Couldn't the airline vouchers be considered a rebate or price adjustment rather than income? If I buy something at a store and get a $10 rebate, that's not income. Maybe the vouchers are just a "rebate" for the inconvenience, not actual income? My brother-in-law says he never reports his vouchers.

I work for a tax preparation firm and can confirm that airline bump compensation is definitely taxable income, regardless of whether it's cash or vouchers. The IRS treats this as compensation for services (giving up your seat), not as a rebate or refund. A few key points to clarify some confusion in this thread: 1. The $600 threshold for 1099 forms only applies to the airline's reporting requirement, not your obligation to report income. All income is taxable regardless of receiving a form. 2. While vouchers with restrictions might theoretically be worth less than face value, be very careful about discounting them without solid documentation. The IRS generally expects you to report the stated value unless you can prove the limitations significantly reduce the actual worth. 3. The income is taxable in the year you received the vouchers, not when you use them. Keep all documentation from the airline showing the compensation amount and date received. Report it as "Other Income" on Schedule 1, Line 8i of your Form 1040. Even after taxes, you're still coming out ahead financially from taking the bump!

Has anyone tried running this scenario through different tax software? I know inheriting an IRA is complicated but most tax programs should be able to calculate your RMD correctly. I'm dealing with an inherited Roth IRA which apparently has different rules.

I went through this exact same situation when my grandmother passed in 2021 at age 78. The confusion you're experiencing is totally understandable because the SECURE Act created these hybrid rules that many financial advisors are still getting wrong. Here's what I learned after consulting with a CPA who specializes in retirement accounts: Since your uncle died in 2021 (post-SECURE Act) and was already taking RMDs, you're subject to BOTH rules simultaneously - you must take annual RMDs based on your life expectancy AND completely empty the account by December 31, 2031 (10 years after the year of death). The key thing your tax preparer got wrong is that you don't have to take exactly 1/10 each year. You take the higher of: (1) the annual RMD calculated using the Single Life Expectancy Table, or (2) whatever amount ensures the account will be fully distributed by the 10-year deadline. I'd recommend getting a second opinion from a CPA or Enrolled Agent who specifically deals with inherited retirement accounts. The penalty for getting this wrong is 50% of the amount you should have distributed, so it's worth paying for expert advice to get it right.

I'm dealing with this exact same issue! My SBTPG account has been showing "unfunded" since 3/16, even though my IRS transcript shows code 846 (refund issued) dated 3/15. I also used TurboTax with fees deducted from my refund. After reading through all these comments, it's really reassuring to know this isn't just me - sounds like SBTPG is having major processing delays this year, especially for returns with fee deductions. The 7-10 business day delay mentioned by others who called seems to align with what we're all experiencing. I think I'll try calling their customer service line tomorrow to at least confirm they have my refund in their system. It's frustrating because last year this whole process was so much faster, but at least now I know to just wait it out rather than panic that something went wrong with my return.

I'm going through the exact same frustrating situation! My SBTPG account has been showing "unfunded" since 3/14, and my transcript clearly shows code 846 with refund issued on 3/13. I also used TurboTax with fees deducted, so that's definitely adding to the delay. After reading through all these comments, I feel so much better knowing this is a widespread SBTPG processing issue affecting tons of people rather than something specific to my return. The consistent 7-10 business day delay that multiple people have confirmed by calling SBTPG gives me hope that we should see movement soon. It's crazy how much slower this process has been compared to previous years - I remember getting my refund within 3-4 days last year. I think I'm going to call SBTPG tomorrow morning to at least confirm they have my refund in their processing queue. Thanks everyone for sharing your experiences - it really helps to know we're all dealing with this together!

Another option to consider is TaxAct - they charge around $25-30 for prior year returns and have a really clean interface for handling older tax years. I used them for my 2021 return that I filed late and was impressed with how they clearly separated the tax rules and forms that were in effect for that specific year. One thing I'd definitely recommend is gathering ALL your documents first before starting any software. Make sure you have your W-2s, 1099s, and any other tax documents from 2022. If you're missing anything, you can request wage and income transcripts from the IRS website which will show what was reported under your SSN for that year. Having everything ready upfront will save you from having to stop mid-process and hunt down missing paperwork. Also, since you mentioned moving across the country, don't forget to check if you need to file state returns for both your old and new states for 2022. Some states have different filing deadlines and requirements for part-year residents.

Just wanted to add that if you're worried about accuracy with a prior year return, consider using the IRS Free File Fillable Forms option. It's basically electronic versions of the actual tax forms that do basic math calculations for you, but don't guide you through like commercial software does. The advantage is that it's completely free for any tax year they support (including 2022), and you're working directly with the official forms so there's no question about whether the software is applying the right rules for that year. The downside is you need to be more comfortable navigating tax forms yourself. I used this method for my 2020 return that I filed late and it worked perfectly. Just make sure you're using the 2022 version of the forms and instructions, not current year. The IRS website has archived versions of all prior year forms and publications if you need to reference the rules that were in effect back then.

Great thread! I'm dealing with this exact situation right now. One thing I wanted to add that hasn't been mentioned yet - make sure you understand the difference between an Accountable Plan and a Non-Accountable Plan when it comes to your 1120S reporting. With an Accountable Plan (which sounds like what you have), the reimbursements don't show up as income to the employee and you get to deduct the actual business expenses in their appropriate categories like everyone mentioned. But if your plan doesn't meet all the IRS requirements (business connection, substantiation, return of excess), it becomes a Non-Accountable Plan and those reimbursements become taxable wages to the employee. I see a lot of small S-corps accidentally create Non-Accountable Plans because they're missing one of the requirements, especially the "return excess payments" part. Just wanted to flag this since getting it wrong affects both your 1120S deductions AND your employee's tax situation. The good news is if you set it up right from the start like it sounds like you're trying to do, it's actually pretty straightforward to maintain.

This has been such a helpful thread! As someone who's been handling S-corp taxes for a few years, I want to emphasize something that's been touched on but is really critical - timing matters a lot with Accountable Plans. Make sure your Accountable Plan is formally adopted BEFORE you start making any reimbursements. I've seen businesses try to retroactively create an Accountable Plan after they've already been reimbursing expenses, and the IRS doesn't accept that. The plan needs to exist first, then the expenses and reimbursements follow the plan's rules. Also, for anyone just setting this up, consider adding a reasonable time limit for employees to submit expenses for reimbursement (like 60 days from when the expense was incurred). This helps with your bookkeeping and ensures expenses are properly documented while they're still fresh in everyone's memory. On the 1120S side, just remember that these are business expenses first - the Accountable Plan is just the mechanism for how they get paid, not a separate category of expense.