Check Box 7 on your 1099-R! That's the distribution code and it determines how the withdrawal is taxed. If it's code "G" for example, it means it was a direct rollover to another retirement account and not taxable. Also look at Box 2a to see if there's a taxable amount. If it shows $0, that might explain why TurboTax is saying you don't need to report it (though you still need to include the form on your return even if the taxable amount is zero).

Has anybody else noticed TurboTax has been extra glitchy this year? I had a similar issue with my 1099-R where it kept telling me conflicting things about when to file it. Ended up switching to FreeTaxUSA and everything worked fine there.

Your tax changes sound good, but don't forget to look at your state withholding too! I made the mistake of only adjusting my federal withholding when I got a raise last year, and ended up owing $1,200 to my state while getting a federal refund. The W-4 changes don't automatically adjust your state withholding in many states.

Has anyone actually tried doing a projection with real numbers? I'm in a similar situation and wondering if I should pay someone to do this or use one of those tax planning spreadsheets I see online.

One angle you might want to consider is having the foreign partner's LLC elect corporate status (Form 8832) AND then have that corporation qualify for benefits under an applicable tax treaty. Depending on the foreign partner's country of residence, this might reduce withholding rates. For example, if your foreign partner is from a country with a favorable tax treaty with the US (like the UK), a properly structured corporation might qualify for reduced withholding rates on certain types of income. However, this gets complicated fast because you need to consider: 1) Corporate tax at the US entity level 2) Withholding on distributions to the foreign owner 3) Branch profits tax considerations 4) Potential for treaty shopping challenges from the IRS

I tried something similar a few years ago with a German partner in our consulting firm. We created a Wyoming LLC owned by the German individual, and had it be the official partner in our partnership instead of the German person directly. Our tax advisor initially thought this would work, but then we got a notice from the IRS saying we still needed to withhold under Section 1446 because the LLC was a disregarded entity. We ended up having to file amended returns and pay penalties and interest for the missed withholding. The IRS specifically cited Treasury Regulation 1.1446-3 which basically says they look through disregarded entities to the ultimate owner for withholding purposes. So based on my expensive lesson, your idea probably won't work unless the LLC elects to be treated as a corporation.

From my experience with TaxUSA, here's a checklist of what you might be missing: 1. For freelance income: you need the total amount earned, business expenses (keep receipts!), and info about who paid you (name/address) 2. For two-state filing: exact move date, income allocation between states, and any state-specific tax credits 3. Check if you have other income sources: bank interest, investments, rental income, etc. 4. Don't forget deductions like student loan interest, medical expenses, charitable donations The TaxUSA interface does navigate you through most of this, but sometimes it's not clear what specific documents you should have on hand. Their help center has some decent guides if you search "missing information" or "required documents.

Just want to add that TaxUSA has a feature called "Form Finder" that most people don't know about. It's buried in their help menu but super helpful for situations like yours. It asks a series of questions about your life events from the past year (job changes, moves, investments, etc.) and gives you a personalized checklist of forms you should have. Also, for the state issue, speaking from experience - don't try to "guesstimate" your income allocation between states. If you get it wrong, either state might come after you for additional taxes. If you don't have exact numbers, the safest approach is to request a wage and income transcript directly from the IRS which will show the exact amounts reported by state.

Don't overlook a Health Savings Account (HSA) if you opt for a high-deductible health plan! I'm a solo attorney with an S-Corp and this has been a game changer for me. For 2025, you can contribute up to $4,150 for individual coverage or $8,300 for family coverage. The triple tax advantage is amazing - contributions are pre-tax, growth is tax-free, and qualified withdrawals are tax-free. I've been maxing mine out every year and using it as another retirement vehicle (you can invest the funds just like a retirement account).

One more thing to consider - since you're both employer and employee, you can set up a Section 125 Cafeteria Plan to pay for things like dental, vision, dependent care, etc. with pre-tax dollars. Your S-Corp should also be taking the home office deduction if you work from home at all.