Something nobody mentioned: these billionaires sometimes intentionally take salaries of $1 for PR purposes, claiming they're not taking compensation, while using the loan strategy behind the scenes. It's basically a marketing tactic to appear selfless while actually using more tax-efficient methods.

There's also another strategy that works alongside "buy, borrow, die" - charitable remainder trusts. Billionaires will donate appreciated stock to a trust, get an immediate tax deduction, and then the trust sells the stock without paying capital gains taxes. They can then receive payments from the trust for life while appearing philanthropic. The kicker is they often retain some control over how the money is invested within the trust, and their family members sometimes end up running the charitable foundation that eventually receives the remainder. So they get tax benefits, maintain influence over the assets, and create a legacy vehicle for their heirs - all while reducing their taxable estate. It's another layer of the wealth preservation puzzle that works especially well when combined with the borrowing strategies everyone's been discussing.

I'm currently going through this exact same situation - my Michigan return went under review 4 days ago and I was immediately concerned I'd made an error somewhere. This thread has been incredibly helpful and reassuring to find! Like so many others here, I also have medical expenses coming up (some dental work that can't be delayed much longer) and was really counting on that refund timeline being consistent with previous years. The complete absence of any estimated timeframe from Michigan Treasury is really frustrating when you're trying to plan around healthcare costs. From reading everyone's experiences here, it sounds like that 2-3 week window is pretty typical for these reviews, and most seem to resolve on their own without needing any additional documentation. The randomness factor that several people mentioned actually gives me some peace of mind - knowing it's likely just standard verification rather than something I did wrong on my return. I'm going to try to be patient and wait at least 2 weeks before calling, but it's comforting to know that when people do call, they typically get useful information about what triggered the review. Thanks to everyone for sharing their timelines and outcomes - this thread has been a huge help for managing the anxiety that comes with waiting on money you need for medical expenses. I'll definitely update with my progress to help others who are starting this waiting period. It's reassuring to know we're all navigating this uncertainty together!

I'm going through the exact same situation right now! My Michigan return went under review 6 days ago and I was starting to panic thinking I'd made some kind of mistake on my filing. This thread has been such a lifesaver - it's incredible to see how many people are experiencing this identical situation this tax season. Like so many others here, I also have upcoming medical expenses (some follow-up appointments after a recent injury) and was really counting on that refund timeline being predictable like it's been in previous years. The complete lack of any estimated timeframe from Michigan Treasury is so frustrating when you're trying to budget for healthcare needs. From reading everyone's shared experiences, it sounds like that 14-21 day window is pretty standard for these reviews, and the vast majority resolve automatically without requiring any additional documentation from us. The randomness factor that several people mentioned actually gives me some comfort - knowing it's likely just routine verification rather than an error I made. I'm going to try to be patient and wait at least 2 weeks before calling, but it's reassuring to know that when people do reach out, they usually get helpful context about what triggered the review. Thanks to everyone for sharing your timelines and outcomes here - this thread has been incredibly helpful for managing the stress that comes with waiting on money you need for medical expenses. I'll definitely update with my progress to help others who are just starting this waiting period. It's comforting to know we're all navigating this uncertainty together!

Something I don't see mentioned yet - you'll also need to make quarterly estimated tax payments going forward if you continue getting 1099 income! The IRS expects you to pay taxes throughout the year, not just at filing time.

As someone who went through this exact same confusion last year, I feel your pain! One thing that really helped me was understanding that the 1099-NEC doesn't get "attached" anywhere - it's just your record of income that you need to report. Here's what worked for me: In your tax software, look for sections labeled "Business Income," "Self-Employment," or "Freelance Work" rather than looking for "1099-NEC" specifically. The software will ask you to enter the income amount from Box 1 of your 1099-NEC, then it automatically generates Schedule C and Schedule SE for you. Don't panic about the additional taxes - yes, you'll owe more than usual since nothing was withheld, but you can also deduct legitimate business expenses like software, equipment, and even a portion of your home internet if you use it for work. Keep all your receipts! If you're really stuck, consider upgrading your tax software or switching to one that includes self-employment features. It's worth the extra cost to avoid mistakes on your first year with 1099 income.

Has anyone successfully dealt with excess contributions through TurboTax? I'm confused about how to report this correctly in the software.

I went through something very similar last year and can relate to the stress you're feeling! The good news is this is definitely fixable, but you'll need to be persistent with Fidelity to get it handled correctly. First, call Fidelity back and ask to speak with someone in their IRA department specifically - don't just talk to general customer service. Tell them you need to "recharacterize" your withdrawal as a "return of excess contribution" for 2024. They should be able to do this since you're still in the same tax year. Make sure they understand you're correcting an excess contribution, not just making a regular withdrawal. Once they process this correctly, you'll get a 1099-R form that properly shows the distribution as a return of excess contribution. Any earnings that were generated on that excess contribution will be taxable income for 2024 and potentially subject to the 10% early withdrawal penalty if you're under 59½. Since you've already filed, you'll likely need to file an amended return (Form 1040-X) once you get the corrected documentation from Fidelity. The timing actually works in your favor since you caught this so quickly - there probably weren't significant earnings on the excess contribution during that short time period. Don't panic about the penalties - if Fidelity processes this as a proper excess contribution removal, you should be able to avoid the 6% excise tax. Just make sure you get the right paperwork from them showing it was handled correctly.

@Alfredo, based on your situation with $380K in S-Corp income, you'll definitely want to get this right! The K-1 will be issued to the QSST with the trust's EIN, but your son will report all the income on his personal return and pay the taxes. One thing I don't see mentioned yet - with that income level, your son may need to pay estimated taxes quarterly since there's no withholding from S-Corp distributions. The trust will still file Form 1041 but it's essentially just an informational return showing the pass-through to your son. Also, make sure your QSST election was filed properly with the IRS within the required timeframe (usually 2 months and 15 days after the stock transfer). If you missed that deadline, you could lose S-Corp status entirely. Your accountant should have handled this, but it's worth double-checking since the consequences are severe.

This is exactly the type of situation where getting professional guidance upfront can save you thousands in penalties and corrections later. With $380K in S-Corp income, the tax implications are significant. A few additional considerations for your QSST setup: 1. **Timing of the QSST election**: Make sure this was filed within 2 months and 15 days of the stock transfer. Missing this deadline can terminate your S-Corp election entirely. 2. **State tax implications**: Some states don't recognize QSSTs the same way the federal government does, so you may need separate state filings or elections. 3. **Future planning**: Consider whether your son will have other income sources that might push him into higher tax brackets when combined with the S-Corp pass-through income. 4. **Documentation**: Keep detailed records of all distributions vs. income allocations, as the IRS scrutinizes QSST arrangements more closely than regular S-Corp ownership. Given the complexity and the income level involved, I'd strongly recommend having your accountant walk you through the entire process again and provide written documentation of the reporting requirements. The interaction between S-Corp taxation and QSST rules has several nuances that can create compliance issues if not handled properly.