My dad and I were in a similar situation last year. We went with the multi-member LLC route with a 75/25 split and it's worked well for us. One thing nobody mentioned yet - make sure your dad is actually providing some services or capital to the business! The IRS doesn't look kindly on "partnerships" where one person is just there for tax benefits without contributing anything.

Just wanted to add my perspective as someone who went through this exact decision process recently. I ended up choosing a multi-member LLC with my mom (70/30 split) and it's been working great for our consulting business. A few practical considerations that helped me decide: First, the multi-member LLC gives you flexibility to adjust profit/loss allocations in your operating agreement if your business circumstances change. Second, you can always convert to S-Corp status later by filing Form 2553 if you reach the profit threshold where it makes sense. One thing that surprised me was how much simpler the bookkeeping is compared to what I expected. Yes, you file Form 1065, but tax software makes it pretty straightforward, and having clear documentation of who contributed what from the start really helps. Make sure you get that operating agreement drafted properly though - it's worth spending a few hundred dollars on a business attorney to get it right rather than using a template. The IRS will scrutinize family partnerships more closely, so having everything documented properly from day one is crucial.

Has anyone here dealt with the timeline for getting a refund on a paper return for a prior year? I had to mail in my 2020 return last year and I'm still waiting for my refund. Just wondering what OP should expect if they're mailing a 2021 return now.

I went through something very similar with my 2020 return! The key thing to remember is that when a return gets rejected, it's like it never existed in the IRS system at all. So you're not amending anything - you're filing your original return for the first time. Since your kids already amended their returns to show they're your dependents, your return should go through without issues now. Just make sure to: 1. Print and mail your complete 2021 return (don't try to e-file a prior year) 2. Include a simple cover letter explaining the dependent conflict was resolved 3. Sign and date everything 4. Send it certified mail for tracking The good news is you have until April 15, 2025 to claim your 2021 refund, so you're still well within the deadline. Paper returns are slow (expect 4-6 months for processing), but you should eventually get your refund plus any interest that's owed. One tip: if you need to check on the status after a few months, calling the IRS directly is usually a nightmare. The callback services mentioned in other comments here actually work pretty well for getting through to a real person.

Something to consider - you don't HAVE to cash them all out at once! You could spread the redemption over multiple tax years to potentially reduce the tax impact. Maybe cash half this year and half next year?

Just wanted to add another perspective based on my experience with my son's bonds last year. The key thing that helped me was getting copies of all the original paperwork from when the bonds were first purchased or exchanged. If your parents originally bought Series E or EE bonds and then exchanged them for the HH bonds, there should be documentation showing the deferred interest amount from the original bonds. This is crucial because that deferred interest becomes taxable when you redeem the HH bonds, even though you never received it as cash. I found old records in my parents' files that showed exactly how much deferred interest was involved. Without those records, I would have had no idea there was additional taxable income beyond just the regular HH bond interest payments we'd been receiving. Treasury Direct might have some of this information on file if you can't locate the original paperwork, but having the physical documentation made the whole process much clearer when filing taxes.

check your mail carefully! sometimes they send letters requesting more info but they look like junk mail ngl

Non-filing letter status usually means your return hasn't been fully processed in their system yet. Since you filed in February, definitely call the IRS taxpayer assistance line at 1-800-829-1040. Have your SSN, filing status, and exact refund amount ready. The hold times are brutal but you need to find out if there's an issue with your return or if it's just stuck in their processing backlog.

Great question about the 1095-A as a dependent! I ran into this exact issue. Even though you're claimed as a dependent, you still need to report the 1095-A information on your return using Form 8962. The key thing is that you'll likely need to "repay" any advance premium tax credits that were paid to your insurance company during the year, since as a dependent you're not eligible to receive those credits. Make sure you have the correct SLCSP (Second Lowest Cost Silver Plan) amount from your 1095-A - that's often where the software errors come from. If your software keeps giving you errors, double-check that you're entering the monthly amounts exactly as they appear on the form, including any zeros for months you weren't covered. The good news is that this situation is pretty common and the IRS system handles it routinely. Just make sure you file the form even if it results in owing money - not filing it when you received advance credits can cause bigger problems later.

The 1095-A dependent situation can be really tricky! I went through this last year and learned the hard way that timing matters a lot with these forms. Since you mentioned filing so close to the deadline, just wanted to add that if your return does get rejected due to 1095-A issues (which happened to my friend), make sure you act quickly during that 5-day grace period someone mentioned earlier. One thing that really helped me was calling the marketplace directly (not the IRS) to verify the SLCSP amounts on my 1095-A were correct. Sometimes there are errors on the form itself, and the marketplace can issue a corrected version if needed. This is especially important if you switched plans mid-year or had coverage gaps. Also, since you're being claimed as a dependent, make absolutely sure your parents aren't also trying to claim any premium tax credits related to your coverage on their return. That can create a nightmare scenario where both returns get flagged. Coordination is key! The payment timing advice everyone gave is spot on though - always pay by the deadline regardless of acceptance status. I learned that lesson the expensive way a few years back.