I hadn't even thought about state taxes! Do you know if states typically use the same forms (Schedule D and 8949) for reporting this kind of income?

Most states use forms that correspond to the federal forms, but they may have different names. Usually your state tax return will ask for information from your federal return, including your Schedule D amounts, and then make adjustments based on state-specific rules. For example, in my state (California), we use Schedule D for capital gains just like the federal return, but some states have their own forms with different names. The good news is that most tax software will automatically handle this for you once you input the information on the federal forms.

Anti-scalping laws vary widely by location and are rarely enforced for individual resellers. Most target large-scale operations. The tax obligation remains regardless of any potential scalping issues.

Financial services is another super rigid industry. After Dodd-Frank, most banks won't touch independent contractors directly regardless of how they're incorporated. I had to either go W-2 or work through their approved staffing partners, no exceptions.

I'm in software development, specifically backend systems. It's interesting you mention the industry differences - that makes a lot of sense. I've noticed that smaller tech companies are much more open to direct contracts with my S-corp, while enterprise-level organizations tend to be completely locked into their staffing agency relationships. I wonder if creating some kind of industry-specific approach might be more effective than a one-size-fits-all solution. The documentation from taxr.ai that someone mentioned above sounds promising, but perhaps tailoring it to address the specific compliance concerns in my industry would be even more effective.

This is so true! I remember when the Microsoft permatemp lawsuit happened way back, and suddenly EVERYONE freaked out about contractors. Then things gradually relaxed until the next big case. It's like a pendulum swinging back and forth.

Does this apply only to the second beneficiary or would it continue if there was a third beneficiary down the line? Like if the aunt also passes away and leaves it to her child?

The same principle applies to any subsequent beneficiaries down the line. If your aunt passes away and names a third beneficiary, that person would continue with the same distribution schedule that was established when your uncle first inherited the IRA. This creates what's sometimes called a "cascading beneficiary" situation, where each new beneficiary must follow the original schedule. No one gets to reset the clock or use their own life expectancy. This is why proper planning for these pre-2020 inherited IRAs is so important - the distribution schedule follows the assets regardless of how many times they change hands.

This is really good advice. I work at a financial institution, and you wouldn't believe how often we have missing or incomplete beneficiary documentation, especially for accounts that have transferred between custodians multiple times.

What's the income limit for the Saver's Credit? I'm trying to figure out if I qualify for that since the EITC won't be affected by my IRA contributions.

For the 2024 tax year (filing in 2025), the Saver's Credit income limits are: - 50% credit: AGI up to $21,750 for single filers - 20% credit: AGI between $21,751-$23,750 for single filers - 10% credit: AGI between $23,751-$36,500 for single filers The credit is based on your first $2,000 of contributions to retirement accounts (IRA, 401k, etc.). So if you qualify for the 50% rate and contribute $2,000, you'd get a $1,000 tax credit. It's definitely worth looking into if you're already planning to make retirement contributions!

This is a really good point. I'm in Maryland and our state EITC is just a percentage of the federal one, so if the federal one doesn't change, neither does the state one. But I know some states calculate theirs differently.

Thanks for this info! When you say deductions could bring my income down to the qualifying range, does that mean I should look at my net 1099 income after expenses? I definitely have business expenses like office supplies, software subscriptions, and professional insurance that lower my actual net from that $65K.

Yes, it's your net self-employment income that counts toward EITC calculations after you've taken all eligible business deductions. So your Schedule C will show your 1099 gross income of $65K, but after legitimate business expenses, your net might be significantly lower. For example, if you had $15K in deductible business expenses, your net self-employment income would be $50K, which would put you well within the EITC phaseout range rather than above it. Make sure you're tracking all possible business deductions - mileage for business travel, portion of home internet if used for business, professional subscriptions, business insurance, retirement contributions, etc.

This is such an important point that people miss! My accountant caught this exact issue last year. Part of my K-1 was from active participation in a business (counted as earned income) and part was passive investment (counted toward investment income limit). Made a huge difference in my EITC calculation.