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.

This is a great question and I can see why it's confusing! I went through something very similar with my dental practice setup. One crucial thing to double-check is the timing for 2024 tax benefits. While the plan needs to be established by December 31, 2024, you actually have until your S Corp's tax filing deadline (including extensions, so potentially October 15, 2025) to make the actual contributions and still get the 2024 tax deduction. Also, don't feel embarrassed about asking your accountant again! This stuff is genuinely complex, and even tax professionals sometimes need to research the specifics. I'd recommend framing it as "I want to make sure I understand the implementation steps correctly" rather than asking for the explanation again. One practical tip: when you do set this up, make sure your S Corp payroll system can handle the timing of the profit sharing contributions. Some payroll providers need advance notice to process these correctly, especially if you're making the contribution near the filing deadline. I learned this the hard way when my payroll company needed three weeks to set up the proper coding! The separate entity approach really does work well for situations like yours - it gives you much more control over your retirement planning without getting tangled up in the LLC's existing arrangements.

This is such a helpful discussion! I'm actually an enrolled agent who works with a lot of medical professionals in similar situations, and I wanted to add a few key points that might help clarify things: First, regarding the controlled group rules that several people mentioned - this is absolutely critical to get right. Since your husband has 50% ownership in the LLC through his S Corp, you'll definitely need to consider the aggregation rules for contribution limits. The good news is that profit sharing contributions are calculated separately from 401(k) deferrals, but the total combined contributions across all plans are still subject to the annual limits. Second, I'd strongly recommend getting a formal plan document review before implementing anything. While the concept is straightforward (S Corp establishes profit sharing plan for its employee), the execution involves specific language around eligibility, vesting schedules, and distribution rules that need to comply with ERISA requirements. One thing I haven't seen mentioned is the potential impact on your husband's Social Security benefits calculation. Since profit sharing contributions reduce current W-2 income, there could be a long-term trade-off between current tax savings and future Social Security benefits. For most people the current tax savings win out, but it's worth considering especially for younger professionals. Also, make sure to factor in the ongoing administrative costs - annual Form 5500 filing, potential audits if assets exceed $250k, and TPA fees. These costs are usually worth it for the tax savings, but good to budget for them upfront. Feel free to reach out if you need any clarification on the compliance aspects!

Great question about supplemental property taxes! I went through this exact same confusion when I bought my home two years ago. Here's what I learned: Yes, supplemental property taxes are generally deductible just like regular property taxes, but there are a few key things to keep in mind: 1. **You can only deduct them if you itemize** - They go on Schedule A along with your other property taxes. 2. **SALT cap applies** - As others mentioned, you're limited to $10,000 total for state and local taxes (including property taxes and state income tax). 3. **Timing matters** - You deduct them in the year you actually paid them, not when they were assessed. 4. **Check your escrow** - Make sure to coordinate with your mortgage company. They might need to adjust your escrow account going forward. For your specific situation about whether to itemize vs. take the standard deduction, you'll want to add up ALL your potential itemized deductions (property taxes, mortgage interest, charitable donations, etc.) and compare that to the standard deduction ($13,850 for single filers, $27,700 for married filing jointly in 2023). The supplemental bill alone might not be enough to make itemizing worthwhile, but combined with your mortgage interest and other deductions, it could push you over the threshold. I'd recommend using tax software or consulting a tax professional to run both scenarios and see which gives you the better result.

Just wanted to add another important consideration that hasn't been mentioned yet - if you're planning to refinance or sell your home within the next few years, keep copies of all your supplemental property tax documentation! I learned this the hard way when refinancing. The lender wanted to see the complete property tax history to properly calculate my new escrow payments, and I had to scramble to get copies of my supplemental bills from two years prior. Having everything organized made the process much smoother the second time around. Also, if you're using a tax preparer, make sure to bring both your regular property tax statement AND the supplemental bill. Some preparers aren't as familiar with supplemental assessments and might miss including it in your deductions. I caught this mistake with my first preparer and it would have cost me about $400 in additional taxes. One last tip - if your supplemental bill seems unusually high compared to what you expected based on your purchase price, you have the right to appeal the assessment in most states. The deadline is usually pretty tight (often 60-90 days), so don't wait if you think there's an error!