Does anyone know if there's a dollar amount threshold where the IRS automatically considers it self-employment vs hobby? I got a 1099 for only $650 for some product reviews, and I'm wondering if I can just put it as hobby income and be done with it.

I've been dealing with a similar situation for the past two years and wanted to share what I learned. The key distinction isn't really about the dollar amount or whether you enjoy it - it's about your intent and how you conduct the activity. For product testing specifically, consider these questions: Do you actively seek out new testing opportunities? Do you maintain records of your activities? Are you building an audience or following through your reviews? Do you spend significant time crafting detailed reviews vs just quick feedback? In my case, I started treating it as self-employment after realizing I was spending 10+ hours per week on reviews, had created spreadsheets to track everything, and was actively applying to new programs. The self-employment classification ended up saving me money because I could deduct my home office space, computer equipment, and even mileage for product returns. One practical tip: Keep detailed records either way. If you do get audited, having documentation of your time, methods, and intent will support whichever classification you choose. The IRS auditor will be looking at the totality of your activities, not just the 1099 amount.

Check your email. TurboTax sends confirmation. Look for "Refund Advance" in subject line. Also check spam folder. They sent mine there. Had same issue in 2022. Thought I applied. Didn't get confirmation. Called TurboTax. They confirmed no application on file. Entered card doesn't equal applying. Need to complete all screens. Very confusing process.

I went through this exact confusion two years ago! The key thing to understand is that TurboTax makes the advance application process intentionally separate from just entering your banking information. Here's what you should check: 1. Log into your TurboTax account and look specifically for a document called "Refund Advance Agreement" or similar 2. Check your email (including spam) for any messages with "Refund Advance" in the subject line 3. Look for any mention of loan terms or advance amounts in your tax documents The fact that you have clear documentation from last year but nothing this year is a pretty strong indicator that you didn't complete the advance application. The Credit Karma card entry is just for receiving your regular refund - it doesn't automatically trigger the advance process. If you really need the funds quickly, you might want to call TurboTax directly to get a definitive answer, but based on what you've described, it sounds like you'll be waiting for your regular refund instead. The good news is that refunds are processing pretty quickly this year!

This thread has been incredibly helpful! I'm dealing with the exact same situation - got a 1099-DIV with capital gain distributions in box 2A even though I never sold anything. It's reassuring to know this is totally normal and that I'm not missing something obvious. One thing I wanted to add for anyone else reading this: make sure you keep good records of these distributions, especially if you're reinvesting them automatically. Your brokerage should track your cost basis automatically now (they're required to), but it's still smart to keep your own records. When you do eventually sell years down the road, you'll want to make sure you're getting credit for all the taxes you paid along the way through these distributions. Also, if you have these investments in a tax-advantaged account like a 401(k) or IRA, you don't have to worry about any of this - the distributions happen inside the account without creating a current tax bill.

This is exactly the kind of confusion that trips up so many people! You're definitely not alone in being surprised by capital gains on your 1099-DIV when you didn't sell anything personally. What's happening is that your mutual fund or ETF had to sell some of its underlying holdings during the year (maybe to rebalance, meet redemptions, or because the fund manager changed strategy), and those sales generated capital gains. By law, the fund has to distribute almost all of these gains to shareholders like you by year-end to avoid paying corporate taxes. So yes, you do need to report and pay taxes on box 2A (capital gain distributions), plus boxes 1a and 1b if they have amounts. The good news is that these capital gain distributions are usually taxed at the more favorable long-term capital gains rates rather than ordinary income rates. One tip: if this kind of surprise tax bill bothers you, consider looking into more tax-efficient funds (like broad market index funds) for your taxable accounts in the future. They tend to generate fewer unexpected distributions because they trade less frequently inside the fund.

Just wanted to chime in with a practical tip that helped me when I was in a similar situation with my first HYSA! Since you mentioned you're new to all this tax stuff, I'd recommend setting up a simple spreadsheet or even just a note in your phone to track your monthly interest earnings as they get deposited. Most banks show the interest earned each month on your statement, so you can just jot down something like "January 2024: $12.45 interest" and keep a running total. This way, when tax season comes around, you'll have your own records to cross-check against the 1099-INT form your bank sends you. Also, since you mentioned doing gig work, keep in mind that having any self-employment income might actually make filing worthwhile even if your interest alone wouldn't require it. The combination of the two income sources, plus potential deductions from your gig work, could work in your favor tax-wise. The fact that you're asking these questions now shows you're being responsible about it - that's honestly the hardest part! The actual filing process for interest income is pretty straightforward once you understand the basics that others have explained here.

Welcome to the tax world! I went through this exact same learning curve when I opened my first HYSA. One thing that really helped me was understanding that the IRS treats interest income very straightforwardly - it's just "ordinary income" that gets added to whatever else you earn. Since you opened your HYSA in January 2024, you'll report any 2024 interest on your 2024 tax return (filed in early 2025). The timing is based on when you actually received the interest payments, not when you opened the account. A few practical tips from my experience: - Most HYSAs pay interest monthly, so you'll see small amounts adding up over the year - Even if you end up with multiple banks (rate chasing is real!), each will send you a separate 1099-INT if you earn $10+ from that specific bank - Keep screenshots of your December statements as backup records, but wait for the official 1099-INT forms before filing Given that you're also doing gig work, you might find that you need to file anyway once you hit that $400 self-employment threshold. In that case, the interest just becomes one more line on your tax return rather than a separate concern. The combination actually makes the whole process feel more "normal" since you're filing a regular tax return instead of just trying to figure out interest-only filing rules. You're asking all the right questions at the right time - much better to understand this now than scramble at tax season!

One additional point that hasn't been mentioned yet - if you're distributing principal for medical expenses, make sure you keep detailed records of the actual medical bills and payments. The IRS may want to see documentation that the distribution was truly for qualified medical expenses and not just labeled as such. Also, be aware that if the trust has a provision allowing discretionary distributions for health, education, maintenance, and support (HEMS standard), the trustee sometimes has flexibility in how to characterize the source of funds. This could potentially allow you to treat necessary medical distributions as coming from income rather than principal, which might be more tax-efficient depending on the trust's situation. Since you mentioned this is your first time handling a complex trust, I'd strongly recommend consulting with a tax attorney or CPA who specializes in trust taxation before finalizing your 1041. Trust tax law has many nuances, and getting the characterization wrong on the initial filing can create complications down the road. The cost of professional guidance upfront is usually much less than the cost of fixing mistakes later.

Thanks everyone for all this helpful information! This thread has been incredibly valuable for understanding the complexities of trust distributions. I've been serving as trustee for my late uncle's trust for about 8 months now, and I had similar confusion about principal distributions. One thing I learned the hard way is to establish a good relationship with a trust-specialized CPA early in the process. I initially tried to handle everything myself using general tax software, but trust taxation is really its own specialized area. The distinction between principal and income distributions, the tier system for accumulated income, and state-specific rules all require expertise that goes beyond basic tax preparation. For anyone else dealing with their first complex trust, I'd also recommend joining the local estate planning council or trustee association if your area has one. The networking and educational resources have been invaluable for understanding my fiduciary duties and avoiding costly mistakes. The medical expense documentation point mentioned by Aisha is particularly important - I keep a separate file with all medical bills, proof of payment directly to providers, and documentation showing the distributions were necessary rather than elective. The IRS scrutinizes these types of distributions closely during audits.