As someone new to this community but unfortunately not new to tax anxiety, I'm finding this thread incredibly helpful! I just filed my first business return with Schedule C three days ago and I'm already getting that familiar pit in my stomach every time I think about checking my transcript. Reading everyone's experiences here is such a relief - it sounds like what I'm about to go through is completely normal, even if it's stressful. I had no idea that business returns go through additional validation steps or that there are multiple IRS databases that don't sync up in real time. That actually explains so much about why the process feels so opaque from the taxpayer side. I'm definitely going to bookmark this thread and resist the urge to start panic-checking my transcript until at least the 21-day mark. Thanks to everyone for sharing your experiences - it's so much better than going through this uncertainty alone!

Welcome to the "transcript anxiety club" that apparently every business owner joins during tax season! 😅 I'm fairly new to this community myself, but I've been following this discussion closely because I'm in almost the exact same boat - filed my Schedule C return about 2 weeks ago and have been fighting the urge to check my transcript every day. What really struck me from reading everyone's experiences is how this seems to be the norm rather than the exception for business returns. The explanation about multiple IRS databases not syncing in real-time actually makes so much sense, even though it's frustrating that we're left in the dark about where our returns actually are in the process. I think what's helping me the most is realizing that the acceptance email really is the key indicator that everything is moving forward properly. It's not just a "we received your paperwork" notification - it means the return passed all the initial validation checks and is actually in the system for processing. Thanks to everyone who shared their timelines and experiences. It's so much easier to wait it out when you know you're not alone in this process!

Something nobody mentioned yet - make sure you're filing the correct year forms for your late 2023 return! The IRS won't accept current year forms for prior year filings. You need to use the actual 2023 tax forms, which you can download from the IRS website. And if you mail it, write "2023 Form 1040" in big letters at the top so it gets routed correctly.

Don't beat yourself up too much about this - it happens to more people than you'd think! I went through something similar a couple years ago and it all worked out fine in the end. One thing I'd add to the great advice already given: when you mail your 2023 return, consider including a cover letter explaining that this is a late filing for tax year 2023. It can help the IRS processors route it correctly and understand why it's being filed now. Also, make copies of everything before you send it - keep a complete record of what you submitted and when. For your 2024 return, once it's accepted (which it should be with the $0 AGI), you can actually check the status of both returns separately on the IRS "Where's My Refund" tool. Your 2024 refund will likely come much faster since it was e-filed, while the 2023 refund will take longer due to paper processing. The good news is that $4,180 total in refunds is definitely worth the hassle of sorting this out! And you're well within the 3-year window for claiming your 2023 refund, so no money is lost. Just be patient with the process - the IRS is slow but they'll get it sorted eventually.

I just went through a very similar situation last month with my SEP-IRA and Solo 401k contributions, and I can tell you there's light at the end of the tunnel! Based on what you've described, it sounds like you may have made employer contributions to both accounts, which is where the problem lies. The key thing to understand is that as a self-employed person, you're wearing both the "employee" and "employer" hats, and the employer contribution limits are shared across all your business's retirement plans. Here's what worked for me: I contacted the custodian with the smaller account balance first and requested an "excess contribution removal" for the entire amount. This simplified everything and eliminated the confusion of trying to coordinate between two different account types. The process took about 10 business days, and they sent me a 1099-R for the earnings portion. One thing that surprised me was learning that I could actually contribute MORE through a Solo 401k alone than I was getting with both accounts combined. The Solo 401k lets you do the full $23,000 employee deferral PLUS up to 25% of net self-employment income as employer contributions, all in one account with one set of paperwork. Don't panic about penalties - as long as you get the excess removed before your tax filing deadline (including extensions), you'll just pay regular income tax on any earnings. The 6% excise tax only kicks in if you leave the excess in the accounts. You caught this early enough to fix it properly!

