I'm surprised nobody mentioned that you need to be careful with this if you're taking the simplified home office deduction of $5 per sq ft! If you go that route you cant deduct actual expenses like rent or utilities separately. You have to pick one method or the other.

I went through this exact same situation when I started freelancing! The key thing to remember is that you need to have an actual expense to deduct. Since your boyfriend pays the rent and you don't reimburse him, you technically don't have a deductible rent expense right now. However, there are a few ways to handle this: You could start paying your boyfriend for your portion of the rent (get a simple written agreement for documentation), or you could take over paying for other home expenses like utilities, internet, or maintenance that you can then deduct proportionally for your office space. Another thing to consider - if you're using 25% of the apartment exclusively for work, you might want to calculate both methods to see which gives you a better deduction. The actual expense method might be worth more than the simplified $5/sq ft method depending on your total housing costs, but the simplified method is much easier to track and document. Make sure whatever arrangement you set up, you keep good records. The IRS loves documentation for home office deductions!

Does anyone know if you can have multiple SMLLCs? Im thinking about starting a second business but keeping it separate from my first one. Would I report both on the same Schedule C or have multiple Schedule Cs?

Great question! I went through this exact same confusion last year with my SMLLC. Here's what I learned after consulting with a tax professional: For issuing the 1099-NEC: Use your LLC's information (LLC name, EIN, and LLC address) as the payer. Even though it's a disregarded entity for income tax purposes, the LLC is still the legal entity that made the payment to your contractor. For your mixed 1099s: You're absolutely right to report both exactly as issued on your tax return. The one with your SSN goes on Schedule C as normal business income, and the one with your LLC's EIN also goes on Schedule C (same schedule). TurboTax handles this well - just make sure when you enter the LLC's 1099, you indicate it's for the same business activity. One tip that saved me headaches: Keep really good records showing which payments came through which entity. It helps during tax prep and if you ever get questions later. Don't stress too much about being late on the 1099-NEC - as long as you get it filed soon, the penalties aren't usually too severe for first-time issues. The important thing is getting it right going forward!

According to the Office of Child Support Enforcement website (acf.hhs.gov/css), another option to consider is requesting a case review through your state's child support agency. Many states have implemented enhanced collection methods beyond tax refund interception, including passport denial for debts over $2,500, credit bureau reporting, and property liens. The OCSE Federal Parent Locator Service might also help identify other income sources. Have you checked if your state has an online portal where you can track enforcement actions?

Thank you all for sharing such detailed experiences! This is incredibly helpful. @Fatima Al-Farsi - I didn't know about the passport denial option for debts over $2,500. That's actually a really powerful enforcement tool I hadn't considered. Do you know if that applies automatically once the debt reaches that threshold, or does it need to be specifically requested through the state agency? Also, regarding the online portals - my state does have one, but it's pretty basic and doesn't show much detail about what enforcement actions are currently active. I'm wondering if there's a way to get more transparency about which collection methods are actually being pursued in my case.

Has anyone used Vanguard for their small business 401k? We're considering them for our S-Corp (just me and my husband), but their website isn't super clear about the fees for small plans.

Based on your income level and S-Corp structure, I'd definitely recommend going with a 401k plan that includes profit sharing. This will give you the highest contribution limits compared to SEP IRAs or SIMPLE plans. Here's the breakdown for 2025: Each of you can contribute $23,000 as employee deferrals, plus your S-Corp can make profit sharing contributions up to 25% of your W-2 wages. The total combined limit is $69,000 per person if you're under 50. The key is setting your reasonable salaries correctly. You want them high enough to satisfy IRS requirements but not so high that you're paying unnecessary payroll taxes. For your income levels, you'll probably want salaries around $80-100k each, which would allow significant profit sharing contributions on top of your employee deferrals. One thing to watch out for - make sure you establish the 401k plan before December 31st if you want to make contributions for this tax year. The setup process typically takes 4-6 weeks, so don't wait too long to get started. I'd suggest getting quotes from Fidelity, Vanguard, and Charles Schwab for small business 401k plans. They all have good options for two-person S-Corps and can walk you through the specifics based on your projected income.

one thing nobody mentioned - a lot depends on which states r involved!! some states r SUPER aggressive about claiming residents (looking at u California and New York) while others barely care. where r u now and where u thinking of going?? that makes a huuuge difference in how careful u need 2 be!!

You're smart to think about this ahead of time! One important thing to add - even if you maintain residency in your home state, you'll still need to be aware of the temporary state's rules for non-residents earning income there. Some states have "convenience of employer" rules where they'll tax remote work income even if you're just temporarily present. Also, consider setting up a paper trail that shows your intent to return home. Keep paying bills at your parents' address (even if it's just a small utility or subscription), maintain memberships in local organizations, keep your car registered in your home state, etc. The more ties you maintain, the stronger your case for keeping your original state residency. And definitely keep that detailed calendar someone mentioned - not just for tax purposes, but because if you do need to file as a part-year resident anywhere, you'll need to know exactly how much income was earned in each state during your time there.