As a new business owner who just went through this exact confusion, I can't tell you how relieved I am to find this thread! I was literally drafting emails to three different county offices asking for W9 forms when I stumbled across this discussion. The consensus here is crystal clear and has saved me from what would have been some very awkward phone calls. Government license fees = regulatory payments = no W9 needed. Period. Just keep those receipts organized for your tax deductions. What I'm taking away from everyone's experiences: 1) Create a dedicated "Licenses & Permits" expense category in your accounting software, 2) Keep detailed descriptions of what each payment was for, 3) Track renewal dates in a spreadsheet if you're operating across multiple jurisdictions, and 4) Don't overthink it - these are straightforward business expense deductions. Thanks to everyone who shared their stories about making similar mistakes early on. It's so reassuring to know that W9 confusion is basically a rite of passage for small business owners. This thread should be required reading for anyone expanding their business into new locations!

This thread has been incredibly helpful! I'm in a similar situation - just started a consulting business and was completely confused about W9 requirements for government payments. I actually had the county clerk's office number pulled up to request W9 forms when I found this discussion. The clarity everyone has provided is amazing. Government regulatory fees (licenses, permits, business taxes) don't require W9s - these are mandatory payments to operate legally, not vendor services that need 1099 reporting. I love the simple test someone mentioned: paying the government FOR something vs. TO DO something for you. I'm definitely implementing the organizational strategies shared here - separate filing for government fees vs. vendor documentation, detailed expense descriptions instead of vague "government fee" notes, and a renewal tracking spreadsheet for multi-jurisdiction operations. As a newcomer to business ownership, it's so reassuring to see that this confusion is totally normal. Thanks to everyone who shared their experiences and especially to the tax preparer and government finance professional who provided expert perspectives. This thread should be bookmarked by every small business owner!

Has anyone here actually converted from an S Corp to a C Corp? I'm worried about the practical aspects. Like do I need to get a new EIN? Will my bank accounts need to change? How complicated is the actual filing process?

Great discussion here! I'm actually in the middle of making this exact decision for my consulting business. From what I'm reading, it sounds like C Corp is definitely the way to go for avoiding pass-through income, but I'm curious about one practical aspect - how do you all handle the "reasonable salary" requirement? The IRS wants you to pay yourself a reasonable W-2 salary, but I'm not sure how to benchmark what's "reasonable" for my industry. Do you just look at comparable roles at other companies? And if I set my salary too low initially, can I adjust it mid-year without raising red flags? I want to optimize the split between salary and retained earnings, but obviously don't want to invite an audit. Also, for those who went the C Corp route - did you notice any issues with business banking or getting loans? Some people have told me that C Corps can be more complicated for small business financing.

Question for people using their apartments for filming: how are you handling the "exclusive use" requirement for home office deductions? I film in my living room but obviously also use it for personal stuff, so I don't think I can claim it?

As someone who just went through this exact situation last year, here are the key things that would have saved me a lot of stress: 1. **Start tracking everything NOW** - Create a simple spreadsheet with all your TikTok payments, brand deals, and business expenses. Don't wait until tax season. 2. **Open a separate business checking account** - Even if you're not forming an LLC, having all your creator income and expenses in one account makes everything so much cleaner for taxes. 3. **Set aside 25-30% of each payment** - Put this in a separate savings account for taxes. Self-employment tax alone is 15.3%, plus regular income tax on top of that. 4. **You'll need to file Schedule C and Schedule SE** - Schedule C for your business income/expenses, Schedule SE for self-employment tax. TurboTax Self-Employed or similar software can handle this. 5. **For quarterly payments** - Use Form 1040ES. Your first payment for 2025 income is due April 15, 2025. Don't skip these or you'll get hit with underpayment penalties. The good news is once you get the system set up, it's really not that complicated. Just treat your TikTok like the business it is from day one!

One thing nobody has mentioned yet is that if the annuity was a joint annuity with rights of survivorship, the tax treatment would be completely different. Are you sure it wasn't this type of annuity? Sometimes these details get missed when you're dealing with the aftermath of losing someone.

I'm sorry for your loss and understand how overwhelming this situation must be. Based on what you've described, you're dealing with a common but complex estate tax issue. Since the annuity had no named beneficiary and went to the estate, you're correct that the full $400k becomes taxable income to the estate in 2023. On Form 1041, you'll report this as income and can claim the 20% withholding as a credit against the estate's tax liability. Unfortunately, once qualified funds flow through an estate, the opportunity for tax-deferred treatment (like rolling to an inherited IRA) is generally lost. The estate will pay taxes on the income, then distribute the after-tax proceeds to your husband per the will. A few suggestions: 1) Consider if the estate can make distributions in the same tax year to potentially shift some tax burden to your husband if he's in a lower bracket, 2) Make sure you're claiming all allowable estate deductions on the 1041 to minimize taxable income, and 3) Consult with an estate tax professional who can review all the specific details of your situation. The K-1 your husband receives from the estate distribution won't be taxable income to him personally since the estate already paid the tax.

Hey Ryan! Just want to reinforce what others have said - yes, your off-campus rent absolutely counts as room and board for tax purposes. I went through this exact same situation a couple years ago. The key thing to understand is that this is actually a GOOD thing for your AOTC. Since you have $13,500 in scholarships but only $6,700 in out-of-pocket expenses, you're in the perfect position to use the scholarship allocation strategy. Here's what I'd recommend: Allocate enough of your scholarship money to cover your rent (making that portion taxable income), then use your $6,700 out-of-pocket expenses toward qualified education expenses for the AOTC. This way you can potentially get up to $2,500 in tax credits. The IRS doesn't require your apartment to be university-owned housing - they just care that it's reasonable living expenses while you're a student. Since you were living 10 minutes from campus for school purposes, that definitely qualifies. Just make sure to keep records of your rent payments and lease agreement in case you ever need to document it. Good luck with your taxes!

This is such a great question and I'm glad you're being proactive about understanding this! I went through something very similar when I was in college and wish I had known about the scholarship allocation strategy earlier. Just to echo what everyone else is saying - yes, your off-campus rent absolutely counts as room and board for tax purposes. The IRS doesn't distinguish between on-campus dorms and off-campus apartments as long as you're enrolled as a student and the housing costs are reasonable. With your numbers ($13,500 scholarships, $6,700 out-of-pocket), you're in a really good position to benefit from this. You can allocate a portion of your scholarship to cover room and board expenses (including your rent), which makes that portion taxable income but then allows you to use your out-of-pocket expenses toward the AOTC. One thing I'd add that I haven't seen mentioned yet - make sure to check if your school publishes a "Cost of Attendance" figure that includes off-campus housing allowances. Most schools do this for financial aid purposes, and having that documentation can be helpful if you're ever questioned about your room and board costs. Also, don't forget that room and board can include more than just rent - utilities, groceries, and other reasonable living expenses can count too, as long as you stay within reasonable limits compared to what on-campus students would pay. FreeTaxUSA should walk you through this process, but if you get confused, don't hesitate to consult with a tax professional. The potential savings from maximizing your AOTC are definitely worth making sure you get it right!