Do you know if Texas requires a separate form? I've got an LLC there but can't figure out if I need to do anything special for the state since they don't have personal income tax, but do have that franchise tax thing.

Texas is a bit different since they don't have personal income tax. For a single member LLC in Texas, you're right about the franchise tax. If your LLC's revenue is over the threshold (currently $1,230,000), you need to file a franchise tax report by the due date or request an extension. For the extension in Texas, you'd file Form 05-164 and make any required payment. Even if you're below the no-tax-due threshold, you may still need to file a "No Tax Due Report" by the deadline or request an extension. The Texas Comptroller's website has detailed information specific to your situation.

I tried TurboSelf last year for my LLC extension and it was okay but not great. It handled the basic Form 4868 fine, but wasn't very helpful with calculating a good estimated payment amount. I ended up overpaying by almost $2,000 because it used a very conservative calculation method. Their support was also really slow to respond when I had questions about how to properly categorize some business expenses that would affect my payment amount. I think there are better options out there specifically for small business owners.

What firm did you use? I've been hesitant about some of these ERTC specialist companies because there seem to be so many pop-up firms just chasing these claims and I'm worried about getting aggressive advice that could cause problems later.

I used a regional accounting firm in our area that already handled our regular tax work, not one of the ERTC mills that appeared overnight. That's exactly why I suggested finding a professional - too many firms are pushing aggressive positions without considering the documentation needed to support them. If you already have a CPA or tax preparer, ask if they have ERTC experience or can refer you to someone reputable. The best protection is having a tax professional who will stand behind their work and be there if questions come up later. The firms that properly document reasonable basis positions are worth their weight in gold right now with all the ERTC scrutiny.

Yeah my claim from October is still "processing" even though the IRS cashed the check for the quarter I had to pay additional tax on. Feels like they're just sitting on these claims hoping people forget about them.

Thanks for the tip! How long should I expect to wait for the amendment to process? I've heard they take forever now.

Currently, the IRS is taking approximately 16-20 weeks to process amended returns, sometimes longer. This is much longer than their pre-pandemic timeline. It's definitely not the quick 3-week turnaround we used to see years ago. Be prepared for a long wait, and don't be alarmed if you don't see any updates on the "Where's My Amended Return" tool for several weeks. Just make sure you keep copies of everything you send, including proof of mailing. I also recommend checking your IRS online account periodically, as sometimes that shows updates before the amendment tracker does.

This varies by state though. Some states want you to file the state amendment at the same time as the federal. Call your state tax department to confirm their process.

Doesn't that mean you're overwithholding though? Wouldn't you end up with a massive refund? I'm trying to get mine as close to zero as possible.

You're right that it might result in slightly overwithholding, but in my experience it wasn't a massive refund - just enough to feel safe. The reason is that not all your income is taxed at your highest bracket rate because of how tax brackets work. Only the portion above each threshold gets taxed at the higher rate. So while it's not perfectly calibrated, it's a simple approach that errs on the side of caution. I'd rather get a small refund than owe money and potentially face penalties.

I tried it and it worked pretty well! The key is you ONLY fill out that worksheet and put the extra withholding amount on your highest-paying job's W4 (Step 4c). For your other jobs, you just fill out the basic info but don't do any adjustments. The worksheet basically calculates the additional tax you need to withhold to make up for having multiple jobs, then concentrates it all on one paycheck. It seems weird at first but makes sense when you think about it.

Thanks for mentioning this! Do you know what the threshold is for when filing becomes mandatory vs. optional for investment income? Also, with the rental property, can I deduct things like property management fees to my cousin who handles it?

The filing threshold depends on your specific situation and income types. Generally, if you only have investment income subject to proper withholding at source (usually 30% or treaty rate), and no effectively connected income, you might not need to file. But there's no specific dollar threshold - it's based on whether the correct tax was already withheld. Regarding your property management fees - yes, you can absolutely deduct legitimate property management fees paid to your cousin. Just make sure the fees are reasonable (market rate) and documented properly with formal agreements and payment records. The IRS can scrutinize payments to relatives more closely, so keep good documentation showing these are genuine business expenses.

Does FreeTaxUSA handle rental income for non-residents too? I'm in almost the same situation as OP.