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.

I had the same issue last year - took almost 3 weeks for mine to show up. The mail system seems really slow with these verification letters. If you're getting anxious about it, definitely call that number Aisha mentioned. Also worth double-checking that your mailing address on file with the IRS matches exactly where you want it sent. Even small differences like "St" vs "Street" can cause delays. Hang in there!

Had to deal with this exact situation a few months ago - the PIN took about 12 business days to arrive for me. One thing that helped speed up the process was making sure I had informed delivery set up through USPS so I could track when mail was coming. Also, when you do call that 800 number, have your SSN and the reference number from your original verification letter ready - it'll save you time on hold. The whole process is frustrating but you're definitely not alone in this!

You're absolutely right to be concerned about the marriage penalty - it's a real issue that affects many couples, especially when one person qualifies for Head of Household status. A few things to consider beyond just the standard deduction difference: 1. **Income-based credit phaseouts**: When you combine incomes, you might lose eligibility for credits like the Earned Income Tax Credit or Child Tax Credit that you currently qualify for. 2. **Tax bracket considerations**: Your combined income might push you into higher tax brackets faster than if you filed separately. 3. **Married Filing Separately option**: While you'd lose some benefits, this might reduce the penalty in your specific situation. You'd need to run the numbers both ways. 4. **Timing strategy**: Since marital status is determined on December 31st, you could potentially delay your wedding until January to get one more year of favorable tax treatment. I'd strongly recommend getting a professional tax projection done with your actual numbers before making this decision. The rough calculations can be misleading because there are so many variables that interact with each other. A tax professional can show you exactly what the impact would be and might identify strategies to minimize it. Don't let taxes be the only factor, but definitely factor them into your overall financial planning for marriage!

I went through this exact situation two years ago! As a single mom filing Head of Household, I was terrified about the marriage penalty. What I discovered is that while yes, there IS a penalty in terms of standard deductions and tax brackets, the real-world impact depends heavily on your specific income levels and deductions. Here's what helped me: I tracked down every possible deduction and credit change that would happen. For example, if your boyfriend has student loan interest or other deductions that you can't currently claim, those might help offset some of the penalty when you file jointly. Also, look into whether your combined income would still qualify for credits like the Child Tax Credit - sometimes the income limits are higher for married couples. The timing suggestion others mentioned is huge. We actually moved our wedding from December to February specifically to get one more year of Head of Household status. That one decision saved us over $4,000. Bottom line: run the actual numbers with a tax professional who can look at your complete picture. The marriage penalty is real, but there are often ways to minimize it that aren't obvious from just looking at standard deductions.

Just to add some reassurance - I went through exactly this situation about 8 months ago. Was on emergency tax for nearly 5 months due to a mess-up with my P45 from my previous job. When HMRC finally sorted my tax code, I got back over £1,400 in my next paycheck! The system really does work automatically once your code is corrected. Your payroll department will recalculate everything from April 6th (start of tax year) and you'll get the difference back. Just make sure to double-check the amount on your payslip - sometimes there can be small errors in the calculation, but in my experience it's usually spot on. The waiting is the hardest part, but once it's fixed, the relief is incredible. You should definitely see that refund in your next pay!

I'm actually going through this exact same situation right now! Been on emergency tax for 3 months and finally got my tax code sorted last week. Really hoping to see that refund in my next paycheck because like you said, emergency tax has been absolutely brutal on my take-home pay. One thing I learned from calling HMRC is that if you don't see the refund automatically, you can also request a P800 tax calculation which will show exactly how much you're owed. But from what everyone's saying here, it sounds like it should just appear automatically which is a huge relief. Fingers crossed we both see those refunds soon! The amount I'm expecting back would honestly be life-changing right now given how tight money's been with the reduced paychecks.

I would perhaps suggest approaching this situation with caution. In several cases I've observed, taxpayers who received checks at old addresses experienced subsequent identity verification holds on their accounts in following years. The Department may, in some instances, flag these accounts for additional scrutiny during the next filing season, particularly if the check was returned undeliverable. This could potentially delay future refunds by approximately 60-90 days while identity verification processes are completed.

This is incredibly frustrating but unfortunately very common with PA state refunds. I experienced this exact same issue last year - filed with direct deposit selected and current address, but they sent a paper check to my old address from 2021. What I learned from dealing with PA DOR is that their system has a major flaw: if there's ANY discrepancy between your current filing address and what they have in their legacy database, they automatically override your direct deposit election and mail a paper check to whatever address they have on file - which could be years old. The key steps that actually worked for me: 1. Call PA DOR immediately (yes, the wait times are brutal) 2. Request a refund trace - they'll give you a reference number 3. File Form REV-763 to officially update your address 4. If the check hasn't been cashed, they can usually stop payment and reissue Pro tip: Set up mail forwarding with USPS as a backup, but don't rely on it alone since tax documents sometimes can't be forwarded. The whole process took me about 6 weeks to resolve, but I did eventually get my refund. Pennsylvania really needs to fix this system - it's affecting way too many taxpayers every year.