The discussion here is super helpful but there's one thing I haven't seen addressed: rental income. I have a similar situation (W2 plus consulting plus software sales), but I also own a couple rental properties. Does rental income qualify for QBI? Some accountants told me yes, others said no.

This is exactly the kind of complex QBI situation that trips up so many people! Diego, based on your income breakdown, you're definitely going to want to be strategic about this. Your W-2 income of $135k doesn't qualify for QBI at all - that's correct. For your self-employment income ($65k consulting + $70k software = $135k total), you're looking at potential QBI on that $135k, but with important caveats. The key issue is that your total income of $270k likely puts you above the phase-out thresholds ($170,050 single/$340,100 MFJ for 2023). This means your engineering consulting income will be significantly limited or eliminated from QBI since it's an SSTB. However, your software sales income might still qualify if it's truly product-based rather than service-based. The distinction others mentioned about custom vs. packaged software is crucial here. One strategy to consider: maximizing retirement contributions (SEP-IRA, Solo 401k) to potentially get your taxable income below the phase-out thresholds. Even a partial reduction could save you thousands. Also, make sure your CPA considers the W-2 wage limitation that applies at higher income levels - this could further complicate your QBI calculation even for the qualifying income streams. The tools others mentioned (taxr.ai, claimyr.com) seem worth exploring for the analysis, but definitely still work with your CPA for the final filing!

22 Has anyone dealt with the filing requirements for the French individual in this situation? Would they need to file a US tax return even though they're receiving dividends through a US LLC? I'm in a similar position (but from UK) and wondering what my obligations are.

I've been dealing with similar withholding complexities for our international shareholders and wanted to add a few practical considerations that might help. First, make sure you get the W-8BEN from the French individual well before the dividend payment date. The IRS requires that you have valid documentation in hand before you can apply the reduced treaty rate. If you don't have it, you're required to withhold at the full 30% rate, and then the individual would need to claim a refund later. Second, regarding the potential 5% rate mentioned above - be very careful here. The treaty language specifically refers to companies owning the required percentage, and there's ongoing debate about whether individuals can qualify for this rate even when owning through business entities. I'd strongly recommend getting professional advice before applying the 5% rate to avoid potential penalties. Finally, keep detailed records of your withholding analysis and the documentation you relied on. The IRS can review withholding decisions years later, and you'll want to be able to demonstrate that you made a reasonable, good-faith effort to apply the correct rate based on the information available at the time.

Hey so random question but what software did you use to e-file your return originally? If you used TurboTax, TaxAct, etc. instead of just going through H&R Block, those services usually keep your returns available for download for several years!

I went through this exact same frustrating experience last year! The IRS website definitely doesn't provide complete tax returns - only transcripts. But here's what worked for me as a fellow self-employed person needing documents for a mortgage: First, try getting both the Tax Return Transcript AND the Wage & Income Transcript from the IRS website. The Tax Return Transcript should show your Schedule C information (business income/expenses), while the Wage & Income shows all the 1099s and other income documents reported to the IRS. Before going the Form 4506 route (which takes forever and costs $43), call your mortgage lender and ask if they'll accept these transcripts instead. Many lenders actually prefer transcripts because they come directly from the IRS and can't be altered. If your lender insists on the full return, you might also try calling the IRS directly to ask about expedited processing for the Form 4506 due to your mortgage timeline - sometimes they can prioritize these requests. Just be prepared for long hold times when calling! Good luck with your mortgage application!

I think we're missing something obvious here. Maybe she just doesn't want to pay the fees or go through the hassle of the application? A friend of mine who's a tax preparer told me getting an EFIN requires fingerprinting, an in-person interview sometimes, and a bunch of documentation. Sounds like this lady might just be lazy and cutting corners rather than being unable to qualify.

This whole situation raises red flags about the quality and ethics of this tax preparer's practice. As someone who's dealt with tax compliance issues before, I can tell you that the IRS takes EFIN violations very seriously - it's not just a technical violation, it's a breach of the entire electronic filing system's integrity. What concerns me most is that clients may not even realize their returns are being filed under fraudulent credentials. When tax season gets busy, people often don't pay close attention to the technical details on their forms. But if the IRS discovers this arrangement and investigates, those clients could face delays in processing their refunds, additional correspondence, or even audits through no fault of their own. The fact that she's been operating this way for 3 years suggests this isn't an oversight or temporary arrangement - it's a deliberate choice to circumvent IRS requirements. Whether it's because she can't qualify for her own EFIN or just doesn't want to go through the proper process, either scenario should make potential clients think twice about trusting her with their financial information. I'd strongly recommend anyone considering using her services to verify that their preparer has their own valid EFIN before handing over their tax documents.

Protip: use an account transcript analyzer like taxr.ai instead of trying to figure it out yourself. Shows exactly when YOUR transcript will update based on YOUR specific situation. Changed the game for me fr

Same here! The waiting is killing me 😩 I've been refreshing like crazy too. From what I've learned here, it sounds like most updates happen Friday mornings around 3-6am EST, but it really depends on your specific cycle code. Might be worth checking what yours is so you know when to actually expect updates instead of checking constantly!