Could also be that ur paying catchup if ur previous employer wasn't taking out enuff. Happened to me once and they had to take extra for like 2 months to make up for the shortfall. Worth asking HR about it.

Check if maybe you're over the Social Security wage base for the year? For 2024 you only pay SS tax on the first $168,600 of income. If you made more than that at your previous job this year, then switched companies, your new employer might not know you already hit the cap.

I went through something very similar with my 3-member LLC. We also filed on Schedule C for the first two years before realizing our mistake. Here's what I learned from working with both a CPA and getting direct guidance from the IRS: The key factor is whether the "check the box" election was made. By default, multi-member LLCs are treated as partnerships, but if no one filed Form 8832, the IRS sometimes takes a more lenient approach, especially for smaller operations. Given that one LLC only had $15K in income in 2020 and the other had zero income in 2021, you're probably looking at minimal penalties even if you do need to file partnership returns. The penalty for late partnership filing is $210 per partner per month, but it's often reduced or waived for reasonable cause - and "relied on tax software guidance" is actually considered reasonable cause in many cases. My recommendation would be to file the partnership return for 2020 (the year with actual income) and include a reasonable cause statement explaining the confusion. For the zero-income year, you might be able to skip it entirely since there's no actual tax impact. Just make sure to file correctly going forward with Form 1065 for any active years. The statute of limitations issue is real though - until you file the required partnership returns, the IRS can technically go back indefinitely. Better to clean it up now while the amounts are small.

I'm dealing with a very similar situation right now! My business partner and I have been filing our 2-member LLC income on Schedule C for the past three years, and I just found out we should have been doing partnership returns. One thing I learned from my research is that the IRS has a "de minimis" approach for small partnerships - they're less likely to pursue penalties aggressively when the income is low and all taxes were actually paid (just reported on the wrong forms). Since your first LLC only had $15K total income and the other had zero, you're probably in a lower risk category. I'm also curious about the dissolution aspect you mentioned. If you're shutting down one of the LLCs in 2022, you might want to file a final partnership return for that entity showing the dissolution. That could actually help close the books cleanly rather than leaving things hanging. Have you considered reaching out to the IRS directly through their business line? I know it's hard to get through, but they sometimes give more practical guidance than accountants who tend to be overly cautious about every technical requirement.

Don't forget to check your state's requirements too! Federal and state deadlines/processes for deceased taxpayers aren't always the same. My husband passed in 2022 and while the IRS accepted my extension with just "DECEASED" written on it, our state required me to include a copy of the death certificate with the extension request.

Just want to add one more practical tip that helped me when I went through this with my father's estate - keep detailed records of everything you do during this process. I created a simple folder with copies of the extension form, any correspondence with the IRS, and notes about what the tax professional advised. This documentation became really valuable later when we had questions about timing and what steps we'd already completed. The IRS can sometimes take a while to process extensions for deceased taxpayers, and having your own paper trail helps if there are any follow-up questions. Also, when you do meet with your tax professional, bring all the financial documents you've gathered so far. Even though you're filing the extension first, they can give you a more accurate estimate of what to expect and potentially catch any income sources you might have missed in your initial review.

This is such a helpful thread! I'm dealing with a similar situation where I have multiple CDs from different banks with varying terms. What I've learned from my own research and talking to a tax professional is that the key document to look for is your CD agreement or disclosure statement - it should clearly state the "interest payment method" or "interest crediting frequency." One thing I'd add to the great advice already given: if you're doing estimated quarterly tax payments like the original poster, make sure to track not just WHEN the interest will be credited, but also HOW MUCH. Some CDs have promotional rates for the first few months that then drop to a lower rate, which can throw off your calculations. Also, for anyone considering ladder strategies with multiple CDs, I've found it helpful to create a simple spreadsheet tracking each CD's maturity date, interest payment schedule, and expected 1099-INT reporting. This makes it much easier to plan your quarterly estimated payments and avoid underpayment penalties. The "constructive receipt" rule mentioned earlier is really the key concept - you're taxed when the money becomes available to you, not necessarily when you physically receive it in your hands.

One thing that hasn't been mentioned yet is the timing issue with year-end CDs. If you open a CD in late December that matures in the following year, some banks will credit a few days of interest in December even though the bulk of the interest won't be earned until the next year. This happened to me with a CD I opened on December 28th - I got a 1099-INT for $3.47 in interest for those 3 days, which I almost missed when doing my taxes. For your situation with the September 2024 CD, definitely check if your bank credited any partial interest in 2024. Even though the main interest payment showed up in January 2025, there might have been a small amount earned in December 2024 that you'd need to report. Also, when you're shopping for future CDs, ask specifically about their "interest accrual start date" - some banks start accruing interest the day after you open the CD, others start immediately. This can affect the timing of when interest becomes taxable, especially for CDs opened near year-end.

I've been following this thread closely because I'm facing a nearly identical situation - my ex owes about $4,200 in back support and my 13-year-old receives SSI. What's really helped me is creating a timeline of events and getting everything in writing BEFORE the intercept happens. I called both my state's child support enforcement office AND the SSA to document my questions and their responses. Here's what I learned that might help: 1) Ask your child support office for a "Payment History and Allocation Report" - this shows exactly which time periods the arrears cover and for which child. 2) If your original support order doesn't clearly specify individual amounts per child, you can request a "Beneficiary Designation Letter" from the court that issued the order. 3) Most importantly, I discovered that SSI has a "good faith reporting" provision - if you report the income immediately and provide all requested documentation, they're more lenient about any initial miscategorizations. The key is being proactive rather than reactive. I'm actually setting up a meeting with my local SSA office next week to go over all my documentation BEFORE any intercept happens. Better to over-communicate than deal with overpayment issues later! This whole process has taught me that SSI really does appreciate when you're organized and transparent with them.

I'm going through this exact situation right now and it's honestly overwhelming! Reading through everyone's experiences has been so helpful though. One thing I wanted to add - if you're working with a lawyer on any of this, ask them about getting a "Child Support Allocation Affidavit" notarized. My attorney suggested this as an extra layer of protection. It's basically a sworn statement that details exactly which child the arrears are intended for, referencing specific dates and amounts from the original order. The timing aspect everyone mentioned is crucial too. I set up calendar reminders for the 10-day reporting window because SSI is so strict about it. Also, I discovered that some local SSA offices are more helpful than others - if you're not getting clear answers from one office, try calling a different location. The representative I finally connected with actually walked me through a hypothetical scenario using my exact numbers, which gave me so much peace of mind. One last tip - screenshot or print out this entire thread! The collective wisdom here about documentation, state distribution policies, and proactive reporting is worth its weight in gold. I wish I had found advice like this months ago when I first started panicking about how this would affect our benefits.