This thread has been incredibly helpful for understanding what seems to be a really common issue! I'm in a very similar situation where my employer has been adding our backup childcare benefits as imputed income to my W-2, and I had no idea this might be incorrect under Section 129. What really resonates with me is how many different companies seem to be handling this inconsistently. Some employers get it right and exclude the benefits, others default to taxing everything. It sounds like there's a real knowledge gap about how these backup care programs should be classified under existing tax law. Based on everyone's experiences here, I'm planning to take a two-step approach: first, claim the imputed income amounts on Form 2441 for this tax year since I'm effectively paying for that care through additional taxes, and second, work with my HR department to get this corrected going forward. The advice about approaching HR professionally with IRS Publication 15-B and framing it as "help me understand your reasoning" rather than "you're doing this wrong" seems really smart. I'm also going to ask them to check with our backup care provider about proper tax treatment - it sounds like many of these companies specifically structure their programs to qualify under Section 129. Thanks to everyone who shared their experiences and solutions. It's frustrating that working parents have to become tax experts to make sure we're not overpaying on benefits that are supposed to help us, but at least this community makes it possible to figure out the right approach!

This has been such an eye-opening discussion! I'm dealing with this exact same issue where my employer treats backup childcare benefits as taxable imputed income, and I had no idea this was potentially incorrect under Section 129. After reading through everyone's experiences, I'm realizing this is much more widespread than I initially thought. It seems like there's a real disconnect between what the tax code allows (the $5,000 exclusion under Section 129) and how many payroll departments actually implement these benefits. I'm particularly struck by the point several people made about backup care providers like Bright Horizons specifically designing their programs to meet Section 129 requirements. If the service providers themselves are structuring these benefits to qualify for the tax exclusion, it really highlights how employers should be handling this. For my situation, I'm planning to follow the two-pronged approach that seems to work best: claim the imputed income amounts on Form 2441 for this year's taxes (since I'm effectively "paying" for that care through additional taxes), while also working with HR to get this corrected for future years. The advice about bringing IRS Publication 15-B to HR and asking them to explain their rationale rather than accusing them of mistakes seems really smart. I'm also going to ask if they've consulted with our backup care provider about proper tax treatment - that seems like a diplomatic way to get them to verify their current approach. Thanks to everyone who shared their experiences and solutions! It's frustrating that working parents have to become tax experts just to make sure we're not overpaying, but this community discussion has made navigating this complex situation so much more manageable.

One thing that helped me tremendously during my C-Corp dissolution was creating a comprehensive checklist of all the requirements. Beyond the final 1120 and Form 966 that others mentioned, don't forget about: - Canceling your EIN with the IRS (though you can't reuse it, proper cancellation helps avoid future correspondence) - Notifying any states where you were registered to do business - Final sales tax returns if applicable - Canceling business licenses and permits - Properly handling any remaining contracts or leases For the tax law changes question, I found that most changes between years are published in IRS Publication 542 (Corporations) updates. The IRS typically highlights significant changes that would affect final returns. In my experience, the changes were minimal and mostly related to standard deduction amounts and depreciation schedules. Also, keep detailed records of everything - the dissolution process, asset distributions, final filings. The IRS sometimes follows up years later with questions about dissolved corporations, especially if there were significant assets involved.

I went through this exact situation with my C-Corp dissolution in early 2024, and I can confirm that using the previous year's form is completely normal and accepted by the IRS. The key is being thorough with your documentation. When they mention "taking into account tax law changes," they're primarily referring to major changes like tax rates, significant deduction modifications, or new reporting requirements. For 2025, the changes affecting most small C-Corps are relatively minor. You don't need to become a tax law researcher - focus on the obvious changes that would affect your specific situation. Here's what worked for me: 1. Clearly write "2025 TAX YEAR" at the top of the 2024 form 2. Check the "Final Return" box 3. Include a brief statement: "Using 2024 Form 1120 for 2025 tax year due to unavailability of current year form as permitted by IRS instructions" 4. Attach your dissolution documentation and any required schedules The IRS processes thousands of these final returns using prior year forms, especially early in the year. They understand the timing issues and have procedures in place to handle it. Just make sure all your asset distributions and final calculations are accurate, and you'll be fine. Don't let the technical language intimidate you - this is a routine filing situation that the IRS deals with regularly.

I'm dealing with a very similar situation right now with my foreign disregarded entity LLC, and reading through all these responses has been incredibly helpful! I've been stressed about the same capital contribution reporting issues across Forms 5472, 1120, and 1040NR. What's giving me confidence is seeing how many people have successfully navigated this exact scenario. The consistent advice about creating a comprehensive documentation package and being transparent with the IRS makes a lot of sense. I particularly appreciate the emphasis on understanding that these forms are supposed to look different from each other - that's been my biggest mental hurdle. One question I have for those who've been through this: When you created your capital contribution statement, did you also include information about future planned contributions, or just focus on what had already been contributed? I'm planning to make additional capital contributions throughout the year and want to make sure I'm setting up my documentation correctly from the start. Also, for those using tax software, did you find any particular programs that handle foreign disregarded entity reporting better than others? I'm trying to decide whether to invest in more specialized software or work with what I have and just be extra careful with the documentation. Thanks to everyone who's shared their experiences - this community has been invaluable for understanding this complex process!

