2 Has anyone tried just not reporting these winnings at all? These sweepstakes sites don't send 1099s and I've never heard of anyone getting caught for not reporting them. Not saying you should do that, just curious if there are actual consequences.

I've been dealing with similar sweepstakes casino winnings for the past couple of years. Based on my experience and what I've learned from my tax preparer, you're absolutely right to report it as "prize money not gambling" since these sites specifically operate under sweepstakes laws to avoid gambling regulations. One important thing to keep in mind - even though they don't send you a 1099, many of these sites are still required to report large payouts to the IRS on their end. So definitely report it to avoid any potential matching issues down the road. Also, make sure you're keeping track of the total amount you deposited/spent throughout the year, not just your winnings. While you can't deduct losses the same way as traditional gambling when reporting as prize money, having those records could be helpful if there are ever questions about the net amount of your winnings during an audit.

One thing to add to all this great advice - make sure your business bank account always maintains enough balance to cover your quarterly estimated tax payments. Since S-Corp profits pass through to your personal return, you'll likely owe estimated taxes throughout the year. I learned this the hard way when I transferred almost everything to my personal account early in the year, then got hit with a big estimated tax bill and had to scramble to move money back to the business account to make the payment. Your tax preparer's 80% suggestion might be accounting for this - keeping that 20% cushion for taxes and unexpected business expenses. Also, if you're making these transfers frequently, consider setting up a more systematic approach. I now do monthly distributions of a set amount, which makes the bookkeeping much cleaner and helps with cash flow planning.

I've been through this exact situation with my S-Corp LLC! Your tax preparer is correct - transferring money from your business account to personal account doesn't create additional tax liability since S-Corp profits already pass through to your personal tax return. You're already paying taxes on those business earnings whether the cash sits in the business account or your personal account. The 80% recommendation is likely about maintaining adequate business reserves for quarterly estimated tax payments (since you'll owe taxes on the pass-through income) and keeping some buffer for unexpected business expenses or opportunities. It's not a tax rule, just good financial planning. One important note: make sure every transfer is properly documented in your books as a "shareholder distribution" rather than just random transfers. Clean documentation is crucial if you're ever audited. Also, keep in mind that you need to maintain "reasonable salary" (which sounds like your tax preparer addressed by putting you on payroll) before taking distributions - this prevents the IRS from reclassifying distributions as wages subject to additional payroll taxes. Since you mentioned minimal business expenses, you might not need to keep as much in the business account as someone with higher overhead, but definitely keep enough for your quarterly tax obligations!

Welcome to the community! That negative balance is definitely your refund - congrats on getting $5,849 back! The minus sign threw me off when I first started checking transcripts too, but it just means the IRS owes YOU money. The changing "As Of" date is totally normal and nothing to stress about. It's just their computer systems doing routine updates and maintenance. Since you're getting a refund instead of owing money, that date doesn't affect your refund timing at all. Your return was processed on 2/24 (that 150 code), so your refund should hit your account soon if it hasn't already. Everything on your transcript looks completely standard for Head of Household with dependents and EIC. Just keep checking "Where's My Refund" for the most accurate timing - it's way easier to understand than trying to decode all these transcript codes! 😊

Welcome to the community! That negative balance of -$5,849 is actually great news - it means the IRS owes YOU that money as your refund! I know the minus sign is super confusing at first (it threw me off too when I was new to reading transcripts), but that's just how the IRS shows credits on your account. The changing "As Of" date is completely normal and happens to everyone - it's just their computer systems doing routine maintenance and updates. Since you're getting a refund rather than owing money, this date has zero impact on your refund timing. Your transcript shows your return was processed on February 24th (that 150 code), so you should see your money hit your account soon if it hasn't already. All your transaction codes look perfectly normal for Head of Household with dependents and earned income credit. I'd recommend sticking with the "Where's My Refund" tool for timing updates rather than trying to decode every little transcript change - it's much more user-friendly! Once you see an 846 code appear on your transcript with a date, that's when you'll know the refund has been officially sent. Hope this helps ease some of the confusion! 😊

Has anyone had to deal with this for previous tax years? I just realized I over-contributed to my 401k in 2022 when I had two jobs, but I already filed and received my refund for that year. Is it too late to fix? Would I need to file an amended return?

Just went through this exact same situation last month! I over-contributed by about $2,800 when I switched jobs mid-year. Here's what worked for me: 1. Called my current 401k provider (not the old one) and explained I exceeded the annual limit due to job change 2. They handled everything - calculated the excess plus earnings and processed the corrective distribution 3. Got my 1099-R about 10 days later 4. Filed my taxes normally, reporting the excess distribution as income for 2024 The key thing that surprised me was that the earnings on the excess contribution get taxed in the year you receive the distribution (2024), not 2023. So make sure you understand that when you get your 1099-R. Don't stress too much - this is super common and the 401k providers deal with it all the time. Just make sure you get it handled before April 15th to avoid the double taxation issue that @Haley Bennett mentioned for previous years.

I'm dealing with this exact same thing right now! Just checked my transcript and saw -$2,156 and had a mini heart attack thinking something went wrong with my filing 😅 But reading all these comments makes me feel so much better - it's honestly reassuring that literally everyone goes through this same panic the first time they see those minus signs! The IRS really should put some kind of disclaimer or explanation on transcripts because this backwards system is so confusing. Thanks everyone for sharing your experiences - now I can actually sleep tonight knowing that negative means I'm getting money back instead of owing it! 🙏

I literally just went through this EXACT same confusion yesterday! Opened up my transcript and saw -$1,847 and immediately thought "oh no, what did I do wrong?!" 😰 Spent like 30 minutes googling and panicking before I found out that the IRS basically does everything backwards from how normal humans think about money. It's honestly insane that they use accounting terminology on documents meant for regular people - like why not just put "REFUND AMOUNT" instead of confusing minus signs?? But yeah, your -$4,322 is definitely your refund! The IRS shows it as negative because from THEIR perspective, it's money going OUT of their system to you. Super counterintuitive but at least now we're all experts at reading these confusing transcripts! Congrats on getting money back! 🎉