgage-qualifying income, that's tax fraud regardless of how mortgage lenders might treat the depreciation component. I'd strongly recommend: 1. Consult with a CPA immediately about your amended return 2. If you claimed miles you didn't actually drive, file another amendment to correct it 3. Consider finding a new mortgage lender - one that doesn't suggest illegal tactics There are legitimate ways to present self-employment income favorably to lenders without breaking tax laws. A good mortgage broker should know the difference between proper income analysis and fraud. Your current loan officer has put both of you at risk with this advice. Better to delay your home purchase than face potential IRS penalties, mortgage fraud charges, or having to explain falsified tax documents later. The housing market will still be there when you get your finances properly sorted.

As someone who went through the self-employment mortgage process recently, I want to echo what others have said - this is definitely concerning territory. The legitimate practice of adding back depreciation exists, but your loan officer crossed a major line by telling you to amend your taxes with potentially fictitious business miles. Here's what I learned during my own process: legitimate lenders who work with self-employed borrowers will add back non-cash expenses like depreciation, but they do this based on what's ALREADY on your tax returns. They don't ask you to modify your returns to create these deductions. A few suggestions from my experience: 1. Find a mortgage broker who specializes in self-employed borrowers and ask them upfront about their income calculation methods 2. Get a consultation with a tax professional about your amended return situation 3. Look into asset-based lending or bank statement loan programs if your tax returns don't show enough income The red flags to watch for: any loan officer who suggests modifying tax documents, making deposits to inflate bank statements, or claiming expenses you didn't actually incur. Good mortgage professionals work with what you legitimately have, not what you can manufacture. It might delay your home purchase, but fixing this properly now will save you from much bigger problems down the road. The IRS doesn't mess around with amended returns that can't be substantiated.