Just a heads up - if your parents are claiming you as a dependent, make sure you select the box that says "Someone can claim me as a dependent" on your federal W-4. This is super important! My son messed this up last year and it caused his withholding to be calculated incorrectly. The form assumes you're taking the standard deduction for a single independent person unless you check that box.

As someone who works in tax preparation, I want to emphasize something that might help clarify the confusion here. The W-4 form has two main purposes: 1) telling your employer your filing status and dependency situation, and 2) calculating how much federal income tax to withhold from each paycheck. For your specific situation as a part-time college student working 16 hours/week and claimed as a dependent, here's what you should do: 1. Make sure to check the box that says "Someone can claim me as a dependent" (as Miguel mentioned - this is crucial!) 2. Put "0.00" in the additional withholding amount box 3. Don't claim exempt from withholding unless you had zero tax liability last year AND expect zero this year The "0.00" doesn't mean zero taxes will be withheld - it means zero ADDITIONAL withholding beyond what the form calculates based on your pay and dependency status. Given your low hours and dependent status, this should result in appropriate withholding that covers any tax you might owe without taking too much from your small paychecks. If you end up working more hours (like summer full-time), you can always submit a new W-4 to adjust your withholding.

Quick question - I'm also a bandleader but I haven't been issuing 1099s because I thought we were all just splitting the income, not that I was paying them as contractors. Does it matter if the venue check is in my name but we just divide it up after the gig? Do I still need to do 1099s??

Just want to echo what others have said - you absolutely CAN issue 1099s as an individual! I went through this exact same situation with my photography side business a couple years ago. I was getting 1099s from wedding venues but paying assistants and second shooters throughout the year. One thing I learned the hard way: even though you're late on the 1099s, make sure you can still deduct those band member payments on your Schedule C for this tax year. The IRS doesn't require you to have issued 1099s to take the deduction - you just need to have proper records of the payments (bank statements, receipts, etc.). Also, don't stress too much about the penalties. For first-time filers who are clearly trying to do the right thing, the IRS is often more lenient than you'd expect, especially if you proactively file the late 1099s rather than waiting for them to come after you. Good luck!

Just wanted to add something that might help others in similar situations - when you're filling out your I-9 form for employment eligibility verification, that's completely separate from the tax ID discussion here. The I-9 is about proving you're authorized to work, while the W-4 form (where you provide your tax ID) is about tax withholding. I got these confused when I started my current job and was overthinking what documents I needed. Your employer will have you fill out both forms, but they serve different purposes. For the W-4, you'll use your SSN (or ITIN if applicable) as your tax ID, regardless of any business EINs you might have from past ventures. Hope that helps clear up another potential source of confusion for anyone going through the new employee paperwork process!

This is exactly the kind of confusion that trips up so many people! I went through something similar when I switched from freelancing back to regular employment. Just to reinforce what others have said - when an employer asks for your "tax ID" for a W-2 position, they're asking for your Social Security Number (SSN). That old EIN from your 2018 business is completely irrelevant for this situation, even though it does remain permanently associated with that business entity. The terminology can be really confusing because "tax ID" is such a generic term. Think of it this way: - Individuals use their SSN as their personal tax ID - Businesses use an EIN as their business tax ID - As a W-2 employee, you're being hired as an individual, not as a business Your new employer needs your SSN to properly report your wages to the IRS and Social Security Administration. Using the wrong number (like that old EIN) would create reporting problems and potentially mess up your Social Security earnings record. So go ahead and provide your SSN when they ask for your tax ID - that's exactly what they need for your W-2 employment!

Does anyone know if OP would have to pay the employer portion of payroll taxes too for 2023? That's an extra 7.65% the business would owe on top of the employee portion that would be withheld from their reasonable compensation, right?

I went through this exact situation last year and can share some practical insights. First, don't panic - late S corp elections are more common than you think and the IRS has established procedures for this. Here's what worked for me: I filed Form 2553 with a detailed reasonable cause statement explaining that as a first-time business owner, I misunderstood the filing deadline. The key is being honest and providing documentation of when you originally intended to make the election (emails to CPAs, research you did, etc.). For the payroll mess, yes you'll need to establish a reasonable salary and file quarterly 941s retroactively. I used a payroll service to help calculate everything properly - trying to do it manually was a nightmare. The penalties were significant but not business-ending, and I was able to get first-time penalty abatement on some of them. The math worked out in my favor - even with penalties, I saved about $4,000 in self-employment taxes compared to staying as an LLC. Just make sure you run the numbers before committing because every situation is different. One tip: when you submit your reasonable cause statement, be specific about your research efforts and include any documentation showing you were actively trying to comply. The IRS likes to see good faith effort, not just "I didn't know.

I'd echo what others have said about being cautious with that high refund estimate. As a tax preparer, I see this kind of confusion regularly when people use different AI tools or online calculators. The business equipment purchases you mentioned could definitely be a major factor here. Photography equipment often qualifies for immediate Section 179 deduction (up to $1,160,000 for 2023), which can dramatically reduce your taxable income. Combined with child tax credits and higher withholding, a large refund is definitely possible. However, AI tools frequently make errors with: - Business expense categorization (not all equipment qualifies for immediate deduction) - Income limits for various credits and deductions - Proper calculation of self-employment tax for business income - Phase-out thresholds for credits based on AGI Before you count on that $13,416, I'd strongly recommend: 1. Use established tax software (TurboTax, H&R Block, etc.) as a second opinion 2. Make sure you have all your business income and expense documentation organized 3. Consider consulting a CPA if your wife's business had significant income alongside the equipment purchases The good news is that if you do get a large legitimate refund, you'll know for next year to adjust your withholding so you're not overpaying throughout the year!

I've been following this discussion and want to add a few important points that haven't been covered yet. First, regarding your wife's photography business - the timing of when you purchased equipment versus when the business actually started operating can affect how you claim deductions. If equipment was purchased before the business was "active," you might need to depreciate it rather than take the full Section 179 deduction immediately. Also, be very careful about hobby vs. business classification. If the photography business shows losses for multiple years (especially with high equipment costs and low initial revenue), the IRS might classify it as a hobby rather than a legitimate business. This would disallow many of the deductions and could result in a much smaller refund than expected. The AI calculator might be assuming all equipment purchases qualify for immediate business deduction without considering these nuances. I'd strongly recommend keeping detailed records of: - When the business officially started - Business income and expenses by month - How the equipment is used (business vs. personal) Given the complexity with the new business, I'd actually recommend consulting with a tax professional rather than just using software. The cost of a CPA consultation could save you from potential issues with the IRS later, especially if that $13,416 refund triggers an audit. Better to get it right the first time than deal with amended returns or IRS questions down the road!