Anyone else notice that TaxSlayer seems really buggy this year compared to previous years? I switched to FreeTaxUSA after getting weird errors in TaxSlayer that their support couldn't even explain. Their customer service wait times were over 2 hours when I tried calling!

I'm glad you got it sorted out! This is actually a pretty common issue with tax software - they're designed to be overly cautious and flag anything that might indicate missing information. The education credit section is notorious for this kind of confusion. Just to add some context for anyone else reading this thread: most tax software will let you claim education expenses for yourself through either the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC). The AOTC is generally better if you're in your first four years of college, while the LLC works for any post-secondary education including professional development courses. Make sure you have your Form 1098-T from your school if you're claiming tuition expenses, and keep receipts for any books or supplies you're claiming. The software should walk you through which credit gives you the bigger benefit once you enter all your information correctly.

Has anyone noticed that service agreements have gotten way more complicated since COVID? I just switched tax preparers and got an 8-page agreement! My previous guy just had me sign a one-page form.

This is really helpful to read everyone's experiences. I'm dealing with something similar - my tax preparer of 12 years retired and the new firm is asking me to sign a much more detailed agreement than I've ever seen before. One thing I'd add is to pay attention to the data security and privacy sections if your agreement has them. With all the identity theft issues these days, make sure they're clear about how they'll protect your sensitive information and what happens to your documents after tax season ends. Also, don't be afraid to ask for a few days to review the agreement at home before signing. Any reputable preparer should be fine with that - if they're pressuring you to sign on the spot, that might be a red flag. Thanks for starting this discussion - it's reassuring to know this is becoming standard practice and not just my new preparer being overly cautious!

I went through almost the exact same situation with my single-member LLC formed in August 2021. The advice here about not being able to backdate before your LLC formation date is absolutely correct - I learned this the hard way when I initially tried to elect S-corp status from January 1, 2021. What really helped me was getting organized with all my documentation first. Make sure you have your Articles of Organization showing the exact formation date, copies of all your previous tax filings, and any correspondence from the IRS. When you file Form 2553 with the effective date of 3/23/2021, you'll also want to include a detailed reasonable cause statement explaining why you're filing late. One thing I wish someone had told me earlier - keep detailed records of when you submit everything to the IRS. They can take months to process late S-corp elections, and having your submission confirmation helps if you need to follow up. Good luck with getting this sorted out!

I'm dealing with a very similar situation right now - formed my single-member LLC in February 2021 but never filed the S-corp election on time. After reading through all these responses, I'm feeling much more confident about how to handle this. The key takeaways that have been most helpful: 1) You definitely can't backdate the election before your LLC existed (so March 23, 2021 is your earliest possible effective date), 2) Rev. Proc. 2013-30 relief seems like your best path forward since you've been filing consistently as an S-corp, and 3) You need to act quickly since that 3 year + 75 day window is approaching fast. I'm planning to use the approach mentioned by Margot Quinn - filing Form 2553 with my LLC formation date as the effective date and including a detailed reasonable cause statement referencing Rev. Proc. 2013-30. The fact that you've been consistently treating your business as an S-corp and filing accordingly should work in your favor. One question for anyone who's been through this - did the IRS require any additional documentation beyond Form 2553 and the reasonable cause statement, or was that sufficient for approval?

I ended up using TaxCycle for my 941X filings and it helped quite a bit with getting the calculations right. Still took almost 5 months to get the credit though.

I'm in a very similar situation - filed my 941X forms for 2020 ERTC in March and still waiting. Based on what I'm seeing here, it sounds like we're right in that 4-6 month window that seems to be typical. One thing that's been helpful for me is keeping detailed records of when I filed and what I submitted. I created a simple spreadsheet tracking my filing dates, amounts claimed, and any correspondence. This way when I do eventually call the IRS (probably around the 5-month mark based on the advice here), I'll have everything organized. For what it's worth, I did file electronically through my tax software, and my CPA mentioned that electronic filings might have a slight advantage in processing time since there's no manual data entry required. Though with the volume of claims they're dealing with, I'm not sure it makes a huge difference. Hang in there - sounds like most people are eventually getting their credits, it's just taking much longer than anyone expected!

Does anyone know if there's a limit to how many hardship withdrawals you can take from an annuity? I had to take one earlier this year for about $9,000 for home repairs after storm damage, and now I'm facing some medical bills. My annuity company also didn't ask for documentation, but I'm worried about taking a second withdrawal in the same year.

I went through a very similar situation last year with my annuity withdrawal. Like you, I was surprised they didn't ask for documentation, but after doing some research and talking to my tax preparer, I learned this is actually pretty normal for annuities. The key things to remember: you'll get a 1099-R form early next year showing the withdrawal amount and any taxes withheld. Make sure to report this accurately on your 2025 tax return. Since you mentioned medical bills, keep all those receipts and documentation - if your out-of-pocket medical expenses exceed 7.5% of your adjusted gross income, you might be able to avoid the 10% early withdrawal penalty by using the medical expense exception. I'd recommend calculating whether you qualify for that exception now so you can plan accordingly. If you're under 59½ and don't qualify for an exception, you'll owe the penalty plus regular income tax on the withdrawal. But the fact that your annuity company didn't require hardship proof shouldn't cause any issues with the IRS - that's between you and the insurance company, not a tax requirement.