Don't overthink this! I've been filing 1099-NEC for 7 years. Just go to irs.gov/payments and pick any method you want. They don't care HOW you pay as long as you pay by the deadline. The VPS selection in your software doesn't lock you into anything. I personally like the IRS Direct Pay option cause there's no fee and you get immediate confirmation.

Hey Jace! I was in your exact situation a few months ago - also used TaxSlayer and accidentally selected VPS without knowing what it meant. The good news is you're not locked into anything! Here's what I did: I went straight to irs.gov and used their "Direct Pay" option. You'll need your SSN, the exact amount you owe, and your bank account info. It's completely free and you get confirmation right away. Just make sure to select the right tax year (2024 for taxes you're filing now) and choose "1040 Series" as your form type. The whole process took me maybe 10 minutes, and I had peace of mind knowing it was paid. Don't stress about the VPS thing - it's just one of many payment options and doesn't affect your filing at all. You've got this!

Does anyone know how this works if the parent lives with another sibling part of the year and in assisted living part of the year? My mom lived with my sister January-August, then moved to a facility in September that I'm paying for. Can I still claim her or does my sister get to?

Based on what you've described, you should be able to claim your mother as a dependent under the "Qualifying Relative" rules. The key points that work in your favor: 1. **Relationship Test**: She's your mother, so this is automatically satisfied regardless of where she lives. 2. **Gross Income Test**: SSI benefits are not considered taxable income for dependency purposes, so as long as she has no other income over $4,700 (2025 threshold), she passes this test. 3. **Support Test**: You're paying $2,900 of her $3,650 monthly facility costs PLUS another $450-500 for other expenses. That's roughly $3,400+ per month you're contributing vs her $915 SSI contribution. You're clearly providing well over 50% of her total support. The fact that she doesn't live with you doesn't matter for qualifying relatives - only for qualifying children. And her SSI benefits actually help your case since they don't count toward the income limit but do reduce the total support amount you need to exceed. Make sure to keep detailed records of all payments you make on her behalf (facility payments, medical expenses, personal items, etc.) in case the IRS ever asks for documentation. You're in a very strong position to claim her as a dependent.

Just a warning from personal experience - if you're using TurboTax, it sometimes gets confused with multiple Schedule Cs, especially when they're related entities. Last year it kept thinking I was trying to report the same business twice. I ended up having to call their support line. Might want to consider using a tax pro the first year you set this up just to make sure everything's being reported correctly.

I've been through this exact scenario with my consulting LLC that spawned a separate tech services division. You're absolutely right about the tax treatment - everything flows through to your personal return since both LLCs are disregarded entities. One practical tip: when you set up that dedicated credit card for the subsidiary, consider getting a business card specifically in the subsidiary LLC's name once it's established. This makes expense tracking much cleaner and helps maintain the "corporate veil" between entities. Until then, your reimbursement approach is perfectly fine. Also, don't overthink the EIN situation. I got separate EINs for each of my LLCs even though I could have used my SSN, and it's made banking, vendor relationships, and general business operations much smoother. The paperwork is minimal and it's free to get an EIN directly from the IRS website. For bookkeeping, I second the recommendation about using classes or locations in QuickBooks if you go the single-file route. Just make sure your chart of accounts is detailed enough to easily separate expenses by entity at year-end. The key is being able to generate clean financial statements for each business independently, even if you're filing them together on your tax return.

I think everyone is overcomplicating this. The Code R on 1099-R literally just means "Recharacterized IRA contribution." The IRS knows exactly what this is. You report it on your 2023 return (the year of the 1099-R) and move on. Box 2a is $0 because there's no taxable amount - it's just moving money from one type of IRA to another. TurboTax is suggesting an amendment because their software is designed to be extra cautious. But unless you're eligible for a traditional IRA deduction you didn't claim (which sounds unlikely given you have a 401k), there's no benefit to amending.

Just to add some clarity from the technical side - when you recharacterized your Roth IRA contribution to traditional before filing your 2022 return, you essentially treated it as if the contribution was always made to the traditional IRA. The 1099-R with Code R in 2023 is just the custodian's way of reporting that recharacterization transaction to the IRS. Since you did this before filing your 2022 taxes, your original return should have reflected the traditional IRA contribution (either as deductible or non-deductible depending on your income and workplace plan). The key question now is whether you properly reported that traditional IRA contribution on your 2022 return. If you didn't report it at all, you might need to file Form 8606 for non-deductible contributions to establish basis, but that's separate from the 1099-R Code R issue. The 1099-R itself goes on your 2023 return with no additional tax owed since box 2a shows $0 taxable amount.

I've been both 1099 and S Corp over my 15-year consulting career, and here's my practical take: at $675k, the S Corp advantage is massive, BUT remember you're trading simplicity for tax savings. With an S Corp you'll need: - Regular payroll processing - Workers comp insurance in many states - More complex bookkeeping - Corporate formalities (minutes, etc.) - Separate business banking - Annual state fees and reports The tax savings easily justify this complexity at your income level, but be prepared for about 5-10 hours/month of additional administrative work unless you outsource it all (which eats into your savings). One final note: many banks offer better business lending terms to established entities vs. sole proprietors. This became hugely valuable when I wanted to purchase commercial property for my business.

At your income level, you're definitely leaving substantial money on the table by staying as a 1099 contractor. I made the switch to S Corp about 3 years ago when my consulting income hit similar levels, and the tax savings have been significant. Here's what I wish someone had told me upfront: the "reasonable salary" determination is crucial and can make or break your tax strategy. I researched comparable salaries in my field extensively and settled on about 35% of my total profit as salary. This saved me roughly $45k annually in self-employment taxes while staying well within IRS guidelines. One thing that surprised me was how much the business entity opened up additional deduction opportunities beyond just the payroll tax savings. Business meals, travel, equipment purchases, and even my home office became much more defensible as legitimate business expenses. The administrative burden is real though - I spend about 2-3 hours monthly on corporate maintenance tasks, plus the added cost of payroll processing and a good business accountant. But when you're saving tens of thousands annually, those costs are easily justified. My advice: start the process now to be ready for next tax year, and definitely consult with a tax professional who specializes in S Corps. The setup cost will pay for itself many times over at your income level.