Has anyone used a PTE (Pass-Through Entity) tax election to help with this multi-state mess? My understanding is that if the S-corp makes this election in states that offer it, it can pay tax at the entity level which might simplify things for the individual shareholder and provide SALT cap workarounds.

This is exactly the kind of situation that keeps me up at night! I've been there with multi-state S-corp partnerships. A few quick tips from my experience: 1. Don't panic - you have time to sort this out properly. Most states have reasonable deadlines for S-corp returns. 2. Start by making a spreadsheet listing each state on the K-1s, the income amounts, and research each state's filing thresholds. Some states like Delaware have pretty high thresholds ($20k+) while others are much lower. 3. Remember that even if the S-corp has to file in multiple states, your client might qualify for composite return filing in some states, which can simplify the individual filing burden. 4. Check if any of the states offer voluntary disclosure programs if you discover you should have been filing in prior years but weren't. The good news is this is becoming more common with real estate partnerships and investment funds, so there are established procedures. Just take it one state at a time and you'll get through it!

Does anyone know if HSA contributions work the same way? My employee wants to contribute to her HSA through payroll and I'm not sure if I need to pay employer taxes on that portion.

This is such a common source of confusion for small business owners! I went through the exact same thing when I first started my business. The key thing to remember is that retirement contributions like 401k and SIMPLE IRA are "pre-tax" for income tax purposes, but they're still considered wages for FICA (Social Security and Medicare) purposes. So in your example with the $65,000 salary and $25,000 retirement contribution, you'll pay employer FICA taxes on the full $65,000. The employee's income tax withholding will be calculated on $40,000, but that doesn't affect your employer tax obligations. One tip: make sure your payroll system is set up correctly to handle these different tax treatments. I learned this the hard way when I had to file amended returns because my initial setup was wrong. It's worth double-checking with your payroll provider that they're calculating employer taxes on the pre-deduction amounts for retirement contributions. Hope this helps clarify things while you're waiting for your accountant to return!

Depends on your situation tbh. What forms are you filing? Any businesses? Investments? Rental income?

That's absolutely outrageous for a basic W-2 return! I'm a CPA and can tell you that $1,300 is what we'd charge for complex business returns with multiple entities. For a standard individual return, you should be paying $150-300 max. After 10 years, she's definitely taking advantage of your loyalty. I'd recommend getting quotes from other preparers or trying software like TurboTax/TaxAct first - you'll probably save over $1,000!

I filed an amendment electronically on March 14, 2024, and it was accepted by the IRS the same day. Just got my additional refund on May 2nd - so about 7 weeks total. Such a relief compared to last year when I filed a paper amendment on February 10th and didn't see my refund until July! Electronic is definitely the way to go.

Just wanted to add that if you're unsure about whether your deduction qualifies or how to properly claim it on the amendment, the IRS has some helpful resources on their website. Publication 17 (Your Federal Income Tax) has a comprehensive section on amendments, and there's also the Interactive Tax Assistant tool that can help you determine if amending is the right choice for your situation. Better to double-check the details before filing than to have to amend the amendment! Also, make sure you have all your supporting documentation ready - the IRS may request it even for electronic filings.

Great question! As someone who's been through this exact confusion, here's what I've learned about per diem for sole proprietors: Your accountant is right - you can use GSA per diem rates for meals and incidentals (M&I) but you'll still need actual receipts for lodging. The GSA website has a per diem lookup tool where you can enter your destination cities and get the exact daily rates. A few key things to remember: - First and last days of travel are prorated at 75% of the full daily rate - You'll only be able to deduct 50% of the meal portion when filing taxes (though the calculation is done after applying per diem) - Keep a simple travel log with business purpose, dates, locations, and who you met with - this is required even when using per diem For your upcoming Atlanta/Denver trip, definitely look up the county-specific rates since metro areas can have different rates by county. The per diem method will save you from keeping track of every meal receipt, but you'll still need documentation showing the business nature of your travel. One last tip: if you do any entertaining of clients during these trips, those meals have different rules and you'll want to track those separately with actual receipts.

One thing I'd add from my experience as a sole proprietor who travels frequently - make sure you understand the difference between "high-cost" and "standard" locations when looking up GSA rates. Cities like Denver and Atlanta might have higher per diem rates than you expect, especially during peak seasons or special events. Also, I learned this the hard way: if you're combining business and personal travel (like extending a business trip for a weekend vacation), you need to be really careful about which days you can claim per diem for. You can only use per diem rates for the days that are primarily business-related. For tracking, I use a simple note-taking app on my phone where I log each day's business activities immediately. Takes 30 seconds but creates a solid paper trail. Then I just export it to a spreadsheet at tax time. Way easier than trying to reconstruct everything months later! One last tip - if you're staying at extended stay hotels or places with kitchenettes, you might want to consider tracking actual meal expenses instead of using per diem, especially if you're cooking some of your own meals. Sometimes the actual expense method works out better financially in those situations.