I'm paranoid about this too! My parents send me like $500 a month to help with expenses while I'm in school and my roommate Zelles me for utilities. Probably over $10k in total Zelle payments. Am I screwed??

Great question! I see a lot of confusion about this topic. The key thing to remember is that the $600 threshold is just for reporting requirements - it doesn't mean everything over $600 is taxable income. Here's what you need to know about your specific situations: **Rent splitting with roommates**: Not taxable. You're acting as a pass-through - collecting money to pay a shared expense. This isn't income to you. **Concert ticket reimbursements**: Not taxable. Friends are just paying you back for money you spent on their behalf. **Gifts from parents**: Not taxable to you as the recipient. Gift tax rules apply to the giver, not the receiver, and even then only for very large amounts. **Computer building hobby**: As long as you're truly not making a profit and just getting reimbursed for parts, this isn't taxable income either. The important thing is to keep good records showing what each payment was for. If you ever receive a 1099-K, you may need to explain the difference between the total reported and your actual taxable income when filing your return. Most tax software now has sections specifically for this. Don't stress too much - the IRS isn't trying to tax legitimate personal transfers and reimbursements!

This thread has been incredibly helpful! I'm dealing with a similar situation but with vintage watches. One thing I wanted to add that might help others - if you're selling items that have appreciated significantly in value over many years, make sure you understand the difference between short-term and long-term capital gains treatment. Even as a hobby seller, if you held an item for more than a year before selling, any gain might qualify for more favorable long-term capital gains rates rather than being taxed as ordinary income. This could make a big difference on high-value collectibles. Also, I've found it helpful to take photos of items before packaging them for sale - this creates a visual record that can help support your basis calculations if you ever need to reconstruct your records. Just another small tip that might save headaches down the road!

This is such a timely discussion! I've been selling vintage records and had no idea about the capital gains treatment for items held over a year. Like Alice, I've been reporting everything as ordinary income. One thing I've learned from experience - if you're selling collectibles regularly, even as a hobby, consider setting up a separate checking account just for these transactions. It makes tracking so much easier when tax time comes around, and you have a clear paper trail of all the deposits from sales and withdrawals for shipping/packaging expenses. Also, for anyone using PayPal or other payment processors in addition to eBay's managed payments, make sure you're not double-counting the 1099-K income. I almost made that mistake last year when I received forms from both eBay and PayPal for the same transactions during their transition period. The record-keeping tips in this thread are gold - I'm definitely implementing the photo documentation and detailed note-taking going forward!

This is exactly the kind of situation where having proper documentation from the start is crucial. I went through something similar when my aunt in British Columbia passed away last year. One thing I'd emphasize is to get copies of ALL Canadian tax documents - not just the final returns, but also any T3 slips for trust distributions, T4RSP slips for RRSP withdrawals, and documentation of any capital gains reported in Canada on the property deemed disposition. The Canadian estate executor should provide these. Also, don't overlook provincial taxes! Each Canadian province has different tax rates, and Ontario (where your parents' rental properties are) has its own additional considerations. The foreign tax credit calculation gets more complex when you're dealing with both federal and provincial Canadian taxes. I found it helpful to create a timeline of when each asset was transferred to me, the fair market values at death, and the Canadian taxes paid on each. This made the US reporting much cleaner and helped my tax preparer calculate the foreign tax credits accurately.

I'm dealing with a very similar situation right now - my mother passed away in Toronto last month and I'm inheriting her RRSP and a condo downtown. Reading through all these responses has been incredibly helpful, especially the points about getting proper appraisals and documentation. One thing I wanted to add that I learned from my cross-border tax advisor: if your parents are still alive, consider having them convert some of their RRSP funds to a TFSA (Tax-Free Savings Account) if they have contribution room available. TFSAs are treated much more favorably for US tax purposes when inherited - the US generally recognizes them as tax-free, whereas RRSPs create that double taxation headache you're worried about. Also, for the rental properties, ask about whether your parents have been claiming capital cost allowance (depreciation) on their Canadian tax returns. If they have, there could be "recapture" of that depreciation that gets added to the capital gains calculation when the properties are deemed disposed of at death. This affects both the Canadian tax liability and your foreign tax credit calculations. The whole process is definitely complex, but getting the right professional help upfront (whether it's the AI tools others mentioned, professional tax advisors, or both) can save you major headaches down the road.

As someone who started a small online service business last year, I can definitely relate to the confusion! One thing I wish I'd known earlier is that you should consider getting an Employer Identification Number (EIN) even if you're a sole proprietor. It's free to get directly from the IRS website and helps separate your business from your personal finances. Also, since you're in Florida, definitely look into getting a business license from your local county or city - requirements vary by location. Some areas require it for any business operating within their jurisdiction, even home-based ones. For payment tracking, I set up a separate business bank account and route all my business payments there. Makes it much easier to track income and expenses when everything is separated. Even if you use Venmo or PayPal, you can still transfer to a dedicated business account. One more tip - consider setting up a simple bookkeeping system from day one. I use a basic spreadsheet but there are also affordable options like Wave (which is free) or QuickBooks Self-Employed. Having organized records from the start will save you so much time and stress later!

Great question about starting your tarot business! I actually went through this exact situation when I launched my astrology consultation service on Instagram about 18 months ago. Here's what I learned: First, you absolutely need to report all income, even if it's just a side hustle. Since you're expecting to make $125-300 per week, you'll definitely hit the $400 threshold that requires self-employment tax filing. I'd recommend opening a separate business bank account right away - it makes tracking so much easier and looks more professional to clients. For Florida specifically, you'll need to register for sales tax since spiritual services are taxable there. The good news is the registration process is pretty straightforward through the Florida Department of Revenue website. You'll collect sales tax from Florida customers and remit it quarterly or monthly depending on your volume. One thing that really helped me was joining the Instagram Creator Program once I hit the requirements. It provides some additional tax documentation and can help legitimize your business in the eyes of both clients and the IRS. Also, start tracking your expenses from day one! Things like new tarot decks, crystals, candles for your reading space, ring lights for better video quality, Instagram ads to promote your services - all potentially deductible. Even a portion of your phone bill since you'll be using it for client communication. Good luck with your venture! The spiritual services market on social media is really thriving right now.

23 Has anyone successfully disputed a 1099-C amount? The debt that was charged off in my case included a ton of late fees and interest that got tacked on after I stopped paying. Seems unfair to pay taxes on all that extra stuff they added!

I went through a similar situation last year with a charged-off credit card debt. Here's what I learned from my experience: 1) The IRS doesn't provide copies of 1099-C forms directly, but you can get a "Wage and Income Transcript" online through their website that shows all tax documents filed under your SSN. This is usually available immediately if you can verify your identity online. 2) Even if the creditor didn't send you the form, you're still legally required to report canceled debt as income if it exceeds $600. The IRS receives copies of all 1099-C forms, so they'll know about it even if you don't. 3) Before you panic about owing taxes on the full amount, definitely look into the insolvency exclusion using Form 982. If your total debts exceeded your total assets when the debt was canceled, you might not owe any taxes on it at all. 4) For legal action against the creditor - honestly, it's probably not worth pursuing. The penalties for late filing are usually minimal, and your energy is better spent getting the correct information and filing properly. I'd recommend getting that transcript ASAP and consulting with a tax professional if the amount is significant. Don't let this delay your filing - you have options even without the physical form.