This thread has been incredibly helpful! I'm a new Uber driver (just started 3 months ago) and I had no idea Solo 401(k)s were even an option for people like us. The breakdown of employee vs employer contributions makes so much more sense now. One follow-up question - when you're calculating that 25% employer contribution on net earnings, is that 25% of your net earnings AFTER you've already made the employee contribution? Or is it 25% of your total net earnings before any retirement contributions? For example, if I have $1000 in net weekly earnings and contribute $400 as an employee contribution, is my employer contribution calculated on the remaining $600 or the full $1000? Also, has anyone run into issues with quarterly estimated tax payments when you're making these contributions? I'm worried about underpaying if I'm not calculating everything correctly.

As someone who's been driving for Uber for 2 years and has a Solo 401(k), I wanted to add a few practical tips that might help: 1. **Track everything monthly**: I use a simple spreadsheet to track gross earnings, mileage deductions, and net income each month. This makes it much easier to estimate your contribution capacity and plan your cash flow. 2. **Start small and increase**: Don't feel like you need to max out contributions immediately. I started by contributing 10% of my net earnings and gradually increased it as I got more comfortable with the cash flow impact. 3. **Consider the timing**: Since Uber income can be seasonal (holidays, events, etc.), I tend to make larger contributions during my high-earning months and smaller ones during slower periods. The flexibility is one of the best parts of the Solo 401(k). 4. **Don't forget about catch-up contributions**: If you're 50 or older, you can contribute an additional $7,500 in 2023 ($30,000 total instead of $22,500). One thing that really helped me was setting up automatic transfers to a separate "retirement contribution" savings account. Each week I transfer my planned contribution amount there, then make larger quarterly contributions to the actual 401(k). This way I'm not scrambling to find the money at contribution time. Also, make sure to check if your Solo 401(k) provider offers loan options - it can be helpful for gig workers who might need access to funds in emergencies, though obviously it should be used sparingly.

This is a really common confusion point, and I went through the same thing last year! The key insight that helped me was understanding that the SALT cap essentially creates a "buffer" for state tax refunds. Here's how I think about it: If you paid $12,500 in state taxes but could only deduct $10,000 due to the SALT cap, then you effectively got "no tax benefit" from $2,500 of what you paid. Since your refund ($1,800) is less than this "no benefit" amount ($2,500), the entire refund should be non-taxable. I'd suggest double-checking this with the IRS directly or getting a second opinion from another tax professional. Sometimes tax preparers don't fully account for how the SALT limitation interacts with the standard state refund worksheet. The worksheet by itself can be misleading in SALT cap situations. One thing that helped me was looking at IRS Publication 525, which has specific guidance on this interaction. It's worth reviewing that section with your tax preparer to make sure you're both on the same page about how to handle it.

I've been following this discussion and wanted to share my experience since I had almost the exact same situation. I paid $13,200 in state taxes in 2023 but could only deduct $10,000 due to the SALT cap, then received a $1,650 state refund this year. Initially, my tax software (FreeTaxUSA) automatically marked the entire refund as taxable income, but after reading through IRS Publication 525 and some other guidance, I realized this was incorrect. Since I didn't receive any federal tax benefit for the $3,200 I paid above the SALT cap, and my refund ($1,650) was less than that excess amount, the refund should be completely non-taxable. The key document that helped me was IRS Notice 2019-12, which specifically addresses how the SALT limitation affects the taxability of state tax refunds. It clarifies that you only include the refund as income to the extent you received a tax benefit from the original deduction. I ended up amending my return to remove the state refund from taxable income, and it was processed without any issues. Definitely worth having another conversation with your tax preparer about this - many of them aren't fully up to speed on how the SALT cap interacts with state refund taxability.

Has your attorney discussed an installment agreement as a backup plan? Even while disputing the CP22A, sometimes it makes sense to set up a minimal payment plan to show good faith and prevent more aggressive collection actions. You can still pursue reconsideration while making small payments. When I went through this, we set up a $50/month payment plan while my documentation was being reviewed. This kept collections off my back, and once the IRS adjusted my liability downward, they applied the payments I'd already made and recalculated the plan. Just something to consider as a strategic move.

