Don't forget about QBI (Qualified Business Income) deduction! Both LLCs and S Corps qualify, but the calculation can be different. With real estate business income around $105k plus your W-2 job, you might be in phase-out territory for this deduction depending on your filing status. In 2025, the QBI phase-out starts at $183,100 for single filers and $366,200 for married filing jointly. Your total income is near these thresholds, so that's another consideration.

Based on your situation in Texas with inconsistent real estate income, I'd lean toward switching to an LLC. Here's why: With your fluctuating income ($7k some months, $40k others), maintaining reasonable S Corp salary requirements is a nightmare. You either overpay yourself in slow months (hurting cash flow) or underpay (risking IRS scrutiny). The math: If you're taking a $50k salary now, switching to LLC means paying self-employment tax on the full $105k. That's about $8,085 in additional SE tax. But factor in: - Payroll service fees (~$1,200/year) - Additional tax prep complexity (~$500-1,000) - Franchise tax filing - Time/stress of payroll management You're probably looking at $2,000-3,000 in administrative costs, making the real tax difference closer to $5,000-6,000 annually. Given your income volatility and the administrative headaches you mentioned, that premium might be worth paying for the simplicity. Plus, with an LLC you can always elect S Corp taxation later if your income stabilizes and grows significantly. I'd run the exact numbers with your CPA, but for many people in similar situations, the peace of mind is worth the modest tax increase.

Has anyone mentioned just banking the money in a regular business account? I run a small business and sometimes just leave profits in my business checking account until the next year when I need them. The money still shows up as income on my taxes, but at least I have the cash available for later.

One option that hasn't been fully explored here is setting up a Solo 401(k) if your consulting work qualifies as self-employment income. With a Solo 401(k), you can contribute both as the employee ($23,000 for 2025, or $30,500 if over 50) AND as the employer (up to 25% of compensation). This could potentially allow you to defer a significant portion of that $65k. The key is that your consulting income would need to be structured as self-employment rather than W-2 income from the client. You'd also want to make sure you're not exceeding the overall 415(c) limit when combined with your main job's 401(k). Another approach worth considering is a defined benefit plan if your consulting income is substantial and consistent - these can allow much higher contribution limits than traditional retirement accounts, sometimes $200k+ annually depending on your age and income projections. I'd strongly recommend getting professional advice before implementing any of these strategies, as the rules can be complex and mistakes can be costly.

One thing nobody's mentioned yet - make sure you're tracking EVERYTHING related to these educational expenses, not just the tuition itself. If you traveled to take the courses, those travel expenses might be deductible too. Same with required books, supplies, software, etc. I deducted about $5,300 in education expenses for my consulting business last year, and almost $1,200 of that was actually the supplementary costs beyond just the course fees. My accountant said as long as they're necessary for the education that improves your current business skills, they should qualify.

Has anyone used TurboTax Self-Employed for handling these kinds of business education deductions? I'm trying to decide between that or hiring a CPA this year, especially with these education expenses I want to deduct.

mine took 11 weeks but I had to verify both identity AND income. depends what they're asking you to verify tbh

I went through this exact same process last year! For me, it took about 10 weeks total from when I submitted everything through ID.me. The key thing is making sure you uploaded ALL the documents they requested - I made the mistake of only uploading my W-2 initially and had to resubmit with my bank statements too, which reset the clock. Also, don't rely on Where's My Refund for updates - it barely changes. Your transcript will show movement first with cycle dates and processing codes. Stay patient, it's frustrating but they do eventually get through it!

Here's what happens after verification based on my research: 1. Your verification status is updated in the IRS internal system (1-3 days) 2. Your return is released from the verification hold (3-5 days) 3. Normal processing resumes where it left off (varies) 4. WMR updates (usually after transcript) 5. Transcript codes update to show processing status The most reliable indicator is checking for code 570 (hold) being replaced by 571 (hold released) on your account transcript.

The timeline can definitely vary, but based on what I've seen in the community, you're looking at roughly 2-3 weeks after verification for things to start moving again. The key thing to remember is that verification just removes the hold - your return then goes back into the regular processing queue where it left off. Since you just verified yesterday, I'd give it at least a week before expecting any transcript changes. The WMR tool is notoriously slow to update compared to transcripts, so focus on checking your account transcript (not return transcript) for codes 570/571 as Andre mentioned above. For your Q2 investment planning, I'd personally budget for at least 3-4 weeks total from your verification date to be safe, though it could be sooner.