The whole system is a joke tbh. We shouldn't have to wait this long for OUR money 🤡

Same situation here - filed in late January and still stuck on "processing" 😩 Been checking the VA tax website daily like it's social media at this point lol. At least now I know about the new fraud detection system causing delays. Guess we're all in this waiting game together!

Don't forget that the documentation matters as much as the classification! Regardless of whether you claim 50% or 100%, always record: 1. Who attended 2. Business purpose discussed 3. Date and location 4. Cost amount I learned this the hard way when I got a notice from the IRS questioning my meal deductions. Having a calendar invite showing "Board Meeting with Joe" wasn't enough. Now I take notes during meals and snap a pic of the receipt with my notes.

Great question! As someone who's dealt with this exact scenario, the key distinction is employment status, not board membership. Board members who aren't on your W-2 payroll are generally limited to the 50% deduction, even if they're shareholders. However, there are a few nuances worth considering: 1. **Timing matters**: If the meal occurs during an official board meeting where you're providing food as part of the meeting (similar to providing refreshments), this could potentially be treated differently than a casual business lunch. 2. **Documentation is critical**: Keep detailed records showing the business purpose, attendees, topics discussed, and how it relates to your S-Corp operations. This becomes especially important if the IRS questions your deductions. 3. **Consider the bigger picture**: While you might be limited to 50% on these specific meals, make sure you're capturing all legitimate business meal expenses throughout the year - they add up quickly. One tip: If your board meetings involve multiple people (other board members, key employees), the dynamics of the deduction might change. But for one-on-one advisory meals with non-employee board members, 50% is typically the safe approach. Always consult with your tax professional for your specific situation, but this framework should help you categorize these expenses appropriately.

I went through this exact situation with my parents a few years ago. One thing that really helped was setting up quarterly estimated tax payments in addition to adjusting their W4 withholding. For your aunt and uncle's situation, I'd suggest a two-pronged approach: First, use the IRS withholding calculator (even though it's clunky, it's worth the effort) to get a baseline. Then consider having them make quarterly estimated payments for any remaining gap. This way they're not hit with one massive withholding increase that could strain their monthly budget. Also, make sure they're aware of the underpayment penalty rules - they need to pay either 90% of this year's tax liability or 100% of last year's liability (110% if their prior year AGI was over $150k) to avoid penalties. Given that they had almost no withholding last year, they'll likely need to focus on the 90% rule for this year. The quarterly payment approach gives them more flexibility and control over their cash flow while still keeping them compliant with IRS requirements.

I've been helping my elderly parents with a similar W4 situation this year. One thing I learned that might help your aunt and uncle - if they're both working part-time, their employers' payroll systems might not be calculating withholding correctly because each job doesn't "know" about the other income. The new W4 form has a specific section (Step 2) for multiple jobs that helps address this. You can either use the worksheet or the online calculator to figure out the right amount. But honestly, for their income level and to keep it simple, adding a flat extra amount per paycheck might be the most straightforward approach. Given their $86k combined income and the fact they had almost nothing withheld last year, I'd estimate they probably owe around $12,000-15,000 in federal taxes. If they have about 8 months left in the year, adding $400-500 extra withholding per month combined should get them much closer to even. They can always adjust up or down based on how their year-end projection looks. The most important thing is getting something in place now rather than waiting and ending up in the same situation next April!

Has anyone considered the step-up in basis implications here? If the house appreciates and you both own it, when one spouse dies, the surviving spouse might only get a step-up in basis on half the property value. Whereas if only one spouse owns it, the entire property could get a step-up when that spouse dies. Just something to think about for long-term planning.

You're absolutely right about the step-up in basis considerations, and @Victoria Scott brings up an excellent point about non-citizen spouses and estate tax rules. For estate tax purposes, the unlimited marital deduction that applies to citizen spouses does NOT apply to non-citizen spouses, even if they're permanent residents. Instead, there's a much lower annual exclusion (around $185,000 for 2024). This means that when a US citizen dies, transfers to a non-citizen spouse above this threshold could be subject to estate tax. However, there's a planning tool called a Qualified Domestic Trust (QDOT) that can help defer estate taxes for non-citizen spouses. The surviving non-citizen spouse can receive income from the trust, and estate taxes are deferred until distributions of principal or until the surviving spouse becomes a US citizen. So while adding your wife to the deed now creates the gift tax filing requirement we've discussed, it might actually be beneficial from an estate planning perspective since it gets half the property out of your taxable estate. But this is definitely getting into complex territory where you'd want to consult with an estate planning attorney who understands the international implications. The basis step-up issue is real though - with joint ownership, only half the property gets a stepped-up basis when the first spouse dies, versus the full step-up if only one spouse owned it.

Just remember that if your parents are still providing more than half of your support (paying most of your living expenses, health insurance, etc.), they might still be eligible to claim you as a dependent even if you're working. Might want to talk to them before you file!

Great advice here! Just wanted to add one more thing - if you're still unsure about your situation, you can also use the IRS withholding calculator on their website (irs.gov/W4App). It's free and walks you through questions about your income, filing status, and whether you can be claimed as a dependent. It then tells you exactly how to fill out your W-4. At $42K annually and living independently for 2 years, you're almost certainly filing as independent. The key thing is making sure your withholding is close to what you'll actually owe - you don't want a huge refund (that's like giving the government a free loan) or a big tax bill in April. The standard W-4 setup for single filers usually gets you pretty close to the right amount.