As someone who went through this exact decision last year, I'd strongly recommend talking to a tax professional before making this choice. The LLC route seems appealing but can get you into hot water if the IRS determines the work is primarily personal rather than business-related. Here's what I learned: If you go the household employee route, make sure you're prepared for the administrative burden. You'll need to: - Get an EIN for household employment - File Schedule H with your tax return - Pay quarterly estimated taxes for the employer portion of Social Security/Medicare - Provide W-2s and handle year-end reporting - Potentially get workers' comp insurance (varies by state) The Child and Dependent Care Credit can be substantial though - up to 35% of qualifying expenses depending on your income, with a maximum of $3,000 for one child or $6,000 for two or more. One thing that helped me decide: I calculated the total cost of each option including all taxes, insurance, and administrative costs. The household employee route ended up being more expensive upfront but provided better long-term tax benefits and fewer audit risks. Whatever you choose, keep meticulous records. The IRS scrutinizes both household employment and business expense deductions involving childcare very carefully.

Great question about the EIN! Yes, you'll need a separate EIN specifically for household employment - it's different from your business EIN. You can apply for it online at the IRS website and it's free (don't pay third-party services for this). For payroll services, there are several that specialize in household employees and can handle all the administrative headaches: - HomePay by Care.com - probably the most well-known, handles everything from payroll to tax filings - Poppins Payroll - focuses specifically on nannies and household staff - Breedlove & Associates - been around forever, very thorough - SurePayroll - has a specific household employee service These services typically cost $200-500 per year but can save you tons of time and stress with quarterly filings, W-2s, and making sure you're compliant with all the employment tax requirements. They'll also calculate exactly what you need to pay in estimated taxes each quarter. The peace of mind is worth it IMO - one mistake on Schedule H or missing a quarterly payment can result in penalties that quickly exceed what you'd pay for a service. Plus they stay updated on changing regulations so you don't have to.

I'm dealing with this exact same issue right now! My DDD was 2/21 and it's now March 9th with no deposit from First Horizon. I've called three times and gotten completely different stories each time - first they said no deposit was pending, then they said it was "processing," and yesterday they claimed the IRS hadn't sent it yet. But when I called the IRS, they confirmed the funds were sent on 2/21 as scheduled. This is my first year banking with First Horizon and I'm already regretting the switch. The fact that multiple people here are reporting the same 3-5 day hold pattern makes it clear this is their standard practice, not an exception. I'm going to try calling their ACH department tomorrow and if that doesn't work, I'll definitely look into filing a CFPB complaint. It's ridiculous that we have to jump through all these hoops just to access our own money! 😤

I've been following this thread closely as I'm experiencing the EXACT same issue with First Horizon. My DDD was 2/20 and still nothing as of today (3/9). What's particularly frustrating is the inconsistent information from their customer service - I've been told everything from "we don't see any pending deposits" to "it's being processed" to "the IRS hasn't sent it yet." After reading everyone's experiences here, it's clear First Horizon has a deliberate policy of holding tax refunds for 3-5 business days beyond the DDD, despite their marketing about "fast access to funds." This seems like a classic case of banks using our money as a short-term interest-free loan. I'm planning to take action on multiple fronts based on the advice shared here: 1. Call their ACH department directly (does anyone have that number?) 2. Request written documentation of their hold policy 3. File a CFPB complaint citing the specific Treasury regulations mentioned 4. Get IRS documentation of the exact send date to counter their "we haven't received it" claims Has anyone successfully gotten First Horizon to admit to this hold policy in writing? That would be incredibly valuable for a CFPB complaint. Also, for those who switched banks after this experience - which institution did you move to that actually processes tax refunds promptly? This thread has been more helpful than hours of calling their customer service. Thank you all for sharing your experiences! 🙏

One more thing to watch for - some companies do "sell to cover" where they sell just enough shares at vesting to cover the tax withholding. If this happened, you'll need to account for that too when figuring out your basis. Your W2 shows the full value of all vested shares, but you may only have received/sold a portion of them. I literally spent hours figuring this out last year because my company statement showed 100 RSUs vested but only 65 were actually deposited to my brokerage account (the rest were sold for taxes). Made my 1099-B super confusing until I figured out what happened.

This is such a helpful thread! I'm dealing with my first RSU situation too and was completely overwhelmed by all the forms. One question I have - when you're entering the adjusted basis on Form 8949, do you need any special documentation beyond your W2 and 1099-B to prove the basis adjustment? I'm worried about having proper backup in case the IRS questions it later. My company's HR department wasn't very helpful when I asked them about the tax reporting details.

Great question about partnership draws! I've been through this exact situation with my own startup partnership. One thing to keep in mind beyond the excellent advice already given is timing. Even though your $15k draw from your $50k contribution won't be taxable income, you'll want to make sure your partnership agreement clearly addresses how distributions are handled, especially if you and your partner have different contribution amounts or ownership percentages. Also, consider the cash flow impact on your business - taking draws when there are no profits means less working capital for operations. You might want to structure this as a formal loan to the partnership instead, which could give you more flexibility and potentially some interest income down the road when the business becomes profitable. The key sections of the tax code to reference are IRC Section 731 (treatment of distributions) and Section 705 (partner's distributive share). Your K-1 will show the distribution as a reduction in your capital account, not as income.

Just want to add a practical tip from someone who's been through this exact scenario - make sure you document everything properly! Even though your $15k draw from your $50k contribution should be straightforward tax-wise, you'll want clear records showing: 1. Your original capital contributions ($50k) 2. The distribution amount and date ($15k) 3. Your remaining capital account balance I learned this the hard way when my partnership got audited a few years later. The IRS wanted to see a clear paper trail showing that distributions were properly tracked against each partner's basis. A simple spreadsheet tracking each partner's capital account movements (contributions, distributions, allocated income/losses) will save you headaches down the road. Also, since you mentioned your accountant is on vacation, consider having your partnership formally document this distribution in your meeting minutes or a simple partnership resolution. It doesn't need to be fancy, but having it in writing shows you're treating the business professionally and following proper procedures. The tax code sections others mentioned (731 and 705) are spot on, but good documentation is what will actually protect you if questions arise later!

Not an expert but my transcript looked similar last year. Turned out I had credits that covered most of what I thought I owed. Don't panic yet!

Hey Zoe! Based on what you're describing, this actually sounds like good news for you! That "Statement Showing Interest Income" means the IRS paid YOU interest - likely on a refund you received. When they owe you money and it takes time to process, they pay interest on that amount. The $46.79 is taxable income you need to report on your next tax return, but it's money that was paid TO you, not something you owe. The statement even says "THIS IS NOT A TAX BILL" and explains it shows interest paid to you. So breathe easy - you're not owing money here, you actually received interest income that you'll just need to include on your 2024 tax return!