Has anyone dealt with this issue when you have HSA contributions as well as Cafeteria Plan deductions? Our situation is similar but more complex: - W-3 Box 5: $412,000 - Section 125 Cafe deductions: $24,500 - HSA contributions: $15,300 - ADP Gross: $451,800 Should our G/L expense still match the ADP gross of $451,800?

This is such a common source of confusion! I went through the exact same thing last year when our bookkeeper quit right before tax season. The key thing to remember is that your business tax deduction should reflect the actual economic cost to your company, which is the full gross payroll amount of $250,250. The Section 125 deductions don't disappear - they just get redirected to employee benefits before hitting their W-2s. I found it helpful to think of it this way: if you wrote individual paychecks, you'd write them for the gross amount, then the payroll company handles directing some of that money to benefits. Your checkbook (and G/L) still shows the full amount going out. Also, make sure your payroll tax returns (941s) reconcile properly with these numbers. The wages subject to federal income tax withholding on your 941s should match the W-3 Box 5 amount, while your total wages paid should match the ADP gross. This creates a nice audit trail if anyone ever questions the discrepancy.

Ughhh dealing with BOFA and the IRS is pure hell. I ended up having to get my congressman's office involved after 3 months of getting nowhere with my missing refund. If you're really stuck, seriously consider contacting your rep - they have caseworkers who deal with this stuff all the time and can cut through the red tape.

I'm sorry you're dealing with this frustrating situation! I went through something very similar last year. The confusion comes from the terminology - you don't actually need Bank of America to give you a "trace number." What you need is for the IRS to initiate a payment trace on their end. Here's what worked for me: First, make sure it's been at least 5 business days since the IRS says your refund was deposited. Then you have two options: 1. File Form 3911 (Taxpayer Statement Regarding Refund) with the IRS - you can download it from their website 2. Call the IRS directly at 800-829-1040 to request a payment trace When you contact the IRS, they'll handle reaching out to Bank of America through the proper banking channels. The bank doesn't provide trace numbers directly to customers - it's all handled between the IRS and the bank's ACH department. Before you do anything though, double-check the account and routing numbers you used on your tax return against your actual bank account info. A lot of times these issues happen because of a simple typo in the account number. Hope this helps and you get your refund sorted out soon!

Anybody know how this works with state taxes? If I donate RSUs to avoid federal capital gains, do I also avoid state capital gains tax in California? My company is headquartered in Texas but I live and work in California.

One thing to consider that hasn't been mentioned - timing your donation strategically within the tax year. If you're planning to donate anyway, you might want to bunch multiple years of charitable giving into this year to maximize the benefit of itemizing deductions. For example, if you normally donate $5,000 annually but take the standard deduction, you could donate $15,000 worth of your appreciated RSUs this year (covering this year and the next two years), itemize to capture the full deduction benefit, then take the standard deduction in the following years when you're not making large donations. This bunching strategy can be especially valuable with stock donations since you're avoiding capital gains tax on a larger amount while also maximizing your deduction benefit. Just make sure you're comfortable with the larger donation amount and have selected reputable charities or a donor-advised fund to manage the distribution over time.

I'm actually a bit confused by some of the responses here. My accountant had me file a Form 1041 for my revocable trust with an EIN, but checked the box that it was a grantor trust and attached a grantor trust statement. He said this was required whenever a trust has its own EIN, even if it's revocable. Am I getting bad advice? I'm paying for an extra tax return each year that others here are saying isn't necessary.

This is such a helpful thread! I'm in a similar boat with a revocable trust and EIN, and it's reassuring to see that I don't need to file a separate 1041. One thing I wanted to add for anyone else reading this - make sure to notify your financial institutions that your trust is a grantor trust for tax reporting purposes. I had to send letters to my bank and brokerage firm with my trust's EIN requesting that they issue all 1099s under my personal SSN instead. Most institutions have procedures for this, but you need to be proactive about it. If you don't do this and end up with 1099s under the trust's EIN, you'll need to include explanatory statements with your personal tax return like others mentioned. It's much cleaner to get the 1099s issued correctly from the start. The IRS has specific guidance on this in Publication 559 if anyone wants the official details. @Owen Jenkins - definitely get ahead of this for next year's tax season if you haven't already contacted your financial institutions!

I think everyone is overlooking something important here. If you're using the van for personal trips just to "advertise" your business, that's not a smart financial move regardless of tax implications. The extra wear, tear and gas from unnecessary driving will cost you more than any potential business you might get from someone randomly seeing your van. Instead, consider parking your van in high-visibility areas during non-work hours. That way it's still "advertising" without adding miles or expenses. Or use that money to invest in proper advertising channels that actually target potential customers instead of random people on the road.

One thing to keep in mind is that the IRS has specific rules about what constitutes "ordinary and necessary" business expenses. If you start using your van significantly more for personal trips just to get your business seen, you need to be prepared to justify that the primary purpose is still business-related. I'd recommend keeping detailed records of any leads or business that actually comes from people seeing your van. If you get audited, having documentation that shows your mobile advertising strategy actually generated revenue will strengthen your case. Without that proof, the IRS might view excessive personal use as primarily personal rather than business, even with all the branding. Also consider that your business insurance might need to be updated if you're significantly increasing the mileage on your commercial vehicle. The cost of higher premiums could offset any tax benefits you're hoping to achieve.