ur better off waiting for ur actual refund tbh. these advance loans are just another way for these companies to make $$ off poor people 💅

I totally get needing your refund fast! If you're set on an advance, I'd definitely go with H&R Block or TurboTax like Madison mentioned. But honestly, if you can swing the $5 for that taxr.ai tool Ella recommended, it might save you from needing an advance at all. Sometimes refunds come way faster than we think, especially if you file early and have direct deposit set up. The IRS has been pretty good about getting refunds out within 21 days if there are no issues with your return.

Make sure you and your parents aren't BOTH claiming you!! My cousin and her mom both claimed her and they both got audited. The IRS gets really mad about this and it's a huge hassle to fix. Talk to your parents before filing!!!! Don't just decide on your own!

Hey Omar! I was in almost the exact same situation when I was 22 - living at home, working part-time, parents covering most expenses. Here's what I learned: The IRS has specific tests to determine if you're a dependent, and it sounds like you probably qualify as your parents' dependent since they're providing more than half your support (housing, food, health insurance are usually the biggest expenses). But here's the key thing everyone's touching on - you need to actually RUN THE NUMBERS both ways. Don't just guess! Even if you legally qualify as their dependent, sometimes the family comes out ahead with you filing independently, especially if your parents are in higher tax brackets where benefits phase out. A few things to consider: - If they claim you, they get education credits (American Opportunity Credit can be worth up to $2,500) - Your standard deduction is the same either way ($13,850 for 2023) - But if you file independently, YOU get any education credits instead My advice: Use tax software to model both scenarios before anyone files. Show your parents the numbers - they might actually prefer you file independently if the total family benefit is higher. And definitely coordinate so you don't both claim you (that's an audit nightmare)! The "right" answer depends on your specific numbers, not just the general rules.

This is exactly the situation I found myself in two years ago! Yes, unfortunately your capital gains DO count toward determining which bracket you fall into. With your $337.5K salary plus $1.01M in gains, you'll definitely be pushed into the 20% capital gains bracket for most of those gains. Here's how it works: Your ordinary income gets taxed first at regular rates, then your capital gains get "stacked" on top. The portion of gains that fits between your salary and the $492,300 threshold (about $154,800) gets the 15% rate, and everything above that gets hit with 20%. But here's what really caught me off guard - don't forget about the 3.8% Net Investment Income Tax that kicks in at your income level. So you're looking at an effective rate of 23.8% on most of those gains (20% + 3.8%). My advice: definitely make sure you're doing quarterly estimated payments if you haven't already. The underpayment penalties on gains this large can be brutal. I learned that lesson the hard way!

I went through this exact same situation last year with large capital gains from company stock, and yes, unfortunately the gains do push you into the higher bracket. The way it works is your ordinary income gets taxed first, then capital gains get "stacked" on top to determine which rates apply. With your $337.5K salary plus $1.01M in gains, you'll be well into the 20% capital gains bracket for most of those gains. Only about $155K of your gains (the portion that fills the gap from your salary to the $492,300 threshold) will qualify for the 15% rate. One thing that really helped me was using tax-loss harvesting to offset some gains. If you have any losing positions, consider realizing those losses this year to reduce your overall tax burden. Also, don't forget about the 3.8% Net Investment Income Tax that applies at your income level - so you're really looking at 23.8% effective rate on most gains. Definitely recommend making quarterly estimated payments if you haven't already. The penalties on underpayment for gains this large can be significant. The safe harbor rule (paying 110% of last year's tax) might be your best bet to avoid penalties while you figure out the exact amount owed.

