Anyone else notice that FreeTaxUSA seems to have more server issues every year? I've been using them for 3 years now and the first year was flawless, last year had occasional hiccups, but this year has been really frustrating with these login problems. Makes me wonder if they're growing too fast for their infrastructure or something.

I had the exact same issue last night! Started trying to log in around 9 PM and kept getting that "Process Failure" message. What worked for me was switching to incognito/private browsing mode and trying again. Got in on the second attempt that way. I think it has something to do with how their servers handle session cookies during high traffic periods. The private browsing bypasses any cached authentication data that might be causing conflicts. Definitely frustrating when you're trying to get your taxes done, but at least there are workarounds while they sort out their server capacity issues. Glad you finally got through! The site has been pretty solid for me in previous years, so hopefully this is just temporary growing pains as more people discover how much money they can save compared to the big-name tax software.

Has anyone successfully imported K-1s directly into FreeTaxUSA? I know TurboTax has that feature where you can sometimes import partnership K-1s directly if the partnership uses certain accounting software, but I can't figure out if FreeTaxUSA supports this or if manual entry is the only option.

I've been dealing with K-1s from mineral rights partnerships for the past few years in FreeTaxUSA, and I can confirm what others have said about the workflow being different from TurboTax. One tip that really helped me: before you start entering the K-1 data, have your actual form in front of you and go through it line by line to identify which boxes have entries. FreeTaxUSA's interview process jumps around more than TurboTax did. For your $178 in Box 7 royalties, make sure you're not accidentally entering it twice - I made that mistake my first year switching over. Enter it once in the portfolio income section when prompted about royalties, and FreeTaxUSA will handle putting it on the right schedule. The software is actually quite good once you get used to the flow, it's just organized differently than what we're used to from the bigger tax prep companies. Also, keep all your K-1 documentation handy because FreeTaxUSA will ask for the partnership's EIN and address multiple times throughout the process for verification purposes.

As someone who went through a similar situation with my S-Corp, I'd echo the concerns others have raised about your $24k salary. That seems dangerously low given the cash accumulation in your business account. Here's my practical suggestion: Before moving any money, work with a CPA to determine what your reasonable salary should actually be. In my case, I was underpaying myself by about $40k annually, which created problems when I tried to take large distributions later. Once you've adjusted your salary to a defensible level, you have a few good options: 1. **Business HYSA** - This is probably your safest bet. Many banks offer business savings accounts with competitive rates (often matching personal account rates). You keep proper separation while earning interest. 2. **Gradual distributions** - If you do want to move money personally, consider spreading it over 2-3 years rather than one large transfer. This helps with tax planning and looks less suspicious. 3. **Document everything** - Whatever you do, make sure it's properly recorded in your corporate minutes with clear business justification. The key is getting your salary right first. The IRS looks at the total compensation picture, and a $24k salary with $350k in business cash is going to raise eyebrows. Fix the salary issue, then you'll have much more flexibility with the excess cash without audit risk.

Based on everyone's advice here, it sounds like you have two main issues to address before moving that money anywhere: **First, your salary is almost certainly too low.** Multiple people have pointed out that $24k annually with $350k sitting in business cash is a red flag for the IRS. I'd recommend getting a CPA consultation specifically focused on determining reasonable compensation for your role. This should be your first priority. **Second, for the excess cash earning interest:** The business HYSA route seems like your safest bet. You avoid any distribution complications, maintain proper business/personal separation, and still earn competitive interest rates. Most major banks offer business savings accounts with rates comparable to their personal offerings. If you do eventually decide on distributions after fixing your salary, the advice about spreading them across tax years and documenting everything properly is solid. But honestly, given the potential audit risks everyone's mentioned, keeping the money in a business account while earning 4%+ interest seems like the path of least resistance. Have you looked into what business HYSA options are available at your current bank? That might be the simplest starting point while you work with a CPA on the salary adjustment.

Based on my experience dealing with a similar situation, you should be fine tax-wise. As a co-signer, you're already legally obligated for the full debt amount, so paying it off is fulfilling your existing legal responsibility rather than making a gift to your nephew. The key is documentation - make sure you pay the loan servicer directly rather than giving money to your nephew. Keep copies of your original co-signer agreement and the payoff transaction. This creates a clear paper trail showing you paid as the legally responsible party. One thing to consider: since your nephew has been making payments so far, you might want to create a simple written memo for your records explaining that you're paying off the remaining balance as the co-signer due to his financial hardship. This helps establish your intent if the IRS ever questions the transaction. The $24,500 amount exceeding the annual gift exclusion shouldn't matter here since this isn't a gift - it's debt satisfaction by a legally obligated party. Just make sure all payments go directly to the loan servicer to keep everything clean and documented.

I've been through this exact situation with my daughter's graduate school loans. The consensus here is correct - as a co-signer, you're legally obligated for the debt, so paying it off isn't considered a gift for tax purposes. One additional point I'd emphasize: consider having a brief conversation with your nephew about this decision beforehand. Even though it's legally your obligation, it can help family relationships if he understands you're doing this as the co-signer fulfilling your legal responsibility rather than as a gift. This also creates another layer of documentation of your intent. Also, ask the loan servicer for a letter confirming the payoff was made by you as the co-signer. Some servicers will provide this documentation, which can be helpful for your records. The letter should show your name, your role as co-signer, and that you satisfied the debt obligation directly. The $24,500 amount is definitely manageable from a tax perspective since you're not making a gift. Just make sure everything flows directly between you and the loan servicer, and keep all the documentation organized in case you ever need to reference it years down the line.

Something important nobody mentioned yet - if you're getting a tax refund for this year and file for bankruptcy, the trustee can take that refund and distribute it to creditors! I lost a $3,200 refund I was counting on when I filed Chapter 7 last year. Talk to your lawyer about timing if you're expecting a refund.

Don't forget that filing bankruptcy triggers a tax audit almost automatically. The IRS gets notified of all bankruptcy filings and often reviews unfiled returns or suspicious items. Make SURE you've filed all required tax returns before starting bankruptcy!