This is such a helpful thread - I'm dealing with a very similar situation right now! One additional consideration I wanted to mention is the impact on any business licenses or permits that might be tied to the partnership structure. We discovered that several of our state and local business licenses listed both spouses as owners, and we had to update those before finalizing the ownership transfer. Some required new applications entirely rather than just amendments, which added both time and fees to the process. Also, if the business has any existing contracts, loans, or vendor agreements that reference the partnership structure or list both spouses, you'll want to review those carefully. Some lenders required us to requalify for our business line of credit once the ownership structure changed, even though it was still the same business. The good news is that most banks and vendors are pretty understanding about spousal transfers, especially when you can show it's part of a legitimate business restructuring rather than trying to avoid personal guarantees or other obligations. Just something to add to your checklist alongside all the great tax advice everyone's already shared!

This thread has been incredibly informative! I'm a tax preparer dealing with a similar situation with one of my clients. Based on everything shared here, I wanted to add a few technical points that might help: 1. **Timing of Form 2553**: Make sure you're aware that if you miss the 2 months and 15 days deadline for the S-Corp election, you can still request late election relief under Rev. Proc. 2013-30, but it requires reasonable cause documentation. 2. **Built-in Gains Tax**: If the partnership has appreciated assets when converting to S-Corp status, be aware of potential built-in gains tax under Section 1374. This applies to any appreciation that existed at the time of conversion and could be triggered if those assets are sold within 5 years. 3. **State Considerations**: Don't forget that some states don't recognize S-Corp elections or have their own separate election requirements. Make sure to check your state's specific rules for both the entity conversion and the ownership transfer. The advice about using professional help really resonates - I've seen too many DIY attempts at this type of conversion create multi-year headaches. The upfront cost of proper guidance usually pays for itself in avoiding complications down the road. Great discussion everyone!

I work 2 W2 jobs that combined put me over the social security cap. Just wanna confirm what I've learned after dealing with this for 3 years now: 1. Each employer pays their 6.2% SS tax on what they pay you, up to the wage base limit for each job 2. You pay 6.2% at each job, but can get refunded for amounts over the limit when you file taxes 3. Employers NEVER get refunded for their portion, even if you work multiple jobs 4. The government essentially collects more total SS tax from people with multiple jobs 5. This is totally legal and by design Honestly it feels unfair but whatever. Just remember to claim back YOUR overpaid portion on your tax return! The first year I didn't realize I could do this and lost out on like $4k.

This is such a frustrating aspect of the tax system! I'm dealing with a similar situation - two W2 jobs that will put me over the Social Security wage base this year. What really gets me is that when I was negotiating salary at my second job, they kept emphasizing their "burden" of paying employer-side payroll taxes as justification for a lower offer. But now I'm learning that if I exceed the cap across both jobs, they're essentially paying Social Security tax that wouldn't be owed if I just worked one higher-paying position instead. Meanwhile, I at least get to reclaim my overpaid portion when I file. Has anyone tried arguing this point during salary negotiations? Like, "Hey, you're going to pay less in total payroll taxes on me than you think because of how the system works with multiple employers." Probably a long shot, but it seems like employers don't always understand this nuance either. Also, does anyone know if this same principle applies to unemployment insurance taxes that employers pay? Do they get capped per employer too, or is there some coordination there?

I've been following this thread closely because I'm dealing with the exact same 1040NR payment issues! After reading everyone's suggestions, I wanted to share what ended up working for me in case it helps others. I tried the early morning approach (around 5 AM EST) that a few people mentioned, and that actually got me through the initial screens. But the key thing that made the difference was formatting my foreign address exactly like it appears on my visa documentation rather than how I wrote it on my 1040NR form. Apparently the payment system cross-references with immigration databases in some cases. Also, for those asking about timing - I made my payment on a Tuesday morning and it posted to my IRS account by Thursday afternoon. You can check the status by logging into your IRS online account or calling the automated refund/payment inquiry line. One more tip: if you're using a foreign bank account, make sure your bank doesn't have any restrictions on US government payments. I had to call my bank and specifically authorize IRS payments before the transaction would go through. The most important thing is not to panic about the deadline. The IRS has been pretty accommodating about technical issues with their payment systems, especially for 1040NR filers. Document your attempts (screenshots of error messages help) in case you need to explain any delays later.

