What happens if the amount on the W2 doesn't match what's on my 1095-A? My employer says they paid $4800 for my insurance but my 1095-A shows different numbers for the monthly premiums.

The W-2 and 1095-A show different information and won't necessarily match. Your W-2 shows what your employer paid toward your health insurance premiums, while Form 1095-A shows information about your Marketplace coverage, including total premiums and any advance premium tax credits. These forms serve different purposes in your tax return. The employer contribution on your W-2 represents their share of your health insurance cost, while the 1095-A helps you claim or reconcile premium tax credits. TurboTax will ask for both forms and guide you through entering the information correctly for each purpose.

This is really helpful thx! One question - do you happen to know if there's any income limit for this exemption? Like if you make over a certain amount does it become taxable?

Wait seriously? You can actually write off pedicures as a business expense for feet pics? That seems too good to be true lol

Absolutely! If the pedicures are specifically for your photoshoots and business purposes, they're a legitimate business expense. Think of it like this - if a hand model gets manicures for photo shoots, that's a business expense. Same principle applies to foot modeling/pics. Just make sure you're being honest about the business purpose and keep good records. I keep a separate calendar where I note when I got pedicures specifically for photo sessions versus personal ones. Same with any special foot care products or accessories I buy exclusively for shoots. The key is that these expenses must be "ordinary and necessary" for your specific business - which in the case of foot content, professional foot care definitely qualifies!

Are the costs for copyright registration and protection software tax deductible? Seems like they would be but just checking.

Does anyone know if Texas accepts this MTC form? Their website is so confusing and I've gotten different answers from different people at their tax department.

Texas does accept the MTC form, but with some caveats. They're technically a member of the Multistate Tax Commission, but they sometimes require additional documentation if you're not registered in Texas and you're doing dropshipping where the final customer is in Texas. I've found it's always safest to call the state's department of revenue directly for your specific situation. The rules for dropshipping in particular vary tremendously between states and can change without much notice.

But don't you still need to provide resale certificates to your suppliers regardless of whether you have nexus in a state? My understanding is these are separate issues - nexus determines if you collect tax from customers, while certificates prevent you from paying tax to suppliers.

You're absolutely right - I should have been clearer. Nexus and resale certificates are related but separate issues. You need to provide resale certificates to your suppliers to avoid paying sales tax on purchases intended for resale, regardless of your nexus status. What I meant was that tracking your sales by state helps you determine where you need to register for sales tax permits, which you often need before you can get a valid resale certificate for that state. Some states will issue resale certificates even without nexus, while others require you to have nexus and be registered first.

Thanks for this info! I did file Form 1120-S for 2021 and issued myself W-2s, so sounds like I've been operating consistent with S-corp status. I was just confused about whether I could put January 1 as the effective date when my LLC wasn't technically formed until March. I'll definitely check Box D1 and explain the situation in Part III as you suggested. Do you think I should attach anything else to the form when I send it in? Like copies of my 2021 tax filings to prove I've been operating as an S-corp?

Yes, you should absolutely attach copies of your 2021 Form 1120-S and any W-2s you issued yourself as supporting documentation. This demonstrates to the IRS that you've been operating consistently as an S-corporation. Also consider attaching a brief cover letter referencing the IRS notice you received and explaining your intention to address this with the late-filed election. I'd also recommend sending it certified mail so you have proof of submission. The IRS can be slow to process these, so having documentation of when you submitted everything can be important if they follow up again before processing your election.

Good point! I made this mistake last year and they rejected my filing, adding another 2 months to the process. You can download the current version directly from irs.gov rather than using any forms that might be outdated on tax preparation websites.

Wait, so if he enrolled in college classes the income limit wouldn't matter? Even at a community college? My daughter works part-time making about $8k but she's taking 3 classes each semester.

That's correct! If your daughter is under 24 and a full-time student (generally defined as taking a full course load for at least 5 months of the year), then the gross income test doesn't apply for determining if she's your qualifying child. She would need to meet the other tests: relationship (your daughter, so check), residency (lived with you for more than half the year), age (under 19 or under 24 if full-time student), and support (you provide more than half her support). The number of classes determines full-time status according to the school's definition, so 3 classes might qualify if her school considers that full-time.

Your friend is probably claiming her daughter as a qualifying child rather than a qualifying relative. If her daughter is a full-time student under 24, the income limit doesn't apply. The rules are different depending on which type of dependent they are.