Can you explain more about the fringe benefits differences? I'm specifically curious about health insurance deductions since that's a big expense for me. Currently have a single-member LLC but considering both these options.

Health insurance is actually one of the key differences. With a C corporation (either via conversion or tax election), the company can provide health insurance to employees (including you as an employee-owner) and deduct 100% of the premiums as a business expense. These premiums aren't considered taxable income to you as the employee. With a standard LLC without corporate tax treatment, you can still deduct health insurance premiums, but it's done as an adjustment to income on your personal return rather than as a business expense. This means it doesn't reduce your self-employment tax, only your income tax. This distinction can mean thousands in tax savings depending on your specific situation and premium costs.

For me in Florida, the LLC with C corp tax election was way cheaper. Just had to file Form 8832 which cost nothing, while maintaining my existing LLC. Converting to an actual C corp would have cost around $750 in filing fees plus I would have had annual report fees of $150 instead of the $138 for my LLC. Also saved on not needing new bylaws drafted (quoted at $1200 by my attorney).

Thanks for this info. So even if I don't get a physical 1099 form, I should still enter the bonus somewhere in my tax software? Will the IRS know if I don't report such a small amount?

Yes, you should still enter the bonus in your tax software even without receiving a physical form. Most tax programs have a section for "Income without a form" or "Other Income" where you can report these small amounts. The IRS does have the ability to know about these payments because financial institutions report them. While they might not flag a small discrepancy immediately, they can match reported payments against your tax return for up to several years. It's generally not worth the risk of an amendment or potential penalties over a small amount of income.

They all report it to the IRS whether they send you a form or not. I used to work at a bank. The threshold for sending you a 1099-INT is $10 in interest, but ALL payments are reported to the IRS electronically. You should report everything even without the forms.

Does anyone know if changing jobs mid-year counts as reasonable cause? I switched employers in August and my withholding got all messed up even though I submitted a new W-4 right away.

A job change by itself typically doesn't qualify as reasonable cause for penalty abatement. The IRS expects you to adjust your withholding or make estimated payments to cover any shortfall. However, if there were unusual circumstances beyond your control with the new employer's payroll system, or if you requested proper withholding but they made errors, that could potentially qualify. The key is whether the situation was truly beyond your control despite taking reasonable steps to comply with tax requirements.

You only need to file Form 2210 if you didn't pay enough tax throughout the year via withholding or estimated payments. If your software didn't bring it up, you're probably fine! The form is specifically for calculating penalties for underpayment of estimated taxes. Most W-2 employees with proper withholding never see this form because their employers withhold taxes evenly throughout the year. It's more common for self-employed people, those with investment income, or people who had a change in income during the year.

Did you need to include any special notes or memo with your payment? I've heard conflicting info about whether that's necessary.

I did include a note in the memo field saying "Schedule 3 Line 12e Deferred Payment" just to be extra careful, but my accountant said it wasn't strictly necessary as long as I selected the correct tax year (2020). The most important thing is selecting the right tax year since that's how the IRS computer systems match the payment to your account. The memo is more of a backup in case there's any confusion later and you need to prove your intent.

EFTPS has always been one day delayed for me too. Is there any tax software that lets you pay deferred taxes more easily? Trying to avoid using EFTPS altogether if possible.

Where exactly on the 1040 can you see the breakdown between refundable and non-refundable parts? I'm looking at mine and can't figure out which lines show what.

On your Form 1040, look at line 19 - that's where the non-refundable portion of the Child Tax Credit appears. This is the part that directly reduces your tax liability, but can't exceed the amount of tax you owe. Then check line 28 of Form 1040 - that's where the refundable portion (Additional Child Tax Credit) appears. This is the part you can receive even if you don't owe any more tax. For the complete calculation and breakdown, look at Schedule 8812, which is specifically for Child Tax Credits. Part I calculates your total credit, and Parts II and III determine how it's split between refundable and non-refundable portions.

All legitimate tax software should calculate the same final numbers because they're all using the same IRS rules and formulas. Different software might display the information differently or walk you through the process differently, but the end calculation should be identical if you entered the same information correctly. The difference you're seeing is probably because the 2021 return had the temporarily expanded child tax credit ($3,000/$3,600 per child) while now we're back to the standard $2,000 per child. That would explain why the numbers look quite different between years.