Just a quick tip from a former bank employee: make sure the SSNs on the 1099-INT forms match your children's Social Security cards exactly. Sometimes banks make errors, especially with children's accounts that might have been set up as custodial accounts. I've seen cases where the parent's SSN accidentally got associated with the child's account, which creates a real headache when tax forms are generated. Might be worth double-checking before you file!

Great question! I went through this same situation last year with my daughter's savings account. Here's what I learned that might help: In FreeTaxUSA, you'll want to navigate to the "Income" section, then look for "Interest and Dividends." From there, you should see an option for "Child's Interest and Dividends (Form 8814)." This is where you can elect to report your children's interest income on your own return instead of filing separate returns for them. Since each child only earned about $45 in interest, using Form 8814 is definitely the way to go. You'll need to enter each child's information separately - their full name exactly as it appears on their Social Security card, their SSN, and the interest amount from each 1099-INT. One helpful tip: make sure you have both kids' Social Security cards handy when you're entering this information, as the software is pretty strict about matching the names exactly. Also, keep those 1099-INT forms with your tax records even though you're reporting the income on your return. The whole process should only take a few minutes once you find the right section in the software. Don't worry about the small amounts affecting your tax situation significantly - with interest that low, it's mainly just a reporting requirement.

I just went through this exact process last month and wanted to share some key timing considerations that weren't mentioned yet. When you file your S-Corp revocation letter, make sure to specify that it's effective as of January 1, 2025 (beginning of the tax year) rather than the date you submit the letter. This ensures clean tax reporting for the entire year. Also, don't forget about estimated tax payments. Since you'll be switching from corporate taxation back to pass-through taxation, your quarterly estimated tax obligations will change significantly. We had to recalculate our safe harbor payments and adjust our Q1 2025 estimated taxes to account for the different tax structure. One more thing - if you have any outstanding payroll liabilities or employment tax deposits as an S-Corp, make sure those are fully resolved before making the switch. The IRS can get confused about which entity is responsible for what if there are any loose ends during the transition period.

Welcome to the community! You raise an excellent question about mid-year timing that's really important to address. If you file the revocation letter in 2025 with an effective date of January 1, 2025, you'll need to file amended returns and potentially deal with some administrative complexity. Here's what typically happens: You'd need to file an amended Form 1120S for the partial year (January 1 through the revocation date) and then handle the remainder of the year under your new entity classification. Any payroll taxes and quarterly estimated payments made as an S-Corp would need to be reconciled. A cleaner approach might be to make the revocation effective January 1, 2026 instead, especially if you're already several months into 2025. This avoids the mid-year complications while still giving you the entity change you need. You can prepare and file everything now but have it take effect at the start of the next tax year. The key is working with your tax professional to model both scenarios and see which timing creates less administrative burden and better overall tax outcomes for your specific situation.

This is exactly why I switched to a different approach this year. I was tired of SBTPG holding my refund hostage every tax season. The uncertainty and delays just aren't worth it when you need the money for important expenses like your car repairs. Have you considered setting up direct deposit with your bank for next year instead? Even if it means paying prep fees upfront, at least you know exactly when your refund will hit your account once the IRS processes it. In the meantime, hang in there - based on what others are saying, it sounds like your funds should show up in the next day or two!

I went through this exact same situation last year with SBTPG and Venmo! Mine took 6 business days total from when the IRS sent it to when it finally appeared in my Venmo account. The most frustrating part is that SBTPG's tracking system doesn't give you real updates - it just sits on "processing" until suddenly the money shows up. Since your transcript shows the IRS already sent the funds, you're definitely in the queue with SBTPG. I'd recommend checking your Venmo account every morning since the deposits usually hit early in the day. For car repairs, I totally get the anxiety - maybe see if your mechanic can wait a few more days or if you have any other short-term options? Based on the timeline you mentioned (8 days since approval), you should see it very soon!

This is such a comprehensive discussion! As someone who just went through this process myself, I wanted to add one more consideration that saved me from a costly mistake. Make sure to research your state's specific LLC operating agreement requirements, especially if you're planning to bring in investors or partners later. Some states have very basic default rules that might not work well for franchise operations. I initially formed my LLC without a custom operating agreement (just used the state default), but when I tried to bring in a silent investor 18 months later, we discovered the default rules didn't properly address profit distributions, management responsibilities, or what happens if someone wants to exit the business. Had to spend $3,000 on legal fees to create a proper operating agreement retroactively, plus it delayed my investor funding by 6 weeks. If I had done a custom operating agreement from the start (costs about $1,500-2,000), it would have been much smoother. Also worth noting - many franchisors now require you to submit your operating agreement as part of their approval process, so having a professional one from the beginning can actually speed up franchise approval too. The extra upfront cost for proper legal documents is definitely worth it when you're making a six-figure franchise investment!

This thread has been incredibly helpful! I'm in the early stages of franchise research myself and the level of detail here is amazing. One question I haven't seen addressed - how does workers' compensation insurance work when you have an LLC structure? I'm looking at a franchise that will require 8-10 employees, and I want to understand if having the LLC own the franchise creates any complications for workers' comp requirements or costs. In my state (Ohio), I know sole proprietors can sometimes exclude themselves from workers' comp, but I'm not sure how that works when you're an LLC member/manager. Also, does the franchise agreement typically specify anything about workers' comp requirements, or is that purely a state regulatory issue? I want to factor the insurance costs into my financial projections before making the LLC vs. personal ownership decision. Thanks to everyone who has shared their experiences - this is exactly the kind of real-world insight I needed!

Has your cousin checked her mail carefully for the past 2 years? The IRS would have sent a CP79 notice if they disallowed her EIC. Sometimes these letters look like junk mail and people throw them away. Also, did she move in the last couple years? The notice might have gone to an old address.

I went through this exact same situation with my sister two years ago! The Form 8862 requirement caught us completely off guard too. What we learned is that the IRS has automated systems that can flag and adjust EIC claims months after you've already received your refund. Here's what I'd recommend: First, have your cousin create an online account at irs.gov and check her transcript. This will show any adjustments or notices from previous years that she might have missed. Second, when filling out Form 8862 in FreeTaxUSA, be extra careful with the qualifying child requirements - the IRS is very strict about things like the residency test (child must live with her more than half the year) and making sure the SSNs are valid for work. Don't panic about the 10-year ban someone mentioned - that's only for intentional fraud cases. As long as your cousin answers truthfully and has legitimate qualifying children, she should be fine. Keep good records though - school enrollment forms, medical records, anything that proves the kids lived with her. The IRS may audit EIC claims more closely after a Form 8862 is filed. Also, make sure she hasn't claimed these same children on previous years' returns where someone else (like their father) also claimed them. That's a common reason for EIC disallowance that people don't realize happened.