If I'm both partners in an LLC (single-member LLC), do I still need to file a 1065? I thought in that case it just goes on my Schedule C?

You're mixing up two different business types. A single-member LLC is treated as a disregarded entity by default and would file Schedule C with your personal return, not Form 1065. A partnership requires at least two partners. If you're the only owner, you don't have a partnership by definition. Single-member LLCs report on Schedule C unless they've elected to be taxed as a corporation. Multi-member LLCs are treated as partnerships by default and file Form 1065 along with Schedule K-1s for each partner.

Is there a minimum amount you need to make before you have to do the quarterly payments? My side business only makes like $3k a year.

Generally, you need to make quarterly estimated tax payments if you expect to owe at least $1,000 in taxes for the year. However, you can avoid penalties if you pay at least 90% of the tax for the current year or 100% of the tax shown on your previous year's return (whichever is smaller). For a small side business making around $3k, it might not trigger the requirement depending on your tax situation, but it's always good to calculate your expected tax liability to be sure. Self-employment tax (15.3%) kicks in when you have $400 or more in net earnings, so even small businesses can sometimes create tax obligations.

Thank you for pointing that out! I should have mentioned - he's definitely not a dependent on anyone else's return. He's 38 and has been living on savings during 2020. I was helping him with paperwork stuff and realized he never got his stimulus payments. I appreciate the advice from everyone!

Glad to hear that! It's just something that trips up a lot of people. Also, make sure your friend keeps a copy of the return and proof of mailing (like a certified mail receipt). The IRS has been really backed up with paper returns, especially for past tax years, so it might take several months for them to process it.

Some tax software does let you file prior year returns, but most only allow electronic filing for the current tax year and maybe the year before. For 2020 returns filed in 2025, you'll probably have to mail it in. I used FreeTaxUSA to prepare a prior year return but had to print and mail it.

Can the custody agreement override the IRS rules? Like if the agreement says the non-custodial parent can claim the kids but they don't have the Form 8332, does that still work with the IRS?

The custody agreement itself doesn't override IRS rules, but it creates a legal obligation between you and your ex. For the IRS to recognize the non-custodial parent's right to claim the child, you still need Form 8332 or similar documentation. What works well is having the requirement to sign Form 8332 explicitly stated in your custody agreement. This way, if the custodial parent refuses to sign it when they're legally obligated to by the court order, you have recourse through family court. It's essentially a two-step process: the custody agreement creates the legal obligation between parents, and Form 8332 satisfies the IRS requirements.

That's exactly what I'm worried about! Did you try to get the Form 8332 signed after the fact or was it too late by then?

Thanks, that's helpful! Do you actually submit that insolvency worksheet with your tax return or just keep it for your records? And how detailed do you have to be with listing personal property? Like do I need to estimate the value of my couch and TV separately or just put "household goods: $X amount"?

You don't submit the worksheet with your return - it's just for your own records and in case of an audit. But definitely complete it thoroughly and keep it with your tax documents. For personal property, you don't have to be extremely detailed for each individual item. Grouping them makes sense - "household furnishings: $2,000" or "electronics: $1,500" is fine. Just make reasonable estimates of what you could actually sell these items for (garage sale or Craigslist values), not what you paid for them. And yes, definitely include vehicles, jewelry, tools, anything with value. For retirement accounts, only include what you could actually access (minus penalties) if you had to liquidate them at that time.

Yes, forgiven credit card debt generally counts as cancelled debt and the credit card company should have issued you a 1099-C if it was over $600. If you didn't receive one, they might not have filed it, or it could have been lost in the mail. You're technically supposed to report it as income even without the 1099-C, but you can still claim the insolvency exclusion on Form 982 if you qualify. I'd recommend checking with the debt settlement company to see if a 1099-C was issued. You can also create an account on the IRS website to view all forms that were filed under your SSN.

What about code 846? I see that on mine with a date of 3/5/25 but WMR still shows processing. Does that mean I'm getting my refund on 3/5?

Code 846 is exactly what you want to see! That's the "refund issued" code, and the date next to it is when the IRS will release your refund. So yes, your refund should be sent on 3/5, though it might take 1-3 business days after that to show up in your bank account depending on your bank's processing time. The WMR tool often lags behind the transcript updates, so it's totally normal for your transcript to show a refund date while WMR is still on processing. Your transcript is the more accurate source.

I actually got mine a day earlier than the transcript date! Transcript said 2/28 but it hit my bank on 2/27. I think it depends on your bank though.