Just thought I'd add a real-world data point. I'm a solo C-corp owner and had exactly this situation last year. Paid myself $185k in salary and took $75k in dividends. The dividends were indeed taxed at the qualified dividend rate (15% in my bracket) on my personal return. One tip: For reasonable compensation documentation, I keep a spreadsheet of comparable job listings in my industry with salary ranges, take screenshots of these listings throughout the year, and document my hours and responsibilities monthly. My accountant says this is strong backup in case of questions.

Connor, you're right to be confused with conflicting advice from two accountants! The correct answer is that your C-corp dividends should qualify for the preferential qualified dividend tax rate (0%, 15%, or 20% depending on your income level), not your ordinary income rate of 32%. However, there's a critical requirement: you must be paying yourself a "reasonable salary" as the sole employee. The IRS scrutinizes owner-employees who pay artificially low salaries to minimize payroll taxes while taking large dividend distributions. Since you mentioned you're already paying yourself wages, you're likely on the right track, but make sure that salary is defensible based on industry standards for your role and location. At your 32% marginal bracket, you'd likely pay either 15% or 20% on qualified dividends (plus potentially the 3.8% Net Investment Income Tax if your income exceeds certain thresholds). This is a significant tax advantage over ordinary income treatment. For audit protection, document your salary determination process - keep industry salary surveys, job descriptions, and records of hours worked and responsibilities. Also ensure your corporation meets the basic requirements (U.S. corporation, proper holding period, etc.) for qualified dividend treatment. The accountant who said "capital gains rate" was essentially correct - qualified dividends are taxed at the same rates as long-term capital gains, not ordinary income rates.

Ive been dashing for 3 years now alongside my office job. Keep EVERY receipt - gas, phone chargers, hot bags, etc. The tax write offs make a HUGE difference. Also dont forget about the quarterly payments! I put reminders in my calander cause I forgot the first year and got hit with penalties.

Great question! I started doing Doordash last year while working my regular job and learned a lot through trial and error. Here's what I wish I knew from the start: You'll definitely want to track your mileage religiously - it's usually your biggest deduction. I use a simple notebook in my car and jot down my starting/ending odometer readings for each dash session. The standard mileage rate for 2024 is 67 cents per mile, which adds up fast! For the quarterly payments, you can also ask your regular employer to withhold extra taxes from your paycheck instead of making separate estimated payments. I had my HR department take an extra $150 per month from my regular job to cover the Doordash taxes - much easier than remembering quarterly deadlines. One tip: keep a separate envelope or folder for ALL your Doordash-related receipts. Car maintenance, phone accessories, insulated bags, even hand sanitizer you buy for deliveries. These small expenses add up and reduce your taxable income. And definitely set aside that 25-30% of earnings right away. I learned the hard way that it's much easier to save as you go than scramble to pay a big tax bill in April!

This is such a helpful discussion! I'm actually dealing with a similar situation right now - filed my return two weeks ago and just discovered I missed claiming some charitable deductions that would save me about $800. Based on what everyone's shared here, it sounds like superseding is definitely the way to go since we're still before the deadline. The point about avoiding penalties and interest on additional taxes is huge, and I like that it becomes the "only" return rather than having two separate filings to track. One question though - for those who've done superseding returns, how do you handle the payment situation? If my original return showed I owed $2,000 but my corrected return shows I only owe $1,200, do I still need to pay the original $2,000 by April 15th, or can I just pay the corrected amount? I don't want to accidentally underpay and get hit with penalties. Also really appreciate the mentions of taxr.ai and Claimyr - I had no idea these services existed! Might have to check them out since I'm definitely not confident about doing this correctly on my own.

This thread has been incredibly helpful! I'm dealing with a similar situation where I need to correct some 1099-INT reporting that I missed on my original e-filed return. One thing I haven't seen mentioned yet is the importance of keeping good records when you supersede. My tax preparer recommended that I keep copies of both the original return AND the superseding return, along with a detailed note explaining what changed and why. This way if there are ever any questions down the road, I have a clear paper trail showing the corrections were made in good faith before the deadline. Also, for anyone considering the paper filing route for superseding returns - make sure to send it certified mail with return receipt. Given how important it is that the IRS receives and processes the superseding return before they process your original e-filed one, having proof of delivery and timing can be crucial if there are any processing delays or mix-ups. The deadline stress is real, but it sounds like superseding is definitely the right approach when you catch errors this close to April 15th!

