Great question about the tax strategy! The general rule of thumb is: 1) Get any employer match first (that's free money), 2) Max out Roth contributions if you expect higher tax rates in retirement, 3) Then max pre-tax contributions like SIMPLE IRA if you expect lower tax rates in retirement. But here's the key thing people miss - the backdoor Roth IRA contribution limit ($6,500 for 2023) is completely separate from the SIMPLE IRA limit ($15,500 for 2023, or $19,000 if 50+). You can absolutely do both in the same year without any issues. Since you're already above the income limits for direct Roth IRA contributions (hence needing the backdoor method), you're likely in a higher tax bracket now. The SIMPLE IRA gives you immediate tax savings, while the backdoor Roth gives you tax-free growth. If you can afford both, it's usually worth doing both for the diversification of having some pre-tax and some post-tax retirement savings.

Great question about SIMPLE IRA employer matches! Yes, but it works a bit differently than traditional 401k matches. With SIMPLE IRAs, employers typically do one of two things: 1) **Matching contribution**: Dollar-for-dollar match up to 3% of your salary (most common). So if you make $100k and contribute 3% ($3k), your employer contributes another $3k. 2) **Non-elective contribution**: The employer contributes 2% of your salary for ALL eligible employees, regardless of whether you contribute anything. This is less common but some employers prefer it for simplicity. The key difference from 401ks is that SIMPLE IRA matches are immediately 100% vested - no waiting period like you sometimes see with 401k plans. Also, the employer contributions count toward the overall SIMPLE IRA limits, not as separate "employer match" space like with 401ks. So if your wife's company does the 3% match, definitely contribute at least 3% to get that free money before worrying about maxing out other retirement accounts. That employer match is an immediate 100% return on investment that you can't get anywhere else!

I just went through this exact same situation a few months ago! Code 291 appeared on my transcript and I was completely panicked, especially since I was also a first-time remote worker claiming the home office deduction. After reading through all these helpful responses, I can add that my experience was very similar to what @Grace Durand described. The IRS did indeed adjust my home office deduction, but it was actually in my favor! I had been way too conservative in calculating my office percentage and legitimate business expenses. What really helped me was creating a detailed timeline of when codes appeared on my transcript and cross-referencing that with what I originally filed. In my case, the 291 was followed by an 846 code (refund issued) about a week later with an amount that was actually $340 higher than my original expected refund. For everyone waiting - I know the uncertainty is stressful, but try to stay positive. From what I've learned lurking in tax forums, the vast majority of 291 adjustments for remote workers are either neutral or beneficial corrections. The IRS really isn't trying to "gotcha" anyone, especially when it comes to legitimate home office expenses. @Melina Haruko - hang in there! You'll probably have your answer within the next week or two, and it's likely to be much less dramatic than you're imagining right now.

I'm also dealing with a 291 code right now and this thread has been incredibly helpful! Like many others here, this is my first year working remotely and I was completely overwhelmed when I saw that code on my transcript yesterday. What's really striking me is how many of us new remote workers are going through the exact same experience - it seems like the IRS verification process for first-time home office deductions is catching a lot of us. @Grace Durand's explanation about the automated review system makes so much sense and really puts things in perspective. I was definitely in the "overly conservative" camp with my calculations too. I spent weeks measuring my office space, organizing receipts, and second-guessing every number because I was terrified of making a mistake. Now I'm actually hopeful that the review might work in my favor like it did for @Andre Dupont! The timeline everyone's sharing (explanation notices within 10-14 days, most adjustments under $500) is really helping me manage my expectations. I was planning to use my refund for a proper ergonomic chair since working from my couch is killing my back, so the uncertainty has been stressful. But reading all these positive outcomes is giving me confidence that things will work out fine. Thanks to everyone for sharing their experiences - it's amazing how much less scary these IRS codes seem when you understand what's actually happening behind the scenes. Solidarity with all the other remote work tax newbies figuring this out together!

Has anyone here had Form 8962 delay their refund for more than a month? I'm in the same situation and wondering what the worst-case scenario might be...

I can share my experience from last year - filed with Form 8962 in early February and got my refund about 5 weeks later. The extra delay was definitely frustrating since I was also counting on that money for expenses. Here's what I learned: The IRS has to verify your Premium Tax Credit information against what the marketplace reported, which adds processing time. In my case, there was a small discrepancy in the amounts that required manual review. My advice: Check your 1095-A very carefully against what you're reporting on Form 8962. Even small differences can trigger additional review. Also, don't panic if you see codes like 570 on your transcript - that's normal for APTC reconciliation and doesn't mean there's a problem with your return. The good news is that once the verification is complete, the refund usually processes pretty quickly. Just plan for 4-6 weeks total instead of the standard 21 days.

Have you considered whether it might be easier to just dissolve the S-Corp entirely? Since it's just holding investments, you could potentially move everything to a single-member LLC or even just hold the investments personally. I had a similar "dormant" S-Corp I was maintaining for years and eventually realized I was spending more on annual filing fees and tax prep than I was gaining from any tax advantages.

This is a really nuanced situation that highlights an important distinction many people miss about S-Corp reasonable compensation rules. Since your entity is truly passive with no services being performed, you're likely in good shape to take distributions without salary. The key is documentation. I'd suggest drafting corporate minutes that clearly state: (1) the corporation was formed solely as a passive investment vehicle, (2) no shareholder services are performed that would warrant compensation, and (3) all income is derived from passive investments requiring no labor or expertise. One practical tip - consider taking distributions gradually rather than all at once. This creates less of a "red flag" appearance and gives you time to see how the IRS responds to your tax filings. Also, make sure your distributions don't exceed your stock basis, as anything over basis becomes taxable as capital gains. Given the complexity and the dollar amounts involved, you might want to run this by a tax professional who specializes in S-Corp issues. They can review your specific fact pattern and help ensure you're documenting everything properly to support your position if questioned.

Has anyone tried the free fillable forms directly from the IRS website for 1120-S? I'm wondering if that's a viable option to save on software costs while still getting the calculation help.

One thing I haven't seen mentioned yet - if you're mailing your 1120-S, make sure you're aware of the March 15th deadline (or September 15th if you filed an extension). The IRS considers it timely filed if it's postmarked by the deadline, not when they receive it. This is different from some other tax situations where actual receipt date matters. Also, double-check that you're using the most current forms for tax year 2024. The IRS sometimes makes small changes to forms between years, and using an outdated version can cause processing delays. You can download the latest versions directly from irs.gov to make sure you have the right ones. One last tip - if your S-Corp had any unusual transactions during the year (like asset purchases, loans, or changes in ownership), you might want to consider at least getting a consultation with a tax professional even if you prepare the return yourself. The basic 1120-S isn't too complicated for simple situations, but certain transactions can have tricky reporting requirements that aren't obvious.