Has anyone actually calculated how much difference this makes on your taxes? I'm curious because my company does something similar with our quarterly bonuses (W2 for salary, 1099 for bonuses).

This is a really helpful thread! I'm dealing with a similar situation where my employer gave me a 1099 for what they called "performance incentives" but I'm a regular W-2 employee. Based on what everyone's saying here, it sounds like they should have included these on my W-2 instead. I'm going to try the approach mentioned about talking to payroll first before escalating anywhere. Has anyone had success getting their employer to reissue corrected forms mid-tax season? I'm worried about filing deadlines but also don't want to file incorrectly if my employer is supposed to fix this.

Has anyone tried doing the 1065 through Cash App Taxes (formerly Credit Karma Tax)? I use it for my personal taxes and love that it's totally free, but not sure if their business version handles LLCs well.

I've been filing my LLC's 1065 returns for the past 3 years and can definitely relate to the sticker shock from TurboTax! Here are a few more options that have worked well for me: **TaxHawk** - Usually around $70-75 for 1065 filing. Their interview process is pretty thorough and catches most common mistakes. I like that they show you exactly which forms and schedules you're generating as you go. **Drake Tax** - This one's more designed for tax pros but they do offer a consumer version. It's about $60 for partnership returns and has really robust depreciation handling if you have business equipment or vehicles. One thing I learned the hard way: make sure whatever service you pick can handle your state filing too if needed. Some of the cheaper federal options charge almost as much for state as they do for federal, which kills the savings. Also, since you mentioned your accountant retired - consider reaching out to local CPAs for quotes on just reviewing your return after you prepare it yourself. Many will do a quick review for $100-150, which gives you peace of mind without paying for full preparation. Sometimes catching one mistake saves you way more than the review fee!

Quick question for those with more experience - does anyone know if you can switch between standard mileage deduction and actual expenses year to year? I'm getting a newer car soon specifically for Uber and wondering what's best.

Great discussion everyone! As someone who's been doing rideshare driving for 2 years, I wanted to add a few practical points that might help the original poster. First, regarding the LLC question - you're right that it doesn't change your tax situation for deductions, but one thing to consider is that some insurance companies offer better commercial auto rates to LLCs versus individual drivers. It's worth shopping around. Second, about the "100% business use" claim - be really careful here. The IRS scrutinizes this heavily. Even driving to get gas, going to the car wash, or driving to your first pickup of the day can count as personal use in their eyes. Most tax professionals recommend being conservative and claiming something like 90-95% business use to avoid audit triggers. Finally, don't forget about other deductions beyond the vehicle! Phone bills (business portion), toll fees, parking costs, and even roadside assistance memberships are all deductible. These can add up to significant savings even if you're taking the standard mileage deduction.

Check your WMR (Wheres My Refund) tool on irs.gov it might give more info

Look for code 570 or 971 on your transcript - those would indicate if there's additional processing happening or if they sent you a notice explaining the difference. Also check if there are any other 846 codes with future dates that might show the remaining balance coming later. Sometimes the IRS does split refunds, especially when there are credits involved that need extra verification. If you don't see any explanatory codes, you can call the refund hotline at 1-800-829-1954 to ask about the discrepancy.

Something nobody's mentioned yet - check with your local Small Business Development Center (SBDC). They often offer free or very low-cost accounting consultations and can connect you with CPAs who specifically work with startups. I found my current accountant through them and she only charges me $750/year for my LLC tax prep. Another option is to check if any accounting firms offer special startup packages. When I first started, I found a mid-size firm that had a "first year business" discount that saved me about 30% off their regular rates. They wanted to build long-term relationships with growing businesses.

Don't overlook bookkeeping software as part of your strategy! I run a tiny LLC ($60K revenue) and found an amazing solution: I use Wave (free) for 90% of my bookkeeping, then pay a CPA just $300 quarterly to review my books and answer questions. By keeping clean records year-round, my annual tax prep only costs about $600 because the CPA isn't spending time organizing my mess. Most CPAs charge more when they have to deal with disorganized records than they do for the actual tax knowledge part.