Don't forget about reasonable compensation requirements for S-corps! If you increase your W-2 just to get higher retirement contribution limits, make sure the salary still aligns with industry standards for your role. The IRS looks at this closely during audits of S-corps. I learned this the hard way when I tried to optimize my retirement contributions by bumping my salary way up one year. My accountant quickly shut that down and explained that my salary needs to be justifiable based on the services I provide to the business.

One more thing to consider - timing! If you're thinking about switching from SEP IRA to Solo 401k, remember that Solo 401k plans must be established by December 31st to make contributions for that tax year (though you can actually fund it until your tax filing deadline). SEP IRAs can be set up and funded all the way until your tax filing deadline (including extensions) for the previous year. This flexibility is one advantage SEPs have over Solo 401ks.

Be careful with income on line 11 - sometimes it can have foreign tax withholding associated with it that you can claim as a credit. My partnership K-1 had foreign interest income on line 11 last year and I almost missed claiming the foreign tax credit. Check if there's anything on line 16 about foreign taxes paid!

Great question! In addition to the excellent answers already provided, I'd like to mention a few more types of income that can show up on line 11: - Income from Real Estate Investment Trust (REIT) distributions that don't qualify as dividends - Gain/loss from mark-to-market elections on securities - Income from commodity futures contracts held as investments - Certain foreign currency gains/losses from investment activities - Income from credit default swaps and other derivative instruments One important tip: if you have significant amounts on line 11, especially from complex financial instruments, consider keeping detailed records of the source documents. The IRS may ask for additional information during an audit since this line often contains less common types of investment income. Also, don't forget to check if any of this income has associated expenses that might be deductible - sometimes partnerships will report the gross income on line 11 and related investment expenses elsewhere on the K-1.

Anyone know how far back the IRS keeps 1099 records? I'm missing some from 2020 and wonder if it's even possible to get them now.

Just went through this exact situation last year when I lost my 1099s from freelance work! The advice about contacting the companies first is spot on - that's definitely your fastest option. One thing I'd add is that your brother should also check if any of the companies that paid him used payment platforms like PayPal, Stripe, or Square. These platforms often have year-end tax documents available in your account dashboard that you can download as PDFs. I was able to get 3 out of 5 missing forms this way. Also, if he's really stressed about the deadline, filing for an extension buys him time to get everything sorted properly. Better to file accurately late than to rush and make mistakes that could trigger an audit later. The penalty for late filing is usually much less scary than people think, especially if he ends up owing little or getting a refund. Hope this helps ease some of his anxiety - it's really not as catastrophic as it feels in the moment!

Check your bank account. Not TurboTax. TurboTax doesn't send refunds. IRS does. Payment completed means TurboTax got paid. Nothing more. Use the IRS2Go app instead. More accurate. Updates more frequently too. Been there before. Wasted time checking TurboTax.

This confusion happens every tax season! "Payment Completed" in TurboTax literally just means they successfully charged you for their tax prep service - it has zero connection to your actual IRS refund status. Think of it this way: TurboTax is like a middleman who prepared your paperwork and submitted it. Once they get paid and file your return, their job is done and their system shows "payment completed." Your actual refund comes directly from the IRS treasury, not TurboTax. The IRS Where's My Refund tool showing only the first bar means they received your return but haven't finished processing it yet. Given you filed in early February and it's now March, you're well within normal processing times. The IRS has been taking 6-8 weeks for most returns this year. Stop checking TurboTax for refund updates - they literally don't have that information after they submit your return!

Did nobody mention that if you use your car for business, you might be able to deduct a portion of the sales tax as a business expense on Schedule C rather than as an itemized deduction? That's what my tax guy told me. Might be worth looking into if you're self-employed or have a side gig.

Great to see you got your answer Benjamin! Just want to add one more thing that might help you and others - when you're using the IRS sales tax calculator, make sure you have your AGI (Adjusted Gross Income) handy since that's one of the inputs it needs. Also, the calculator will ask about your state - some states don't have sales tax (like Delaware, Montana, New Hampshire, Oregon) so if you bought your car in one of those states, you obviously wouldn't have sales tax to deduct. One other tip: if you moved states during the year, you can still claim sales tax from purchases made in both states. The calculator handles multi-state situations pretty well. Good luck with your return!