Don't forget about QBI (Qualified Business Income) deduction! Both LLCs and S Corps qualify, but the calculation can be different. With real estate business income around $105k plus your W-2 job, you might be in phase-out territory for this deduction depending on your filing status. In 2025, the QBI phase-out starts at $183,100 for single filers and $366,200 for married filing jointly. Your total income is near these thresholds, so that's another consideration.

Based on your situation in Texas with inconsistent real estate income, I'd lean toward switching to an LLC. Here's why: With your fluctuating income ($7k some months, $40k others), maintaining reasonable S Corp salary requirements is a nightmare. You either overpay yourself in slow months (hurting cash flow) or underpay (risking IRS scrutiny). The math: If you're taking a $50k salary now, switching to LLC means paying self-employment tax on the full $105k. That's about $8,085 in additional SE tax. But factor in: - Payroll service fees (~$1,200/year) - Additional tax prep complexity (~$500-1,000) - Franchise tax filing - Time/stress of payroll management You're probably looking at $2,000-3,000 in administrative costs, making the real tax difference closer to $5,000-6,000 annually. Given your income volatility and the administrative headaches you mentioned, that premium might be worth paying for the simplicity. Plus, with an LLC you can always elect S Corp taxation later if your income stabilizes and grows significantly. I'd run the exact numbers with your CPA, but for many people in similar situations, the peace of mind is worth the modest tax increase.

mine took 11 weeks but I had to verify both identity AND income. depends what they're asking you to verify tbh

I went through this exact same process last year! For me, it took about 10 weeks total from when I submitted everything through ID.me. The key thing is making sure you uploaded ALL the documents they requested - I made the mistake of only uploading my W-2 initially and had to resubmit with my bank statements too, which reset the clock. Also, don't rely on Where's My Refund for updates - it barely changes. Your transcript will show movement first with cycle dates and processing codes. Stay patient, it's frustrating but they do eventually get through it!

One thing to keep in mind - Delaware has pretty generous tax laws. If you only worked there temporarily and aren't a resident, you might qualify for some special treatment on that income. Make sure whatever tax software you're using asks about your residency status for each state!

This is totally normal for multi-state employment situations! Your employer handled this correctly. The key thing to understand is that federal wages and state wages are reported differently on W-2s. What happened is your employer consolidated all your federal wage information ($70,000 total) onto your Connecticut W-2 in Box 1, while separately reporting the state-specific portions on each respective W-2. So your Connecticut W-2 shows the full $70,000 federal wages but only $50,000 Connecticut state wages, and your Delaware W-2 shows $0 federal wages (since it was already reported on the CT form) but $20,000 Delaware state wages. This is actually the standard way employers handle multi-state situations to avoid duplicate federal reporting while ensuring proper state tax allocation. When you file, you'll use the total federal wages from your Connecticut W-2 for your federal return, then file separate state returns for each state based on the income earned there. Don't stress - your employer did everything right! Just make sure when you're filing to enter both W-2s exactly as they appear, and your tax software will handle the rest.

19 Has anyone used TurboTax to handle this RSU situation? I've got a similar problem and wondering if it can handle the cost basis adjustments properly.

I'm dealing with a very similar RSU tax situation right now! My employer also liquidated some of my vested shares and I'm getting that same confusing 1099-B with no cost basis reported. It's so frustrating because it makes it look like I owe taxes on gains I never actually realized. From what I've been reading in the IRS publications, you're absolutely right that the vesting date FMV should be your cost basis. The key thing is that when RSUs vest, that fair market value gets added to your W-2 income, so you've already been taxed on that amount. Your actual capital gain or loss is just the difference between what the shares were worth when they vested versus what they sold for. One thing I learned is to make sure you save all your documentation - not just the CSV from your brokerage, but also any supplemental tax documents your employer provided about the RSU transactions. Some companies send additional forms or statements that help clarify the cost basis calculations. Have you checked if your employer's HR or benefits team has any resources to help with this? Mine had a tax guide specifically for RSU reporting that I found really helpful.

Has anyone mentioned just banking the money in a regular business account? I run a small business and sometimes just leave profits in my business checking account until the next year when I need them. The money still shows up as income on my taxes, but at least I have the cash available for later.

One option that hasn't been fully explored here is setting up a Solo 401(k) if your consulting work qualifies as self-employment income. With a Solo 401(k), you can contribute both as the employee ($23,000 for 2025, or $30,500 if over 50) AND as the employer (up to 25% of compensation). This could potentially allow you to defer a significant portion of that $65k. The key is that your consulting income would need to be structured as self-employment rather than W-2 income from the client. You'd also want to make sure you're not exceeding the overall 415(c) limit when combined with your main job's 401(k). Another approach worth considering is a defined benefit plan if your consulting income is substantial and consistent - these can allow much higher contribution limits than traditional retirement accounts, sometimes $200k+ annually depending on your age and income projections. I'd strongly recommend getting professional advice before implementing any of these strategies, as the rules can be complex and mistakes can be costly.