This discussion has been absolutely invaluable! As someone currently dealing with NOL carryforwards from my consulting business that took a hit during COVID, I can't express how helpful it's been to see all these interconnected tax considerations laid out so clearly. The confirmation that post-2020 NOLs can offset capital gains (with the 80% limitation) is exactly what I needed to understand for my own planning. I've been hesitant to realize some substantial gains in my investment portfolio because I wasn't sure how my NOLs would apply. What really opened my eyes was the discussion about state tax conformity - I'm in Pennsylvania and honestly never considered that state NOL rules might differ from federal rules. That's definitely something I need to research before making any major investment decisions. The emphasis on multi-year tax projections rather than just looking at the current year makes so much sense, especially given that post-2020 NOLs carry forward indefinitely. I was thinking too narrowly about just this tax year, but clearly the optimization requires a longer-term view. I'm particularly intrigued by the point about NOLs potentially helping with Roth conversion strategies. I've been wanting to do some conversions while my income is lower due to the business struggles, but I hadn't considered how the NOLs might create even better conversion opportunities. Thanks to everyone who shared their expertise and real-world experiences. This thread has probably saved me thousands in taxes by helping me understand the full scope of considerations before meeting with my tax professional!

This has been such an enlightening discussion to follow! As someone who's been struggling with similar NOL questions, I really appreciate how thoroughly everyone has broken down the complexities of using NOLs against capital gains. The key insights I'm taking away are: 1) Post-2020 NOLs can definitely offset capital gains but with the 80% limitation, 2) State tax rules may be completely different from federal rules, 3) Multi-year planning is essential since NOLs now carry forward indefinitely, and 4) There are so many interconnected considerations (NIIT, depreciation recapture, Roth conversions, etc.) that professional modeling is really necessary. I've been sitting on some appreciated stock positions and rental property gains, unsure whether to realize them this year given my NOL carryforwards from a business that struggled during the pandemic. This discussion has convinced me that I need to invest in comprehensive tax projections rather than trying to figure this out on my own. The point about documenting your NOL planning decisions really resonates too - with increased IRS scrutiny, having clear rationale and professional advice documented could be crucial down the road. Thanks to everyone who shared their expertise and real-world experiences. This thread should be required reading for anyone dealing with NOL carryforwards and investment gains!

I completely understand that panic feeling! 😰 The 570 code definitely looks scary when you first see it, but from everything I've learned in this community, it's usually just a temporary processing hold. The IRS puts these on returns when they need to verify something - could be matching your W-2 info, checking credits you claimed, or sometimes it's just random selection for review. Most people here report their 570s clearing up within 2-3 weeks without any action needed. Since you're dealing with caregiving responsibilities and really need that refund, I know the uncertainty is extra stressful. Keep checking for a 971 code - that would mean they're sending you a letter explaining what they're reviewing. Try to hang in there and give it at least a week before panicking too much. This community is great for support, so keep us updated! 🤞

I can totally relate to that sinking feeling when you see an unexpected code! 😅 I'm pretty new to understanding transcript codes myself, but from reading through this community, it sounds like the 570 is actually one of the less scary ones to get. The fact that so many people here have shared similar experiences where it resolved within a couple weeks is really reassuring. I know it's hard when you're depending on that refund, especially with caregiving responsibilities - the financial stress just makes everything worse. But it seems like you're in good hands with this community! Everyone's advice about watching for the 971 code and trying not to check obsessively (guilty as charged on that one!) sounds really solid. Fingers crossed it clears up quickly for you! 🤞 Keep us posted on what happens!

The advice here is solid! I just wanted to add one thing that helped me a lot when I was in your exact situation - consider getting QuickBooks Self-Employed or a similar bookkeeping app specifically designed for gig workers and small LLCs. It automatically categorizes your income streams, tracks mileage using your phone's GPS, and even estimates your quarterly tax payments based on your actual earnings. When I was doing DoorDash plus freelance work through my LLC, it saved me hours of manual tracking and made tax time so much less stressful. The app connects to your business bank account and automatically pulls in transactions, then you just need to categorize them as business or personal. It also has a feature that calculates the business use percentage of mixed expenses like your phone bill based on the time you log as "working" in the app. For about $15/month, it basically pays for itself in time saved and helps ensure you don't miss any deductible expenses. Plus it generates all the reports you need for Schedule C filing, which is super helpful when you're new to the business tax world. You're definitely thinking about this the right way though - getting the structure and processes right from the beginning will save you so many headaches later!

Just want to echo what others have said about keeping everything separate and documented! I made the mistake my first year of mixing personal and business expenses, and it was a nightmare trying to sort it all out during tax season. One thing I'd add that really helped me - consider setting up automatic transfers from your business account to a dedicated tax savings account. Every time you get paid from DoorDash or your editing work, immediately move 25-30% to that tax account. I use a high-yield savings account so the money at least earns a little interest while I'm waiting for quarterly payment dates. Also, don't forget about other potential deductions like your home office space if you do any of your editing work from home. Even a small percentage of your rent/utilities can add up over the year. The fact that you're asking these questions now puts you way ahead of where I was when I started. Getting the systems and habits right from the beginning will save you so much stress down the road!

I had a similar experience last year! Those codes are actually a good sign - it means your return is being processed normally. The 150 code confirms they've accepted your return, and the 766/768 codes are your refundable credits. Since you mentioned PATH act, you're definitely right about the delay for EITC and Additional Child Tax Credit, but since we're already past February 15th, your refund should be released soon. I'd expect to see a direct deposit date (846 code) appear on your transcript within the next week or two. The IRS is usually pretty good about hitting their "by early March" timeline for PATH returns.

I'm in a similar situation with my transcript showing codes 150, 766, and 768 from when I filed in late January. It's so confusing trying to decode what all these numbers mean! From what I've gathered reading through everyone's responses, it sounds like these are actually positive signs that our returns are moving through the system. The PATH act delay has been frustrating but at least we're past the February 15th hold period now. Hoping we all see those 846 deposit codes show up soon! 🤞

One thing that might help clarify the SEP IRA vs Solo 401k question - you can actually convert your existing SEP IRA to a Solo 401k if your Solo 401k plan allows for rollovers. This could be beneficial since you'd get the employee contribution option ($22,500) that you don't have with the SEP IRA. However, be careful about the timing if you've already made SEP IRA contributions for this tax year. You can't make employer contributions to both plans for the same tax year from the same business, even if you do a rollover partway through. Also worth noting - with your S Corp structure and $145k salary, your total contribution space to a Solo 401k would be around $58,750 ($22,500 employee + ~$36,250 employer at 25% of compensation). This might actually be less than the $66k you were planning for the SEP IRA, so run the numbers carefully before switching.

One additional consideration that hasn't been mentioned - if you're planning to hire employees in the future (beyond just your wife), a SEP IRA requires you to contribute equally for all eligible employees as a percentage of their compensation. With a Solo 401k, you lose eligibility once you have employees who aren't your spouse. Given your business growth trajectory ($850k-$1.2M revenue), you might want to think about whether you'll need to hire W-2 employees down the road. If so, you might want to consider other options like a traditional 401k plan that can accommodate employees, or carefully structure any future hires as contractors rather than employees. Also, make sure you're considering state tax implications. Some states don't follow federal rules exactly for retirement plan deductions, so the optimal choice might vary depending on where your S Corp is based. The timing issue others mentioned is crucial - if you're already late in 2023, the SEP IRA's flexibility to be established until your filing deadline might outweigh the Solo 401k's higher contribution potential, especially if you can't increase your salary before year-end.