As someone who just went through their first year dealing with referral income, I can relate to the confusion! One thing I learned that wasn't mentioned yet is to keep copies of the actual referral agreements you sign with other agents or brokerages. These documents often specify the percentage you'll receive and when payments are due, which becomes crucial if there are any disputes later. Also, if you're working completely independently without a brokerage, make sure you understand your state's licensing requirements for referral payments. Some states require that referral fees only be paid to licensed agents through their supervising broker, not directly. Since you mentioned you're independent, you might want to double-check that your referral arrangements comply with your state's real estate commission rules. I'd also suggest setting up a separate business bank account just for referral income if you haven't already. It makes tracking so much easier come tax time, and having that clean separation helps if you ever face an audit. Plus, it gives you a clearer picture of how much you're actually earning from referrals versus your regular sales commissions.

Great question! I went through this exact same situation last year as an independent agent. Here's what I learned: Yes, any agent or company that paid you $600+ in referral fees during 2024 should send you a 1099-NEC by January 31st. However, don't rely solely on waiting for these forms - start tracking everything yourself now. Create a simple record-keeping system with: - Date of each referral payment - Amount received - Who paid you (agent/company name) - Copy of the payment (check, wire transfer confirmation, etc.) Even if you don't receive a 1099 for payments under $600, you're still required to report ALL referral income on your tax return. This goes on Schedule C as self-employment income, and you'll owe self-employment taxes on it (usually around 15.3% plus regular income tax). Pro tip: Set aside 25-30% of each referral payment for taxes. Since you're independent, you might also need to make quarterly estimated tax payments if your referral income is substantial. Also, keep copies of those W-9s you sent out and any referral agreements you signed. These will be important for your records and could be needed if there are any payment disputes or during an audit.

This thread has been incredibly helpful - I'm dealing with a similar situation but with some additional complexity. I was working for a US company but stationed in their London office from 2018-2021, and I'm just now discovering that I may have been filing incorrectly the entire time. My company's UK payroll team told me I didn't need to file US returns since I was paying UK taxes, which I now know was completely wrong. I've been out of compliance for multiple years and potentially owe significant amounts, but I also think I overpaid in some years where I might have been entitled to refunds. Reading through all the advice here about financial disability exceptions, account transcripts, and US-UK treaty provisions has given me hope that there might be paths forward I hadn't considered. The information about requesting comprehensive transcripts to see what the IRS actually has on file is particularly valuable since I'm not even sure what documentation they've received about my UK employment. Has anyone dealt with similar employer misinformation situations where the company's international payroll team provided incorrect US tax guidance? I'm wondering if this could support an equitable tolling argument similar to what was discussed earlier in the thread. The fact that I was receiving professional advice from my employer's tax specialists (even though it was wrong) seems like it might be relevant. Also curious if anyone knows whether the US-UK tax treaty has similar provisions to the US-Japan treaty mentioned earlier that might affect statute of limitations or filing obligations for employees on international assignments.

I've been reading through this entire thread and want to add some additional perspective on the financial disability exception that might be helpful. While major depression can qualify, the key is having your physician specifically document that the condition prevented you from managing your financial affairs during the relevant period. I work in tax resolution and have seen successful financial disability claims where the physician's statement included specific language about the patient's inability to handle complex financial decisions, difficulty with paperwork and deadlines, and cognitive impacts that affected their capacity to understand tax obligations. Generic treatment records usually aren't sufficient - you need a targeted statement from your treating physician. Also, don't overlook the "equitable tolling" possibilities mentioned earlier. Given your international assignment and the complexity of coordinating between US and Japanese tax obligations, if you can document that you received conflicting or incomplete guidance about your filing requirements, this could strengthen your case beyond just the health issues alone. One practical suggestion: consider filing Form 843 (Claim for Refund and Request for Abatement) even if you're not 100% certain about qualifying for an exception. The IRS will review your specific circumstances, and sometimes they identify relief options that weren't immediately obvious. The worst they can do is deny it, but you might be surprised at their flexibility when there are genuine extenuating circumstances like yours. The combination of your depression diagnosis, international tax complexity, and pandemic timing really does create a unique situation that goes beyond typical "I forgot to file" scenarios.