Just wanted to chime in as someone who went through this exact situation last year! I inherited $15,000 from my grandfather and was absolutely panicking about taxes. After doing a lot of research and even consulting with a tax professional, I can confirm what others have said - you do NOT need to pay federal income tax on that $13,500 inheritance, and you don't even need to report it on your tax return. The key thing to remember is that inheritance tax and income tax are completely different. Your grandmother's estate may have been responsible for estate taxes (though unlikely given the high federal exemption), but that's separate from your personal income tax situation. One piece of advice - keep good documentation of the inheritance (like the estate paperwork or bank transfer records) just in case you ever need to prove the source of those funds to the IRS in the future. But you can definitely stop worrying about owing taxes on the inheritance itself!

I went through something very similar when I inherited $16,000 from my aunt two years ago. The anxiety about potential tax obligations was overwhelming! After consulting with a CPA and doing extensive research, I can confirm what others have shared - you're in the clear federally. Here's what I learned that might help ease your mind: The $13,500 you inherited is not considered taxable income under federal law. You don't report it on your Form 1040, and you don't owe any federal income tax on it. The estate tax exemption is so high ($12.92 million for 2023) that your grandmother's estate almost certainly didn't owe any federal estate taxes either. The confusion you're experiencing is totally normal - the terminology around "estate tax," "inheritance tax," and "death tax" gets thrown around interchangeably online, but they're actually different things. What matters for you is that as a beneficiary receiving an inheritance, you have no federal tax liability on that money. My advice: Keep all the documentation from the estate (bank records, attorney letters, etc.) for your records, but you can stop worrying about setting aside money for taxes on this inheritance. Use that $13,500 however you planned - it's yours free and clear!

Has anyone successfully claimed the Foreign Tax Credit for Belgian taxes? I keep getting confused because some of the pension is taxed by their social security system and some by their regular tax system. Not sure if both count for the credit.

Great thread everyone! I'm dealing with a similar situation with my grandmother's Belgian pension. One thing I learned from our tax preparer is that you should also check if your state has any specific rules about foreign pension income. Some states don't tax foreign pensions at all, while others follow federal treatment. In our case, we're in a state that doesn't tax retirement income, so even though we had to report it federally and deal with the treaty provisions, there was no additional state tax burden. Also, make sure to keep copies of ALL the Belgian tax documents - not just the pension statements but also any tax certificates showing what was withheld. The IRS may ask for these if they have questions about your Foreign Tax Credit claim. Better to have everything organized upfront than scramble later!

Don't risk it! The company is 100% sending that info to the IRS even if they're late sending it to you. My spouse works in accounting and they always submit 1099s to the government first, then mail them to contractors. You can actually request your wage and income transcript directly from the IRS which will show all income reported under your SSN, including any 1099s filed by companies that paid you.

I've been through this exact situation! The IRS has gotten really sophisticated with their automated matching systems. Even if the company is late sending you the 1099, they've likely already filed it electronically with the IRS. What many people don't realize is that the IRS receives 1099 information months before you get your copy in the mail. Their computers will automatically cross-reference this against your tax return when you file. If there's a mismatch, you'll get a CP2000 notice - and trust me, it's not fun to deal with. My advice: report the income even without the physical form. You can estimate based on your records (bank deposits, invoices, etc.) and file an amended return later if the actual 1099 shows a different amount. It's much easier to handle a small discrepancy than to deal with penalties for unreported income. The $2,800 might seem small, but the IRS treats all unreported income the same way regardless of amount.

Thank you all for sharing these experiences - this thread has been incredibly valuable! As someone who works in financial education, I see people fall for these expensive tax guru programs all the time, and the pattern is always the same: big promises, generic delivery, and disappointed customers. The reality is that legitimate tax planning is boring, methodical work that requires understanding your specific situation. There are no secret IRS loopholes that only $10K+ programs know about. The tax code is public, and qualified CPAs already know the strategies that apply to your income level and business structure. What I tell people is to focus on the fundamentals first: maximize retirement contributions, properly track business expenses, understand your entity structure, and work with a local CPA who takes time to understand your goals. Once you're consistently earning $750K+ from multiple business income streams, then consider specialized planning. The tech-enabled solutions like taxr.ai that people mentioned here sound promising for getting a second opinion without the massive price tag. The key is finding services that combine technology efficiency with actual human expertise from licensed professionals. Bottom line: if a tax service's marketing focuses more on "secrets the IRS doesn't want you to know" rather than methodical planning and compliance, run the other way. Good tax advice doesn't need flashy marketing because the results speak for themselves.

This whole discussion really highlights why I joined this community - to get real, unfiltered experiences from people who've actually used these services. As someone who's been bombarded with ads for WealthAbility and similar programs, these honest reviews are incredibly valuable. What really stands out to me is how these expensive programs seem to follow the same playbook: high-pressure sales tactics, promises of "secret" strategies, generic advice that doesn't match individual situations, and staff turnover issues. The fact that multiple people had similar disappointing experiences for $9K-$13K is pretty telling. I appreciate the practical alternatives people have shared here - from finding good local CPAs who specialize in your industry, to tech-enabled services like taxr.ai that provide personalized analysis without the massive price tag. The advice about the $750K+ threshold for when premium tax services actually start providing ROI is also really helpful context. For those of us still building our businesses and income streams, it sounds like we're better off mastering the fundamentals first - maximizing retirement contributions, proper expense tracking, understanding entity structures - rather than chasing expensive "advanced" strategies we probably don't need yet. Sometimes the boring, methodical approach really is the best approach. Thanks to everyone for sharing their experiences and potentially saving others from making expensive mistakes!

I've been a small business owner for 6 years and the tax situation REALLY depends on your business structure: Sole Prop / LLC (default): Revenue minus expenses (including employee wages) = your profit. You pay BOTH income tax AND self-employment tax (15.3%) on all profits. S-Corp: You pay yourself a reasonable salary (subject to payroll taxes) PLUS you can take distributions from remaining profits (NOT subject to self-employment tax). C-Corp: The business itself pays corporate tax on profits after all expenses. Then you pay personal income tax on whatever salary the business pays you. Double taxation but some advantages for reinvestment. Your tax advisor can run the numbers based on your specific situation, but generally S-Corps become advantageous once you're making $80K+ in profit.

This is exactly the confusion I had when I started my consulting firm! The good news is that employee wages are definitely deductible business expenses, so you're only taxed on profits AFTER paying your team. With your projected numbers ($280K revenue, $160K payroll), you'd be looking at roughly $120K in taxable profit (minus other business expenses like office rent, equipment, etc.). One thing to consider early: if you're planning to hire employees vs. contractors, there are different tax implications. W-2 employees require you to withhold and pay employment taxes, while 1099 contractors handle their own taxes but have stricter classification rules. Also, with $120K+ in expected profit, the S-Corp election could save you significant money on self-employment taxes. You'd pay yourself a reasonable salary (maybe $60-80K based on consulting industry standards) and take the rest as distributions. The salary gets hit with payroll taxes, but distributions only face income tax. Definitely recommend talking to a tax professional before making the S-Corp election though - there are deadlines and it's hard to undo once you make the choice.