This is exactly the kind of detailed breakdown I was looking for! Thank you @Kingston Bellamy for the specific thresholds. Based on what you've shared, it sounds like I really only need to worry about Louisiana and New Mexico from my list, and even then the enforcement risk seems minimal for such small amounts. I think I'm going to take the practical approach and file in Louisiana and New Mexico just to be safe (since they seem to be the most strict), but skip Ohio, Oklahoma, and Pennsylvania since I'm clearly below their thresholds. One follow-up question - do you know if these state thresholds get updated regularly? I want to make sure I'm working with current information before making my final decision.

Just wanted to chime in as someone who's been through the MLP tax nightmare multiple times. The advice here is solid, but I'd add one more consideration: if you're planning to invest in MLPs again in the future, it might be worth establishing a filing pattern now even for small amounts. Some states have "lookback" provisions where if you file in one year, they expect you to file in subsequent years even if your income drops below thresholds. This is particularly true for Louisiana and New Mexico. If this was truly a one-time mistake and you're never touching MLPs again, then the practical approach of only filing where enforcement is likely makes sense. But if there's any chance you might end up with MLP income again, consider whether starting a filing relationship with these states now is worth the hassle to avoid complications later. Also, since you mentioned the tax due would be $0 in all states anyway, you might want to check if any of these states charge filing fees for nonresident returns. Some states have minimum fees (usually $25-50) even when no tax is owed, which could make the "file everywhere to be safe" approach more expensive than you'd expect.

2 Has anyone noticed that the blended tax rate shown in different tax software programs can vary slightly? When I calculated mine in TurboTax it showed 23.8% but when I checked with H&R Block online it showed 23.5%. Same numbers entered in both! Which one is right??

Thanks for asking this question - I was having the exact same confusion! The explanation about progressive tax brackets makes perfect sense now. One thing that helped me understand it better was looking at the actual tax bracket amounts for our filing status. For 2024 Married Filing Jointly, you're only paying that 35% rate on income between $364,200 and $462,500. Everything below that gets taxed at lower rates (10%, 12%, 22%, 24%, 32%), which is why your average comes out to 23.6%. I found it helpful to think of it like this: if you made $400,000, only $35,800 of that would be taxed at 35%, while the rest gets taxed at progressively lower rates starting from 10%. When you average it all out, you get that blended rate that's much lower than your top bracket.

One thing I'd add is to be very careful about the business purpose requirement. The IRS has been scrutinizing these arrangements more closely lately, especially when it's a single-owner S corp renting the owner's residence. Make sure your meetings have a genuine business purpose that couldn't reasonably be conducted elsewhere - like confidential strategic planning, board meetings with sensitive information, or client meetings requiring privacy. I've seen cases where the IRS challenged rentals for routine staff meetings that could have been held at the regular office. Also, spread your 14 days throughout the year rather than clustering them together, as that looks more natural and less like tax avoidance. Document everything meticulously - meeting agendas, attendee lists, business outcomes, and photos if possible.

I've been researching the Augusta Rule for my S corp as well, and one critical aspect I haven't seen mentioned yet is the impact on your homeowner's insurance. When you start using your residence for business meetings, even just 14 days a year, you may need to notify your insurance company or potentially add a business rider to your policy. Some insurers could deny claims if they discover undisclosed commercial use of the property. Also, for those tracking fair market rates, I've found it helpful to document not just the rental rate but also what specific amenities justify that rate - things like high-speed internet, presentation equipment, catering facilities, or privacy features that make your home particularly suitable for business use. This additional documentation can really strengthen your position if the IRS questions your rental rate during an audit. One more consideration: if you're planning to do this strategy long-term, consider how it might affect a future sale of your home. While the Augusta Rule income is tax-free, you'll want clean documentation showing the business use was minimal and temporary to avoid any complications with the home sale exclusion under Section 121.

Anyone else notice their HYSA interest rates dropping this year? I got $531 in interest on my hysa last year (on 1099-INT) but the rates are down by almost a full percent now. Wondering if it's better to move cash to my brokerage sweep account since they're paying similar rates now but with easier access to investment options.

Great question! I had similar confusion when I first started earning significant interest income. One important thing to keep in mind is the timing of when you'll owe taxes on this income. Since your HYSA shows $0 federal tax withheld on that $627, you'll want to consider whether you need to make estimated tax payments for 2024 if this represents a significant increase in your income compared to prior years. The IRS generally expects you to pay taxes throughout the year, not just at filing time. Also, don't forget that interest income can push you into a higher tax bracket if you're close to the threshold. At $627, it's probably not a concern, but it's worth checking if you have multiple high-yield accounts or other interest-bearing investments. For your brokerage account, definitely look at Box 11 on your 1099-DIV as others mentioned. Some brokerages also provide supplemental statements that break down exactly what type of fund your cash is invested in, which can help you understand why it's reported as dividends rather than interest.

Just to add a bit more detail to the corporation tax calculation... The fast food chain making $30m profit would normally pay: $30,000,000 × 21% = $6,300,000 in federal tax After donating $1.75m: Taxable income becomes $28,250,000 New tax is $28,250,000 × 21% = $5,932,500 Total tax savings: $367,500 So the govt "loses" $367,500 in tax revenue, while charities gain $1.75m. The company is still out-of-pocket $1,382,500 after tax benefits. Doesn't seem like a pure tax dodge to me.

This is exactly the kind of breakdown I was hoping for! So if I'm understanding correctly, the whole "corporations donate to avoid taxes" narrative is pretty misleading. They're still spending significantly more than they save, even with the tax benefits. One thing I'm curious about though - you mentioned the 25% limit on charitable contributions. Does that mean if a company wanted to donate more than 25% of their taxable income in a single year, they wouldn't get the full deduction? And what happens to the excess - can they carry it forward to future years? Also, are there any restrictions on what types of organizations qualify for these deductions? Like, could a fast food chain start their own "food education foundation" and get the same tax benefits while basically promoting their own interests?