Has anyone used QuickBooks for partnership accounting? I'm trying to figure out if I need to completely restructure my books when I convert from sole prop to partnership or if there's an easy way to handle the transition.

I went through this exact transition last year with my consulting LLC. One thing that caught me off guard was the estimated tax payment requirements for partnerships. Unlike when you're a sole proprietor and can just make quarterly payments based on your own income, partnerships have to make estimated payments based on the partnership's total income, and then each partner is responsible for their share. Also, make sure you document everything about your partner's initial capital contribution - whether it's cash, equipment, or sweat equity. The IRS is pretty strict about how these contributions are valued and recorded, especially if there's a significant imbalance between what each partner is putting in. We had to get our computers and office equipment professionally appraised to establish the basis correctly. One last tip: set up separate bank accounts for the partnership right away. Mixing personal and business funds becomes even more problematic when you have multiple partners, and the IRS scrutinizes partnership transactions more closely than sole proprietorships.

Since you mentioned S-Corp, make sure you're distinguishing between "distributions" and actual wages for EIC purposes. The IRS only counts W-2 wages for EIC, not distributions from your business. If your tax software counted S-Corp distributions as earned income, that would explain the discrepancy.

This thread has been incredibly helpful! I'm dealing with a similar EIC discrepancy, but mine involves rental income alongside my Schedule C business. The IRS is claiming my EIC should be $800 less than what I calculated. Reading through everyone's experiences, it sounds like the common thread is that tax software doesn't always handle the nuanced EIC calculations correctly when you have multiple income sources or business losses. The distinction between different types of self-employment income (S-Corp vs Schedule C) and how losses are applied seems to be where most of the confusion happens. Has anyone found a good resource that breaks down exactly how the IRS calculates EIC when you have both business income and losses? The IRS publications are so dense, and I'm trying to figure out if I should fight this or if they're actually right.

I think everyone is overthinking this! Just enter the info from the W2 and you're fine. The IRS only cares about who paid you and if the correct taxes were withheld. I've worked for like 5 different staffing agencies over the years and never had an issue. That checkbox in H&R Block is probably asking if you're self-employed. Since you got a W2, you're not self-employed, so don't check it. Simple as that!

I went through this exact same situation last year when I worked for a client through Kelly Services! You're absolutely right to treat Robert Half as your employer for all tax purposes since they issued your W2. The key thing to remember is that from the IRS perspective, you were an employee of Robert Half who happened to be assigned to work at their client's location. This is a completely normal and well-understood employment arrangement. For that checkbox you're seeing in H&R Block - if it's asking about self-employment status, definitely don't check it since you received a W2 (not a 1099). If it's asking something else and you're still unsure, you can always skip it for now and come back to it, or look for a help button that explains what that specific question is asking. Don't stress too much about it - staffing agency employment is super common and the tax software is designed to handle it properly!

This is exactly the kind of confusing contractor situation that makes tax season a nightmare! I've been dealing with similar reimbursement issues for years. What really helped me was getting everything documented properly - not just keeping receipts, but also creating a paper trail showing that these were legitimate business expenses being reimbursed, not additional income. One thing I learned the hard way: make sure you're consistent about how you handle these expenses year over year. The IRS doesn't like it when contractors flip-flop between claiming expenses as deductions versus treating reimbursements as income. Pick a method and stick with it. In your case, since they're already issuing the 1099-NEC with the reimbursements included, you're pretty much locked into reporting it as income and then deducting the expenses. Also, consider having a conversation with your client about setting up a proper accountable plan for next year. If they require you to submit receipts and reimburse exact amounts, those shouldn't be appearing on your 1099 at all. It might save both of you some headaches down the road.

I've been in this exact situation as a contractor and can confirm what others have said - you're essentially stuck reporting the reimbursements as income since they're on your 1099-NEC, but you can deduct the same amounts as business expenses on Schedule C. One thing I'd add is to make sure you're tracking the business purpose for each parking expense. The IRS wants to see that these were legitimate business travel expenses, so I keep a simple log with dates, client visits, and parking costs. It's also worth noting that if you're parking at the airport for business travel, that's generally considered a fully deductible business expense rather than just partial like commuting would be. The frustrating part is that your client should really be handling this differently - reimbursements for documented business expenses shouldn't be showing up on your 1099 at all. But changing their accounting practices mid-year is probably more hassle than it's worth. I'd definitely continue getting reimbursed rather than eating those costs yourself - just make sure you have solid documentation for the deductions.

I've handled similar situations with clients in unconventional income streams. The previous preparer was definitely wrong about the gift classification. The IRS has a very specific test for what constitutes a gift - it must arise from "detached and disinterested generosity" with no expectation of anything in return. In financial domination arrangements, there's clearly an expectation and a service being provided, even if that service is psychological rather than physical. The payers are receiving something of value (the domination experience), which makes this taxable income subject to self-employment tax. I'd recommend reporting this on Schedule C under "Other Personal Services" and keeping detailed records of all payments received. The regularity and business-like nature of these arrangements clearly distinguish them from gifts. Your instinct to treat this as taxable income is absolutely correct.

This is a great example of why staying current with tax law is so important. I had a similar situation last year with a client who received payments through various online platforms for what they called "financial advice" but was really more of a financial domination arrangement. The key factor that helped me make the determination was looking at the pattern of behavior - these weren't one-time spontaneous gifts from generous strangers. There was an established relationship, regular payments, and clear expectations on both sides. The client even had specific "rules" and interactions they provided to the payers. I ended up classifying it as self-employment income on Schedule C, and when the client was audited 8 months later, the IRS examiner agreed with our position. The examiner specifically mentioned that the regularity and business-like nature of the arrangement made it clearly distinguishable from gifts. One thing I'd add is to make sure your client understands they can deduct legitimate business expenses related to this income - things like platform fees, internet costs, equipment used exclusively for this work, etc. Many clients in unconventional income streams don't realize they have the same deduction opportunities as traditional businesses.