Has anyone used TurboTax to prepare their S-Corp return with K-1? I'm in the same boat as OP and wondering if the software walks you through this properly or if I should use something else?

Just wanted to add my experience as someone who went through this exact situation last year. The key thing to remember is that even though you had no revenue/expenses, you still need to properly complete the K-1 because it establishes important records for future years. A few specific tips for your zero-activity K-1: - Box 1 (Ordinary business income/loss): Enter "0" not blank - Box 16 (Foreign transactions): Enter "N/A" if no foreign activity - Make sure to include your beginning and ending capital account balances Also, keep detailed records of any startup costs you personally paid for - these might not affect this year's return but could be important for future deductions. The IRS likes to see consistency in how S-Corps report, even in dormant years. Good luck with your first S-Corp filing! The learning curve is steep but gets easier each year.

My tax guy told me that if you're using the simplified home office deduction ($5 per square foot, up to 300 sq ft), you can't also separately deduct utilities like internet. But if you use the regular method where you calculate actual expenses, then you can deduct the business percentage of your internet. Worth considering which method gives you the better deduction.

As a videographer myself, I've found that tracking data usage is actually pretty easy. Most routers have tools to see which devices use how much data. My business computer uses about 85% of our total household data with those big video file uploads, so that's what I deduct. I also keep a spreadsheet showing file sizes of work uploads vs estimated personal usage to back up my claim if needed.

One more suggestion - use the IRS Withholding Calculator (Google it) and run your numbers there. It's a bit clunky but will give you a decent starting point. In my experience though, you might want to withhold a bit MORE than it suggests if you really want to avoid owing.

I've been dealing with this exact same issue for years! One thing that finally worked for us was using the "Tax Withholding Estimator" on the IRS website, but with a twist - I always add an extra $50-75 per paycheck beyond what it recommends. The problem with most W-4 calculators (including the IRS one) is they assume everything stays constant throughout the year. But if either of you gets bonuses, overtime, or any irregular income, you'll end up short. Since you owed $3,200 last year, here's what I'd suggest: 1. Use the IRS estimator as a baseline 2. Add at least $130 extra per paycheck (that's $3,200 ÷ 24 paychecks if paid bi-weekly) 3. Consider checking "Married filing separately" on the W-4 like you mentioned - it really does increase withholding Also, don't stress too much about over-withholding. Getting a refund is way better than scrambling to find $3,200 at tax time! You can always adjust mid-year if the withholding seems too high.

One thing thats worth noting - im seeing TONS of 971/570 codes this year compared to previous years. The IRS got extra funding to do more compliance checks. They're reviewing returns more carefully but also processing them faster once the review is complete. So while more people are seeing these codes, the resolution time is actually improved from last year.

I know how stressful this is! I went through the exact same thing last year with codes 971 and 570. In my case, it turned out they were just verifying my dependent information since I had claimed my daughter for the first time after a custody change. The whole process took about 5 weeks from when the codes first appeared - I got a CP05 letter asking for documentation, sent it back within a week, and then got my refund about 3 weeks later. The key is to respond immediately when you get their letter and send everything they ask for via certified mail so you have proof of delivery. Also, don't stress too much - the vast majority of these reviews result in the full refund being released once they verify everything checks out. Hang in there! 🤞

This might be a dumb question but does anyone know a good tax software that handles options trading well? I've been using H&R Block but it seems totally confused by my covered calls and cash-secured puts.

I've been dealing with the same TD Ameritrade 1099-B confusion for years! One thing that really helped me was understanding that the "basis reported to IRS" distinction basically tells you how much work you have to do. When TD reports the basis, they're telling the IRS what you paid - so you just need to make sure your tax software captures the right gain/loss. When they don't report basis, you're on the hook to prove what you paid if the IRS ever asks questions. For your $63k trading volume, definitely pay attention to the wash sale adjustments. TD Ameritrade is pretty good about calculating these, but they only track wash sales within their own system. If you have accounts at other brokers or bought the same securities in a retirement account, you'll need to manually track those wash sales yourself. Also, since you mentioned futures trading - those Section 1256 contracts are actually treated more favorably tax-wise because of that 60/40 long-term/short-term split, regardless of holding period. So even if you held a futures contract for just one day, 60% of the gain gets long-term capital gains treatment. Pretty nice tax advantage compared to regular stock trading!