Just a heads up that all these tax prep companies are about to go into marketing overdrive with the new tax season approaching. I've started getting emails from TurboTax, H&R Block, AND TaxAct even though I only used one of them. They definitely share marketing lists.

This happens all the time! Tax prep companies cast a really wide net with their marketing. They purchase data from credit bureaus, marketing firms, and other sources to build their prospect lists. Sometimes they even get info from public records or data brokers that track tax filing patterns. The fact that they have your name and address doesn't necessarily mean they have access to your actual tax information - it's more likely they're working off demographic and financial data that suggests you're a tax filer in their target market. As others mentioned, just ignore it if you're happy with TurboTax, or call H&R Block directly (not using the number on the letter) if you want to opt out of their marketing.

This is a practical answer that I discovered after fighting with this exact situation: If you get your 1098-T and the amount doesn't match what you paid in December, you can still claim the credit based on your actual payment date. The 1098-T is not the final word. I had to write "See attached statement" on my tax return and include a simple explanation that I paid in December 2023 for classes starting January 2024, along with my payment receipt. My return was processed without any issues and I got my education credit. Just make sure you're eligible for the Lifetime Learning Credit in general (income limits, qualified institution, etc).

Based on everything discussed here, you should be able to claim the Lifetime Learning Credit for 2023. The key points that apply to your situation: 1. You paid in December 2023 for classes starting January 2024 - this qualifies under the "first three months of following year" rule 2. Being "enrolled" means you registered for classes, not that you had to be actively taking them in 2023 3. The credit is based on when you paid, not when classes started Wait for your 1098-T, but don't panic if it doesn't show your December payment - schools handle reporting differently. Keep your payment receipt from December 28th as your primary documentation. The LLC has income limits (phases out starting around $80k for single filers in 2023), so make sure you're eligible there too. But assuming your income qualifies, you should be good to claim up to $2,000 credit (20% of up to $10,000 in expenses) on your 2023 return. Don't overthink this one - your situation is pretty straightforward under the IRS rules, even though the language on their website can be confusing!

Does anyone have experience with state taxes when it comes to S-Corps vs LLCs? My accountant mentioned something about some states imposing franchise taxes or fees on S-Corps that don't apply to LLCs reporting on Schedule C.

The key factor everyone seems to be missing is timing and cash flow management. Yes, S-Corps can provide SE tax savings, but there's a hidden cost that hits many small businesses hard: you MUST run payroll every pay period, which means regular cash outflows for payroll taxes, even during slow months. With Schedule C, you pay estimated taxes quarterly based on your actual earnings. If you have a bad quarter, you can adjust. With S-Corp payroll, you're committed to that salary regardless of business performance. I've seen too many seasonal businesses struggle with this requirement. Also, the "reasonable salary" standard isn't just about avoiding audits - it affects your Social Security benefits calculation. If you artificially suppress your salary to minimize payroll taxes, you might be shortchanging your future retirement benefits. For younger entrepreneurs, this could mean giving up decades of higher Social Security payments to save a few thousand in current taxes. The math works great on paper, but real-world cash flow and long-term planning often tell a different story.

Another thing to consider is that even if you don't owe taxes, there might be credits you're eligible for that you can only get by filing. Like the Earned Income Tax Credit or education credits if you were in school. These can be worth thousands of dollars, but you have to file to claim them, even if you didn't have any tax withheld. Some tax credits are even refundable, meaning they can give you money back even if you didn't pay any taxes in. Don't leave that money on the table!

I forgot to file an extension last year and was freaking out, but since I was owed a refund it really wasn't a problem! The only thing that bit me was that I waited too long (like 4 years) to file one of my returns and lost out on like $800 refund. Dont be me lol.

21 One other thing to consider - doing delivery work might affect your financial aid package if you're getting any for university. The extra income could potentially reduce your aid eligibility for the next academic year. Might want to check with your school's financial aid office about how that works before diving in.

Great question about financial aid! For FAFSA purposes, there's actually a student income protection allowance of around $7,040 for the 2024-2025 academic year. This means you can earn up to that amount without it affecting your Expected Family Contribution (EFC) at all. However, once you go over that threshold, about 50% of your additional income will be counted toward your EFC, which could reduce your aid eligibility. The exact impact depends on your total family income and circumstances. The good news is that business expenses (like mileage deductions for delivery driving) reduce your Adjusted Gross Income, so they help keep you under the threshold. If you're planning to do delivery work just during breaks, you might be able to stay within the protected amount anyway. Definitely worth having a conversation with your financial aid office before you start - they can run some scenarios to show you exactly how different income levels might affect your aid package.