Has anyone else noticed that withholding seems super messed up lately? I claimed 0 dependents like OP but I'm still getting way less taken out than last year. I'm worried I'll owe a ton when I file.

Connor, you're definitely not overthinking this! Your approach is actually really smart - claiming 0 dependents on your W-4 will indeed maximize your withholding throughout the year, which often leads to a larger refund when you file. The key thing to remember is that your W-4 withholding and your actual tax return are two completely separate processes. Your W-4 is just telling your employer how much to withhold from each paycheck as an estimate, while your tax return reflects your actual tax situation for the year. Since you have the legal right to claim your son as a dependent for the 2025 tax year (based on your custody agreement), you can absolutely claim him when you file your return, regardless of what you put on your W-4. This might actually work out perfectly for you - you'll have extra tax withheld all year, then get credit for your dependent when you file, potentially resulting in a nice refund. Just make sure you keep good records of your custody arrangement and that you and your ex are crystal clear about who claims your son each year. Having it documented in your divorce decree is ideal. Good luck with the new job!

Just to add something that was glossed over - in the original example with $67M revenue, we're assuming that's net profit after expenses, right? Because revenue itself isn't what passes through to your personal return - it's net business profit after all legitimate business expenses. So if your S-Corp had $67M in revenue but $40M in legitimate business expenses, your actual pass-through income would be $27M, not $67M.

Great point about revenue vs. net profit! This is a crucial distinction that trips up a lot of S-Corp owners. In your $67M example, if we're talking about actual revenue, you'd first subtract all legitimate business expenses - salaries, rent, equipment, marketing, professional fees, etc. Let's say your actual net profit after expenses is $27M (as Kolton suggested). Then your $2.7M salary would be part of those business expenses, reducing your pass-through income to around $24.3M. You'd pay personal income tax on that $24.3M whether you distribute it or keep it in the business. The self-employment tax savings would be on the $24.3M in distributions rather than $64.3M, but that's still substantial - roughly $3.7M in self-employment tax savings vs. if you structured as a sole proprietorship. Also worth noting that with profits this large, you'd definitely want to work with a tax professional to ensure your salary meets the "reasonable compensation" requirements. The IRS scrutinizes S-Corps with high distributions relative to salaries, especially when we're talking about millions in pass-through income.

I went through this exact situation two years ago with my son's after-school sitter. She was adamant about not providing her SSN, and I was really stressed about potentially losing my refund. Here's what I learned: You absolutely can write "REFUSED" in the SSN field on Form 2441, and the IRS does understand this happens frequently. However, be prepared for your refund to be delayed - mine took about 6 weeks longer than usual to process because it triggered a manual review. The key thing is documentation. Keep everything - text messages about payments, your bank records showing cash withdrawals, calendar entries showing care dates, anything that proves you actually paid for legitimate childcare services. I also wrote a brief letter explaining the situation and attached it to my return, though I'm not sure if that helped or not. One thing that might work with your babysitter: explain that you're not reporting her to anyone or getting her in trouble. The IRS just needs to match up your claimed expenses with a real person/business. Maybe offer to show her the actual form so she can see it's just basic information, not some kind of investigation. But honestly? If she's being this difficult about basic tax requirements, you might want to start looking for a new childcare arrangement for next year. Most legitimate providers understand this is part of the deal when parents claim the credit.

I'm currently dealing with this same issue! My nanny has been watching my two kids for almost a year and I just realized I need her SSN for my taxes. When I brought it up, she got really defensive and said she "doesn't mix personal information with work." Reading through all these responses has been super helpful. I think I'm going to try the approach someone mentioned about showing her the IRS publication that explains it's a legal requirement. Maybe if she sees it's not just me being nosy, she'll be more understanding. The "REFUSED" option is good to know about as a backup plan. I was panicking thinking I'd lose the entire credit if I couldn't get her information. A 6-week delay isn't great but it's better than losing thousands of dollars in tax credits. Has anyone had luck offering to help their caregiver understand the tax implications on their end? Like maybe explaining that they can deduct business expenses or something? I'm wondering if her reluctance is coming from not understanding how to handle the income reporting rather than just being difficult.

I'm confused about one thing - if I get inventory through barter or trade (like I fix someone's computer and they give me items to sell in return), how do I value that for COGS? It's not exactly free but I didn't pay cash for it.

For what it's worth, I went through a similar situation with my small resale business. The key thing I learned is that proper documentation is everything, even when costs are minimal. I started keeping a simple log of every item I acquire - whether I paid $0, $5, or got it through trade. For each item, I note the date, description, source, and cost basis (even if $0). This creates a clear paper trail that shows you're being methodical about tracking inventory. What really helped me was setting up a basic system where I photograph items when I get them and keep digital receipts or notes about how they were acquired. When something is truly free, I document it as "gift from [source]" with $0 cost basis. The $275 you spent is actually significant enough that you definitely want to track it properly. Don't let the small amount fool you into thinking it's not worth doing correctly - the IRS cares more about proper reporting than the actual dollar amounts for small businesses.

23 What software are people using to file their 1099-NECs? I have about 15 to file from my SMLLC and don't want to do them manually.

Just to add another perspective here - I ran into this exact same issue with my SMLLC last year and ended up getting audited partly because I was inconsistent with how I handled the 1099s. The IRS examiner made it very clear that for 1099-NEC forms, you should use your LLC name and EIN as the payer, even though it's a disregarded entity. She explained that the "disregarded" status only applies to income tax reporting (where your LLC income flows through to your personal return), but NOT to information returns like 1099s. Think of it this way: your contractors worked for "Your LLC Name" not for you personally. That's the business entity they invoiced and that's what should appear on their 1099s. Using your personal name and SSN can create matching problems in the IRS system and potentially trigger notices for both you and your contractors. One tip: make sure your business bank account is also under the LLC name with the EIN. This creates a clean paper trail that matches your 1099 filings.