Did you have to do anything special when submitting the amended returns? Like explain why you were changing things or attach any documents? I'm worried I'll mess up the amendment process somehow.

We included a detailed statement explaining exactly what happened - that we discovered our previous preparer had included false deductions without our knowledge, and we were voluntarily correcting the error as soon as we discovered it. Our CPA advised us to be completely transparent about the situation. We attached documentation showing the correct information for each modified item. The most important part was being clear and thorough about what was being changed and why. Our CPA said this approach often helps avoid deeper scrutiny since it shows good faith. Just make sure your EA documents everything properly and includes a clear explanation of the circumstances.

I filed an amended return in January and it took almost 5 months to get processed. The IRS website says 16 weeks but that seems optimistic based on what I've seen in tax forums. You can check the status with the "Where's My Amended Return" tool on the IRS website.

At what income level does S-Corp election make sense? I've heard different opinions about whether it's worth it when your business makes less than $100k annually. Is there a general rule of thumb?

The general rule of thumb is that S-Corp election starts making financial sense when your net business profit reaches approximately $40,000-$50,000 annually. Below that, the additional costs of running an S-Corp (payroll processing, more complex tax filing, etc.) often outweigh the self-employment tax savings. For ACA subsidy purposes specifically, S-Corp can be beneficial at even lower income levels sometimes, because properly structured salary vs. distributions can optimize your MAGI. But this requires careful planning and consistent profitability, which might be challenging with the variable income described in the original post. Always best to model different scenarios with actual numbers before making this decision.

I thought QSEHRA was only for businesses with employees? Can you really set one up if you're a single-member LLC with no employees besides yourself?

You're right about California - they don't give preferential treatment to long-term capital gains or qualified dividends. Everything gets taxed at the same rate based on your income bracket. Some states follow federal rules (giving lower rates to long-term gains/qualified dividends), some states have their own preferential rates, and some states like California tax everything the same. It's definitely worth checking your specific state rules.

Thanks for confirming that! So basically I need to plan for federal taxes treating my different investment incomes separately with their own rates, but for California it all just gets lumped together at my regular income tax rate? No wonder I was confused.

TurboTax handles this automatically. As long as you enter your 1099-DIV forms correctly (or import them directly from your broker), it will apply the correct tax rates to each type of investment income. Same with H&R Block and most other tax software - they're designed to apply all these different rates correctly. The software is actually pretty good at this part.

That's a relief! I was worried I'd have to manually figure out which income goes into which category. Guess I'll just make sure all my 1099s get imported correctly. Thanks!

Thanks for all the responses everyone! I finally heard back from my company's HR person. Turns out the "\" was indeed a software glitch in their payroll system. They're sending corrected W2s, but she confirmed it doesn't affect any of the tax calculations since there wasn't an amount associated with it. I feel much better now knowing it won't delay my refund. Appreciate all the help!

Is there a deadline for requesting a W-2c? I think I might have an error on mine from last year but never followed up on it.

So given my specific situation - if I buy Bitcoin and immediately transfer to a casino, I'd report it on Form 8949 as a purchase and sale with zero gain/loss? And then the gambling part would be totally separate on different forms?

That's exactly right. You'd show the Bitcoin purchase and disposal on Form 8949 with the same amounts (so zero gain/loss). Then separately, you'd report any gambling winnings on Schedule 1 as "Other Income." If you itemize deductions rather than taking the standard deduction, you could potentially deduct gambling losses (up to the amount of your winnings) on Schedule A. But only if your total itemized deductions exceed the standard deduction, which is $13,850 for single filers in 2023.

I use a spreadsheet to track everything - date, amount of crypto purchased, transfer to site, gambling sessions with wins/losses. I also take screenshots of big wins and all withdrawals. For the actual crypto purchases, your exchange should have all that history available to download.