Do I still qualify for child tax credits if my income was around $80k total (including the contractor work)? I thought there were phaseouts.

Yes, you should still qualify. The Child Tax Credit begins to phase out at $200,000 for single filers and $400,000 for married filing jointly. With your total income around $80k, you're well below those thresholds, so you should be eligible for the full amount for each qualifying child. The Earned Income Credit has lower income limits, so you'd need to check those specifically based on your filing status and number of qualifying children. But the Child Tax Credit should definitely be available to you based on the income information you've shared.

What app do you use for mileage? I've been trying to keep track on a notepad but I always forget.

I use MileIQ and it's been a lifesaver. It automatically tracks all your drives and then you just swipe right for business or left for personal. Super easy and creates IRS-ready reports. Some people also like Everlance or Stride. Another tip: set calendar reminders for quarterly tax payments (April 15, June 15, September 15, and January 15). The IRS doesn't send reminders and it's easy to forget, especially that weird June one that's only two months after April!

Thanks for the suggestion! I checked and there weren't any irregular payments or bonuses - it was just my standard salary payment. And we're on a consistent bi-weekly schedule. The only change was adding the new dependent on my W-4. I'll definitely keep an eye on my next paycheck though!

Wouldn't checking the box in step 2 withhold at the higher single rate? That might be too much withholding for someone with 2 kids and a stay-at-home spouse. Could create too big a refund, which is just giving the government an interest-free loan.

Thanks for bringing up the operating agreement! Would you recommend having a lawyer draft it or are those online templates good enough for a small family business? And if I go the route of paying my dad as a consultant, would that still give him access to deductions for things like home office or business travel?

For a small family business, you can start with an online template as long as you customize it to your specific situation. However, having a lawyer review it once you've drafted it is always a good idea. This middle-ground approach saves money while still getting professional oversight. If your dad works as a consultant, he could form his own single-member LLC and then deduct legitimate business expenses like home office, travel, supplies, etc. on his Schedule C. This approach keeps your businesses separate but allows both of you to take appropriate deductions. The key is that any consulting work must be legitimate and at market rates - the IRS looks closely at family transactions to ensure they're not just for tax purposes.

This is really insightful. How difficult was the process of dissolving the multi-member LLC? Did you face any tax consequences when you switched structures?

The denial letter only mentioned the filing deadline. There was no mention of incomplete contents - just that they received it after the cutoff date for refunds, even though I mailed it on the exact deadline day they specified. This makes me think it's purely about the timing and not the contents.

That's actually good news! When they only dispute the timing and not the contents, the mailbox rule applies much more straightforwardly. The courts have consistently upheld that the postmark date is what matters, not when the IRS physically receives or processes it. Since you have certified mail proof with the right date, I think your chances are excellent either through the appeals process or tax court. The IRS knows they'll lose this type of case, so they often settle once they see proper documentation.

Does this actually work though? I feel like the IRS just tosses these requests straight in the trash when you've missed the appeal deadline.

Thanks for this tip! I just looked up my businesses on my state's portal and they're definitely LLCs. I guess I need to do the BOIR filing after all. Do you know if there's any easy way to complete it without hiring someone? I have 3 properties/LLCs so it seems like it could get expensive fast.

The BOIR filing isn't too complicated if you're a single-member LLC. You'll need to create an account on FinCEN's BOI E-Filing System, and then provide basic information about yourself as the beneficial owner (name, address, ID number) and your company (legal name, address, formation info). Since you're both the company applicant (person who formed the LLC) and the beneficial owner (person who owns/controls it), it's pretty straightforward. If you have all your formation documents handy, you can probably complete all three filings in 1-2 hours. Much cheaper than paying someone hundreds of dollars per LLC!

Do you happen to know what the penalties are if you miss the deadline? I have a bunch of single member LLCs and I'm traveling until mid-January.

The penalties can be pretty severe - civil penalties up to $500 per day for violations, and criminal penalties up to $10,000 and/or imprisonment up to 2 years for willful violations. But I wouldn't stress too much about your mid-January return if you're making a good faith effort to comply. Government agencies rarely begin aggressive enforcement immediately after a new filing requirement. That said, you should probably at least create your FinCEN account before you leave and maybe start gathering the information you'll need.