Quick suggestion - the IRS has an official Tax Withholding Estimator online that's actually pretty good: https://www.irs.gov/individuals/tax-withholding-estimator You enter both your incomes, current withholding from recent paystubs, and it gives you specific numbers to put on each W4. It's designed specifically for situations like yours with multiple jobs and disparate incomes. The calculator even lets you specify if you want a refund of a specific amount or if you want to break even. Might be worth trying before paying for any services!

Another option: just do estimated tax payments quarterly instead of messing with your W4s. That's what my wife and I do with our income disparity ($90K and $320K). We both just check "married" on our W4s without any adjustments, then make quarterly payments to cover the gap. The advantage is you can calculate it more precisely and adjust throughout the year as your income changes. Just use the 1040-ES worksheet to figure out how much to pay.

Has anyone used the "check the box" election (Form 8832) to treat their wholly owned LLC differently? My accountant mentioned this might give us more flexibility than just defaulting to disregarded entity status.

I went through this exact same situation last year when our S-Corp acquired a small IT consulting firm. The confusion about where to report the disregarded entity's EIN on the 1120S is totally understandable - there really isn't a specific line item for it. What I learned from our tax preparer is that the key is in the EIN application process. When you applied for the disregarded entity's EIN (Form SS-4), you should have indicated the "responsible party" and the tax classification. Even though an individual SSN was required as the responsible party, the IRS systems link that EIN to your S-Corp for tax reporting purposes. One thing that helped us was keeping a detailed memo in our tax files explaining the acquisition, the disregarded entity election, and how we're treating the income. This documentation proved valuable when we had questions during our S-Corp examination last year. The IRS examiner appreciated having the clear paper trail showing the business relationship. Also, make sure you're consistent in how you handle the 1099 reporting - if the disregarded entity is receiving 1099s under its EIN, just include those amounts in the appropriate income categories on your 1120S. The IRS computer matching systems are pretty sophisticated at tracking these relationships now.

Great thread! I'm going through the same situation with my photography LLC that I'm dissolving after 3 years. One thing I discovered is that you might also be able to deduct any final business expenses you paid AFTER officially dissolving - things like final utility bills, storage fees for leftover equipment, or even accounting fees to prepare that final tax return. My CPA told me these "winding up" expenses are still deductible as long as they're directly related to closing the business, even if they occur after the official dissolution date. Just make sure to keep good records showing these expenses were specifically for closing out the business rather than personal expenses. Also seconding what others said about state requirements - I had to get a tax clearance from my state revenue department before they'd accept my dissolution paperwork. The whole process took about 6 weeks longer than expected because of that requirement.

One additional consideration that might be relevant - if your LLC had any outstanding debts or liabilities when you dissolved it, make sure those are properly handled before claiming dissolution expenses as deductions. The IRS can sometimes scrutinize business closure deductions more closely if there were unpaid creditors or unresolved tax issues. Also, keep detailed records of all your dissolution costs including receipts, bank statements, and any correspondence with state agencies. Even though $250 might seem like a small amount, having proper documentation will help if you ever face questions about the deduction during an audit. For anyone else going through this process, it's worth noting that some states allow you to deduct the dissolution fees on your state return as well, so check your state's tax rules in addition to federal requirements.

Quick tip about the home office portion - most people don't realize that you need to be VERY careful with claiming home office in apartments. I'm a property manager and many leases specifically prohibit running businesses from residential units. Before claiming this deduction, check your lease carefully! The IRS Form 1065 deduction might be valid tax-wise, but it could potentially put you in breach of your lease agreement.

Great question! You're on the right track with the accountable plan approach. Just wanted to add a few practical considerations from my experience handling similar partnership setups: For the mileage reimbursements, make sure you're maintaining detailed logs showing date, destination, business purpose, and miles driven for each trip. The IRS is particularly strict about vehicle expense documentation. I recommend using a mileage tracking app or keeping a simple logbook in your car. Regarding the home office, beyond the "exclusive use" requirement others mentioned, you'll want to calculate the percentage of your apartment used for business (square footage of office space divided by total apartment square footage). This percentage determines how much of your rent can be reimbursed. One thing to watch out for - since you're reimbursing yourself as a partner, make sure your partnership agreement specifically addresses this arrangement. Some partnerships require unanimous consent for expense reimbursements to partners to avoid any disputes later. Also consider the timing: while you mentioned quarterly mileage payments, the IRS generally expects expense reimbursements to occur within a reasonable time after the expense is incurred (typically 60 days). Monthly or quarterly should be fine, but don't let it stretch much longer than that. Your approach with Form 1065 line 21 and the attached statement is correct. The statement should detail each type of reimbursement, total amounts, and confirm compliance with accountable plan rules.

Is anyone else worried about claiming this energy credit? I'm eligible for about $1300 in energy credits for my new windows and insulation, but I've heard these credits can trigger audits. I'm thinking about just skipping it to avoid the headache. Thoughts?

Great news - I just checked my TaxAct account and Form 5695 is now available! Like Hattie mentioned, they updated the software recently. I was able to complete my residential energy credit form and claim my full $1600 credit for the heat pump installation I did last year. For anyone still waiting, try logging out completely and logging back in. You might see a notification about updated forms when you return to your tax return. If you're using the desktop version, make sure to check for software updates manually. One tip - make sure you have all your manufacturer certifications handy when filling out the form. The energy efficiency requirements are pretty specific, and having the documentation ready makes the process much smoother. Good luck everyone!