Don't forget that your state may have different requirements too! Here in California, an LLC has to pay an annual $800 fee regardless of whether it made any money, plus an LLC fee based on total income. I learned this the hard way and ended up owing penalties for state filings even though we had properly filed our federal returns.

I went through something very similar with my 3-member LLC. We also filed on Schedule C for the first two years before realizing our mistake. Here's what I learned from working with both a CPA and getting direct guidance from the IRS: The key factor is whether the "check the box" election was made. By default, multi-member LLCs are treated as partnerships, but if no one filed Form 8832, the IRS sometimes takes a more lenient approach, especially for smaller operations. Given that one LLC only had $15K in income in 2020 and the other had zero income in 2021, you're probably looking at minimal penalties even if you do need to file partnership returns. The penalty for late partnership filing is $210 per partner per month, but it's often reduced or waived for reasonable cause - and "relied on tax software guidance" is actually considered reasonable cause in many cases. My recommendation would be to file the partnership return for 2020 (the year with actual income) and include a reasonable cause statement explaining the confusion. For the zero-income year, you might be able to skip it entirely since there's no actual tax impact. Just make sure to file correctly going forward with Form 1065 for any active years. The statute of limitations issue is real though - until you file the required partnership returns, the IRS can technically go back indefinitely. Better to clean it up now while the amounts are small.

Has anyone used TurboTax with a 1099-G? Does it automatically figure out if the state refund is taxable or not? I'm in the same boat as the OP but don't want to mess it up when I enter it.

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.

Has anyone dealt with the final LLC tax return when you've been filing as a single-member disregarded entity? My accountant says we just check the "final return" box on Schedule C, but that seems too simple to me.

One thing I learned the hard way is to keep detailed records of all your closure activities. I created a simple spreadsheet tracking every form filed, every agency contacted, and every confirmation number received. When I got a random notice from my state 18 months later questioning whether my business was properly closed, having that documentation saved me hours of research. I could immediately show exactly when I filed dissolution papers, when I notified each agency, and when I received confirmations. Also, don't forget about any automatic payments or subscriptions tied to your business accounts - things like software subscriptions, business credit monitoring, or merchant services. These can continue charging even after you close bank accounts and create headaches with overdraft fees or collections issues.

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.

I used H&R Block last year. Got the advance. It appears at the end. After your return is complete. Not during preparation. You must qualify. Credit check is required. Minimum refund amount applies. 1099 status doesn't matter. Timing matters most. Early season only. January to February typically. It's too late now. Consider this for next year instead. Plan accordingly.

I can confirm what several others have mentioned - you're unfortunately past the window for H&R Block's Refund Advance this season. As a fellow 1099 contractor who's been through this process multiple times, the advance option only appears after you complete your entire return and reach the final review screen. The key points for your situation: • 1099 contractors ARE eligible - your income source isn't the issue • The advance is offered January through February only (sometimes extends to early March) • It requires a minimum $500 expected refund and soft credit check • The option appears automatically if you qualify - there's no separate application Since you mentioned tight cash flow for Q1 inventory, I'd recommend completing your return now for the regular refund (2-3 weeks with direct deposit) and planning ahead for next year. File in late January 2025 if you want to access the advance option. The business analogy you used about proper preparation is spot-on - next year's tax planning should include factoring in these timing windows if early refund access is important for your business operations.