Something no one's mentioned yet - make sure you're taking advantage of all your photography business deductions to lower your taxable income in the first place! Equipment, studio space (even home office), software subscriptions, website costs, travel to shoots, professional development courses, etc. The less profit you show, the less you'll owe in quarterly payments.

One thing that helped me when I was starting out - consider making your quarterly payments slightly higher than the minimum required if your cash flow allows it. I know it sounds counterintuitive when money is tight, but hear me out. If your business grows throughout the year (which hopefully it will!), you'll avoid underpayment penalties and won't get hit with a massive tax bill in April. Plus, any overpayment gets refunded or can be applied to next year's taxes. I learned this the hard way when my freelance income doubled mid-year and I suddenly owed way more than expected. The safe harbor rule (paying 100% of last year's tax or 110% if your AGI was over $150k) can be a lifesaver for new businesses with unpredictable income.

Hey Benjamin! I totally understand your confusion - I went through the exact same thing last year with my Schwab account. The "basis not reported to IRS" checkbox with all zeros had me panicking that I was going to get audited or something. After doing a ton of research and even talking to a tax professional, I learned that this is incredibly common. Brokers are required to send you a 1099-B even if there was no taxable activity in your account. The "basis not reported" box is just their way of covering themselves legally - it doesn't mean anything suspicious happened. Your TurboTax is definitely handling this correctly. When all the dollar amounts are zero, there's literally no gain or loss to report, so no taxes owed. The software recognizes these as "placeholder" forms that don't affect your tax liability. Don't stress about tax fraud - you're doing everything right by entering the form exactly as it appears. The IRS sees millions of these zero-value 1099-B forms every year and they're completely normal. You're being a responsible taxpayer by double-checking, but you can rest easy knowing your return is accurate!

I've been following this thread and wanted to add my perspective as someone who's dealt with these confusing 1099-B forms for several years now. The consensus here is absolutely correct - when you see "basis not reported to IRS" with all $0 values, it's typically just a placeholder form that brokers are required to send. One thing I'd add is that you should keep a copy of this form with your tax records even though it doesn't affect your current return. If you have securities in that account that you eventually sell in future years, having this documentation can help establish a paper trail showing when the "basis not reported" designation first appeared for those holdings. Also, don't be surprised if you get similar forms in future years if you continue holding the same securities. Some of my older stock purchases (from before 2011 when basis reporting rules changed) generate these placeholder 1099-B forms annually even when I don't trade them. It's just part of the broker's compliance process. Your instinct to double-check was smart, but you can definitely trust TurboTax on this one. These software programs have seen millions of these exact scenarios and handle them correctly.

As someone who's been using SBTPG for several years now, I can confirm the 2-3 day pattern most people are describing. What I've found helpful is understanding that there are actually three distinct phases: 1) IRS processes your refund and shows DDD on transcript, 2) SBTPG receives funds and updates to "funded" status (usually 1-2 days after DDD), and 3) SBTPG transfers to your bank account (another 1-2 days). The total timeline from transcript DDD to money in your account is typically 3-4 business days. For business planning purposes, I'd recommend budgeting for the longer end of that range to avoid cash flow issues. One tip: SBTPG usually updates their status overnight, so checking first thing in the morning tends to be more productive than checking throughout the day.

As a newcomer to this whole SBTPG process, I'm really grateful for all the detailed responses here! I've been stressing about the timeline since my DDD just appeared on my transcript yesterday. Based on what everyone's sharing, it sounds like the 2-3 day pattern from DDD to SBTPG showing "funded" is pretty consistent. @Harmony Love, I totally understand your frustration with the uncertainty for business planning - I'm in a similar boat needing to know when funds will actually be available. The three-phase breakdown that @Fidel Carson provided is super helpful for understanding why there are multiple waiting periods. It seems like patience is key here, and planning for the longer end of the timeline (3-4 business days total) is the smart approach. Thanks everyone for sharing your experiences!

