Daniel, you've received incredibly thorough and consistent advice throughout this thread - Box 20 Code AG is definitely just informational and won't affect your personal tax return. As a newcomer to this community who's also navigated the confusion of first-time business ownership taxation, I wanted to emphasize how normal it is to feel overwhelmed by these forms initially. That $3.2 million figure representing your 25% share of gross receipts for Section 448(c) compliance can definitely look alarming when you first see it! But as everyone has explained, it's purely administrative data to help the IRS track which businesses qualify for simplified accounting methods. Since you're preparing your taxes this weekend, I'd echo the advice to focus on the K-1 boxes that clearly impact your personal return (income, deductions, credits) and not stress about codes like AG that are just informational. Your tax software may ask for it, but it won't change your actual tax calculation. One thing that really helped me in my first year with complex tax forms was keeping the explanations from helpful forums like this with my tax files. Next year when you see that same Code AG, you'll remember it's nothing to worry about. Welcome to S-Corp ownership! The learning curve feels steep now, but you're asking all the right questions and getting great guidance. It becomes much more routine after this first year.

Daniel, you've gotten fantastic and consistent advice throughout this entire thread - Box 20 Code AG is purely informational and won't affect your personal tax return at all. As someone new to this community who went through similar confusion with my first partnership K-1, I wanted to add my voice to the reassuring chorus here. That $3.2 million amount definitely looks intimidating when you first see it on a tax form! But as everyone has explained perfectly, it's just your 25% proportional share of the S-Corp's gross receipts that the IRS uses to track eligibility for simplified accounting methods under Section 448(c). It's administrative data, not additional income. For your weekend tax preparation, the advice to focus on boxes that clearly show income, deductions, and credits (typically Boxes 1-13) while treating informational codes like AG as "enter if software asks, but don't stress" is spot-on. Your tax calculation won't change because of this amount. I love the suggestions others have made about keeping a reference sheet for future years explaining what each code on your specific K-1 means. This thread itself is a goldmine of explanations you could save for next year! Congratulations on joining the family business - the tax complexity feels overwhelming now, but you're getting excellent guidance and asking all the right questions. Once you understand your particular K-1 pattern, future years will be much more manageable.

Hey Brandon! I've been banking with Wells Fargo for about 6 years now and can absolutely confirm what everyone else is saying - they are rock solid consistent about waiting until the exact IRS direct deposit date. Never early, not even by a few hours. I actually keep a little spreadsheet tracking this because I'm a data nerd! 😅 Over the past 6 tax seasons, my refunds have hit my account between 1:30am-3:45am on the exact date shown on my IRS transcript. The amounts have ranged from $800 to $6,200 and the timing never varies based on size. For your complex return situation - don't worry about that affecting the deposit timing once the IRS processes everything. I had a crazy year in 2022 with rental property income, stock sales, and business expenses, and it still deposited right on schedule once I got my DDD. The one thing I'd recommend is setting up mobile banking alerts for deposits over $100. That way you'll get notified the moment it hits instead of playing the refresh game! You can set it up in the app under notifications. Really curious about Louise's comment though - if Wells Fargo actually started doing early deposits this year, that would be huge news for all of us! 🤞

New Wells Fargo customer here (just opened my account last month) and this thread is incredibly helpful! I was actually considering switching specifically because I heard some banks do early deposits, but it sounds like Wells Fargo definitely isn't one of them. The consistency everyone's describing is actually pretty reassuring though - I'd rather know exactly when to expect my refund than be left guessing. My previous bank (PNC) was similar in that they waited for the official date, so I'm used to the waiting game. I'm really curious about Louise's experience with getting her refund 5 days early this year! That would be such a game-changer if Wells Fargo quietly updated their policy. Has anyone else noticed any changes this tax season, or is Louise's situation unique? Thanks Brandon for starting this discussion - as someone new to both Wells Fargo and this community, it's great to get real experiences from long-term customers rather than just the official bank policies! 🙏

This is absolutely a payroll error that needs immediate attention. What you're describing is unfortunately more common than it should be with small businesses that don't have dedicated HR or payroll expertise. Here's what's happening: your employer is incorrectly deducting their required contributions from YOUR paycheck instead of paying them separately as required by law. Under the Federal Insurance Contributions Act (FICA), employers must pay their 6.2% Social Security and 1.45% Medicare contributions in addition to what they withhold from employee wages - not by deducting it from employee pay. A few important steps: 1. Document everything with photos/copies of multiple pay stubs 2. Calculate your total overpayment (should be 7.65% of gross wages for each affected pay period) 3. Approach your employer professionally - most will want to fix this quickly once they understand the error 4. If they use a payroll service, the provider should be able to correct the setup immediately The silver lining is that once corrected, you should receive reimbursement for all the incorrectly withheld amounts. If your employer has already issued W-2s showing the incorrect withholding, they'll need to file corrected forms as well. Don't hesitate to escalate to your state's Department of Labor if your employer is uncooperative - this type of payroll error violates federal employment law.

