Great question about first-year partnership filings! I went through this same situation last year with my consulting business. A few key things I learned: **Yes, you absolutely need to file Form 1065** even with zero revenue. The IRS considers any business activity (including incurring startup expenses) as requiring a return. Missing this can result in $195 per partner per month in penalties. **Your startup expenses are actually valuable** - those domain registrations, hosting fees, and software subscriptions create deductible losses that flow through to your personal returns. Make sure you're capturing everything: business registration fees, any legal or professional fees, equipment purchases, etc. **Software recommendations**: I used Drake Tax software which handled our partnership return well, though it's a bit pricey. FreeTaxUSA Business is a more affordable option that several people in my entrepreneur group have used successfully for simple partnership returns. **Timing consideration**: The partnership return deadline was March 15, so if you've missed it, file Form 7004 for an extension immediately. This gives you until September 15 and stops additional penalties from accumulating. Don't dissolve the business over filing complexity - once you get through this first return, future years become much more routine. The infrastructure you've built has real value, and those startup losses will help reduce your current year tax liability. Feel free to ask if you need help with specific expense categorization!

I completely understand your panic - I was in almost the exact same situation last year with my consulting partnership! We had startup expenses but zero revenue and I was scrambling to figure out the filing requirements. Here's what I learned from going through it: **You definitely need to file Form 1065 and K-1s** even with no revenue. The IRS considers incurring business expenses as "conducting business activity" which triggers the filing requirement. The penalties are real - $195 per partner per month, so don't delay on this. **Those startup expenses are actually valuable** - domain fees, hosting, software subscriptions, business registration costs, any legal/professional fees for setting up the partnership. All of these create losses that flow through to your personal returns and can offset other income you might have. **For software, I'd recommend checking out a few options**: - FreeTaxUSA Business (~$70) - good for simple partnerships - TaxAct Business (~$150) - handles allocations well - If you want something more guided, some of the AI-powered tax tools can walk you through partnership returns step by step **If you've missed March 15**, file Form 7004 immediately for an extension to September 15. Even filing the extension late will stop additional penalties from accruing. Don't dissolve the business over this! Once you get through the first return, future years become routine. Plus those startup losses will help your current year taxes. The business infrastructure you've built has real value. The key is just getting it filed - your situation is actually pretty straightforward since it's mostly just documenting startup expenses and allocating them between partners.

This is such a thorough discussion! I'm going through a similar situation right now and wanted to add one more consideration that might be helpful. If you're thinking about the timing of these changes, also consider how it might affect your tax withholdings and quarterly payments if either of you is self-employed or has other income. When we switched from my insurance to my husband's plan, the change in pre-tax premium deductions actually affected how much tax was being withheld from his paychecks. We ended up owing more at tax time than expected because less was being withheld due to the higher insurance premiums. It wasn't a huge deal, but it caught us off guard. When you do switch to filing separately in a couple years, you'll want to recalculate your withholdings anyway since the tax brackets and calculations change. The advice about getting everything in writing from HR is spot on. I'd also suggest asking specifically about what happens if your wife changes jobs while you're on her plan - some companies have different COBRA policies for spouses, and it's good to know your options ahead of time.

This has been such an informative thread! I'm dealing with a similar situation and wanted to share one additional resource that helped me understand the intersection of health insurance and tax filing changes. When I was researching this last year, I found the IRS Publication 969 (Health Savings Accounts and Other Tax-Favored Health Plans) really helpful for understanding how HSA rules work when you're married filing separately. It clarifies a lot of the contribution limit questions that have come up in this discussion. Also, if your wife's employer offers multiple plan options (like a high-deductible plan vs. traditional PPO), it's worth modeling how each would work with your future filing status plans. We discovered that choosing the HDHP option actually worked better for our tax situation when filing separately, even though the traditional plan looked better on paper initially. One last tip - many employers have benefits counselors or third-party administrators who can walk you through scenarios during open enrollment. They're often more knowledgeable about the tax implications than regular HR staff and can help you think through the timing of various changes. The consensus here is definitely correct though - your tax filing status won't affect your eligibility for spousal coverage. The bigger considerations are the financial optimization across all these moving pieces.

