Just wanted to add another perspective on documentation - I went through a similar situation last year and found that maintaining a simple spreadsheet with dates worked really well for tracking custody. I included columns for pickup/dropoff times, who had the kids each night, and any deviations from our normal schedule. What really helped during my IRS review was that I also kept copies of things like: - School pickup/dropoff records (many schools track this) - Medical appointment records showing which parent took kids - Activity registrations and who transported them - Even grocery receipts showing kid-related purchases on specific dates The key thing I learned is that the IRS wants to see a pattern of actual physical custody, not just what's written in your divorce agreement. Since you mentioned having the kids "slightly more than 50%" of nights, make sure you can prove that specific percentage with real dates and documentation. Also, don't forget that overnights count more than just daytime hours - the IRS specifically looks at where the child slept, not just spent time during the day. So even if your ex picks up the kids after school but they sleep at your house, that night counts toward your custody percentage.

Great question about Head of Household status with split custody! I went through this exact situation after my divorce two years ago. The key thing to understand is that Head of Household eligibility and dependency exemptions are actually two separate tests under IRS rules. For HoH status, what matters is physical custody - where your children actually sleep for more than half the nights in the year. The fact that you're splitting the dependency exemptions (one child each) doesn't disqualify you from HoH as long as at least one qualifying child lives with you more than 50% of the time. Since you mentioned having the kids "slightly more than 50% of the nights," you should qualify for Head of Household status. Just make sure to document this carefully - count the actual overnights, not just what your separation agreement says. I kept a simple calendar marking which nights each child was at my house, and it really helped when I was preparing my taxes. One thing to double-check: make sure your divorce is finalized by December 31st of the tax year you're filing for, since you need to be "considered unmarried" to qualify for HoH status. It sounds like your February 2023 finalization should cover you for the 2023 tax year. The tax savings from HoH versus Single filing status can be significant, so it's definitely worth getting this right!

FYI - Marcus and TurboTax work together fine, but one tip: the payment doesn't show as "pending" in your Marcus account right away which freaks some people out. When I did mine last year, it took about 24 hours before the pending transaction appeared in my account, but the money was already earmarked. Don't panic if you don't see it immediately!

I actually just went through this exact situation a few weeks ago! Used my Marcus account to pay both federal and state taxes through TurboTax and everything went smoothly. The key things that helped me avoid any issues: 1. Made sure I had sufficient funds well before the payment date (Marcus can be picky about available balance vs pending transactions) 2. Double-checked all my account info in TurboTax - routing number, account number, everything 3. Called Marcus beforehand to give them a heads up about the large outgoing payment (they noted it in my account) The whole process took about 3-4 business days from when I submitted through TurboTax to when it showed as processed on the IRS website. I got email confirmations from both TurboTax and Marcus, so you should have a good paper trail if anything goes wrong. Your friend might be thinking of older issues or different banks - Marcus has gotten much better with government payments over the past couple years. As long as you're under your transfer limits and have the funds available, you should be fine!

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.

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!

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!