Do you know if there's any standard way the IRS expects these to be reported? I'm using tax software and it keeps asking for positive numbers and then a separate indication of gain/loss.

The IRS forms themselves typically have separate columns or boxes for gains and losses, so you'd enter positive numbers in either the gain or loss section as appropriate. Most tax software is designed to match this approach, asking you to enter the amount as a positive number and then specify whether it's a gain or loss through a dropdown menu or checkbox. This is actually more foolproof than using negative numbers, as it prevents accidental reversals that could occur if you forgot to include the negative sign.

Your accountant is likely mixing up different types of securities. Section 1256 contracts (which include regulated futures contracts) are generally NOT subject to wash sale rules. This is one of the tax advantages of trading futures versus stocks or options. Since futures are marked-to-market at year end and receive the 60/40 tax treatment, the wash sale restrictions that apply to stocks and securities don't apply. All gains and losses are recognized in the tax year they occur.

What happens if we're in a state without those specific laws? We're in Georgia, and I'm not sure if there are similar requirements here. Should we still set something aside for her?

Georgia doesn't have a specific Coogan Law requirement like California or New York. However, it's still a really good idea to set aside some of your child's earnings in a trust or protected account for their future. Even without legal requirements, many parents choose to save a portion of their child's earnings for college or to give them a financial head start when they reach adulthood. You could set up a 529 college savings plan, a custodial account (UTMA/UGMA), or even a standard savings account in your child's name with you as the custodian. Just be aware that if you're working across state lines or with companies based in Coogan Law states, you might still need to comply with their requirements.

Kiddie tax only applies to unearned income (investments, interest, etc), not to the modeling/acting earnings themselves. If you invest your child's earnings and those investments generate more than $2,300 in income (dividends, interest, capital gains), that's when kiddie tax might kick in. In that case, any unearned income over that threshold would be taxed at the parent's higher tax rate.

Thanks for mentioning this! Yes, it is definitely a legitimate notice - came certified mail, has the official letterhead, and specifically mentions the 90-day period to petition the Tax Court. I wish it was a scam, honestly would be less stressful! Do you think I should go directly to Tax Court, or try to resolve it with the IRS first? The RSU issue seems straightforward once I provide the correct basis info, but the unemployment thing has me worried.

I'd definitely try to resolve it directly with the IRS first. Tax Court should be a last resort, especially since your issues seem correctable with proper documentation. The RSU basis correction is routine, and the IRS generally handles these well once you provide the proper information. For the unemployment issue, treat it as identity theft from the start. File the Identity Theft Affidavit (Form 14039) immediately. Also contact the state unemployment office where the benefits were supposedly paid - they may already have a fraud department investigating similar cases. Getting documentation from them stating you never received benefits will be extremely helpful for your IRS response.

That's such a good point about exact numbers! When I had a similar issue, I rounded on one form and it caused weeks of additional back-and-forth. Also worth noting that the broker's "supplemental information" often has basis details that aren't on the main 1099-B. Check all those extra pages they send!

Wait can you have a Solo 401k if you also have a 401k through your regular employer? I thought there were limits that applied across all accounts?

You absolutely can have both! There are two types of contribution limits: employee contributions (which are shared across all your 401k accounts) and employer contributions (which are separate). Since you're both the employee AND the employer for your self-employment business, you can still make "employer" contributions to your Solo 401k even if you've maxed out your employee contributions at your W2 job. The calculation gets a bit complex, but basically you can contribute around 20% of your net self-employment earnings as the "employer." This is completely separate from whatever your main job's 401k situation is. Many tax professionals don't even mention this strategy, but it's completely legitimate and can dramatically reduce your tax bill while building your retirement savings.

Your friend is playing with fire. You can only deduct the BUSINESS PERCENTAGE of vehicle expenses, and you need a detailed mileage log to prove it. The IRS specifically targets this area for audits. If he's claiming 100% business use for a personal vehicle, he's practically begging for an audit. And when they find out he's been using it personally too without documentation? Big penalties.

1 I actually don't have an accountant yet - part of why I'm in this mess! Been trying to handle everything myself to save money in the first year, but clearly that's not working out so well. Do accountants typically take on new clients same-day when there's a deadline?

3 Many accountants do offer same-day extension filing for new clients, especially during tax season. It's a common way they begin relationships with new business clients who are in a bind. A simple extension filing is low-risk for them and gives you both a chance to work together. I'd recommend calling a few local business accountants and explaining your situation. Be clear that you need the Form 7004 filed today and ask if they can help. Even if they can't take you on as a full client right away, many will handle just the extension filing to help you meet the deadline.

1 Oh crap, I didn't realize that! I haven't calculated what I might owe yet. Is there a quick way to estimate this, or do I need to basically do all the tax calculations anyway?

14 You don't need to do the complete calculations, but you should make a reasonable estimate based on your business income and expenses for the year. A safe approach is to look at what you paid last year (if you were in business) and pay at least that amount. If this is your first year, calculate your rough profit and multiply by the appropriate tax rate. If you're really unsure, it's generally better to overpay slightly and get a refund later than to underpay and face penalties. Even a good faith estimate shows the IRS you're trying to comply, which can help if you end up slightly short.