Had this happen with my tax prep too! Don't stress - as long as the SSN is right, you should be good. The IRS matching system is pretty forgiving with name variations. My preparer put "Jon" instead of "John" for my son and everything went through fine. If you're really worried, you can always call the IRS helpline to double check, but honestly I wouldn't lose sleep over it.

Same thing happened to me 2 years ago! My preparer misspelled my youngest's first name (put "Sophia" instead of "Sofia") but had the correct SSN. Got my refund in about 2 weeks with no issues. The IRS system really does prioritize the SSN match over name spelling. You should be totally fine, but if it makes you feel better you can always check your transcript on the IRS website once it's processed to see if there were any flags.

Has anyone considered switching from C-corp to S-corp for their rental LLC? Our accountant mentioned it could help avoid potential PHC issues altogether since S-corps don't face PHC tax. We have a similar setup with 4 properties that we self-manage.

Great question! Based on your description, your LLC likely doesn't qualify as a PHC. The key test is whether 60% or more of your adjusted ordinary gross income comes from "personal holding company income" (like dividends, interest, royalties). Active rental income from properties you manage yourself typically doesn't count as PHC income under IRC Section 543. Since you're handling showings, tenant screening, maintenance coordination, and day-to-day operations, the IRS would likely view this as an active trade or business rather than passive investment activity. The management fees you pay yourselves are actually a good practice that further demonstrates the active nature of your business. Just make sure those fees are reasonable and properly documented. One thing to watch: if you ever start receiving significant passive income (like interest from large cash reserves or dividend income), that could potentially push you closer to the 60% threshold. But with just rental income from actively managed properties, you should be fine. Keep good records of your management activities as others have mentioned - it's always smart documentation to have!

Has anyone compared FreeTaxUSA vs TaxHawk for 2024? I know they're owned by the same company but sometimes their features differ slightly.

Thanks for the heads up! I've been procrastinating on getting my tax stuff organized, so having FreeTaxUSA available early is perfect timing. I switched to them two years ago after getting fed up with TurboTax's pricing and haven't looked back. One thing I love about being able to access it this early is that I can play around with different scenarios - like seeing how much extra I might owe if I do some Roth conversions before year-end, or what my refund would look like if I max out my HSA contributions. Really helps with year-end tax planning instead of just scrambling to file in February. Has anyone noticed if they've added any new features for 2024, or is it pretty much the same interface as last year?

Isn't there like some sort of exception for family rentals? I remember reading somewhere that the IRS treats them differently. Someting about "personal use" vs "business use" of the property if you don't charge market rates? Also, what if you only rent for part of the year like the OP said? Do u have to prorate everything?

I went through this exact same situation two years ago when I rented my old house to my in-laws. Here's what I learned the hard way: You absolutely need to report ALL the rental income you received (the mortgage payments) on Schedule E, even though you're only charging costs. The IRS doesn't care that you're not making a profit - income is income. The tricky part with family rentals is proving it's a legitimate business activity. Since you're charging below market rate, make sure you document everything properly - written lease agreement, regular payment schedule, receipts for all expenses. Without proper documentation, the IRS might reclassify it as personal use and limit your deductions. For the depreciation issue others mentioned - yes, you MUST calculate it even if it creates a loss on paper. TurboTax will guide you through this, but you'll need to know the fair market value of the property when you converted it to rental use (not what you originally paid for it). One more tip: keep track of the days it was actually rented vs vacant. Since you said this was only for 2024, you'll need to prorate all your annual expenses (insurance, property taxes, etc.) based on the actual rental period. The good news is that even at cost, you'll likely show a paper loss after all deductions, which can offset other income on your return.

The way I understand tax brackets is to think of them like buckets that need to be filled in order: First bucket (10%): Fill this with your first ~$11k Second bucket (12%): Fill this with your next ~$34k Third bucket (22%): Fill this with any income over ~$45k So with $45k income, you're basically just filling the first two buckets completely. Your tax would be: - 10% of $11k = $1,100 - 12% of $34k = $4,080 Total federal income tax: $5,180, which is about 11.5% of your total income Then add 7.65% for FICA, plus whatever your state charges. Makes sense that you'd end up around 22% total withholding.

The confusion between marginal tax rates and effective tax rates is super common for first-time filers! Here's a simple way to think about it that helped me when I was starting out: Your 12% tax bracket is just the *highest* rate you pay on the *last* portion of your income. But you're not paying 12% on everything - you pay 10% on the first chunk, then 12% on the middle chunk. When you average it all out, your actual federal income tax rate is probably closer to 10-11%. Then you've got to add all the other stuff that comes out of your paycheck: - Social Security: 6.2% - Medicare: 1.45% - State income tax: varies by state but probably 3-5% - Any other deductions (health insurance, 401k, etc.) So yeah, seeing around 22% total coming out makes perfect sense! You're not being overtaxed - that's just how the system works with all the different pieces. For your education expenses, definitely look into the American Opportunity Tax Credit when you file. You might be able to get up to $2,500 back per year if you qualify, which could explain why your refund seems smaller than expected if you're not claiming it properly.