10 Have you tried using tax software that lets you do tax planning? I use TurboTax and they have a feature where you can estimate next year's taxes and it tells you if you're withholding enough. Saved me from owing $3k this year because I caught the underwithholding in October and adjusted my W-4 for the last few months.

One thing that hasn't been mentioned yet is to check if your employer is calculating withholding correctly based on your pay frequency. I discovered my biweekly paycheck withholding was being calculated as if I got paid weekly, which significantly under-withheld throughout the year. Also, if you get annual raises or bonuses, your withholding might not adjust proportionally. I learned to update my W-4 every January and again mid-year if I get a significant raise. The IRS withholding calculator is definitely your friend here - run it quarterly to stay on track. Another quick fix while you sort out the W-4: you can make estimated quarterly tax payments directly to the IRS to cover any shortfall. Form 1040ES has vouchers you can mail with a check, or you can pay online. This prevents that massive April surprise and potential underpayment penalties.

I'm dealing with a very similar situation right now! My business partner and I have been filing our 2-member LLC income on Schedule C for the past three years, and I just found out we should have been doing partnership returns. One thing I learned from my research is that the IRS has a "de minimis" approach for small partnerships - they're less likely to pursue penalties aggressively when the income is low and all taxes were actually paid (just reported on the wrong forms). Since your first LLC only had $15K total income and the other had zero, you're probably in a lower risk category. I'm also curious about the dissolution aspect you mentioned. If you're shutting down one of the LLCs in 2022, you might want to file a final partnership return for that entity showing the dissolution. That could actually help close the books cleanly rather than leaving things hanging. Have you considered reaching out to the IRS directly through their business line? I know it's hard to get through, but they sometimes give more practical guidance than accountants who tend to be overly cautious about every technical requirement.

I'm a tax preparer and see this exact situation frequently with small LLCs. Here's my practical take based on what actually happens versus what the regulations technically require: The IRS Publication 3402 (Tax Issues for Limited Liability Companies) clearly states that multi-member LLCs are partnerships by default, but enforcement for small operations is typically focused on whether taxes were actually paid, not the specific forms used. In your case, since you reported all income and paid appropriate taxes (just on Schedule C instead of via K-1s), the main issue is really about compliance, not tax avoidance. The IRS tends to be more understanding when they can see good faith effort to pay what was owed. My recommendation would be to file the partnership return only for 2020 (the year with actual income) along with amended 1040s for all three members. For 2021 with zero income, you could file a short-form 1065 showing no activity, or potentially skip it entirely since there's no tax impact. Include a reasonable cause statement explaining that tax software allowed the Schedule C filing method and you relied on that guidance. The key is being proactive rather than waiting. The IRS appreciates taxpayers who discover and correct their own mistakes. You'll likely face minimal penalties, and first-time penalty abatement might eliminate them entirely. For the LLC you're dissolving, definitely file a final partnership return showing the dissolution date - this officially closes that entity's tax obligations.

Check your spam folder too! Sometimes the approval emails end up there

I went through this same situation last month. The refund advance approval process is separate from your return being accepted - acceptance just means the IRS received your return without errors. For the Credit Karma advance, you'll typically get an email within 24-48 hours letting you know if you're approved or denied. The funds usually hit the card within 1-2 business days after approval. Just be patient, and definitely check your email (including spam) for updates!

I went through this exact same situation last year and it was so confusing at first! The key thing to remember is that the 1099-G is issued based on when you RECEIVED the refund, not when you filed the return that generated it. So if you got a state refund in 2024 (even if it was from your 2023 tax return), you'll get a 1099-G reporting that refund. The question is whether you need to report it as income on your 2024 federal return. Since you mentioned you typically take the standard deduction, you're probably in the clear. The state refund is only taxable if you itemized deductions on the federal return for the tax year that generated the refund AND you actually received a tax benefit from deducting state taxes paid. Keep the 1099-G with your tax records, but if you took the standard deduction on your 2023 federal return, you can ignore it for tax purposes. The state has to send these forms to everyone who received a refund over a certain amount, regardless of whether it's actually taxable to the individual recipient.

I'm glad to see so many helpful responses here! As someone who works in tax preparation, I can confirm that the advice about standard deduction vs. itemizing is spot on. One additional tip I'd add - if you're unsure whether you itemized or took the standard deduction on your previous year's return, look at line 12 of your Form 1040 from that year. If there's an amount there, you itemized. If it's blank or zero, you took the standard deduction. Also, don't panic if you get multiple 1099-G forms from different years or different states. I've seen clients get forms for refunds that were delayed due to processing backlogs or address changes. Each form will show the year the refund was actually issued, which helps you figure out which tax return it applies to. The most important thing is to keep good records. Even if the refund isn't taxable, hold onto that 1099-G form with your other tax documents. The IRS has a copy too, so if there are ever any questions down the line, you'll want to be able to show why you didn't report it as income.

One thing nobody mentioned yet - have you looked into getting certified in specialized care areas? I got certified in dementia care and diabetes management, which allowed me to charge $7-10 more per hour than the standard caregiver rate. My clients don't mind paying more because they're getting specialized knowledge, and it helps offset the tax burden.

As someone who's been doing this for a few years, I totally feel your pain about the competitive pricing issue! One strategy that really helped me was creating a simple one-page document explaining the value of working with a legitimate, insured caregiver. I highlight things like background checks, bonding, proper training documentation, and the fact that their payments are legitimate tax deductions for them if they're paying for a parent's care. I also started offering packages - like a "peace of mind" rate that includes liability insurance coverage and guaranteed availability during emergencies. Sometimes framing it as premium service rather than just "more expensive because of taxes" helps clients understand the value proposition. Another thing - make sure you're maximizing your health insurance deduction if you're paying for your own coverage. As self-employed, you can deduct 100% of health insurance premiums for yourself and your family, which can be substantial savings that help offset those brutal self-employment taxes.