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?

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.

That's really helpful, I didn't even think about state-specific requirements. Do you happen to know if most tax software handles this automatically, or is it something I need to specifically look for?

Most major tax software should prompt you about state-specific gambling income forms if you indicate you have gambling/fantasy winnings, but it's not guaranteed. It depends on the software and how thorough their questionnaires are. I'd recommend specifically looking for gambling/fantasy sports sections in your state return once you complete the federal portion. If you're using software like TurboTax or H&R Block, search for terms like "gambling," "fantasy sports," or "other income" in the state section. If nothing comes up, check your state's department of revenue website - they usually have guides for reporting different types of income.

Actually this isn't quite right for fantasy sports/gambling. The threshold for gambling winnings is generally based on the amount of the win and the type of gambling, not a simple $600 threshold. For fantasy sports specifically, platforms typically issue 1099-MISC forms when net profits exceed $600, but some use other criteria.

Thanks for the correction! You're right that it's more complicated than I stated. Fantasy sports sites typically issue 1099-MISC forms for net winnings (winnings minus entry fees) over $600, but even that can vary by platform. Some might use a 1099-K for certain payment thresholds instead. The main point still stands though - just because you didn't get a 1099 doesn't mean you don't have to report the income. Always better to report everything properly rather than risk issues with the IRS later.

16 Did you file yourself or use a professional? I'm trying to decide if I need to hire someone or if I can handle this on my own with tax software.

3 I started with tax software for the most recent year I hadn't filed, since that was the simplest one. I was able to handle it myself pretty easily since I just had W-2 income like you do. For the older years, I ended up using a tax preparer because my situation got more complicated (had some 1099 income and moved states). If your tax situation is straightforward with just W-2 income, you can absolutely do this yourself with tax software. Many of the major tax software companies offer versions for prior years. Just make sure you're filing paper returns for prior years since electronic filing is usually only available for the current tax year.

20 Is there an application process for the payment plan? And do they charge interest while you're paying it off?

What about medical expenses she had before passing? Can those be deducted on her final return? My family member had nearly $30k in out-of-pocket medical costs in their final months.

Yes, medical expenses can be deducted on the final tax return, and they're subject to more favorable rules in this situation. Medical expenses paid by the estate within one year of death can be treated as if they were paid at the time of death, and can be deducted on the final income tax return. The threshold for deducting medical expenses is typically 7.5% of adjusted gross income, but given the potentially large expenses in a final illness, it's quite possible you'll exceed that threshold and be able to take a substantial deduction.

How much did it cost to hire a third-party executor? We're considering this option because tensions are already high.