Question for anyone who might know - my situation is slightly different. I'm on disability but also worked part-time for about 3 months last year (very limited hours). Would this help or hurt my chances of getting the child tax credit for my 2 year old?

I want to share some encouragement as someone who's been in a similar situation. I'm also a single parent on disability, and I was so confused about taxes when my daughter was born. It took me way too long to realize I could still file and claim credits even without traditional employment income. The most important thing to remember is that you absolutely should file a tax return! Even if your disability benefits aren't taxable (which depends on whether you receive SSI or SSDI and your total income), filing allows you to claim the Child Tax Credit which could result in a refund of up to $2,000 for your son. Don't let the paperwork intimidate you - there are free filing options available, and many are designed to handle situations exactly like yours. The IRS Free File program is a good place to start. You'll need your Social Security number, your son's SSN, and any tax documents related to your disability payments (like a 1099 if you receive SSDI). One thing that really helped me was keeping simple records - just a folder with any tax-related mail I received throughout the year. It made filing much easier when the time came. You're doing an amazing job caring for your little one, and this extra financial support through the tax system is there specifically to help families like yours. Don't hesitate to take advantage of it!

Don't forget that if you've been in the partnership for 7 years, you'll likely qualify for long-term capital gains rates on most of your gain (except for the Section 751 "hot assets" portion). Current long-term capital gains rates are 0%, 15%, or 20% depending on your income level, plus the 3.8% Net Investment Income Tax if your income is high enough. This could save you a ton compared to ordinary income tax rates! Make sure you're tracking your holding period correctly.

Great discussion everyone! As someone who went through a similar partnership sale two years ago, I want to emphasize the importance of getting a professional Section 751 analysis done. I thought I understood the basics, but it turned out our manufacturing partnership had significant "hot assets" that I completely missed. We had accounts receivable that qualified under Section 751, plus some inventory that had appreciated substantially since we switched to FIFO accounting. About 30% of what I thought would be capital gains ended up being ordinary income taxed at much higher rates. The difference in my tax bill was over $15,000! Also, @Ravi, since you mentioned equipment loans - make sure you understand exactly how the debt relief is calculated. In our case, the partnership had recently refinanced, and the debt allocation among partners had shifted slightly from our original percentages. The buyer's attorney caught this during due diligence, but it could have been a nasty surprise at tax time. One last tip: if your partnership has made any Section 754 elections in the past (usually when partners have left), this can create additional basis adjustments that affect your calculation. Worth double-checking your partnership's tax returns from prior years.

Has anyone considered that maybe an LLC with S-Corp election could help with the self-employment tax issue? If the Airbnb activity is definitely a business and not just rental income, you could potentially save on SE tax by taking a reasonable salary and the rest as distributions.

This is such a common confusion! I went through the same thing when I started hosting. The key thing to understand is that the IRS uses a "facts and circumstances" test to determine if your Airbnb income is subject to self-employment tax. From what you've described about your sister's situation, she's likely crossing into self-employment territory. The combination of personal cleaning, welcome baskets, providing utilities, and active management suggests she's providing "substantial services" beyond just renting space. Here's what I learned matters most: if the average guest stay is 7 days or less AND you're providing services primarily for the guest's convenience (rather than just maintaining the property), it's usually considered a business activity subject to SE tax. The welcome baskets might seem small, but they're actually a red flag to the IRS because they show you're going beyond basic property rental into hospitality services. Combined with her doing all the cleaning personally, it really looks like active business income rather than passive rental income. My advice? Have your sister track everything carefully - guest stay lengths, time spent on management activities, and all the services she provides. This documentation will be crucial whether she ends up owing SE tax or if she ever gets audited.

Has anyone checked if this is related to the verification issues mentioned on the TurboTax support forum? According to https://ttlc.intuit.com/community/tax-topics/help/refund-advance-delays/01/2023, some advance refunds are getting held up for additional identity verification steps that weren't required in previous years. Is there any notification in your TurboTax account about needing to verify identity?

Based on what everyone's shared here, it sounds like TurboTax's advance system is completely overwhelmed right now. I'd recommend checking three things immediately: 1) Log into your TurboTax account and look for any verification messages (like @Ravi Sharma mentioned - this caught a lot of people off guard), 2) Call the specific refund advance department at 800-446-8848 and ask for escalation if you've been waiting over 7 days, and 3) Double-check that all your personal info (especially address) matches exactly what's on file. The advance is totally separate from your actual IRS refund, so even though your return was accepted, the advance goes through TurboTax's lending partner which has its own approval process. Given that you need this for tuition next week, I'd definitely call tomorrow morning - don't wait for it to resolve on its own. Good luck!

Another option I don't see mentioned - check if your potential new employer offers an HDHP option you could enroll in immediately upon starting. Many employers have waived waiting periods for benefits during the pandemic and some have kept those policies. If your current coverage ends October 15th and new employer coverage can start October 16th, that would satisfy the continuous coverage requirement. Just make sure the new plan qualifies as an HDHP for HSA purposes - not all high-deductible plans do!

I want to add one more consideration that might be helpful - if you're planning to leave around October 15th specifically, you might want to think about pushing it to November 1st instead. Since HSA eligibility is determined by having HDHP coverage on the first day of the month, leaving mid-month in October could make you ineligible for the entire month of October. If you leave on October 15th and there's any delay getting new coverage started, you'd lose October eligibility even if you only had a few days gap. But if you can wait until November 1st, you'd maintain full October eligibility and then just need to ensure your new HDHP coverage starts November 1st with no gap. I know job timing isn't always flexible, but even a couple weeks could make a significant difference for your HSA testing period compliance. The penalties for breaking the testing period can be substantial, so it might be worth exploring if your departure date has any flexibility.