Maybe Im just dumb here but im confused about something - if robinhood sent the 1099 to the IRS, wouldn't they have also sent it to your brother? Didn't he get any tax forms from them for 2021? Those forms should have all the info he needs to fix this

This is exactly why I always tell people to be super careful with crypto taxes from day one. The IRS has been cracking down hard on unreported crypto transactions, and they have access to all the 1099 forms from exchanges. One important thing to add - when you file that amended return, make sure to include a detailed explanation letter with it. The IRS processors appreciate context about why you're amending, especially when there's such a big discrepancy. Something like "Originally failed to report cryptocurrency transactions due to misunderstanding of reporting requirements. Amended return includes complete Schedule D with all crypto transactions and correct cost basis." Also, don't panic about the timeline. You generally have 3 years from the original filing date to amend a return, so you're well within that window for 2021. The IRS will recalculate everything once they process your amendment, including removing those penalties and restoring the earned income credit. The good news is this is totally fixable, and you're definitely not the first person to go through this exact situation!

Has anyone used a specific solo 401k provider they'd recommend? I'm in a similar situation with a side business and want to open one before the year-end deadline, but there are so many options.

Just wanted to add a practical tip for anyone dealing with solo 401k calculations - keep detailed records of your self-employment income and expenses throughout the year. I learned this the hard way when I was scrambling to figure out my net earnings from self-employment at tax time. For your wife's situation, the key calculation is taking her $19,750 gross income, subtracting half of the self-employment tax (which is roughly $1,393 for that income level), giving you about $18,357 in net self-employment income. Then 20% of that would be approximately $3,671 for her maximum profit sharing contribution. The Medicare tax deduction you mentioned ($263) is already factored into this calculation since it's part of the self-employment tax. Don't double-count it! The 0.9235 multiplier that others mentioned automatically accounts for this deduction.

Pro tip from someone who's been on unemployment multiple times - when you apply, elect to have federal taxes withheld. Seriously. Otherwise you'll be hit with a fat tax bill next year and it SUCKS.

Just to add some reassurance - I was in almost the exact same situation last year. Filed my 2022 taxes in March while already collecting unemployment, and my refund came through completely normal with no delays or issues. The IRS processes your current year return based solely on that year's income and withholdings, so unemployment you're collecting now won't impact it at all. The only thing I wish I'd known earlier is to immediately opt for tax withholding on unemployment benefits. I thought I'd be fine since it was "just temporary" but ended up on unemployment longer than expected. When tax time rolled around this year, I owed about $800 because I hadn't had any taxes withheld from my unemployment payments. Lesson learned! Good luck with the job search - you've got this!

Has anybody addressed the health insurance aspect specifically? We're trying to do something similar where some partners get health insurance and others don't. Our accountant mentioned there might be tax implications depending on how we structure it.

This is a great question that many multi-member LLCs face! You absolutely can structure disproportionate distributions, but there are a few key things to get right. For your health insurance situation, you'll want to be careful about how you handle this tax-wise. If the LLC pays for health insurance premiums for some partners but not others, those premiums are typically treated as guaranteed payments to the covered partners (making them taxable income to those individuals). The cleaner approach might be to reimburse partners for their premiums through adjusted distributions as you mentioned. For Partner 3 redirecting funds to Partner 4, the simplest approach is usually to have the LLC make its regular distributions according to ownership percentages, then Partner 3 can gift their desired amount to Partner 4 afterward. This keeps the tax reporting straightforward. Make sure your operating agreement includes language like "distributions may be made in amounts and at times determined by majority/unanimous vote of members, regardless of ownership percentages" or similar wording that fits your decision-making structure. Most importantly, document everything! Keep written records of all member approvals for non-proportional distributions. This protects you if there are ever questions from the IRS or between partners down the road.

Called the state revenue office yesterday.They said theyre backed up bc of new fraud prevention measures. expect delays even after your scheduled date tbh

Same boat here! Filed 2/3 and Oregon site says deposit on the 15th. Using Varo and they usually drop deposits 2 days early but nothing yet. Really hoping it hits tomorrow or Tuesday 🤞 The waiting game is brutal when you're counting on that money!