I'm so glad I found this thread! I'm currently going through the exact same nightmare with my 1040NR payment. Filed my return last week and owe about $1,900, but the payment portal has been giving me nothing but headaches. After reading through all these suggestions, I think I've been making several mistakes. I was trying to use the direct link from the 1040NR instructions (which apparently has known issues), I wasn't formatting my foreign address correctly, and I was trying during peak hours when the system is probably overloaded. Tomorrow morning I'm going to try the early morning approach around 5-6 AM EST with my address formatted exactly as it appears on my visa documents. If that doesn't work, I'll call the international tax line at (267) 941-1000 that Natasha mentioned - that sounds like exactly what I need as an H-1B holder. This community has been incredibly helpful! It's reassuring to know this is a widespread issue with the 1040NR payment system and not just me being technically incompetent. I'll report back on what ends up working for me in case it helps other newcomers dealing with the same frustration. Thanks everyone for sharing your experiences and solutions!

As someone who went through this exact same confusion when I started my consulting business, I can confirm what others have said - your EIN IS your Tax ID number! They're literally the same thing with different names. One thing I wish someone had told me earlier: make sure you keep that EIN confirmation letter in a safe place (and scan a copy to the cloud). You'll need it for opening business bank accounts, and some banks are really picky about having the official IRS letter rather than just the number written on a napkin. Also, since you mentioned you're a developer starting a startup, you might want to consider whether you'll need to collect sales tax in your state for any software or services you'll be selling. That would require a separate sales tax permit in most states, but you'd still use your EIN/Tax ID for the application process. The business admin stuff definitely gets easier once you get the basics sorted out. You're already ahead of the game by getting your EIN early!

Great question! I went through this same confusion when setting up my small business last year. Yes, your EIN (Employer Identification Number) IS your Tax ID number - they're exactly the same thing, just different names for the same 9-digit identifier. You'll use this EIN/Tax ID for: - Filing your business tax returns - Opening business bank accounts - Any tax-related paperwork - If you hire employees down the road Since you mentioned you're a developer starting up, one additional tip: make sure to keep both a physical and digital copy of your EIN confirmation letter from the IRS. Banks often want to see the official letter when you open business accounts, not just the number itself. You're all set on the federal tax ID front! No need to apply for anything else from the IRS for tax identification purposes.

This has been such a valuable thread! I'm a CPA and I see this confusion all the time with single-member LLC clients. You're absolutely right that business checking account interest belongs on Schedule C line 6. What I tell my clients is to think of it this way: if your LLC earned $1000 from services and $50 in interest, both amounts came through your business. The fact that one came from operations and one came from your bank account doesn't change that they're both business income for tax purposes. The story about the audit experience really highlights why proper classification matters. The IRS computer matching systems are looking for logical consistency - when they see a 1099-INT issued to your business EIN but that income reported on your personal 1040, it can trigger questions. One more tip: keep a simple spreadsheet each year showing all your business income sources (operations, interest, etc.) and where you reported each one on your return. This kind of documentation is invaluable if you ever need to explain your filing positions to the IRS.

I'm new to running an LLC and this discussion has been incredibly enlightening! I was actually making the same mistake with my business interest income - my tax software kept defaulting it to my 1040 and I just went with it without questioning. The CPA's analogy about all business income belonging together really clicked for me. Whether it's $1000 from client work or $50 from my business checking account, it all flows through my LLC so it should all be reported as business income on Schedule C. What really convinced me was hearing about the audit experience where the mismatch between a business EIN on the 1099-INT and personal reporting on the 1040 raised red flags. That's exactly the kind of situation I want to avoid as a new business owner. I'm definitely implementing the spreadsheet tracking system mentioned by the CPA. Having clear documentation of where each income source gets reported seems like such a simple but powerful way to stay organized and protect yourself if questions ever arise. Thanks everyone for sharing your experiences and expertise - this community is amazing for getting real-world guidance on these tricky tax situations!