Public transit is virtually non-existent where I live. It would add 2+ hours to my commute each way and still require me to walk almost a mile to the nearest stop. Great option for those in cities though.

Unfortunately I'm a direct patient care tech so remote work isn't possible for me. I'm looking into all the pre-tax benefit options mentioned here though. Just found out my hospital does offer something called a "Transportation Spending Account" that might help! Meeting with HR next week to learn more.

Damn, that's a lot more than I expected to pay in taxes. Does that 25-30% account for deductions I might have for tools and stuff? I've already spent about $3,200 on special tools for the shop this year.

The 25-30% is a general guideline before deductions. Your actual tax rate could be lower after you account for tool purchases and other legitimate business expenses. Those $3,200 in tools will definitely help reduce your taxable income. But here's the thing - even with deductions, the self-employment tax alone is 15.3%, and that's before you even start calculating your regular income tax. So while deductions will help, you should still be setting aside a good chunk of your income. Better to save too much and get a refund than not save enough and end up with a bill you can't pay.

Also, depending on your state, you might need a business license even as a 1099 contractor. I got hit with a fine for operating without one even though I was just doing gig work.

Can you get these transcripts right away or is there a waiting period after filing?

There's a processing time of about 2-3 weeks after you file before the current year's transcripts become available. Prior years are available immediately. The "account transcript" will update faster than the others and will show your payment, so that's the best one to check first if you're concerned about whether your payment was properly applied.

That "no news is good news" thing is so stressful though! Like, can they not send a simple "yep we got it, you're good" email in 2025?? The government is so behind on technology.

What about code C? That's what's on mine and I can't find a straight answer on Google.

Code C on your W-2 represents taxable cost of group-term life insurance over $50,000. Basically, if your employer provides you with life insurance coverage that exceeds $50,000, the cost of that excess coverage is considered a taxable benefit. The amount shown with code C is already included in your taxable wages in boxes 1, 3, and 5 of your W-2, so you don't need to do anything additional with this amount when filing. It's just explaining why your taxable wages might be higher than you expected.

Code G represents 457(b) retirement plan contributions, which is a type of deferred compensation plan often used by state and local government employees. For most states, these contributions are treated the same way as they are for federal taxes - they're already excluded from your taxable wages. But a few states might treat these differently. Which state are you in? Some states don't fully recognize all federal tax deferrals.

That's interesting - I hadn't considered switching to an S corp. Would I lose any benefits by making that change? And would it affect how I handle the two different income streams?

You wouldn't lose the liability protection benefits, but you would lose the ability to retain earnings at the corporate level at the 21% rate. All income would flow through to your personal return regardless of whether you take it out of the business. For handling the two income streams, there's no difference - both producing and consulting still qualify as personal services. You'd still want to maintain clear records separating the different business activities, but the S corp can absolutely handle both streams. The main benefit is avoiding potential double taxation, especially if you need to take most of the income out as compensation anyway.

There's actually an opportunity there depending on your overall income situation. With a C corp PSC, you could potentially recognize those monthly payments as corporate income when received, then time your salary distributions strategically based on your personal tax situation each year. Gives you more flexibility than if you were receiving those payments directly as an individual.

That's a great point I hadn't thought about. I'm definitely interested in knowing if there are smart ways to handle the timing of those monthly payments to optimize my tax situation.