This is a complex situation that many of us face with aging parents. One additional consideration that hasn't been mentioned yet is the potential impact of state gift taxes. While most states don't have their own gift tax, a few do (like Connecticut and Minnesota), so if you're in one of those states, you might need to factor that into your planning as well. Also, if your dad's condition progresses and he eventually needs more intensive care like assisted living or nursing home care, the financial dynamics change significantly. Many of these facilities can provide detailed breakdowns of medical vs. custodial care costs, which becomes important for both gift tax purposes and potential Medicaid planning down the road. Have you considered setting up a formal care agreement with your father? This could help clarify the arrangement and potentially provide additional tax benefits. Some families find it helpful to have a written agreement that specifies what expenses are being covered and by whom, especially when multiple family members might be contributing to care costs.

Regarding your questions about formal care agreements and Medicaid planning - these are excellent considerations that can save you headaches down the road. For the care agreement, while you can find templates online, I'd strongly recommend having an elder law attorney draft one for your specific situation. A proper agreement should specify what services are being provided, payment amounts, and clearly distinguish between medical and non-medical care. This documentation can be invaluable not only for family transparency but also for potential future Medicaid applications. As for Medicaid lookback, there's a 5-year lookback period for asset transfers. However, payments made directly to care providers for your father's benefit (like you're doing now) generally aren't considered improper transfers during the lookback period, since you're paying for services rather than gifting assets. The key is maintaining good records showing the payments were for legitimate care expenses. One strategy some families use is transitioning to paying from the parent's own funds (if available) as their care needs increase, which eliminates both gift tax concerns and potential Medicaid complications. If your dad has assets but limited liquid funds, converting some assets to cover care costs might be worth exploring with a financial planner who specializes in elder care. The documentation you're building now by tracking medical vs. non-medical expenses will be extremely valuable if Medicaid planning becomes necessary later.

I'm going through the exact same thing and this thread has been such a relief! Filed on 2/13 with a $3,400 payment through H&R Block online, and it's been sitting in my account for over 3 weeks now. Like so many others here, I've been checking my bank account multiple times daily expecting the money to just disappear. I was starting to panic thinking I had made some error or that the IRS was going to surprise me with penalties later. Miguel's explanation about the 3-4 week processing backlog being system-wide this year is incredibly reassuring, especially coming from someone who works in tax prep and is seeing this across multiple clients. And all the practical advice about keeping documentation, setting up the online IRS account, and learning about EFTPS for next year has been so helpful. I'm going to follow everyone's advice - keep that money untouched for at least 8 weeks, set up my online IRS account today to confirm they have my information, and try to be patient with their processing delays. It's amazing how much better this feels knowing we're all protected from penalties as long as we authorized payment on time. Thanks to everyone for sharing your experiences - you've turned what felt like a personal financial crisis into just another frustrating bureaucratic delay that we're all weathering together!

I'm going through this exact same situation and finding this thread has been incredibly helpful! Filed on 2/21 with a $3,650 payment through TaxSlayer, and it's been sitting in my account for almost 3 weeks now. Like everyone else here, I've been obsessively checking my bank balance multiple times a day, half expecting the money to just vanish overnight. I was starting to worry that maybe I had made some mistake during the payment authorization process or that the IRS was going to hit me with surprise penalties down the road. Miguel's explanation about the 3-4 week processing backlog being system-wide this year is such a huge relief, especially knowing it's coming from someone who works directly in tax prep and is seeing this pattern across multiple clients. All the practical advice here about keeping documentation, setting up the online IRS account, and considering EFTPS for next year has been incredibly valuable. I'm going to follow everyone's guidance - keep that money safely untouched in my account for the full 8 weeks, set up my online IRS account today to at least confirm they received my return, and try to practice patience with their processing delays. It's amazing how much less stressful this feels knowing we're all in the same boat and protected from penalties as long as we authorized payment on time. Thanks to everyone for sharing your experiences and solutions - you've transformed what felt like a potential financial disaster into just another frustrating government processing delay that we're all navigating together!

Just to add my experience - I was in the EXACT same situation during college. Had work study all 4 years and didn't file until senior year when I got a proper internship. I talked to an accountant years later who said since I was owed refunds (not that I owed any tax), there was no penalty for filing late. Apparently the IRS doesn't penalize you for filing late if THEY owe YOU money! I ended up filing the old returns and got small refunds for each year. The whole process was pretty easy. If I were you, I'd file those old returns just to get closure and the small refunds you're probably entitled to.

Don't stress too much about this! You're definitely not alone - so many college students go through this exact same confusion about work study income and filing requirements. From what you've described, you were likely not required to file for those years since your earnings were well below the filing thresholds. Work study income is treated like regular W-2 wages, so the standard filing requirements apply. However, since you had federal taxes withheld (even those small amounts of $11 and $9), you were actually entitled to get that money back as a refund! The IRS doesn't charge penalties for filing late when they owe YOU money, but there is a time limit to claim refunds - generally 3 years from the original due date. For 2021, you'd have until April 2025 to file and claim that $11 refund, and for 2022, until April 2026 for the $9. It's not a huge amount, but it's money that's rightfully yours, and filing those returns would give you peace of mind. Also, don't forget to check your state filing requirements! Some states have much lower thresholds than federal, so you might need to file state returns even if federal wasn't required. You're being very responsible by looking into this now - better late than never!

22 Does anyone know if my accountant should be charging me extra each year to "maintain" my S-Corp election? He's billing me $250 annually for "S-Corp election maintenance" but from what I'm reading here it sounds like there's nothing to maintain after the initial filing??

Just to reinforce what others have said - Form 2553 is definitely a one-time filing! I made the same mistake in my first year as an S-Corp and called the IRS thinking I needed to refile it. The representative confirmed that once your election is accepted, it stays in effect unless you voluntarily revoke it or something happens that disqualifies your S-Corp status. What you DO need to file annually is Form 1120-S (your S-Corp tax return) and prepare Schedule K-1s. Also don't forget about the reasonable salary requirement - as an S-Corp owner who works in the business, you need to pay yourself W-2 wages before taking distributions. That's probably the most important ongoing compliance issue to stay on top of. The IRS website has a good checklist for S-Corp annual requirements if you want to bookmark it for future reference!

11 I was in the same boat last year and researched all the options. Here's the simplest explanation: 1) Single-member LLC (default): File Schedule C with your personal return. Only the profit hits your personal income, but all details are on Schedule C. 2) LLC with S-Corp election: File Form 1120-S (separate business return) AND report profits on your personal return via Schedule K-1. More separation but more complexity. 3) LLC with C-Corp election: Completely separate business return with separate taxation. Highest separation but potential double taxation and highest complexity. For most small business owners, option #1 is simplest and most cost-effective. The business activity IS separate (on Schedule C) even though it's attached to your personal return.

One thing to add that might help with your mental separation - even though your LLC taxes flow through to your personal return via Schedule C, you should still maintain completely separate bank accounts and credit cards for your business. This creates a clear paper trail and makes tracking business expenses much easier. I'd also recommend keeping a simple spreadsheet or using accounting software to track your business income and expenses throughout the year. This way, when tax time comes, you'll have everything organized and won't have to scramble to separate business from personal transactions. The key insight that helped me was realizing that Schedule C IS your business tax return - it just happens to be attached to your personal 1040. All your business details, deductions, and calculations are isolated on that schedule, giving you the separation you want while keeping things simple from a filing perspective. Good luck with your first year of business taxes!