I've been through a similar conversion situation and wanted to share a few additional considerations that might be helpful. One thing that caught me off guard was the quarterly estimated tax planning aspect. Even with $0 starting basis, once your S-Corp starts generating income, you'll owe taxes on that pass-through income regardless of whether you can take distributions. I'd recommend setting up a system early to track your quarterly tax obligations separately from your basis tracking. In my first year, I made the mistake of using business profits to pay down debt without setting aside enough for estimated taxes, which created a cash flow crunch at year-end. Also, regarding the business credit card debt - make sure you understand how the interest and fees on that debt are treated for tax purposes after conversion. Since it's pre-conversion debt, the interest remains deductible as a business expense, but you'll want to keep clean records showing these were legitimate business expenses from before the S-election date. One practical tip: consider opening a separate "tax reserve" account where you automatically transfer a percentage of any S-Corp profits. This helps avoid the temptation to use that money for debt payments or operations when tax time comes around. I use about 30% as a safe margin, but your specific rate will depend on your overall tax situation. The basis tracking gets much easier after the first year once you establish good systems and habits. Hang in there - the complexity is frontloaded but becomes routine with time!

I'm in a very similar situation and this discussion has been incredibly enlightening! I converted my SMLLC to S-Corp status in January 2024 with about $45,000 in business debt against $18,000 in assets, so I'm also starting with $0 basis. One thing I've learned from my accountant that might be helpful - if you're planning to take any salary from the S-Corp (which you're required to do if you're actively working in the business), make sure you understand how payroll taxes interact with your basis situation. The salary you pay yourself doesn't affect your stock basis, but it does reduce the company's profits that would otherwise flow through and increase your basis. I've also found it helpful to create a simple monthly checklist to stay on top of the S-Corp requirements: updating basis tracking, reviewing guarantee documentation, calculating estimated tax reserves, and ensuring I'm maintaining proper corporate formalities. The administrative overhead is definitely more than an SMLLC, but having a systematic approach makes it manageable. For anyone considering the capital contribution route mentioned earlier, one timing consideration is that if you make the contribution early in the year, it gives you more flexibility for distributions later if the business performs better than expected. I'm planning a modest contribution in Q2 to create some positive basis cushion. The complexity seems overwhelming at first, but reading through everyone's experiences here gives me confidence that it's very manageable once you establish good systems. Thanks to everyone for sharing such detailed, practical advice!

This is such a helpful thread! I'm starting as a cocktail server at a casino next month and had similar concerns about GITCA. Reading everyone's experiences really puts my mind at ease that it's a legitimate program. One question I haven't seen addressed - does GITCA affect how much tax is withheld from my regular paychecks? I'm wondering if I should adjust my W-4 withholdings or if the casino automatically handles the tax withholding on the allocated tip amounts. I want to make sure I don't end up owing a bunch at tax time or getting a huge refund because my withholdings were off. Also, does anyone know if GITCA rates vary significantly between different casinos, or are they pretty standardized across the industry for similar positions?

Just wanted to jump in as someone who's been through this exact situation! I started at a tribal casino about 18 months ago and had the same concerns about GITCA sounding "too good to be true." What really helped me understand it was realizing that GITCA isn't about avoiding taxes - you still pay the same amount of taxes on your tip income. It's more like having the IRS pre-approve a reasonable estimate of what someone in your position typically earns in tips, so you don't have to prove every single dollar you made. The "won't be audited" part your manager mentioned is a bit of an oversimplification. You're protected from tip-specific audits as long as you're reporting at the agreed GITCA rates, but you could still potentially be audited for other reasons (like if you have other income sources or tax situations that raise flags). I'd definitely recommend asking your payroll department for a written explanation of how GITCA works at your specific casino, including what the allocated rates are for your position. That way you can make an informed decision and understand exactly what you're signing up for. The peace of mind and simplified record-keeping has been totally worth it for me!