Have you tried using a different tax software? Sometimes the issue is with how one particular tax program formats the submission. I switched from H&R Block to FreeTaxUSA after having similar problems and my return went through fine. Most tax programs will let you import your info from a PDF of your H&R Block return, so you don't have to start completely from scratch. Might be worth trying if nothing else works!

I've been dealing with tax issues for years and one thing that often gets overlooked is checking if your state requires additional forms for multiple employers. Since you mentioned having two jobs ($46k + $14k), some states have specific requirements when you have multiple W-2s that can cause automatic rejections. Here's what I'd suggest trying first: Log back into H&R Block and look for a section called "State Requirements" or "Additional State Forms" - it's usually buried in the state portion after you enter all your income. Sometimes the software doesn't automatically prompt you for these forms even when they're required. Also, double-check that your bartending income is correctly categorized. If any of your tips were reported differently between your W-2 and what you reported throughout the year, that can trigger state rejections even when federal accepts it. If you're still stuck after checking those items, you might want to call your state's taxpayer assistance line directly. I know it's a pain to wait on hold, but they can often tell you exactly what field is causing the rejection in a way that H&R Block's error messages can't.

This thread has been incredibly helpful! I've been dealing with S-Corp losses for the past two years and finally feel like I understand the process. One thing I want to add that might help others - make sure you're also considering the Section 1244 ordinary loss election if you qualify. If your S-Corp stock qualifies as Section 1244 stock (which many small business S-Corps do), you can treat up to $50K ($100K if married filing jointly) of stock basis losses as ordinary losses rather than capital losses when you dispose of the stock or it becomes worthless. This is different from the annual pass-through losses we've been discussing, but it's another layer of tax planning that S-Corp owners should be aware of. The ordinary loss treatment can be much more valuable than capital loss treatment since capital losses are limited to $3K per year against ordinary income. Also, I've learned from my CPA that keeping a running basis schedule in a simple spreadsheet has been a lifesaver. I update it every year when I get my K-1, and it makes tax prep so much smoother. After reading about everyone's audit experiences, I'm definitely going to be more diligent about keeping supporting documentation for every entry. Thanks to everyone who shared their experiences - this is exactly the kind of practical advice that makes a real difference!

Wow, this thread has been incredibly educational! As someone who's been struggling with my S-Corp tax situation, I can't thank everyone enough for sharing their real-world experiences. I'm in a similar boat with my LLC that elected S-Corp status - had a rough year and ended up with losses that I'm trying to figure out how to handle. Reading through all these responses, I realize I've been making some fundamental mistakes in how I've been thinking about NOLs vs. S-Corp pass-through losses. The basis tracking issue is something I definitely need to get better at. I've been pretty casual about documentation, but after reading about the audit experiences here, I'm going to start keeping much more detailed records. The spreadsheet template that was mentioned sounds like exactly what I need. One question for the group - for those of you who have dealt with multi-year loss carryforwards, how do you handle the record-keeping when you have both suspended S-Corp losses (waiting for basis restoration) AND personal NOL carryforwards happening at the same time? It seems like you'd need to track multiple moving pieces across several years. Also, I'm curious if anyone has experience with how these loss limitations interact with the Section 199A QBI deduction. If I have S-Corp losses reducing my QBI in the current year, but then carry forward an NOL to a profitable year, does that affect the 199A calculation in the carryforward year? Thanks again to everyone - this community is invaluable for navigating these complex tax situations!

I just ignored a $8.50 use tax I owed last year and nothing happened lol. The state has bigger tax cheats to go after than someone who didn't pay a few bucks on an online purchase. But technically yes you're supposed to pay it.

For your specific situation with the $5.40, here's my practical advice: Yes, technically you're required to pay use tax, but realistically the enforcement risk for such a small amount is essentially zero. However, I'd recommend getting into good habits now. Most states let you report use tax on your annual income tax return - there's usually a line where you can enter the total amount of use tax owed for the year. You can either track individual purchases or use your state's estimation table based on income (much easier). Since you're just starting to deal with this, I'd suggest setting up a simple system: keep a running tally of untaxed online purchases throughout the year, then report the total when you file your state taxes. The deadline is typically the same as your income tax filing deadline. Don't stress too much about this particular $5.40 purchase, but use it as a learning experience for bigger purchases in the future. Better to understand the system now than be caught off guard with a larger amount later!

Has anyone dealt with a situation where the house significantly appreciated between death and sale? My situation is similar but we didn't sell right away and now there's a huge gain from the stepped-up basis to sale price.

I'm dealing with a very similar situation right now with my grandmother's estate. One additional thing to consider that hasn't been mentioned yet - if the property was used as a rental before your aunt passed, you may also need to deal with depreciation recapture on Schedule D. This gets reported as ordinary income rather than capital gains and can significantly impact the tax liability. Also, make sure you get a proper appraisal of the property as of the date of death to establish the stepped-up basis. The IRS may question the valuation later, especially with a $425,000 property, so having professional documentation is crucial. I learned this the hard way when they asked for supporting documentation during my grandmother's estate audit. For the K-1 distributions to 20 beneficiaries, consider whether any of them are minors or have special circumstances that might affect how they report their share of the gain. This can get complex quickly with that many people involved.

Just wanted to add a practical tip for tracking expenses throughout the year - I use a simple spreadsheet to log every business-related purchase as it happens. Categories like equipment, software subscriptions, office supplies, travel/mileage, etc. Makes tax time SO much easier than trying to dig through bank statements later. Also, if you're using your phone or computer for content creation, you can deduct the business percentage of those costs too. Just make sure you can justify the percentage if the IRS ever asks. For example, if you use your phone 40% for business, you can deduct 40% of your monthly bill. The key is being able to document that these expenses are "ordinary and necessary" for your content creation business. Keep receipts and notes about how each expense relates to your work!

One thing I haven't seen mentioned yet is that you might also want to consider making quarterly estimated tax payments for this year if you plan to continue your content creation work. Since you'll likely earn more than $1,000 in self-employment tax again, the IRS expects you to pay as you go rather than waiting until next April. You can calculate your estimated payments using Form 1040ES. Generally, you'll want to pay either 100% of last year's total tax liability or 90% of this year's expected tax - whichever is smaller. This helps you avoid underpayment penalties and also makes the tax burden more manageable by spreading it across the year. Also, don't forget to keep track of any business miles you drive for content creation purposes (going to filming locations, meeting clients, picking up supplies, etc.). The standard mileage rate for 2024 is 67 cents per mile, which can add up to significant deductions if you do much driving for your business!