Fun fact - only about 30 states actually have vehicle fees based on value that qualify as deductible taxes. If you're in one of the other 20 states, your registration fees are just fees, not taxes, and aren't deductible at all even if you itemize. I learned this the hard way!

That's a really helpful point about only 30 states having value-based vehicle taxes! I'm curious - is there an easy way to find out if your state is one of those 30? I don't want to go through the hassle of trying to figure out which portions of my registration might be deductible only to find out my state doesn't even have deductible vehicle taxes. Also, for those states that do have them, does the IRS publish any guidance on what the fees are typically called on registration documents? It seems like every state uses different terminology which makes this really confusing for taxpayers.

Just went through this exact process with my consulting LLC that elected S-Corp status. A few key points that might help: 1) You're absolutely right to be frustrated about the $850 fee for zero-activity returns, but unfortunately it's required. However, you can significantly reduce costs by doing some of the prep work yourself. Since you had no business activity, your Form 1120-S will basically be all zeros except for basic entity information. 2) For the EIN notification, I sent a simple letter to the IRS Business & Specialty Tax Line at the Cincinnati processing center. Include your business name, EIN, date of dissolution, and a brief statement that the entity has been dissolved. Keep a copy for your records. 3) Don't forget about your state requirements - many states require a final franchise tax return even with zero activity, and some have specific dissolution tax forms. The penalties for missing these can be worse than just filing them. 4) One money-saving tip: if both LLCs are in the same state and have similar structures, see if your accountant will give you a discount for preparing both final returns together. Mine knocked off about 20% for the second entity since most of the work was duplicated. The whole process is definitely a pain for inactive businesses, but better to close them properly than deal with ongoing compliance issues down the road.

I'm going through a similar situation right now with my small consulting LLC that I'm dissolving. Reading through all these responses has been incredibly helpful - especially learning that you don't actually "cancel" an EIN but just notify the IRS of the dissolution. One thing I wanted to add that might help others: if you're looking to save money on the final tax returns, consider asking your accountant if they offer a flat fee for "zero activity" final returns. I found one who charges $275 for S-Corp final returns when there's literally no business activity to report - just filling in the basic entity info and checking the "final return" box. Also, for anyone else dealing with this, make sure you check if your state has any annual report filings that need to be completed before dissolution. I almost missed my state's final annual report, which would have kept the entity technically "active" even after filing articles of dissolution. The certified mail suggestion for the EIN notification letter is spot on too - that return receipt is your proof that the IRS received your notification. Worth every penny for the peace of mind.

Great advice from everyone here! I just want to add one more tip that saved us some stress last year - if you're planning to split payments across different dates (not just different methods), make sure both payments are completed well before the April deadline. We made our first payment in early April and planned to make the second one closer to the deadline, but then got busy with work and almost forgot. The IRS doesn't send reminders for partial payments, so you need to keep track yourself. Also, if you're using a credit card for part of the payment, double-check the processing time. Bank transfers are usually instant, but credit card payments can take 1-2 business days to process. Don't want to accidentally miss the deadline because of processing delays! Setting up those IRS online accounts that @Anastasia mentioned is definitely worth it - you can see exactly when each payment hits your account and confirm everything is applied correctly.

Just wanted to share my experience as someone who's been splitting tax payments for the past few years. My spouse and I typically owe around $10-12K each year, and we've developed a system that works really well for us. We always make one payment from our joint checking account for about 70% of what we owe, then use a rewards credit card for the remaining 30%. Even after paying the processing fee (usually around 1.87% for credit cards), we still come out ahead with the cash back rewards. One thing I learned the hard way - always screenshot or save the confirmation page for each payment! The IRS emails you a confirmation, but I've had those emails get lost in spam filters before. Having that backup saved me hours of searching through old emails when I needed to reference a payment. Also, pro tip: if you're making payments close to the deadline, do the credit card payment first. Bank transfers from checking accounts process faster than credit cards, so if there are any processing delays, you want the slower payment method to go through first. The payment system really is flexible once you understand it - we've used different combinations of both our SSNs over the years and never had an issue with payments being misapplied.

As someone who's been through unemployment twice in the past five years, I can't stress enough how important it is to have those federal taxes withheld. I made the mistake of not withholding the first time, thinking I'd be responsible and save the money myself - ended up scrambling to come up with over $2,000 at tax time. The second time around, I bit the bullet and had the 10% withheld from day one. Yes, it was painful watching that money come out when I was already stretching every dollar, but it was SO worth it come tax season. Instead of owing money I didn't have, I actually got a small refund because I found work earlier than expected and my total income for the year was lower. One tip that helped me psychologically: I calculated what the withholding would be per week (for me it was about $35) and then found one small expense I could cut to "make up" for it - like making coffee at home instead of buying it. It made the withholding feel less painful because I could point to a specific trade-off rather than just feeling like I was losing money. Also, if you're in California, definitely keep your own detailed records of all payments received. The EDD system can be glitchy and you want to have backup documentation for everything.

From my experience working in tax preparation, I'd strongly recommend having the federal taxes withheld, especially given California's situation. Here's why: California unemployment benefits are fully taxable at the federal level, and the state's benefit amounts tend to be higher than many other states, which means a potentially larger tax liability. The 10% withholding rate is actually quite reasonable - it often covers most or all of what you'll owe for that income. One thing I don't see mentioned much is that unemployment income gets added on TOP of any other income you had during the year. So if you worked for part of the year before becoming unemployed, that unemployment income could push you into a higher marginal tax bracket than you might expect. Here's a middle-ground approach if you're really tight on cash: Have the withholding done, but treat it as an enforced emergency fund. If you absolutely need that money for a true emergency (like avoiding eviction), you can always adjust your withholding down temporarily and then increase it again when your situation stabilizes. Also, don't forget that if you do end up owing at tax time, the IRS offers payment plans, but they come with interest and fees. It's almost always cheaper to have it withheld upfront than to pay later with penalties.

21 Has anyone here used Robinhood specifically for their Roth IRA? I'm trying to decide between them, Fidelity, and Vanguard. Are there any downsides to Robinhood for retirement accounts that I should know about?

Great question! I was in the exact same boat when I started my Roth IRA. The key thing to understand is that "post-tax" doesn't mean the brokerage takes taxes out - it means you're using money that's already been taxed. Think of it this way: when you get your paycheck, taxes are already withheld by your employer. So that $400 you deposited has already had income tax paid on it. That's why you see the full amount in your account ready to invest. The beauty of a Roth IRA is that since you've already paid taxes on this money, when you withdraw it in retirement (after age 59½ and the account has been open for 5+ years), you won't pay any taxes on the original contributions OR the growth. No action needed on your part for taxes right now - just invest that $400 and let it grow tax-free! The only thing to watch is not exceeding the annual contribution limits ($6,500 for 2023 if you're under 50).