This is really helpful information! I just wanted to add that if you're self-employed or have other irregular income sources, it's especially important to keep good records of jury duty payments. Since you likely won't get a 1099 for amounts under $600, having your own documentation (like a copy of the check stub or court paperwork) is crucial in case the IRS ever questions it. Also, don't forget that jury duty pay counts toward your total income for the year, which could potentially affect things like tax credits or deductions that have income limits. For most people serving a week or two, it won't make a huge difference, but it's worth keeping in mind if you're close to any income thresholds. One more tip - if you had to pay for parking at the courthouse that wasn't reimbursed, you unfortunately can't deduct that as a business expense since jury duty is considered a civic duty, not work-related. I learned that one the hard way!

Great question about income thresholds! Yes, even small amounts like $300-400 from jury duty can potentially affect certain tax benefits, though it depends on your specific situation. For the Earned Income Tax Credit (EITC), there are pretty strict income limits that vary based on filing status and number of children. An extra $300-400 could potentially push someone just over the edge, especially for single filers or those without children who have lower thresholds. The student loan interest deduction starts phasing out at around $70,000 for single filers ($145,000 for married filing jointly), so jury duty pay is unlikely to affect that unless you're right at the threshold. Other things to watch for: Premium Tax Credit eligibility (for health insurance), certain education credits, and even eligibility for contributing to a Roth IRA all have income limits. The amounts might seem small, but they can add up when combined with other miscellaneous income. The good news is that most tax software will automatically calculate these things for you, but it's definitely worth being aware of if you're close to any income cutoffs. When in doubt, it's always better to report the income and let the calculations work themselves out rather than risk understating your income to the IRS.

I've been through a very similar situation with a relocation package repayment, and I want to emphasize how important it is to get the Section 1341 calculations right. The IRS is pretty strict about the documentation requirements for claim of right situations. One thing I learned the hard way - when you're calculating the tax benefit under Section 1341, you need to use your exact tax situation from the original year, including any other income changes, deductions, or credits that might have affected your marginal tax rate. It's not just a simple percentage calculation. Also, regarding the FICA tax recovery from your former employer - don't let them brush you off. The employer gets to claim a credit for the excess FICA taxes they paid when they file Form 941-X, so this isn't costing them anything. They're legally required to refund you your portion. If they continue to resist, you might want to escalate to their legal or compliance department and reference IRC Section 3402(d) which covers this exact situation. Keep all your documentation organized and make copies of everything before you submit. The IRS sometimes requests additional supporting documents for these types of amendments, and having everything ready speeds up the process considerably.

I'm dealing with a similar relocation repayment situation right now and this thread has been incredibly helpful! I wanted to add one more consideration that might be relevant - if you received any interest or penalty charges as part of your repayment agreement, those are generally NOT eligible for the Section 1341 treatment. Only the principal amount that you're repaying (the original relocation benefits) qualifies for the claim of right relief. Any interest or late fees you might be paying should be treated separately, and unfortunately those typically aren't deductible for individual taxpayers under current tax law. Also, I noticed you mentioned using TurboTax for the practice amendment. While that's a good start, be aware that TurboTax's handling of Section 1341 situations can be limited, especially for complex scenarios involving multiple states. You might want to double-check their calculations manually or consider having a professional review the work before you submit, even if you do most of the prep yourself. The timeline you're looking at (filing in May with an extension) actually works in your favor since it gives you time to get everything right and deal with any employer pushback on the FICA issue before you file.

One more thing to keep in mind as you navigate your first S corp year - make sure you're tracking your basis in the S corporation throughout the year. Your basis affects how much of any losses you can deduct on your personal return, and it's adjusted by your share of income, losses, and distributions. Many new S corp owners overlook this, but it's crucial for tax planning. Your basis starts with your initial investment in the corporation, increases with your share of income and additional contributions, and decreases with distributions and your share of losses. If distributions exceed your basis, the excess becomes taxable capital gain. I'd recommend keeping a simple spreadsheet to track these adjustments monthly - it'll make year-end tax prep much smoother and help you make informed decisions about timing distributions vs. leaving money in the business.

As someone who's been through the S corp conversion process recently, I can confirm what others have said - you're on the right track! The S corp itself doesn't make federal income tax estimated payments since it's a pass-through entity. All the income, deductions, and credits flow through to your personal return. However, I'd add one important reminder about the timing of your personal estimated payments: since S corp income is reported on a K-1 that you typically don't receive until after year-end, you'll need to estimate your quarterly payments based on projections. I found it helpful to review my profit & loss statements monthly and adjust my estimated payments accordingly. Also, don't forget about potential backup withholding requirements if your S corp receives certain types of income without proper tax ID verification. And if you have any passive income (like rental income from corporate-owned property), that could trigger additional corporate-level taxes even for an S corp. The learning curve can be steep in that first year, but getting comfortable with these distinctions will save you headaches down the road!

Had this issue. Got delayed two months. No explanation. Called three times. Different answers each time. Finally received refund last week. 1099-R was from pension distribution. IRS agent finally told me they're reviewing these more carefully this year. Don't panic. It will come.

I'm in a similar boat with my 1099-R from a 403(b) rollover. Filed on 2/22 and still showing "Processing" on WMR with no transcript updates. My distribution was coded as "G" for direct rollover, so I thought it would be straightforward, but apparently not this year. It's reassuring to see others getting updates after 6-8 weeks - gives me hope that mine will eventually move through the system. Has anyone noticed if the processing times vary by the financial institution that issued the 1099-R? Mine came from TIAA-CREF and wondering if certain providers are flagged for additional review.

This is incredibly helpful information! I'm actually in a very similar situation as the original poster - no tax treaty with the US and was completely avoiding Treasury investments because I assumed I'd lose 30% to withholding. Just to make sure I understand correctly: if I'm a non-resident alien from a country without a US tax treaty, I can invest in Treasury bills and the interest income will be completely exempt from US withholding tax as long as I properly file a W-8BEN form? This seems almost too good to be true given how restrictive US tax rules usually are for foreign investors. Also, does this exemption apply equally to all Treasury maturities (3-month, 6-month, 1-year bills) or are there any restrictions based on the term length? I want to make absolutely sure before I start investing significant amounts.

I want to add another perspective on this since I went through the same confusion last year. The exemption for Treasury securities is real and well-established, but I'd strongly recommend getting everything in writing from your broker before making large investments. When I first tried to purchase Treasury bills, my broker's system automatically applied the 30% withholding despite having a W-8BEN on file. It took three phone calls and providing them with specific references to IRS Publication 519 and Section 871(i)(2)(A) before they corrected their system. Some brokers, especially smaller ones, aren't familiar with this exemption since most foreign clients stick to other investments. I'd suggest doing a small test purchase first to make sure the withholding is handled correctly before committing larger amounts. Also, keep all documentation showing the exemption was properly applied - it makes tax filing much easier in your home country when you can clearly show no US taxes were withheld. The exemption is legitimate and incredibly valuable for non-resident investors, but the implementation can sometimes be bumpy depending on your financial institution's familiarity with the rules.