I went through this EXACT situation last year with a different broker. Yes, you absolutely must report the capital gains on your taxes - no way around that unfortunately. But here's what worked for me to finally get my money: I sent a certified letter to their corporate headquarters (not just emailing support) stating that I would be filing complaints with FINRA, the SEC, the Consumer Financial Protection Bureau, and my state's attorney general if the issue wasn't resolved within 15 business days. I cited specific regulations about client fund access and mentioned potential small claims court action. Got a call from their executive resolution team 3 days later and had my funds within a week. Sometimes you gotta make noise at the right level!

I'm dealing with a similar situation right now with a different broker, and this thread has been incredibly helpful! Just wanted to add that if you do end up filing regulatory complaints, make sure to keep copies of everything and document all your communications with timestamps. One thing I learned from my situation is that when you're paying taxes on gains you can't access, it's worth consulting with a tax professional about whether you can claim any deductions related to the costs of trying to recover your funds - things like certified mail, legal consultation fees, etc. These might be deductible as miscellaneous expenses depending on your situation. Also, some states have additional investor protection programs beyond the federal regulators. Check if your state has a securities division that handles investor complaints - sometimes having complaints filed at both state and federal levels creates more pressure for resolution. Hope you get this sorted out soon! The tax situation is frustrating enough without having to deal with unresponsive customer service on top of it.

I made $112k last year and my effective tax rate was only about 18% after deductions, nowhere near the 24% bracket rate. Don't get too hung up on the bracket percentage - your actual tax rate will be much lower than that highest bracket percentage. Plus, definitely negotiate for more! Your new employer expects it, and the worst they can say is no. I always ask for 10-15% more than their initial offer and have usually gotten at least part of that.

Congratulations on the job offer! I went through a similar situation when I jumped from $85k to $115k about two years ago. I was terrified about the tax implications but it turned out to be much less scary than I thought. Everyone here is absolutely right about marginal tax rates - you only pay the higher percentage on the income above each threshold. In your case, going from $89k to $110k means only about $14,700 of your income will be taxed at 24% instead of 22%. That's literally just an extra $294 per year in federal taxes (2% of $14,700). When you factor in that you're getting a $21,000 raise, paying an extra $294 in taxes is pretty insignificant. You'll still be taking home significantly more money each month. One thing I wish I had done earlier was updating my W-4 with the new employer to account for the higher income. I ended up owing a bit at tax time because my withholdings weren't quite right for the new bracket. Definitely worth filling out a new W-4 accurately when you start! Take the job - the financial benefits far outweigh the modest tax increase!

The "family glitch" might also apply to your situation. If your employer offers affordable coverage for just YOU but not for your family, you alone would be ineligible for premium tax credits, but your family members might still qualify for them on the marketplace. This rule was updated recently, so if you have family members on your marketplace plan, make sure to look into this specifically!

Yes, this is a really important point that many people miss! The "family glitch" fix that went into effect recently addresses exactly this situation. If your employer's family coverage costs more than 9.12% of your household income (even if your individual coverage is affordable), then your family members can qualify for premium tax credits on the marketplace. So in your example with $300/month for you and $1200/month for family coverage - if that family premium exceeds the affordability threshold based on your income, your wife and kids could potentially get subsidized marketplace coverage while you take the employer plan. You'd need to calculate whether $1200/month is more than 9.12% of your annual household income. This is definitely worth investigating if you have family members, as it could save thousands per year in premiums while keeping everyone properly covered without tax penalties.

As an S-Corp owner for 6 years I'll give u the real talk no bs. S-Corp is worth it IF: - ur making at least 80-100k profit - can handle extra paperwork/costs - willing to run payroll (even if just for urself) - dont need all the money each month (gotta leave some in biz) LLC is better if: - simpler operations/lower income - need all the money each month - hate paperwork - just starting out the mistake I see peeps make is jumping to s-corp too early when profits dont justify the hassle. start LLC then convert later!!

Great question, Luca! I went through this exact decision process about 2 years ago as a freelance graphic designer working similar contract arrangements. One thing I'd add to the excellent advice already given - definitely talk to your staffing agency (TechTalent) about how they handle contractor vs. business entity payments. Some agencies prefer working with individual contractors for simplicity, while others are totally fine invoicing your LLC or S-Corp. A few agencies I've worked with actually preferred the business entity route because it made their 1099 reporting cleaner. Also, regarding timing - if you do decide to form an entity before Dec 31st, make sure you understand the prorated tax implications. You'll need to start treating income differently from the formation date forward, which can complicate your 2024 filing if you're switching mid-year. One practical tip: Start tracking ALL your potential business expenses NOW (home office, equipment, software, internet, phone, professional development, etc.) regardless of which entity you choose. I was surprised how much I was spending on legitimate business costs that I wasn't even thinking about deducting. Having 2-3 months of detailed expense tracking will help you make a more informed decision about whether the tax benefits justify the entity costs. The $80-100k profit threshold mentioned by Jamal is pretty spot-on in my experience. Below that, the administrative burden often isn't worth the SE tax savings.

Dumb question maybe but does this work for USDA or VA mortgage insurance too? Or is it just FHA? I have a VA loan with funding fee.

Great discussion here! I've been using the regular method for my home office deductions for the past year and can confirm that the FHA mortgage insurance is definitely deductible as a business expense. I use about 18% of my home for my consulting business. One thing I'd add that hasn't been mentioned - make sure you're consistent with your percentage calculations across all your home office expenses. I use the same 18% for my mortgage interest, property taxes, utilities, homeowners insurance, AND the FHA mortgage insurance. The IRS wants to see consistency in how you calculate your business use percentage. Also, keep in mind that if you ever stop using that space exclusively for business, you'll need to adjust your deductions accordingly. I learned this the hard way when I temporarily converted part of my office into a guest room last year and had to recalculate everything mid-year. The documentation tips from Diego are spot-on too. I keep a dedicated folder with photos, measurements, and all the calculations just in case.