I went through something very similar last year - CP2000 to CP22A in just three weeks because I initially tried to handle it myself without understanding the timeline. The key thing to remember is that a CP22A isn't actually the "final" notice, despite how it reads. It's the IRS's assessment, but you absolutely still have recourse. Your attorney should immediately file for audit reconsideration AND request a Collection Due Process (CDP) hearing if you haven't already. The CDP hearing is crucial because it puts an automatic stay on collection activities while your case is being reviewed. This means no liens or levies while you're fighting the assessment. One thing that really helped my case was getting a transcript of my account from the IRS to see exactly what information they had versus what they were missing. Sometimes the disconnect is clearer when you see their records side-by-side with your documentation. Your attorney can request this, or you can get it yourself online. The $14,750 amount suggests they're probably treating some transaction as having zero basis when you actually have documentation showing your cost basis. This is super common with stock sales where the 1099-B doesn't include basis information that was reported separately or carried over from previous years. Stay persistent - I know it's stressful, but these cases are absolutely winnable when you have the right documentation and follow the proper procedures.

Back in 2022, I had this exact same setup with Jackson Hewitt and the Serve card. I remember checking my card balance obsessively! One thing I learned from that experience is that the day of the week matters a lot. If the IRS releases your refund on a Friday, Jackson Hewitt often doesn't process it until Monday or Tuesday of the following week. Last year I filed on a Monday and got my refund exactly 14 days later on a Monday. The year before I filed on a Thursday and got it 16 days later on a Saturday. Since you filed on February 12th (a Monday), you might see it hit your card early next week.

I used Jackson Hewitt with the Serve card this year and filed on February 5th. Got my advance immediately but didn't receive the remainder until February 22nd - so 17 days total. What's frustrating is that the IRS "Where's My Refund" tool showed my refund as sent on February 19th, but it took Jackson Hewitt 3 additional days to process and load it onto my Serve card. I think the delay you're experiencing might be normal this year. I noticed on Jackson Hewitt's website they mention that newly married couples filing jointly for the first time sometimes get additional IRS review, which could add 5-7 days. Since you mentioned this is your first year filing jointly after getting married, that could explain why it's taking longer than your single filing last year. Have you checked if your refund status changed on the IRS website recently?

Great thread! I'm seeing a lot of helpful advice here. Just wanted to add that timing is absolutely critical for the Form 2553 election. Even after you get the state-level corporation established, remember that the S-Corp election must be filed by the 15th day of the 3rd month of the tax year you want it to take effect (March 15th for calendar year taxpayers). If you miss this deadline, you'll have to wait until the following tax year OR request late election relief under Revenue Procedure 2013-30, which requires showing reasonable cause for the delay. The IRS is pretty strict about this timing requirement. Also, make sure all shareholders (including the converted LLP partners who become shareholders) sign the Form 2553. Missing signatures are another common reason for rejection that I've seen in practice.

This is such a comprehensive discussion! As someone who's dealt with several entity conversions, I want to emphasize the importance of getting professional guidance early in the process. The two-step conversion process (state corporation formation first, then IRS S-Corp election) is absolutely critical, but there are so many nuances that can trip you up. Beyond the technical filing requirements, you really need to consider the broader business implications that Micah mentioned - liability structure changes, corporate formalities, shareholder restrictions, and exit planning implications. One thing I'd add is to make sure you're documenting everything properly throughout the conversion process. Keep detailed records of the state filing dates, corporate resolutions, and any correspondence with state agencies. This documentation becomes crucial if the IRS has questions about the conversion timeline or if you need to demonstrate reasonable cause for any timing issues. Also, don't underestimate the ongoing compliance burden that comes with S-Corp status. While the self-employment tax savings can be substantial, S-Corps require reasonable salary determinations for shareholder-employees, payroll tax compliance, and more rigorous bookkeeping. Make sure your client understands and is prepared for these ongoing requirements before making the switch.