This is definitely a payroll error that needs to be corrected immediately. As a W-2 employee, you should never see employer portions of FICA and Medicare being deducted from your gross pay - those are separate obligations your employer must pay on top of your wages. What you're describing is actually a violation of federal employment law. The employer portions (the additional 6.2% Social Security and 1.45% Medicare) are supposed to be paid by your company directly to the IRS, not taken out of your paycheck. I'd recommend taking your pay stubs to your employer or HR department right away. Most small businesses will want to fix this quickly once they understand the error, especially since continuing this practice could expose them to IRS penalties. Make sure to keep copies of all your incorrect pay stubs - you'll need them to calculate exactly how much in back pay they owe you. Based on your numbers, you're being overcharged about $140 per paycheck, which adds up fast. If your employer seems confused about the rules or pushes back, suggest they contact their payroll provider's support team. This is a common setup error that payroll companies deal with regularly and can usually fix quickly once identified. The good news is that once corrected, you should get reimbursed for all the incorrectly withheld amounts from previous paychecks. Don't accept just a "we'll fix it going forward" response - you're entitled to every penny they incorrectly deducted.

I'm glad to see this thread helped so many students figure out their scholarship tax situations! As a tax professional who works with a lot of college students, I wanted to add a few final points that might help others in similar situations: First, Isabella, you're absolutely on the right track now with your math corrected. That $850 over the standard deduction will likely result in taxes of around $85-100 (roughly 10% tax bracket), which is very manageable. For future students reading this: always keep detailed records of ALL education-related expenses, not just what shows up on your 1098-T. I've seen students reduce their taxable scholarship amounts by thousands of dollars by properly tracking required books, supplies, lab fees, and technology purchases. Also, remember that if you're claimed as a dependent by your parents, they might be eligible for education credits based on expenses they paid that weren't covered by your scholarships. It's worth having a family discussion about tax strategy to make sure you're maximizing benefits across both returns. One last tip: if you find yourself in this situation again next year, consider adjusting your W-4 at your part-time job to have slightly more tax withheld if you know you'll have taxable scholarship income. It's easier than making estimated payments and ensures you won't owe anything at filing time. Great job working through this complex issue - you should feel proud of how you handled the research and got the help you needed!

As someone who went through a very similar situation last year, I wanted to share a few practical tips that might help you and other students reading this thread: When you do file your return, make sure to double-check that your 1098-T form accurately reflects what you actually received in scholarships. My school's 1098-T showed scholarship amounts from the previous tax year rather than the current one, which initially threw off my calculations completely. Also, if you're using tax software, many of the programs have specific sections for scholarship income that walk you through the qualified vs. non-qualified expense calculations step by step. This can be really helpful for making sure you're reporting everything correctly. One thing I wish I had known earlier is that you can actually coordinate with your parents on timing certain education expense payments to optimize the tax benefits across both of your returns. For example, if your parents pay for spring semester expenses in December vs. January, it can affect which tax year those expenses count for. The bottom line is that student tax situations with scholarships seem way more complicated than they actually are. The IRS has pretty clear guidelines, and as everyone has mentioned, the rules generally work in students' favor. You're definitely not alone in feeling overwhelmed by this - I think every scholarship recipient goes through this exact same panic at some point! You've got all the information you need now to file confidently. Best of luck!

Question for anyone who's dealt with this - does how you categorize these fees change if you're passing some of the costs to customers? We charge a small "financing fee" for customers who choose Affirm or Klarna.

For a business your size ($340K revenue), these Affirm processing fees are definitely fully deductible as ordinary business expenses under Section 162 of the tax code. I've been handling similar situations for small e-commerce businesses for years. The key thing to remember is that these fees should be deducted in the tax year when the transaction occurs, not when you receive the funds from Affirm (which can sometimes take a few days). This is called the "accrual method" and applies even if you're normally a cash-basis taxpayer. I'd suggest setting up a separate line item in your books specifically for "Affirm Processing Fees" - this helps with tracking your actual costs per payment method and makes tax preparation much cleaner. Your CPA will appreciate the organization when they return from vacation! One more tip: if you're offering any promotional financing through Affirm (like 0% interest periods where you pay extra fees), those should technically be categorized as marketing/promotional expenses rather than processing fees, though both are fully deductible.