I had this exact same confusion when I first started getting dividend income! It's totally normal to be puzzled by this. What everyone else has explained is spot on - when your qualified dividends ($110.42) equal your ordinary dividends ($110.42), it means ALL of your dividends met the IRS requirements for qualified dividend status. This is actually fantastic news for your tax situation! You'll report $110.42 on both line 3a and 3b of your 1040, and the entire amount will be taxed at the much lower capital gains rates instead of your regular income tax rates. You're not reporting the same income twice - think of line 3a as "total dividends received" and line 3b as "how much of that total gets the special tax treatment." In your case, 100% gets the special treatment!

I was in the exact same boat as you last year! Got my 1099 and saw $847.33 in both boxes and thought my brokerage made a mistake. Turns out it's totally normal when you're invested in solid dividend-paying stocks. The key thing to remember is that qualified dividends have to meet certain criteria - mainly that you held the stock for more than 60 days during the required holding period. Most established US companies and many foreign companies on major exchanges qualify. When all your holdings meet these requirements, you get 100% qualified dividend treatment, which is why both numbers match. You definitely want to put the same amount ($110.42) in both line 3a and 3b - that's exactly what the IRS expects to see in your situation. You're getting the best possible tax treatment on your dividend income!

I'm dealing with a very similar situation right now! Inherited my grandmother's IRA in 2021 and just discovered I've been missing RMDs. Reading through everyone's experiences here has been incredibly helpful. One thing I wanted to add - when I called my IRA custodian (Fidelity), they were actually pretty helpful in calculating what my missed RMDs should have been for each year. They have worksheets and can walk you through the calculations based on your account balance and the IRS life expectancy tables. Also, something to keep in mind - if you're taking multiple years of RMDs all at once in 2024, you might want to consider spreading the withdrawals across a few months rather than taking it all in one lump sum. It won't change the tax implications, but it might help with managing the cash flow and any potential investment timing issues. The penalty waiver route seems to be working for people, especially given all the confusion around the SECURE Act changes. I'm planning to file Form 5329 for each missed year once I take my distributions.

One thing I'd add to all the great advice here is to be careful about the timing of when you take these missed distributions. Since you're taking multiple years' worth of RMDs all at once in 2024, this could potentially push you into a higher tax bracket for the year. You might want to consider doing some basic tax planning first - maybe run the numbers to see if it makes sense to take some distributions in December 2024 and the rest in January 2025 to spread the tax impact across two years. Obviously you want to get compliant as soon as possible, but a few weeks of timing difference could potentially save you significant money if it keeps you out of a higher bracket. Also, don't forget that you can have taxes withheld directly from the IRA distributions to help cover the tax bill. Most custodians can set this up easily when you request the withdrawals. Given that you'll likely owe more taxes than usual this year, having some withheld upfront can help avoid an underpayment penalty. The penalty waiver approach definitely seems to be the way to go based on what others have shared. The IRS has been pretty reasonable about these inherited IRA situations given all the rule changes.

I'm dealing with a very similar situation with my daughter who worked at a Christmas tree farm last season. She's 16 and received a 1099-NEC for about $4,200, but the work arrangement was identical to what you described - scheduled shifts, using farm equipment, following supervisor instructions. After reading through all these responses, I decided to try the educational approach first. I printed out the IRS Publication 15-A (Employer's Supplemental Tax Guide) which has a really clear section on worker classification. The three main categories are behavioral control, financial control, and relationship type. For behavioral control: Does the business control what the worker does and how they do it? If your son has set hours, follows instructions on harvesting methods, and uses their tools/equipment, that points to employee status. For financial control: Does the worker have unreimbursed business expenses, opportunity for profit/loss, services available to other businesses? Most teenage orchard workers don't have these characteristics. For relationship type: Is there a written contract stating independent contractor status? Are employee-type benefits provided? Will the relationship continue and is the work performed a key aspect of the business? I'm planning to have a calm conversation with the farm owner next week using these criteria. If that doesn't work, at least I'll have documentation showing I tried to resolve it cooperatively before involving the IRS. The tax difference is just too significant to ignore - especially when our kids are trying to save money for college or other goals.

