Don't forget the deadline to establish a Solo 401k is December 31 of the tax year, even though you can actually fund it later (employee contributions by tax filing, employer contributions by business tax deadline)! I missed this subtlety last year and lost out on significant tax savings. Also, for the record, my CPA confirmed that with a partnership LLC, both spouses can have separate Solo 401ks as long as they're both partners in the business, but you need to be careful with the specific plan documents.

This is a complex situation that requires careful planning! I've been through something similar with my spouse and our consulting business. One key point that hasn't been fully addressed: when you have a partnership LLC, the income flows through to you as distributive shares reported on Schedule K-1, which is treated as self-employment income for retirement contribution purposes. This is different from W-2 wages or 1099 consulting income in how the contribution limits are calculated. For your husband's situation specifically - since he already maxes out his employee contribution at his day job, he can only make employer contributions through the LLC based on his share of the partnership's net earnings from self-employment. The 20% calculation applies to his net earnings after the self-employment tax deduction. Also worth noting: make sure your partnership agreement clearly defines each partner's role and compensation if you're both setting up Solo 401ks. The IRS will want to see that the contributions are reasonable based on actual services provided to the business. I'd strongly recommend getting a fee-only financial advisor who specializes in small business retirement planning to review your specific numbers before making final decisions. The interaction between partnership income, outside consulting, and existing employer plans can get tricky fast.

Great question! I went through this exact situation last year and learned a lot about how survey income works with taxes. Here's what I discovered: The key thing to understand is that survey rewards ARE taxable income regardless of whether you receive any tax forms. The $400-500 you earned definitely needs to be reported on your tax return. For the 1099-K specifically - PayPal will only send you one if your total payments received through their platform exceed $600 for the tax year (this is the current threshold). If you're under that amount, you won't get a 1099-K, but you still need to report the income. Since you're doing surveys occasionally rather than as a regular business, this income should typically be reported as "Other Income" on Schedule 1 of your Form 1040, not as self-employment income. This is important because it means you won't owe self-employment tax on it, which saves you about 15.3%. Make sure to keep records of all your survey payments - PayPal should have a transaction history you can download. Even without receiving tax forms from the survey companies, you're responsible for reporting the income accurately. The IRS considers survey participation as being paid for your time and opinions, which makes it taxable income even though you're not technically an employee of these companies.

Adding to what others have said about the 1099-K threshold and reporting requirements - one important thing to keep in mind is that the IRS has been pretty clear that ALL income is taxable, regardless of whether you receive tax forms or not. For your $400-500 in survey income, you're definitely required to report it even without a 1099-K. The good news is that since this sounds like occasional survey participation rather than a regular business activity, you should be able to report it as "Other Income" on Schedule 1, which means you'll avoid the 15.3% self-employment tax. I'd recommend downloading your complete PayPal transaction history for the tax year to get an exact total of all payments you received. This will serve as your documentation since you likely won't receive any tax forms from the survey companies themselves. One tip that helped me: when reporting this on Schedule 1, I wrote something like "Survey rewards - various companies via PayPal" in the description field. This makes it clear what the income was if the IRS ever has questions, and shows you're being transparent about the source. The key is just making sure you report the full amount accurately, even though the process might seem confusing without receiving official tax forms.

I own several rental properties and have dealt with this exact issue. One thing to consider: if your AGI is under $100k, you can deduct up to $25k in rental losses against your ordinary income under the active participation exception, even though the activity is technically passive. But if you're trying to qualify as a real estate professional to treat ALL losses as non-passive, be prepared for potential IRS scrutiny. You need meticulous time logs to prove your 750+ hours.

I've been through this exact situation with my duplex rental. The key thing to understand is that rental real estate is almost always classified as passive income/loss by default, regardless of how hands-on you are with management. However, you likely qualify for the "active participation" exception since you're making management decisions yourself. This allows you to deduct up to $25,000 of rental losses against your other income (like your regular job) if your modified adjusted gross income is under $100,000. The deduction phases out between $100k-$150k. Don't confuse "active participation" with being a "real estate professional" - they're completely different rules. Active participation just means you own at least 10% of the property and participate in management decisions (which you clearly do). The real estate professional status requires 750+ hours annually in real estate activities AND more than half your total working time. For your situation, being able to use the $25k exception now is probably better than waiting until you sell, especially if you're in a higher tax bracket currently. Just make sure to keep good records of your participation in case the IRS ever asks.

Anyone know if there's a way to check how many times I've claimed AOTC in the past? I honestly can't remember if I've used it for 3 or 4 years during my undergrad.

I went through this exact same situation last year! The key thing to understand about Form 8863 Line 19 is that it's essentially a checkbox certification where you confirm you haven't exceeded the 4-year lifetime limit for AOTC. Since you mentioned you're 24 and in post-bacc studies, the critical question is how many years you've already claimed AOTC during undergrad. If it's 3 or fewer years, you can still claim AOTC for this year, which would typically give you a better credit than Lifetime Learning. Here's what helped me figure it out: I pulled my tax transcripts from the IRS website (irs.gov - search "Get Transcript") to see exactly how many years I'd claimed AOTC. Turns out I'd only used it twice, so I was eligible for AOTC even as a post-bacc student. For Line 19 specifically, if you've claimed AOTC for 3 or fewer prior years, you'd check "No" to the question about claiming it for more than 4 years. This confirms you're still within the lifetime limit and can claim it this year. The income limits and qualified expenses requirements still apply, but TurboTax should help you navigate those once you get past the Line 19 confusion!

Has anyone used something like Coinbase Commerce for handling the actual transaction? We're getting ready to accept Bitcoin for an equity stake and trying to figure out the most secure way to receive it while maintaining proper documentation for tax purposes.

Just went through this exact scenario with our SaaS startup a few months ago! One crucial thing I learned that hasn't been mentioned yet - make sure your operating agreement specifically addresses crypto contributions before accepting the Bitcoin. We had to amend ours because the standard language about "cash or cash equivalents" created ambiguity about whether Bitcoin qualified. Also, beyond the tax implications everyone's discussing, consider the volatility risk. We ended up converting the Bitcoin to USD within 48 hours of receiving it because we couldn't afford to have our working capital fluctuate wildly. Document everything with multiple timestamps - when you receive it, the market value at receipt, and when you convert to USD. This creates a clear paper trail for both tax purposes and investor relations. The IRS guidance on this is actually pretty clear once you dig into it - Rev. Rul. 2014-21 covers the basics, though it doesn't specifically address capital contributions to partnerships/LLCs. Your basis in the Bitcoin is indeed the fair market value when contributed, so you're only taxed on appreciation from that point forward.