Nobody mentioned keeping a mileage log, which is SUPER important if you're claiming any vehicle expenses (either through reimbursement or deduction if you qualify). The IRS is really strict about this. I use MileIQ app to track all my drives automatically, then just swipe left for personal trips and right for business. It creates IRS-compliant logs with timestamps, routes, and purpose of trips. Saved my butt during a review last year when they questioned my vehicle deductions for my side business. Even if you can't deduct expenses as a W-2 employee, a detailed mileage log will help if you're requesting reimbursement from your employer or if tax laws change in the future.

I'm a tax professional and want to clarify a few important points that came up in this discussion: First, @Dallas Villalobos is correct that the TCJA eliminated most unreimbursed employee expense deductions for regular W-2 employees. However, there are still some strategies worth exploring: 1. **Above-the-line deductions still exist** - If you're required to travel overnight for work and your employer doesn't reimburse you, those expenses may still be deductible in limited circumstances. 2. **State variations matter** - Several states (California, Pennsylvania, New York, etc.) still allow these deductions on state returns even though they're eliminated federally. 3. **Accountable plan vs non-accountable plan** - If your employer has an "accountable plan" for reimbursements (requires receipts, business purpose documentation), those reimbursements aren't taxable to you. Push for this if they don't have one. For your specific situation with 13,500 miles of driving, I'd strongly recommend negotiating a proper mileage reimbursement at the current IRS rate (67 cents per mile for 2024). That would be worth about $9,045 tax-free to you. Keep detailed records regardless - tax laws can change, and good documentation helps with employer reimbursement requests. The tablet purchase might be reimbursable if it's required for your job duties. Consider consulting with a local tax professional who can review your specific employment agreement and state tax situation.

Great question, Joshua! I can confirm what others have said - Form 2553 is absolutely a one-time filing. Once the IRS approves your S-Corp election (which you already have confirmation for), it stays in effect indefinitely unless you voluntarily revoke it or violate the S-Corp eligibility requirements. The confusion you're seeing online probably comes from mixing up the initial election form with the ongoing filing requirements. What you DO need to file annually now is Form 1120-S (S-Corporation Income Tax Return) by March 15th, and you'll need to issue yourself a Schedule K-1 as the sole shareholder. Since you're already into your second year with S-Corp status, make sure you're staying compliant with the reasonable salary requirement - you need to pay yourself wages through payroll (not just distributions) for any work you do in the business. This is probably the most important ongoing requirement to avoid IRS scrutiny. Keep that original approval letter somewhere safe - you may need it for banking, business applications, or if questions ever come up about when your election took effect.

I'm glad this thread cleared up the confusion! I was actually in the exact same boat last year with my consulting LLC. The misinformation online about "annual S-Corp elections" is really frustrating when you're trying to do things right. Just want to echo what everyone else confirmed - Form 2553 is definitely one-time only. I've been running my S-Corp election for three years now and have never had to refile it. The IRS approval letter you received is your golden ticket - that election stays valid unless you mess up the eligibility requirements or choose to terminate it. The real ongoing work is the annual Form 1120-S filing and making sure you're handling payroll correctly. I use QuickBooks Payroll to stay compliant with the reasonable salary requirements, and it's been worth every penny to avoid IRS headaches. One thing I wish someone had told me earlier: keep detailed records of how you determined your salary amount. Document your research on industry standards, your role/responsibilities, time commitment, etc. If the IRS ever questions your salary vs. distribution split, you'll be glad you have that paper trail ready to go.

I went through almost the exact same situation two years ago - double charged $1,845 and it took nearly 8 months to resolve. The most important thing to know is that you're absolutely entitled to that money back, and the transcript codes you found (670 and 610) are actually perfect evidence that the IRS recognizes both payments. Here's what finally worked for me: I called the Taxpayer Advocate Service at 1-877-777-4778 after months of getting nowhere with regular IRS phone lines. Since you've been waiting 6 months with no resolution, your case definitely qualifies for their help. They can actually expedite cases that have been stuck in the system too long. When you do get through to someone (whether TAS or regular IRS), lead with those transcript codes immediately. Say something like "I have both a 670 and 610 code on my transcript for the same tax obligation - this shows a duplicate payment that needs to be refunded." This demonstrates you understand their system and aren't just confused. Also, since you moved in July but filed in February, there's a very good chance your refund check was sent to your old address and got lost in the mail. Make sure to specifically ask what address they have on file for your refund - this could be the root cause of the delay. Don't give up! After this much time, you may also be entitled to interest on the overpayment. The IRS definitely made an error here, and you shouldn't have to suffer financially for their mistake.

I'm so sorry you're dealing with this frustrating situation! Double payments are unfortunately more common than they should be, especially when third-party processors are involved. The good news is that your transcript codes (670 and 610) clearly show the IRS has documented both payments, which gives you solid evidence for your refund claim. Based on what others have shared here, I'd strongly recommend calling the Taxpayer Advocate Service at 1-877-777-4778. After 6 months with no resolution, your case definitely qualifies for their assistance. They're specifically designed to help when normal IRS processes have failed. A couple of key points for when you call: Lead with those specific transcript codes right away - it shows you understand their system and have legitimate documentation. Also, since you moved in July but filed in February, there's a very real possibility your refund check was sent to your old address. Make sure to verify what address they have on file for refunds. Don't forget to ask about interest on the overpayment too. After 6 months, you may be entitled to compensation for their delay in processing what should have been a straightforward refund. You're absolutely entitled to get your money back - don't let the bureaucratic runaround discourage you from pursuing what's rightfully yours!

One thing nobody mentioned - make sure your HSA provider issues you a 1099-SA for any excess contribution you withdraw! Some providers don't automatically do this for excess contribution removals, and you definitely need it to properly complete your tax forms.

Just wanted to add my experience as someone who went through this exact situation last year. I also over-contributed to my HSA due to partial year coverage and was really stressed about the penalties. The key thing I learned is that you absolutely must act before your tax filing deadline (or extension deadline if you file an extension) to avoid that 6% excise tax. Don't wait around hoping it will resolve itself - the IRS is pretty strict about HSA contribution limits. I ended up working with my HSA provider to remove the excess contribution plus any earnings it generated. The process was actually simpler than I expected once I got through to the right department. They calculated the earnings for me and issued the appropriate tax forms. One tip: when you contact your HSA provider, be very specific that you're requesting an "excess contribution removal" - not a regular distribution. This ensures it gets processed correctly and you get the right tax treatment. Good luck getting it sorted out!

Slightly different situation but related - I got a 1099-K from PayPal for money friends sent me to split bills and rent. Completely personal transfers, not business income! Anyone know how to handle this?

I went through this exact nightmare last year with Uber and PayPal! The duplicate 1099-K situation is incredibly frustrating, especially when each company just points fingers at the other. Here's what I learned after finally getting it sorted out: You absolutely need to report both 1099-Ks on your return since the IRS gets copies of both. But the key is making sure your actual taxable income is correct on Schedule C. What worked for me was creating a simple reconciliation document that showed: - Total gross income from gigs (the real amount before any fees) - Platform fees paid to WorkGig as business expenses - How both 1099-Ks relate to the same income stream I attached this as a statement with my return explaining the situation. No issues from the IRS, and my CPA said this approach was exactly right. The most important thing is keeping detailed records showing the money flow - from the gigs through WorkGig to CashApp to your bank account. This proves it's the same money being reported twice, not separate income streams. Don't stress too much - this is becoming super common with the new reporting thresholds, and the IRS understands the situation as long as you document it properly.