Can I just file my state taxes separately even if I normally do them together with my federal? I use TurboTax and I'm not sure how to separate them after I've already entered all my info for both.

Absolutely! Most tax software allows you to file state separately from federal. In TurboTax, after completing both returns, you can choose to e-file just the state portion. Look for filing options during the final steps - there should be checkboxes for federal and state that you can select independently. If for some reason your software doesn't allow separate filing, you can also go directly to your state's tax website. Many states offer free filing options for basic returns, and you can enter your information there independently from your federal return.

Unfortunately, yes. Paper returns are taking 6-12 weeks minimum to process this year, and that's if everything goes perfectly. My brother was in your situation last year and ended up waiting almost 4 months for his refund after paper filing. The non-filer issue seems to flag returns for additional manual review too.

Doesn't using a PEO create complications with the S-Corp structure though? I heard that can cause issues with how distributions are handled versus salary.

No complications with the S-Corp structure at all. The PEO only handles the employment administration side - payroll processing, tax filings, compliance, etc. You still maintain complete control over your business operations and how you structure your compensation. Your S-Corp still exists exactly as before, and you can still take distributions separate from your salary. The PEO simply handles the W-2 employee portion of your compensation. Actually, many PEOs have specific expertise with S-Corps and can help ensure you're maintaining the proper salary-to-distribution ratio to satisfy IRS requirements while maximizing tax benefits.

You technically can do this, but you need to be careful. The IRS expects regular, reasonable compensation for services performed. Running payroll just once or twice a year with large amounts can raise red flags, especially if you're taking distributions throughout the year.

What about staking rewards? Are those taxed when received or when sold?

Staking rewards are generally taxed as ordinary income when you receive them, based on their fair market value at that time. They establish your cost basis for those coins. Then, when you eventually sell those staking rewards, you'll calculate capital gains/losses based on the difference between your selling price and that initial value when received. This is similar to how mining is treated - taxed as income when received, then potentially subject to capital gains tax when eventually sold.

Form 8938 is for "specified foreign financial assets" - the IRS hasn't definitively stated that crypto qualifies for this. Most tax pros are taking the conservative approach and including crypto if it's held on foreign exchanges and meets the threshold. Better safe than sorry with FBAR and 8938 reporting!

That's actually a really interesting approach I hadn't considered. Would I need some kind of formal appraisal to prove the collectible is worthless? Or would documentation of the scam be enough to claim the capital loss?

You don't necessarily need a formal appraisal, but you do need adequate documentation to prove worthlessness if audited. Documentation about the scam would be helpful, especially if you filed any kind of police report or complaint with consumer protection agencies. For collectibles specifically, getting a written statement from a reputable dealer in that type of collectible confirming it has minimal or no value can also be good supporting evidence. The key is showing that the loss of value is permanent, not just a temporary market fluctuation.

You would still eventually get the loss, but timing matters. If you contribute the property and the partnership later liquidates giving you nothing, you'd recognize a loss equal to your remaining basis in the partnership interest (which started at $1,000 but could be adjusted by partnership operations over time). The issue with contributing property with built-in loss is that Section 704(c) requires the built-in loss to be allocated to the contributing partner when the property is sold or otherwise disposed of by the partnership. But you don't lose the loss entirely - it's just a matter of when and how you get to claim it.

Thank you for sharing your experience! I just checked my county's website and found a property search function I didn't know about. You're right - they do have the assessed value listed even though bills haven't been mailed. Does having the assessed value mean it's officially "imposed" as someone mentioned above? I want to make sure I'm following the proper IRS guidelines.

Yes, if you can see the assessed value on the official county website, that means the tax has been "imposed" for IRS purposes. The physical bill is just a notification - the actual tax obligation is created when the assessment is finalized and recorded in the county system. Make sure to print or save a PDF of the assessment page showing the date and amount as documentation for your records. I also wrote "Property Tax Prepayment - PIN #12345" in the memo line of my check as additional documentation. The IRS never questioned my deduction.

I believe you're confusing the safe harbor rules for estimated tax payments with property tax deductions. For property tax deductions, the tax must actually be assessed (imposed) to be deductible in the year paid. There's no safe harbor that allows you to deduct estimated property tax payments before assessment.

You're right, I misunderstood what my accountant was telling me. He was actually referring to using last year's property tax amount for estimated tax payment calculations, not for claiming the property tax deduction itself. Getting the tax terminology mixed up shows why I need an accountant in the first place lol. Thanks for the correction!