Im curious if anyone knows about the deadline for making the SEP contributions? Is it the tax filing deadline (april 15) or the extended deadline if you file an extension?

Just wanted to add a quick note about timing - since you mentioned tax season coming up fast, remember that you have until your business tax filing deadline (including extensions) to make your 2024 SEP IRA contribution. So even if you file your personal return by April 15th, you can still make the contribution later if your S-Corp files an extension. Also, make sure your payroll records are clean for calculating that W-2 wage base. I learned the hard way that bonuses, overtime, and other compensation all count toward the SEP calculation, but things like health insurance premiums paid by the company and other fringe benefits don't. One more thing - if you have any other employees (even part-time), you'll need to contribute the same percentage of their compensation that you contribute for yourself. This can get expensive quickly, which is why the Solo 401(k) mentioned above might be worth exploring if it's just you.

21 Has anyone here actually calculated if doordashing is worth it after accounting for gas, car maintenance, insurance, and self-employment taxes? I did it for 3 months and when I really added everything up, I was making like $10/hr effective rate even though the app showed $18-20/hr.

Just wanted to share my experience as someone who's been doing both W-2 work and gig delivery for about a year now. The advice about using your W-4 to withhold extra is spot on - I wish I'd known this earlier! One thing I'd add is to keep separate bank accounts if possible. I opened a simple checking account just for my Doordash deposits, and it makes tracking business income and expenses SO much easier at tax time. Even if you're only making $200-300/month, having that clean separation is worth it. Also, don't wait until tax season to start organizing. I made that mistake my first year and spent hours trying to reconstruct my records. Now I take 10 minutes each week to log my expenses and reconcile everything - saves me from the panic later! For your income level, you're probably fine without quarterly payments, but definitely keep an eye on it. If you start making more or pick up additional gig work, you might cross into needing them.

My sister dealt with this exact situation! Her ex-husband tried to file as married filing separately even though they were divorced in October. The IRS rejected his electronic filing attempt. When he called to ask why, they explained the December 31st rule. He had to refile as single. Just a heads up that the IRS systems are pretty good at catching this kind of thing early, especially with e-filing. But it's better if your ex understands the rules correctly from the start to avoid delays in processing their return.

I'm a tax preparer and see this situation every year during tax season. Everyone here is absolutely correct - your filing status is determined solely by your marital status on December 31st. Since you were divorced and remarried before year-end, you file as married filing jointly with your new spouse, and your ex must file as single. What might help convince your ex is explaining that filing as "married filing separately" when not actually married on 12/31 isn't just wrong - it could trigger an audit or penalties. The IRS has gotten much better at cross-referencing returns, and they'll notice the discrepancy quickly. I'd suggest having your ex consult with a qualified tax professional if they're still unsure. Most CPAs or enrolled agents will confirm this basic filing status rule in a brief consultation. It's better to get it right the first time than deal with amended returns and potential penalties later.

Great question about cell phone deductions! Just to add to the excellent advice already given - when you're calculating that 70% business use percentage, make sure you're being consistent across all your mixed-use items. The IRS likes to see that your methodology makes sense and that you're applying the same logic to similar expenses. One thing I learned the hard way is to document your business use percentage calculation method in writing and keep it with your tax records. Don't just estimate - write down something like "Based on tracking calls/texts for 3 weeks in March, approximately 70% of phone usage was for client communications and work-related activities." This kind of documentation can be invaluable if you ever get questioned. Also, since you mentioned you're doing contractor work, remember that you can deduct the business portion of your monthly phone bill too, not just the phone itself. If you're using 70% for business, that applies to your monthly service costs as well. These ongoing expenses can really add up over the year!

One thing I'd add to all this great advice - make sure you understand the difference between expensing and depreciating your phone. If it's under $2,500 (which most phones are), you can use the de minimis safe harbor rule and deduct the full business percentage in the year you purchase it. But if you go with a really expensive phone or bundle it with accessories that push the total over that threshold, you'll need to depreciate it over several years. Also, for your pre-business purchases like that monitor and keyboard - the fair market value when you start using them for business is key. You can't use the original purchase price if the items have depreciated. Look up what similar used items are selling for when you convert them to business use. This protects you if the IRS questions why you're claiming a deduction on something you bought months before starting your business. One last tip: set up a simple system now for tracking all this stuff going forward. Whether it's a spreadsheet, an app, or just a notebook, start documenting business use percentages and dates right away. It's so much easier than trying to reconstruct everything at tax time!

Hey I just went through this exact situation last week! One thing nobody mentioned - take screenshots of EVERYTHING. The confirmation page when you submit, the email confirmation, everything. I had an issue last year where the brokerage claimed they never received my application even though I submitted before the deadline. My screenshots saved me.

This is such a stressful situation but you're not totally screwed! I went through something similar two years ago. The key thing is getting that application submitted TODAY - the IRS looks at when you established the plan (submitted paperwork), not when it gets processed. A few quick tips since you're down to the wire: - Fill out the application completely - incomplete apps don't count for establishment date - Get confirmation numbers/screenshots of everything - Email yourself copies of all documents with timestamps - If possible, call the brokerage to confirm they received your submission The funding part you can worry about later - you have months to actually transfer money. Focus on getting that paperwork in before midnight and you'll be fine! Good luck!