One thing nobody's mentioned yet - if you make below a certain amount, you might not even need to file taxes at all. For 2024, if you make less than $13,850 as a single person, you generally don't have to file (though you still might want to if your employer withheld taxes, so you can get a refund). Also, since you mentioned living with your grandparents - are they claiming you as a dependent? That's another factor that affects how you file and what benefits you might be eligible for.

Random tip since ur new to this: SAVE YOUR W-2!! When my job gave me mine last year I just tossed it in a drawer and then couldn't find it when I needed to do my taxes. Had to request a new one and it delayed everything. Maybe take a pic of it with your phone too as backup.

Something nobody has mentioned yet - check if your annuity payment includes any premiums for additional features like life insurance or long-term care. Sometimes those are bundled in and reduce your monthly payment. Those premiums might be tax-deductible separately depending on your situation. Also, if this is a commercial annuity (not from an employer plan), part of each payment might be non-taxable return of principal. The formula for figuring this out is on IRS Publication 939 and uses your "exclusion ratio." Your 1099-R should have this broken down, but sometimes providers get it wrong.

Heads up - if your annuity is from a qualified retirement plan like a 401k or traditional IRA, the entire payment is usually taxable (which might explain the withholding). But if you purchased the annuity with after-tax money, only the earnings portion is taxable. Also, if you're under 59½, there might be an additional 10% early distribution penalty unless you qualify for an exception. That might explain some of the difference between your gross and net amounts.

I'm a retired accountant and worked with several passive investment S-Corps over the years. Here's the practical reality: 1) Pure investment S-Corps are in a grey area for reasonable compensation requirements 2) What matters is substantiating that minimal to no actual services are being performed 3) Document through corporate minutes the passive nature and automation of investments 4) Consistency is key - if you claim it's passive, make sure your activities match that claim 5) Consider a minimal salary if you're doing ANY administrative work at all (even a few hours monthly) The real risk isn't necessarily audit (though that can happen) but potential reclassification of distributions which can trigger back taxes, penalties, and interest if they determine services were being performed.

Has anyone considered the Schedule K basis implications? When you take distributions, you need sufficient basis, and different types of income affect basis differently. Treasury interest increases basis, but distributions reduce it. If distributions exceed basis, you could end up with taxable gain. Also, watch out for the accumulated earnings tax if you've been accumulating excessive cash without a business purpose - though S-Corps usually avoid this since income passes through anyway. My accountant recommended documenting a specific business purpose for holding the cash (like future investments) and then documenting the reason for distributions now (change in investment strategy, etc.).

Quick tip from someone who's been through this - if you have your last paystub of the year, it usually has your year-to-date info which is basically what goes on your W2! Most restaurants use standard payroll systems that calculate this automatically. Might be worth checking if you have that last stub somewhere.

Has anyone here ever had the IRS penalize them for filing with Form 4852 instead of a W2? I'm worried my refund will get flagged or delayed if I go this route. My old employer is being difficult about sending my W2 and I need to file soon.

One thing nobody mentioned yet is estimated tax payments for self-employment or investment income. If you've had a good year with extra income, you might need to make a Q4 estimated payment by January 15th to avoid penalties. This isn't technically a "tax reduction" strategy but can save you money in penalties!

If you have kids, look into contributing to a 529 college savings plan before year end. Many states offer tax deductions for contributions. Also, review any medical procedures you might need - sometimes it makes sense to bunch them in December if you're close to exceeding the medical expense deduction threshold (which is 7.5% of your AGI).