been dealing w this for 2 months now...its ridiculous how broken the system is fr

Code 570 is basically the IRS putting a temporary hold on your refund while they review something. It's super frustrating but unfortunately pretty common. The good news is it's usually not a major issue - just takes time to resolve. I'd recommend checking your transcript regularly to see if any other codes pop up that might give you more info about what specifically they're reviewing. Also make sure you haven't missed any notices in the mail since those usually explain what they need from you.

Any chance the 1099-Q amount is under $1,500? If so, you might be able to ignore it altogether on your taxes if it was indeed a rollover to another education account for the same beneficiary. The IRS usually only requires reporting if the amount is substantial or if there were earnings involved that aren't getting rolled over.

I went through this exact situation two years ago and can confirm you can absolutely file this manually! The key thing to understand is that a Coverdell to 529 rollover is generally non-taxable as long as it's done correctly (same beneficiary, direct transfer). You'll need to report the 1099-Q on your tax return, but you won't owe taxes on it. I reported mine on Schedule 1 (Additional Income) Line 8z as "Other Income" and wrote "ESA Rollover - Nontaxable" next to the amount. The most important thing is keeping good records - I kept copies of all the account statements showing the withdrawal from the Coverdell and the deposit into the 529, along with any rollover documentation from the financial institutions. This proves it was a qualified rollover if the IRS ever asks. Don't let TurboTax hold you hostage for $70! This is definitely something you can handle yourself with a little patience and the right forms.

11 Quick question - what about my car? I use it for business sometimes but also personal. Is that 50% deductible or based on actual business use?

Great question! The basic rule is that business expenses are generally 100% deductible if they're "ordinary and necessary" for your business. The IRS specifically carved out exceptions for certain categories: **100% Deductible:** - Office supplies, software, equipment - Contractor payments (yes, what you pay freelancers is fully deductible!) - Advertising and marketing - Professional services (legal, accounting, etc.) - Business travel (flights, hotels, car rentals) **50% Deductible:** - Business meals and entertainment - This limitation exists because the IRS assumes there's always some personal benefit to eating For your freelancer question - absolutely deductible at 100%! Just remember to get their W-9 form upfront and issue 1099-NECs if you pay them $600+ in a year. The key is keeping good records. For mixed-use items (like a laptop used for both business and personal), you deduct based on the business percentage. There's no "magic rule book" but IRS Publication 535 (Business Expenses) is your best friend for the details!

I'm dealing with a very similar situation right now! My LLC partner and I paid around $3,200 in startup costs personally while waiting for our business bank account to get set up. From what I've researched and learned from our CPA, the LLC can absolutely deduct these expenses as long as they're legitimate business costs and properly documented. The fact that you paid personally first doesn't disqualify them - it's actually pretty common for new LLCs. Here's what our accountant told us to do: - Create expense reports with receipts showing business purpose for each expense - Have both LLC members formally approve the reimbursements (we just did this via email and kept records) - Process the reimbursements through proper business accounting (not just casual transfers) - Make sure to get reimbursed before year-end if you want the deductions this year The reimbursements aren't taxable income to you since you're just getting back money you spent for the business. And the LLC gets to deduct the full business expenses. Your loan idea could work too, but honestly the reimbursement route is simpler and achieves the same tax result. Just make sure everything is well-documented in case of an audit!

I went through this exact same situation with my LLC last year! You're absolutely right that the LLC can still deduct these expenses even though you paid them personally first. The key is proper documentation and treating them as legitimate business expense reimbursements, not distributions. Here's what I learned from my experience: 1. **Documentation is everything** - Create detailed expense reports showing the business purpose, date, vendor, and amount for each expense. Keep all receipts. 2. **Formal approval process** - Have both LLC members formally approve the reimbursements (email documentation works fine for a 2-member LLC). 3. **Proper accounting treatment** - Record the expenses and reimbursements as separate transactions in your books. The LLC takes the deduction, and the reimbursements to you aren't taxable income since you're just getting back money you spent for the business. 4. **Timing matters** - Try to process reimbursements within a reasonable timeframe (ideally same tax year, but definitely within 60-120 days) to avoid any appearance of disguised distributions. Your loan idea could work too, but the reimbursement approach is simpler and achieves the same tax result. The main advantage of documenting as loans would be if you need to show increased member basis or if the amounts are very large. Either way, make sure your operating agreement addresses expense reimbursement procedures - this gives you solid legal backing. Your accountant will definitely confirm this when they return, but you're on the right track!

Does your mom also get Social Security? If so, be careful because the 1099-R income might make more of her Social Security benefits taxable. My mom got surprised last year because her pension (reported on 1099-R) pushed her into having 85% of her Social Security benefits taxed.

Just to add one more important tip - make sure to keep the original 1099-R form in your mom's tax records! Even though you don't attach it to the return, you'll want to have it available if the IRS ever has questions about her retirement income. Also, if this is her first year receiving retirement distributions, it might be worth having her review the tax withholding amount with her plan administrator. Sometimes the default withholding isn't quite right for someone's tax situation, and she might want to adjust it up or down to avoid owing money next year or getting a huge refund. The withholding amount should be shown in Box 4 of the 1099-R. If she's consistently owing money at tax time or getting big refunds, she can usually change her withholding election for future distributions pretty easily.