This is a complex situation that requires careful consideration of multiple factors. As others have mentioned, the IRS scrutinizes self-rental arrangements closely, especially when personal use is involved. Here are the key issues to consider: 1. **Business Purpose Test**: The arrangement must have a legitimate business purpose beyond tax savings. Since you're primarily using it for personal transportation, this could be problematic. 2. **Fair Market Value**: Any rental payments must reflect what you'd pay an unrelated party for similar use. 3. **Documentation**: You'll need formal lease agreements, proper insurance coverage, and detailed mileage logs to support any business use claims. 4. **Passive Activity Rules**: As mentioned by others, the self-rental rules under Section 469 could affect how income and losses are treated. 5. **Liability Protection**: Mixing personal and business use without proper documentation could pierce your LLC's corporate veil. Given these complexities, you might want to consider simpler alternatives: - Keep personal vehicles separate and use standard mileage deduction for business trips - Purchase the vehicle personally and lease it TO your LLC if you have legitimate business use - Consult with a tax professional who specializes in small business taxation The potential audit risks and complexity may outweigh any tax benefits, especially if personal use exceeds business use significantly.

I went through this exact situation with my consulting LLC last year. The complexity and potential risks really aren't worth it for primarily personal use vehicles. What I ended up doing was keeping my personal car separate and just tracking business miles with a simple app on my phone. For legitimate business trips (client meetings, picking up supplies, etc.), I claim the standard mileage deduction. It's clean, simple, and audit-friendly. The "rent from my own LLC" approach creates so many potential issues - insurance complications, documentation requirements, passive activity rule complications, and the IRS red flags that everyone mentioned. Plus, if you're audited, you'll spend way more on accounting fees defending the arrangement than you'd ever save in taxes. One other consideration nobody mentioned: if your LLC already has 4 rental vehicles, adding a 5th that's primarily for your personal use could affect your business classification with the IRS. They might start questioning whether this is truly a rental business or just a way to write off personal expenses. My recommendation? Keep it simple. Buy your personal replacement car personally, track your actual business miles, and take the standard deduction. You'll sleep better at night and avoid potential audit headaches.

I'm going through this exact same situation right now with my new S Corp! Reading through all these responses has been incredibly helpful. It's such a relief to see the consensus that you don't need to file Form 941 until you actually start paying wages. The Form 8822-B recommendation keeps coming up and seems like a no-brainer - definitely adding that to my immediate to-do list. I'd rather be proactive about preventing IRS confusion than deal with notices later. One thing I'm curious about that I haven't seen addressed - for those of you who have S Corps but haven't started paying wages yet, are you doing anything special with bookkeeping or accounting during this "zero wage" period? I'm tracking business expenses and keeping everything separate, but wondering if there are other best practices I should be following to stay organized for when I do start generating revenue. Also, the state-specific requirements mentioned by @Zainab Ismail are definitely something I need to research further. I'm in Florida, so I'll need to check if there are any state-specific S Corp payroll registration requirements here. Thanks to everyone who shared their experiences - this has been way more helpful than the conflicting advice I was getting elsewhere!

I'm a fellow new S Corp owner and went through this exact same confusion about 3 months ago! After reading through all the great advice here and doing my own research, I can confirm you absolutely do NOT need to file Form 941 until you actually start paying wages to yourself or employees. What really helped me was calling the IRS directly (using one of the callback services mentioned here actually - saved me hours of hold time) and getting official confirmation. The agent was very clear that the Form 941 requirement is triggered by wage payments, not by S Corp election. Here's what I ended up doing based on similar advice: - Filed Form 8822-B to update my business info with the IRS (as @Natalia Stone suggested) - this was a game changer for peace of mind - Set up proper bookkeeping even with zero activity to track startup expenses for future deductions - Made sure I'm staying on top of the annual 1120-S filing requirement (due March 15th for calendar year S Corps) - Researched "reasonable compensation" requirements for when I do start paying myself For anyone hesitant about the Form 8822-B filing - it literally took me 15 minutes and potentially saved me from years of IRS notices about "missing" 941s. Totally worth it. The waiting period while building clients is actually perfect for getting all this administrative stuff sorted out. Hang in there - once the revenue starts flowing, you'll be glad you have all these compliance pieces figured out in advance!