Does anyone know if contributing to a SEP IRA instead would be a better option in this situation? My business income varies a lot year to year.

This is exactly the kind of situation where getting the calculation right is crucial! Based on what others have shared here, it sounds like your LLC income will likely count toward your MAGI regardless of distributions, but the specific tax treatment depends on your LLC structure. I'd strongly recommend getting a definitive answer before making any contributions to avoid penalties. The backdoor Roth strategy mentioned by Wesley could be a great backup plan if your total income does push you over the limit. One thing to consider - if your LLC income is significant enough to potentially disqualify you from direct Roth contributions, you might also want to explore whether maxing out a SEP-IRA could help reduce your MAGI enough to get back under the Roth income limits. Sometimes the deduction from business retirement contributions can create enough breathing room to qualify for both strategies. Make sure to document everything carefully whichever route you take. The IRS is pretty strict about retirement contribution limits, so having your calculations and reasoning well-documented will save you headaches later.

keep calling them every week thats what i did untill they fixed mine

Code 291 basically means they adjusted your refund amount down from what you originally claimed on your amended return. It's super common with amended returns - they just found something they disagreed with in your calculations. The good news is that once you see 291, you're usually pretty close to getting your refund processed. I'd expect maybe 2-4 weeks before you see the money hit your account, but amended returns can be unpredictable timing-wise. Just keep checking your transcript for updates!

I'm really sorry to hear about your financial difficulties, @Ethan Wilson. As others have mentioned, the October 15th deadline is typically final for individual returns, and the IRS doesn't usually grant additional extensions for financial hardship alone. However, I want to emphasize what several others have pointed out - since you're expecting a refund, you're actually in a better position than you might think. There are NO penalties for filing late when you're owed money back. The IRS essentially owes YOU money, so the only consequence of filing late is delaying your refund. Given your current financial struggles with the 401k loan payments, getting that refund as quickly as possible should be your top priority. That money could provide some of the breathing room you're looking for while dealing with your legal situation. If gathering all your tax documents is the main obstacle, consider requesting your wage and income transcripts from the IRS using Form 4506-T. This will show you exactly what income information they already have on file, which might be enough to complete your return even if you're missing some original documents. Don't let the stress of the deadline prevent you from claiming money that's rightfully yours. You have up to 3 years to file for a refund, but why wait when you need those funds now?

I completely understand the stress you're going through, @Ethan Wilson. Financial hardship combined with legal issues creates such overwhelming pressure, and it's natural to want more time to sort everything out. However, I have to agree with what others have said - the IRS generally doesn't grant extensions beyond October 15th for individual taxpayers, even in cases of financial hardship. The October deadline is considered the final extension for most situations. But here's the silver lining that I think deserves emphasis: since you mentioned you're expecting a refund, you're actually in a much better position than someone who owes taxes. When you're owed money back, there's absolutely no penalty for filing late - you just delay getting your own money back. And given your current financial struggles with that 401k loan, getting that refund should be your immediate priority. I'd strongly recommend filing as soon as you can gather your documents, rather than trying to get another extension. That refund money could provide exactly the breathing room you need while waiting for your legal situation to resolve. You have up to 3 years to claim it, but why wait when you need the funds now? If missing documents are the main obstacle, definitely look into requesting your IRS transcripts using Form 4506-T as others have suggested. Sometimes what the IRS already has on file is sufficient to complete your return.

Quick heads up - something nobody mentioned yet is that if you go the Solo 401k route, once your account balance hits $250,000, you'll need to file Form 5500-SF annually. Not a huge deal but something to be aware of for future planning.

One thing I'd add that might be helpful - if your consulting income varies significantly year to year (like yours does between $55k-$105k), you might want to consider making quarterly estimated tax payments that include your retirement contributions. This helps with cash flow management and ensures you're not scrambling at year-end. Also, since you're already with Vanguard, their Solo 401(k) has really low fees and good investment options. When you call them, ask about their "Individual 401(k)" - that's what they call their Solo 401(k) product. They'll walk you through the whole process and can even help you figure out the optimal contribution strategy based on your projected income. One last tip: keep detailed records of all your business expenses from the consulting work. The more legitimate business expenses you can deduct, the higher your net profit will be, which means you can potentially contribute more to the retirement account (since it's based on that 25% of net self-employment income calculation).

I've been using QuickBooks for my online business, and they actually have a feature to help with inventory adjustments like this. If you're using QuickBooks or similar software, you might want to check if they have a specific process for handling inventory count corrections. In my case, I was able to make an inventory adjustment entry that clearly documented the reason for the change. This created a paper trail showing exactly what happened and when I discovered the error. My tax software then helped me address Line 35 appropriately with the correct wording.

I went through something very similar with my small retail business last year. One thing I'd add to the great advice already given here is to make sure you're prepared for potential follow-up questions if the IRS does review your return. In addition to the Line 35 explanation, I kept a simple spreadsheet showing the original count vs. corrected count for each affected item, along with the unit cost and total value difference. I also noted the date I discovered the error and what caused it (in my case, I had double-counted some items that were stored in two different locations). My CPA recommended keeping this documentation for at least 3 years in case of questions. She said having this level of detail ready actually reduces the chance of extended scrutiny because it shows you're being thorough and transparent about the correction. Also, since you mentioned you're behind on your inventory count - this might be a good time to implement a more systematic counting process for future years. I started doing quarterly spot checks on my highest-value items, which has helped me catch errors much earlier. Good luck with your filing!