A little warning from someone who messed this up before - make absolutely sure your total family contributions don't exceed the correct limit! I incorrectly thought my wife and I could each contribute the family maximum to our separate HSAs, and ended up with an excess contribution. The IRS charged me a 6% excise tax on the excess amount for each year it remained in the account. Had to file Form 5329 and everything. What a nightmare! To recap what others have said: - Family limit for 2025: $9,750 - Catch-up contribution if 55+: $1,000 per eligible person - Each catch-up must go to separate HSA owned by that person - Total max for married couple both 55+: $11,750

Great question! I went through this exact same confusion last year. Yes, you can absolutely add both catch-up contributions for a total of $11,750 since you're both over 55. However, there's one critical detail that trips up a lot of people (including me initially): your wife will need her own separate HSA account for her $1,000 catch-up contribution. Here's how it breaks down: - Base family contribution: $9,750 (can go into either HSA or split between them) - Your catch-up: $1,000 (must go into your HSA) - Wife's catch-up: $1,000 (must go into an HSA in her name) The catch-up contributions are tied to the individual, not the family plan. So even though you have family coverage, each person's catch-up must go into their own HSA account. If your current HSA is only in your name, you'll need to open a second HSA for your wife to receive her catch-up contribution. This is actually a pretty common misconception, so don't feel bad about being confused! The important thing is getting it right before you make the contributions to avoid any excess contribution penalties.

Something else to consider - if you revert back to LLC status, make sure you understand how it affects your self-employment taxes. When you had S-Corp status, you were probably taking a reasonable salary and then distributions that weren't subject to SE tax. Once you switch back to partnership taxation (assuming multi-member LLC), all your distributive share of income will typically be subject to self-employment tax, not just the salary portion. This can be a significant increase in your overall tax burden depending on your income levels. We made this switch last year and our overall tax bill went up about $12,000 because of the SE tax difference, even though it was still the right move for other reasons.

I just went through this exact process last month and wanted to share some key timing considerations that weren't mentioned yet. When you file your S-Corp revocation letter, make sure to specify that it's effective as of January 1, 2025 (beginning of the tax year) rather than the date you submit the letter. This ensures clean tax reporting for the entire year. Also, don't forget about estimated tax payments. Since you'll be switching from corporate taxation back to pass-through taxation, your quarterly estimated tax obligations will change significantly. We had to recalculate our safe harbor payments and adjust our Q1 2025 estimated taxes to account for the different tax structure. One more thing - if you have any outstanding payroll liabilities or employment tax deposits as an S-Corp, make sure those are fully resolved before making the switch. The IRS can get confused about which entity is responsible for what if there are any loose ends during the transition period.

I'm dealing with something very similar right now! My landlord is a religious organization and they've been really unclear about how they want payments handled. Reading through all these responses has been incredibly helpful. One thing that stood out to me is the importance of having everything properly documented. I realized I never got a formal lease agreement - just some informal emails about move-in dates and payment amounts. After seeing all the advice here about protecting yourself with proper documentation, I'm definitely going to request a written lease that clearly states these are rental payments. The point about UBIT was really interesting too. I had no idea that tax-exempt organizations could still owe taxes on certain types of income. It makes me wonder if that's why some of these organizations are sensitive about how rental income gets categorized in their books. Thanks to everyone who shared their experiences and knowledge. It's reassuring to know that as long as I don't try to claim rent as a charitable deduction, I should be fine on the tax side of things.

This is a really important topic that more people should be aware of. I've been following this discussion and wanted to share something that might be helpful - the IRS actually has specific guidance on this exact situation in Publication 526 (Charitable Contributions). The key point everyone has made here is absolutely correct: rent payments are never deductible as charitable contributions, even when paid to a tax-exempt organization like a church. The IRS is very clear that you can only deduct contributions where you receive nothing of value in return. What's particularly concerning about your situation is the instruction not to write "rent" on the memo line. While there could be innocent explanations (like internal accounting preferences), this could also indicate the organization isn't properly categorizing rental income, which creates compliance issues for them. For anyone in similar situations, I'd recommend: 1) Get a written lease that clearly identifies payments as rent, 2) Keep detailed payment records, 3) Never claim these payments as charitable deductions on your return, and 4) If you have concerns about the organization's practices, consider consulting with a tax professional or contacting the IRS directly. The suggestions about taxr.ai and Claimyr seem useful for getting professional guidance when you need it. Thanks to everyone who shared their experiences - it's really helpful to see how others have navigated these situations.

