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One option nobody's mentioned is just switching tax software. I left TurboTax last year because of similar issues and started using FreeTaxUSA. It's much more straightforward about business forms and doesn't try to upsell you on everything. Just an idea if you're getting frustrated!
Does FreeTaxUSA handle business losses correctly though? I've heard mixed things about their self-employment features compared to TurboTax.
FreeTaxUSA has worked perfectly for my small business for the past two tax seasons. Their interface for business income and expenses is actually cleaner and more straightforward than TurboTax in my opinion. Their system for tracking loss carryforwards works well too - it automatically pulls the information from your previous year's return if you used them before, or you can enter it manually if you're switching from another service. The best part is they don't lock features behind paywalls or make you wait for "form availability" like TurboTax does.
Have u already entered the business as inactive or closed in TurboTax? Sometimes thats all u need to do and it will stop asking for forms. I had this issue last yr with schedule C stuff from my etsy shop that i closed in 2021.
One thing nobody's mentioned yet - with a SaaS business at your profit level, you should also consider the QBI (Qualified Business Income) deduction implications between LLC and S-corp. At $700k profit, you're well above the phase-out thresholds for service businesses (which starts around $170k for single filers), but SaaS businesses can sometimes qualify as non-service businesses depending on how they're structured and operated. If your business qualifies as non-service, the S-corp could be even more beneficial because you might get a partial QBI deduction on the distribution portion. But if it's considered a service business, the QBI might be completely phased out at your income level regardless of entity structure. Have you had anyone analyze whether your specific SaaS might qualify for QBI as a non-service business? That could add tens of thousands more in tax savings.
I haven't had anyone look at the QBI angle for my business specifically. Could you explain a bit more about what makes a SaaS qualify as non-service vs service? My platform is completely automated with very little direct customer support or customization.
For SaaS businesses, the distinction between service and non-service for QBI purposes comes down to whether your business relies on the reputation or skill of its owners/employees. Fully automated platforms with minimal human intervention tend to have a stronger case for non-service classification. Key factors that help qualify as non-service: if your software operates with minimal customization, if customers use it without your direct involvement, if it's standardized rather than tailored to specific clients, and if the value comes from the technology itself rather than your expertise. Your description of an automated platform with little customer support actually sounds promising for non-service classification. I'd recommend getting a tax professional to document these aspects of your business carefully, as qualifying for QBI at your income level could mean an additional $140k deduction (20% of your profit), which is substantial.
What tax software have people found most helpful for handling S-corp returns for solo businesses? I'm planning to make the switch but wondering if I can still do it myself or if I absolutely need to hire someone.
Have you checked your Coinbase correspondence? Sometimes these tech companies send the tax details through their own systems rather than traditional mail. My friend had a similar issue with another crypto company and found his tax docs in their HR portal that he still had access to. Also, the amount matters - if it was under a certain threshold, they might not be required to send a 1099. But as others mentioned, you still have to report it.
I've checked everything - emails, Coinbase Workforce (their HR portal), spam folders, everything. Nothing there at all. The severance was definitely above the threshold for reporting too - around $18,000 total. I'm going to try contacting their HR department directly, but they haven't been responsive to previous emails.
That's definitely above the reporting threshold, so they should have sent documentation. Sometimes large companies have completely separate departments handling severance payments versus regular payroll, which can cause confusion. I'd suggest sending a formal letter via certified mail requesting the tax documents. Document all your attempts to contact them. When you file, you'll need to report this income regardless. Use your final pay stub or severance agreement to calculate the correct amount, and keep those documents as evidence of your good faith effort to report accurately.
For H1B visa holders, this is a common issue. The severance isn't self-employment income (which could violate visa terms), but regular wage income. If you have the severance agreement document, you can use that to determine the exact amount to report. Since you don't have a W-2 or 1099, you'll need to fill out Form 4852 (Substitute for W-2) with your tax return. This tells the IRS you never received the proper documentation despite your efforts. Just make sure to report it! The worst mistake would be not reporting it at all.
Is nobody going to mention that OP could get a MASSIVE whistleblower reward from the IRS for reporting this? With $270k income and $80k+ fake deductions over decades, we're talking about hundreds of thousands in unpaid taxes. The IRS whistleblower program pays 15-30% of what they collect!
Wow so you're suggesting they sell out their entire family for cash? That's cold. This is their father and sister we're talking about. They could go to PRISON. The niece's life would be ruined before it even starts.
The real question here is how deeply OP wants to be involved. There are basically three paths: 1. Pretend you never saw anything (risky if they ever get caught and the IRS thinks you knew) 2. Confront them directly and try to convince them to come clean through voluntary disclosure (IRS has programs for this) 3. Report them through the whistleblower program There's no easy answer here but remember that willful tax evasion at this scale is a felony. This isn't "oops I forgot to report some income" - this is deliberate, sustained criminal behavior. Think carefully about your own liability and what you can live with morally.
Khalil Urso
One thing to consider - if you're operating as a partnership, make sure to keep VERY detailed records of how much money comes in and how it's split between you two. My friend and I did YouTube stuff together and it became a huge mess at tax time because we didn't document everything properly. Also, don't forget about self-employment taxes! Each of you will need to pay these on your portion of the partnership income (currently 15.3% on net earnings). You might want to make quarterly estimated tax payments to avoid a big bill and potential penalties at tax time.
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Shelby Bauman
ā¢How do we handle the expenses for equipment and software? We've been sharing the costs pretty informally. Do we need to track every single purchase?
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Khalil Urso
ā¢You absolutely need to track every single purchase related to your YouTube work. Keep all receipts (digital or physical) and note which partner paid for what. The partnership should track all these expenses, even if they came from personal funds. For equipment and software, these are legitimate business expenses that can offset your income. Just make sure you're only deducting the business portion (if you also use things personally). You'll need to decide if certain equipment should be depreciated over time rather than expensed immediately - this depends on cost and expected useful life.
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Myles Regis
Has anyone mentioned the option of just filing separately? Like couldn't the roommate just report all the income on their Schedule C and then just give the other person "gifts" that wouldn't be taxable? Seems easier than all this partnership stuff.
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Brian Downey
ā¢That's actually tax fraud and could get both of them in serious trouble. The IRS isn't stupid - they know people try these "creative" approaches. What you're describing is trying to avoid paying self-employment taxes and income taxes by mischaracterizing business income as gifts. The company clearly views them as a single business entity, which is why they're asking for one W-9. The proper way to handle this is exactly what the top comments suggest - file as a partnership, get an EIN, and each partner reports their share of income on their personal returns.
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