I completely understand your stress about this - I was in almost exactly the same position with my foreign disregarded entity LLC when I first had to deal with these forms. The coordination between Forms 5472, 1120, and 1040NR for capital contributions is definitely one of the more confusing aspects of international tax compliance. From my experience and working with a specialist, here's the approach that worked: **Form 5472**: You're correct about the Part V attachment, but you also need to report the capital contribution on Part IV Line 12 "Other amounts received." I know it feels like you're reporting it twice, but they serve different purposes - Part IV tracks the cash flow, Part V provides the detailed breakdown. **Form 1120**: Look for Schedule L (Balance Sheet). Your capital contribution should appear under owner's equity, typically on lines related to "Capital stock" or "Additional paid-in capital." It's not income, so it shouldn't appear in the revenue sections. **Form 1040NR**: You're absolutely right - capital contributions don't belong on Schedule C or anywhere else on your individual return since they're not personal income. The key insight that helped me was realizing that these forms are designed to capture different aspects of the same transaction for different regulatory purposes. They're supposed to look different from each other. I highly recommend creating a one-page capital contribution statement that explains the transaction and specifically notes where it appears (or doesn't appear) on each form. Attach this to your return and reference it in the margins of each form. This level of transparency shows the IRS you understand what you're doing. You're being appropriately careful, which puts you way ahead of people who just guess. Take a deep breath - this is manageable once you understand the framework!

I feel your pain! I went through this exact same frustration about 6 months ago when setting up EFTPS for my part-time housekeeper. The whole "electronic" system requiring physical paperwork felt like such a cruel joke after spending hours getting all the household employer paperwork in order. Here's what I discovered after multiple confusing phone calls: The notarization requirement isn't actually universal for household employers. Most of us just need to sign and date Form 9779 that gets mailed after the online enrollment - no notary needed unless you're enrolling on behalf of someone else or there are identity verification red flags. The breakthrough came when I called the EFTPS customer service line directly at 1-888-353-4537 instead of the general IRS nightmare phone system. The rep actually knew what household employment taxes were (shocking!) and confirmed I just needed my signature. She even explained which sections of the form I could skip since they only apply to regular businesses. Total process was about 2 weeks once I knew what I was doing. And here's the key tip that saved me: while waiting for your PIN, you can make payments through IRS Direct Pay at irs.gov/payments/direct-pay. No pre-registration, just pay directly from your bank account. This kept me from missing my quarterly deadline while the bureaucracy crawled along. Once you get through this initial setup nightmare, the system actually works well for quarterly payments. You're absolutely doing the right thing setting everything up properly for your nanny - hang in there!

I just went through this exact same nightmare about 3 months ago! The EFTPS enrollment process for household employers is legitimately confusing because their website doesn't clearly separate what's required for businesses versus household employers. Here's the reality: You do NOT need notarization in most cases. After your online enrollment, they mail you Form 9779 which typically just needs your signature and date - that's it. The notarization requirement only applies in special circumstances like if you're enrolling on behalf of someone else or there are unusual identity verification issues. The absolute game-changer was calling the EFTPS customer service line directly at 1-888-353-4537 (NOT the main IRS number). I cannot stress this enough - these reps actually understand household employment tax situations and can give you clear, specific answers instead of generic business advice. When I called, they confirmed I just needed my signature and even told me which sections of the form I could leave blank. My timeline was about 2 weeks total: a few days to receive the form by mail, then about 8 days to get my PIN after mailing it back signed. Critical backup plan: If you're approaching a quarterly deadline, use IRS Direct Pay at irs.gov/payments/direct-pay while waiting for your EFTPS enrollment to complete. No pre-registration needed - just select Form 1040, choose "Estimated Tax" as payment type, and pay directly from your bank account. This saved me from late fees! Once you get through this initial bureaucratic maze, the quarterly payment system actually works quite well. You're doing everything right by setting up proper tax payments for your nanny - this frustrating setup phase is absolutely worth it in the long run.

I'm also waiting on my Maryland refund - currently at day 13 of processing status. Reading through everyone's experiences here has been really helpful! It's reassuring to see that most people are getting their refunds within that 15-25 day window. I filed electronically with direct deposit set up, so hopefully that will help speed things up once it's ready. The waiting is definitely stressful, especially when you're counting on that money, but it sounds like Maryland is pretty consistent even if they don't update their status very frequently. Thanks to everyone for sharing their timelines - it really helps to know this wait time is normal!

I'm also in Maryland and currently on day 14 of processing status! Reading through everyone's experiences here has been incredibly reassuring - it sounds like most people are getting their refunds somewhere in that 2-3 week range after hitting processing status. I filed electronically with direct deposit, so I'm hoping that helps speed things up once they're ready to release it. The daily checking definitely becomes an obsession (guilty as charged!), but I'm going to try that calendar reminder approach some folks mentioned. It's really comforting to know that this wait time seems pretty standard for Maryland and that we're all going through the same thing. Thanks everyone for sharing your timelines - it makes the waiting so much more bearable!