I've been following this thread closely since I'm in a similar situation with about $145k in 1099 income this year. The consensus seems clear that retroactive S Corp election isn't possible, but I wanted to add a few practical considerations I've discovered while researching this. First, if you do decide to form the LLC in December, make sure you understand your state's publication requirements. Some states like New York require you to publish a notice in local newspapers, which can cost $1,000+ and take several weeks. This could delay your ability to get everything set up cleanly. Second, I've been talking to several CPAs about the "reasonable salary" issue that keeps coming up. The general rule of thumb I'm hearing is 60-70% of your net profit should be salary, with the rest as distributions. But this varies significantly based on your industry and role. For consulting/contracting work like ours, they're suggesting looking at comparable W-2 salaries for similar roles in your area. Third, don't forget about state-level considerations. Some states don't recognize S Corp elections or have additional franchise taxes that can eat into your federal savings. Has anyone here dealt with multi-state issues? I have clients in 3 different states and I'm worried about creating nexus issues with an LLC that I don't have as a sole proprietor.

I'm dealing with a very similar situation and want to thank everyone for the detailed responses here. I'm at about $128k in 1099 income this year and was also hoping I could somehow make an S Corp election work retroactively. One additional consideration I haven't seen mentioned - if you're planning to make this transition, start thinking about your 2026 estimated tax payments now. When you switch from sole proprietor to S Corp, your quarterly payment calculations become more complex since you'll have both payroll taxes and potential distributions to account for. I spoke with my accountant yesterday and she mentioned that many people underestimate their Q1 2026 payments because they forget that the "reasonable salary" portion will have payroll taxes withheld throughout the year, but any distributions taken early in the year won't have taxes withheld. This can create a cash crunch at tax time if you're not careful. Also, for those asking about the actual savings - I ran the numbers with my CPA and at my income level, we're looking at roughly $6,800 in annual self-employment tax savings after accounting for payroll processing costs and additional filing fees. That's definitely worth the extra administrative burden for me. The liability protection alone makes forming the LLC worthwhile even without the immediate tax benefits. Better to get everything set up properly now rather than rushing through it in January when everyone else is trying to do the same thing.

I'm actually dealing with a similar situation right now! Just wanted to add that if you do decide to go ahead with the second job, make sure to keep really good records of all your expenses related to it - things like gas for commuting, work clothes if the retail job requires specific uniforms, etc. These can sometimes be deductible and help offset some of the additional tax burden. Also, since you mentioned credit card debt from your wedding, you might want to look into whether any of the interest is deductible (probably not for personal credit cards, but worth checking). The extra income from the second job could also help you qualify for better debt consolidation rates if that's something you're considering. One last thing - retail jobs during tax season (which you'd be starting soon) can sometimes lead to opportunities to learn about tax prep services, which could be another potential income stream down the road if you find you're good with numbers. Just a thought! Good luck with whatever you decide.

One thing I haven't seen mentioned yet is the timing aspect of starting your second job. Since we're already into 2025, you'll want to be extra careful about your withholding calculations because you'll have fewer pay periods to spread the additional tax burden across. I'd strongly recommend using the IRS Tax Withholding Estimator (irs.gov/W4App) rather than just the paper worksheet, since it can account for the partial year of second job income. When you input your information, make sure to include what you've already earned and had withheld so far this year from your main job. Also, consider this: at $58k + potential $12k from the retail job, you're looking at about $70k total income. That keeps you comfortably in the 22% bracket for 2025 (which doesn't kick in until around $47k for single filers). The real benefit is that extra $1000/month could knock out your credit card debt much faster, saving you tons in interest charges that far outweigh any additional tax burden. One practical tip: ask your retail employer about their payroll schedule. If they pay weekly while your main job pays bi-weekly, it might actually help smooth out your cash flow for debt payments!

Anyone else notice TurboTax keeps pushing their "live expert" add-on now? I tried it last year and it was... meh. The "expert" seemed to just be reading from the same help screens I could access myself.

I made the jump from TurboTax to a CPA when my income hit around $160k, and honestly wish I'd done it sooner. The biggest eye-opener wasn't just finding more deductions, but learning about tax strategies I never even knew existed. My CPA showed me how to optimize my 401k contributions, set up a backdoor Roth IRA (which TurboTax never suggested), and restructure some investments to be more tax-efficient. The first year alone, these strategies saved me more than double what I paid in CPA fees. At your income level, you're probably hitting some phase-out thresholds for certain deductions and credits that TurboTax might not explain clearly. A good tax pro can walk you through these and help you plan ahead for next year too. Even if you decide to go back to software later, having a professional review your situation once during this big income change could be really valuable.

I went through this EXACT same thing last week! I was literally checking my Credit Karma account every hour after seeing the fees taken out. It took exactly one full business day for mine to show up - fees were taken Tuesday morning and the deposit hit Wednesday around 10am. I was so worried because I had bills scheduled to auto-pay! The waiting is seriously the worst part, especially when you can see that they've already taken their cut but you're still waiting for yours. Hang in there!

I'm dealing with this same situation right now! Filed with TurboTax, got the refund advance in February, and just saw the fees come out this morning. It's reassuring to see so many people going through the exact same process. Based on what everyone's sharing, it sounds like 1-2 business days is pretty standard for the remaining balance to hit Credit Karma. I'm going to try to be patient and check again tomorrow evening. Thanks for asking this question - I was starting to worry something was wrong with my deposit!

I went through this exact same nightmare last year! My tax preparer claimed she filed my extension but the IRS had no record of it. Here's what worked for me: 1. **Get everything in writing from your preparer** - Ask for a detailed timeline of when she claims to have filed, what confirmation she received, and any reference numbers. That screenshot might be helpful even if you doubt it. 2. **Request your IRS transcript immediately** - File Form 4506-T or get it online through IRS.gov. This will show exactly what the IRS has on file for you and can definitively prove whether an extension was filed or not. 3. **For Form 843, focus on reasonable cause** - In Part II, emphasize that you hired a licensed professional specifically to handle this filing requirement and reasonably relied on their expertise. Include copies of your contract/agreement showing you paid them to file the extension. 4. **Document your good faith effort** - Include evidence that you provided all necessary information to your preparer well before the deadline and that filing the extension was explicitly part of their service. The IRS is generally sympathetic when taxpayers can show they made good faith efforts to comply by hiring professionals. Just make sure your Form 843 tells a clear story of reasonable reliance on professional advice. Also, definitely pursue getting reimbursed by your preparer - most carry professional liability insurance for exactly these situations!

I'm so sorry you're dealing with this - tax preparer mistakes are incredibly frustrating! I went through something similar a few years ago and learned some hard lessons. One thing I'd add to the excellent advice already given: when you're preparing your Form 843, make sure to include a timeline of events in your reasonable cause explanation. Show exactly when you hired the preparer, when you provided all necessary documents, when the extension was supposed to be filed, and when you first discovered the problem. The IRS likes to see that you acted promptly once you became aware of the issue. Since you just found out about this last week, make sure to emphasize that you're filing the abatement request immediately upon discovering the problem. Also, if your preparer is enrolled with the IRS (has a PTIN number), you can look up their credentials on the IRS directory. This can be useful documentation to include showing that you reasonably relied on a properly credentialed professional. One last tip - if your Form 843 gets denied initially, don't give up! You can request a supervisory review or file an appeal. Sometimes it just takes getting in front of the right person who understands the situation better. Good luck with this mess - I hope you get it resolved quickly!