I went through this exact same situation about a year ago and completely understand the anxiety! Here's what I learned that might help ease your mind: Form 9143 is actually pretty routine - it just means they need your signature to complete processing your return. Everything else on your return was fine, which is why they're not asking for additional documentation. Here's exactly what you need to do: 1. Sign BOTH the Form 9143 and your original 1040 return using today's date (not your original filing date) 2. Use blue or black ink and make sure your signature is legible 3. Return everything they sent back to you - don't add new W-2s or other docs unless specifically requested 4. Send it back using certified mail with return receipt for tracking The key thing that helped me was realizing this isn't a rejection - it's more like a "pause" in processing while they wait for your signature. Once you send it back, they resume processing from where they left off. I didn't get any intermediate confirmation from the IRS after sending back my signed forms - I just had to wait for the refund to show up, which took about 3 weeks. The certified mail receipt was my only proof they received it, which is why I'd definitely recommend that route. Don't overthink it - you're just completing one missing administrative step so they can finalize your refund!

I just went through this exact situation a few months ago and want to share what worked for me! Getting Form 9143 definitely feels scary at first, but it's actually one of the more straightforward IRS issues to resolve. Here's what you need to do: 1. Sign BOTH documents - the Form 9143 itself AND your original 1040 in the taxpayer signature line 2. Use today's date when signing (not your original filing date) 3. Use blue or black ink and make sure your signature is clear and legible 4. Return everything they sent back to you - the 9143, your 1040, and any attached schedules 5. DON'T send new copies of W-2s or other supporting documents unless they specifically ask for them The most important thing to understand is that Form 9143 means the IRS has reviewed your return and everything else looks good - they literally just need your signature to complete processing. Think of it as hitting "pause" rather than "reject." I strongly recommend using certified mail with return receipt when you send it back. It costs a few extra dollars but gives you proof of delivery, which is invaluable with IRS correspondence. After I sent mine back, it took about 3 weeks for my refund to be processed. You won't get an intermediate confirmation - the refund will just show up once they complete processing. Keep copies of everything you send back, and don't stress too much about it. This is really just completing one administrative step they need to finalize your return!

Just wanted to add something important that I learned the hard way - make sure you understand the "tax home" concept before claiming per diem! The IRS requires that you be traveling away from your "tax home" (usually where your main place of business is) to qualify for per diem rates. If you don't have a regular office or primary work location as a contractor, this can get tricky. I had to establish documentation showing where my primary business activities were based to justify my per diem claims. The IRS agent I spoke with emphasized that just being a traveling contractor isn't enough - you need to show you have a tax home that you're traveling away from. Keep good records not just of your travel, but also of where you conduct business when you're NOT traveling. This could be a home office, client meetings in your local area, or wherever you do administrative work. Having this established will protect your per diem deductions if you ever get audited.

This is such a helpful thread! I'm in a similar situation as the original poster - new 1099 contractor with constant travel. One thing I want to emphasize that seems to get lost in all the per diem discussion is the importance of keeping detailed mileage records too. Even if you use per diem for meals, you'll still need to track your business mileage for driving to airports, client sites, etc. The standard mileage rate for 2024 is 67 cents per mile, which can really add up when you're traveling frequently. I use a simple mileage tracking app on my phone that automatically logs trips using GPS. Also, don't forget about other business travel expenses that aren't covered by per diem - things like parking fees, tolls, baggage fees, and business-related phone calls while traveling. These are all legitimate deductions that you'll want to track separately from your per diem calculations. The combination of per diem for meals + actual expenses for lodging and other travel costs has saved me thousands compared to my W-2 days when I couldn't deduct any of this stuff!