I'm a CPA who specializes in self-employment tax issues, and I want to clarify something important that might be getting lost in this discussion. The core issue isn't necessarily that you've exceeded contribution limits - it's that you cannot make employer contributions to BOTH a SEP-IRA and Solo 401k for the same business in the same tax year. This is a common misconception that trips up many self-employed individuals. Here's what's happening: You can make the $23,000 employee deferral to your Solo 401k (that's fine), but the $28,500 you put into the SEP-IRA counts as an employer contribution. If you also made any employer contributions to your Solo 401k beyond the employee deferral, then you've violated the rule about having multiple employer-sponsored plans for the same business. The solution is exactly what others have suggested - remove the excess contributions from one account before your tax deadline. I'd recommend keeping the Solo 401k and removing everything from the SEP-IRA, since the Solo 401k gives you more flexibility and higher contribution limits going forward. Contact your SEP-IRA custodian immediately to request a complete distribution as an "excess contribution removal." Make sure they code it properly on the 1099-R. You have until your tax filing deadline (including extensions) to fix this without major penalties.

Great question! I went through this exact same situation with my LLC last year. The key thing to understand is that guaranteed payments are treated as self-employment income for tax purposes, but the mechanics of how the money flows can be flexible. Your LLC can absolutely withhold the $1,000 for your 401(k) contribution directly from the $12,500 guaranteed payment and remit it to the plan, then pay you the remaining $11,500. This is actually preferable from a cash flow perspective and keeps everything clean administratively. The 401(k) plan administrator generally doesn't care about the source - they just need to receive the contribution and proper documentation. What matters for tax purposes is that the full $12,500 still gets reported as guaranteed payments on your K-1, regardless of whether $1,000 went directly to your 401(k) or through your personal account first. Just make sure your operating agreement is clear about this arrangement, and that your bookkeeper properly tracks the full guaranteed payment amount for tax reporting. The IRS views the entire $12,500 as taxable guaranteed payment income to you, even though part of it went directly to retirement savings.

One thing I'd add to this discussion is the importance of getting your payroll provider on board early if you use one. We ran into issues initially because our payroll company wasn't familiar with processing 401(k) contributions from guaranteed payments. They kept trying to treat it like regular employee payroll with tax withholdings, which created a mess. We had to educate them that guaranteed payments are already subject to self-employment tax, so there's no additional payroll tax withholding needed - just the straightforward transfer to the 401(k) plan. Also, make sure you coordinate the timing with your plan's contribution deadlines. Most plans require contributions to be made within a reasonable time after the guaranteed payment date. We typically process ours within 5 business days of issuing the guaranteed payment to avoid any potential issues with the Department of Labor's timing requirements. The bookkeeping approach Carmen mentioned is spot-on - that's exactly how we handle it and it keeps everything clean for tax reporting.

This is such a common source of confusion! I went through the exact same thing last year and ended up calling my bank thinking there was fraud on my account. The name "TPG products SBTPG LLC" is so generic and uninformative - you'd think TurboTax would make it clearer that this is how refunds are processed when you choose to pay fees from your refund. What really helped me was creating a little note in my phone after I figured it out, so next year I won't panic when I see that deposit again. I wrote down "SBTPG = TurboTax refund processor" along with approximately when to expect it based on when I filed. Also, for anyone reading this thread who's still confused about their situation - you can actually call SBTPG directly at their customer service number if you need confirmation about a deposit. They were surprisingly helpful when I called last year, and they could verify that the deposit was indeed my tax refund without me having to give them any sensitive information. The coincidental amount matching your regular income is just one of those weird things that happens. Our brains are pattern-matching machines, so when we see a familiar dollar amount, we automatically assume it's from a familiar source!

This exact same thing happened to me about three weeks ago! I got a deposit from "TPG products SBTPG LLC" and was completely baffled. Like you, the amount seemed familiar but I couldn't place where it would be coming from. I actually ignored it for a few days thinking it might have been a delayed payment from some freelance work I did months ago. It wasn't until I was organizing my finances and cross-referencing everything that I realized I was still waiting for my tax refund and the timing lined up perfectly. Sure enough, when I checked the IRS "Where's My Refund" tool and my TurboTax account, everything made sense. The amount difference from what TurboTax estimated is exactly what everyone else described - they take out all their fees before SBTPG sends you the remainder. In my case, I had paid for TurboTax Premier plus their "Audit Defense" add-on, plus the state filing fee, plus that $39.99 refund transfer fee. It all added up to about $140 in total fees, which explained why my deposit was so much less than expected. What really bothers me is that TurboTax makes it seem like such a convenient option to pay from your refund, but they don't clearly explain upfront that your refund will come from this random-sounding third party company. A little transparency would go a long way in preventing all this confusion!