I had this exact same problem last month and it was driving me crazy! Turns out there were a few things that helped me get it working. First, make sure you're using the exact refund amount from line 35a of your 1040 (not what you actually expect to receive after any offsets). Second, try accessing the tool during off-peak hours - I found early morning or late evening works better. Third, if you're married filing jointly, make sure you're using the primary taxpayer's SSN. If none of that works, the IRS2Go app sometimes works when the website doesn't. Also, I know it's frustrating but sometimes waiting 24-48 hours and trying again helps because their system updates overnight. Hope this helps and you get it sorted out soon!

I feel your pain! I had this exact same issue a couple weeks ago and it was so frustrating. What finally worked for me was a combination of things: 1) Make sure you're using the EXACT refund amount from line 35a of your 1040 form (not what you expect after withholdings/payments), 2) Clear your browser cache completely and try using incognito/private browsing mode, 3) Try accessing it during off-peak hours like early morning (6-8 AM) when there's less traffic on their servers. Also, since your spouse's works fine, double-check that if you filed jointly, you're using the primary taxpayer's SSN (usually whoever is listed first on the return). The IRS system is notoriously glitchy but these steps helped me get through. If all else fails, the automated phone line at 1-800-829-1954 sometimes has info when the website won't cooperate. Hang in there!

This is such helpful information, everyone! I'm dealing with a similar situation and had no idea about the premium payment distinction. One thing I wanted to add - if you're still employed but on disability, check your paystubs carefully during the disability period. Sometimes employers continue certain deductions (like health insurance) but stop others (like disability premiums) while you're out on claim. This can actually affect the tax treatment if your premium payments were interrupted. Also, don't forget to check if your disability payments count toward your Social Security earnings record. Short-term disability usually doesn't, but some policies have provisions where a portion gets reported to SSA. This doesn't change the tax treatment but it's good to know for your future Social Security benefits calculation. Miguel, definitely call both your employer's benefits department AND the insurance companies directly. Get everything in writing about who paid what premiums and what tax forms you should expect. Better to over-document this stuff than scramble at tax time!

Miguel, I've been through a very similar situation and wanted to share what I learned. The key distinction everyone mentioned about who paid the premiums is absolutely correct, but there's one more thing to watch out for - make sure you get separate documentation for each policy. Since you have both the employer group policy AND the Colonial Life supplemental policy, you'll likely receive different tax forms (or no forms at all for the Colonial Life policy if you paid those premiums after-tax). The group policy payments will probably show up on a separate W-2 from your insurance company as "third-party sick pay" - don't be surprised if this comes weeks after your regular employer W-2. Also, keep in mind that if you return to work partway through a pay period, some insurance companies pro-rate the final disability payment, which can make the tax calculation a bit tricky. Document everything and don't hesitate to call the insurance companies directly if the tax forms don't match what you actually received. The manufacturing injury detail makes me wonder if there's any workers' comp involved too - definitely worth checking since those benefits are handled completely differently for tax purposes. Good luck getting everything sorted out!

Don't forget about the Qualified Business Income deduction (Section 199A)! If your tattoo shop is a sole proprietorship, you might qualify for up to a 20% deduction on your QBI. This is separate from your regular business expenses.

I've been through the exact same situation with my small business! One thing that really helped me was setting up a separate business savings account specifically for taxes. I automatically transfer 30% of each payment I receive into that account - it covers both the self-employment tax and income tax, plus gives me a small buffer. Also, make sure you're tracking EVERYTHING as a business expense - your business insurance, any professional memberships, bank fees for your business account, even the mileage when you go to buy supplies. Those small expenses really add up and can significantly reduce your taxable income. For next year, definitely start making quarterly estimated payments. The IRS has a safe harbor rule where if you pay 100% of last year's tax liability (110% if your income was over $150k), you won't owe penalties even if you end up owing more when you file. This gives you some peace of mind while you're figuring out your cash flow.