This thread has been incredibly helpful! I'm dealing with the exact same situation with my 18-year-old daughter who worked at a local pumpkin patch last fall. She received a 1099-NEC for $3,800, but everything about her job screamed "employee" - set schedule, farm supervisor telling her exactly how to arrange displays, using their equipment, etc. What really bothers me is that she's trying to save money for her first year of college, and this misclassification is costing her hundreds of dollars in unnecessary self-employment taxes. Meanwhile, the pumpkin patch owner gets to avoid paying their share of FICA taxes by pushing that burden onto teenage workers. I've been hesitant to say anything because my daughter really enjoyed the work and wants to go back next season, but after reading everyone's experiences, I think the educational approach is the way to go. The point about framing it as helping the business avoid compliance issues rather than making accusations is spot-on. I'm going to gather the IRS documentation mentioned here and schedule a friendly conversation with the owner. If small family farms genuinely don't understand the classification rules, then this is a win-win situation - they avoid potential IRS problems, and our kids don't get stuck with inappropriate tax burdens. Thanks to everyone who shared their experiences and resources. It's reassuring to know this is a common issue with practical solutions!

This is such a helpful thread! I'm dealing with a similar situation where my client filed Form 966 but now wants to continue operations. One thing I wanted to add from my experience - make sure to document the timing of when the abandonment decision was made versus when any liquidating distributions might have already occurred. If partial distributions were made after the Form 966 filing but before the abandonment, those might need special treatment. The IRS could view those as liquidating distributions even if the overall plan is later abandoned. I learned this the hard way when a client had already distributed some assets to shareholders before changing their mind. Also, keep detailed records of the corporate decision-making process. The IRS may want to see evidence that the abandonment was a legitimate business decision and not just tax avoidance. Board minutes, shareholder resolutions, and documentation of the changed business circumstances can all be important if you're ever questioned about the abandonment. The guidance about sending a statement to the IRS service center is spot on - just make sure it's comprehensive and references all the relevant dates and corporate actions.

Great thread everyone! I'm a tax advisor who's handled several Form 966 reversals, and I wanted to add a few practical points that might help others in similar situations. First, timing is crucial when documenting the abandonment. The IRS generally wants to see that the decision to abandon was made for legitimate business reasons, not just to avoid tax consequences. Make sure your corporate minutes clearly state the business justification for continuing operations. Second, if you're in a state that requires annual franchise tax filings, check whether your Form 966 filing affected your state tax status. Some states automatically change your filing requirements once they're notified of dissolution plans, so you may need to update your state tax registration as well. Finally, consider the impact on any tax elections that might have been made in conjunction with the liquidation plan. For example, if you made a Section 338 election or any other special elections related to the liquidation, you'll need to evaluate whether those need to be addressed separately. The advice about sending a signed statement to the IRS service center is absolutely correct - just make sure it includes the EIN, original Form 966 filing date, and a clear statement that the plan has been formally abandoned by appropriate corporate action with the date of that action.

One thing nobody's mentioned - don't forget about state filings for your S-corp! Depending on your state, you might need to file separate state returns for both your S-corp and personal taxes. TurboTax Business handles most state S-corp returns, but the process can be even more confusing than federal. Also, if you do business in multiple states or have nexus issues, self-filing gets complicated real quick. My S-corp operates in two states and I tried doing it myself last year... ended up giving up and hiring an accountant midway through.

I successfully filed both my 1120-S and 1040 myself using TurboTax for the past two years. As a single-member S-corp, it's definitely manageable, but here are some key things that helped me: The biggest challenge isn't the software - TurboTax does a good job with the guided questions. The real work is in preparation. Make sure you have your books reconciled properly before you start. I use QuickBooks and export my P&L and Balance Sheet directly, which saves tons of time. One mistake I made my first year was not keeping proper documentation for business expenses. The IRS wants to see business purpose for everything, especially for home office deductions and travel expenses. Now I keep a simple spreadsheet with receipts and business justification throughout the year. The reasonable compensation issue is real - I research industry salary surveys for my role and document my reasoning. Better to err on the side of paying yourself a bit more in salary than dealing with IRS scrutiny later. Overall, I save about $1,000 annually doing it myself, and I feel much more in control of my tax situation. Just budget extra time your first year and don't wait until the last minute!