Hey I just went through this exact situation last week! One thing nobody mentioned - take screenshots of EVERYTHING. The confirmation page when you submit, the email confirmation, everything. I had an issue last year where the brokerage claimed they never received my application even though I submitted before the deadline. My screenshots saved me.

This is such a stressful situation but you're not totally screwed! I went through something similar two years ago. The key thing is getting that application submitted TODAY - the IRS looks at when you established the plan (submitted paperwork), not when it gets processed. A few quick tips since you're down to the wire: - Fill out the application completely - incomplete apps don't count for establishment date - Get confirmation numbers/screenshots of everything - Email yourself copies of all documents with timestamps - If possible, call the brokerage to confirm they received your submission The funding part you can worry about later - you have months to actually transfer money. Focus on getting that paperwork in before midnight and you'll be fine! Good luck!

21 Has anyone here actually calculated if doordashing is worth it after accounting for gas, car maintenance, insurance, and self-employment taxes? I did it for 3 months and when I really added everything up, I was making like $10/hr effective rate even though the app showed $18-20/hr.

Just wanted to share my experience as someone who's been doing both W-2 work and gig delivery for about a year now. The advice about using your W-4 to withhold extra is spot on - I wish I'd known this earlier! One thing I'd add is to keep separate bank accounts if possible. I opened a simple checking account just for my Doordash deposits, and it makes tracking business income and expenses SO much easier at tax time. Even if you're only making $200-300/month, having that clean separation is worth it. Also, don't wait until tax season to start organizing. I made that mistake my first year and spent hours trying to reconstruct my records. Now I take 10 minutes each week to log my expenses and reconcile everything - saves me from the panic later! For your income level, you're probably fine without quarterly payments, but definitely keep an eye on it. If you start making more or pick up additional gig work, you might cross into needing them.

Don't forget about debt basis too! The basis calculation gets more complicated if you have loans to the S corp. Also remember that the order matters: 1. Income increases basis 2. Non-deductible expenses decrease basis 3. Distributions decrease basis In your example, since income exactly equals your salary + distributions, your ending basis is correctly $0. But as others mentioned, that doesn't make the distributions capital gains - they're still return of capital because you had sufficient basis when taking them.

The K-1 (Form 1120S Schedule K-1) is where most of this gets reported. Box 16 shows distributions to shareholders, and your share of income/losses flows through via Box 1 (ordinary income). However, the K-1 doesn't directly show your basis calculation - that's something you need to track separately. You'll report the pass-through income on your personal return (Form 1040), but the distributions themselves aren't directly reported as taxable income since they're return of capital up to your basis. The tricky part is that YOU are responsible for tracking your basis year over year - the IRS doesn't do this for you. I'd recommend keeping a simple spreadsheet tracking: starting basis + income + other increases - distributions - losses = ending basis. This becomes crucial if you ever have distributions that exceed basis, because then you'd need to report the excess as capital gains on Schedule D.

My situation was pretty similar last year excepted I had 2 kids. Got back like 7k total between federal and state. Your probably gonna get more with the extra dependents

With your income and family situation, you're definitely looking at a substantial refund! At $24k income with 4 dependents, you'll likely qualify for the maximum Earned Income Tax Credit (around $6,935 for 3+ qualifying children), plus Child Tax Credit for your kids under 17 ($2,000 each). The adult dependent should get you the Other Dependent Credit ($500). Quick math: you're probably looking at $8k-10k federal refund, maybe more. Plus you'll get most of that state withholding back too. Definitely file as Head of Household and make sure to gather all your documentation for the dependents. You should be able to file soon since the IRS opens for e-filing on January 27th this year!

The entire W4 system is such a mess for two-income households! My husband and I gave up trying to get it perfect and just do this simple method: 1. We both claim "married filing jointly" on our W4s 2. We both check the "multiple jobs" box in Step 2 3. Then we each add an additional specific amount on line 4(c) We take our total tax bill from last year, subtract what was already withheld, then divide that shortage by the number of paychecks we get in a year (24 for me, 26 for him). I put about $50 extra per check and he does $45. No complicated calculations, no tax bracket math, just a simple adjustment based on what we actually owed before. Haven't owed money in 3 years doing it this way.

I've been dealing with this exact same issue! What finally worked for me was using the IRS Tax Withholding Estimator that @Faith Kingston mentioned, but here's the key - you need to run it AFTER you get your first paystub of the year to get accurate numbers. The estimator will tell you exactly how much extra to withhold from each paycheck. In my case, it recommended adding $85 per paycheck to my W4 line 4(c), which seemed like a lot but ended up being perfect. We went from owing $2,200 last year to getting a small $150 refund. One thing I learned is that the "married filing separately" withholding option on your W4 is actually more aggressive than you might need. It assumes you're ACTUALLY filing separately, which has higher tax rates than filing jointly. So you'd probably end up with a big refund. The multiple jobs checkbox is a good middle ground, but if you want to be really precise, definitely use the IRS estimator and add the specific dollar amount it recommends to line 4(c). Takes about 15 minutes but saves you from surprises at tax time!