I've been trading for about 6 years and went through the same analysis paralysis you describe. Here's what I learned the hard way: The S-Corp route can work, but you need to factor in the additional costs beyond just filing fees. You'll need quarterly payroll processing, workers' comp insurance (even as the sole employee), and potentially state franchise taxes. In my case, these costs ate into the self-employment tax savings significantly. One thing that helped me was tracking my trading patterns for a full year before making any MTM decisions. I kept a simple log of when I had open positions at year-end vs when I closed everything out. Turns out I naturally close most positions before December anyway, which made MTM less beneficial since I wasn't carrying many paper gains/losses into the new year. For wash sales, I'd recommend being extra careful with December trading. Even though the loss isn't permanently gone, having it deferred to the next tax year can mess up your quarterly estimated payments if you're not expecting it. I got hit with underpayment penalties one year because of this timing issue. The broker tracking issue others mentioned is real - I use three different platforms and have to manually reconcile everything. It's tedious but necessary if you want accurate reporting.

Great discussion everyone! As someone who's been through similar analysis, I want to add a perspective on the psychological aspect of these tax strategies that often gets overlooked. I spent two years obsessing over MTM election and S-Corp structures, running endless scenarios and calculations. What I realized is that the mental bandwidth consumed by complex tax strategies was actually hurting my trading performance. The cognitive load of tracking wash sales across multiple accounts, worrying about year-end positions for MTM, and managing corporate paperwork was distracting me from what actually generates profits - good trading decisions. Sometimes the "suboptimal" tax approach that's simple and automated is actually optimal when you factor in the time and mental energy costs. My trading improved significantly when I simplified to a single broker with good tax reporting and accepted that I might pay a bit more in taxes but gained back focus and trading clarity. That said, for high-volume traders with substantial profits, the complexity can definitely be worth it. The key is being honest about whether the tax savings justify the operational overhead for your specific situation and trading style.

This has been such an enlightening thread! As someone who just graduated college and started my first full-time job, I had no idea how complex the true tax burden really is. I was only thinking about what gets taken out of my paycheck for federal and state income taxes, but reading about all these hidden taxes - sales tax, gas tax, property tax through rent, utility taxes, embedded corporate taxes - is honestly overwhelming. The 25-35% total burden range that keeps coming up means I'm potentially paying way more than I realized. As a new grad with student loans, every percentage point matters for my budget and long-term financial planning. I'm definitely going to try the tracking methods people have shared here, especially starting with categorizing my bank transactions to estimate sales taxes. The geographic arbitrage discussion is particularly relevant since I'm flexible about where I live early in my career - it sounds like the total tax picture should be a major factor in deciding between job offers in different states. What really strikes me is how this isn't taught anywhere in school. We learn about gross vs net pay, but nothing about the dozens of other ways taxes impact our actual purchasing power. This thread should honestly be required reading for anyone entering the workforce! Thanks to everyone for sharing their research and methods - this is exactly the kind of real-world financial education I wish I'd had before now.

This has been such a comprehensive and eye-opening discussion! As someone who's been casually wondering about my "real" tax burden for a while but never took the time to dig deep, this thread has given me both the motivation and the practical tools to actually figure it out. What really resonates with me is how fragmented and hidden so much of our tax burden is. I always knew about income taxes and sales tax, but I had never considered things like property taxes embedded in rent, utility taxes, or the corporate taxes that get passed through to us as consumers. The fact that we might be paying 25-35% total when everything is included is genuinely shocking. The geographic arbitrage discussion has been particularly valuable. I'm in a high-tax state and have been considering relocating, but I was only looking at income tax differences. Now I realize I need to factor in sales tax rates, property tax levels, utility taxes, vehicle registration fees, and all the other location-specific costs that add up over time. I'm going to start with the bank statement analysis approach that several people mentioned - categorizing transactions and applying local tax rates to estimate my actual sales tax burden. Even if it's not perfect, it has to be better than my current complete ignorance about where my money actually goes. Thanks to everyone who shared their research methods and real-world experiences. This is exactly the kind of practical financial education that should be taught in schools but isn't. Time to start taking control of understanding my actual financial picture!

I went through this same worry when I started my current job! The privacy concerns are totally understandable, but the good news is that the 1095-C system is actually pretty privacy-friendly for employees who waive coverage. Your employer will only see basic checkbox information: that they offered you qualifying health insurance and that you declined it. They won't see that you're on your spouse's government plan, what tier of coverage you have, or any other details about your alternative insurance. The form is really just about documenting that your employer met their ACA requirements to offer coverage. The HR meeting probably mentioned needing your information because they still have to report that they made the offer and you declined - but that's literally all they report about your situation. Think of it like a simple yes/no checkbox rather than a detailed health insurance questionnaire. If they're asking for additional documentation beyond just acknowledging that you're waiving coverage, you can always ask what specific company policy requires it and how that information will be used and stored. But for the 1095-C itself, your personal health details stay private.

I completely understand your privacy concerns - I had the exact same worries when I waived coverage at my job last year! The key thing to remember is that the 1095-C is really just an administrative form to show the IRS that your employer offered ACA-compliant coverage and whether you accepted it or not. Your employer literally cannot see any details about your spouse's government health plan through this process. They don't know what type of coverage you have, what it costs, what benefits are included, or even that it's specifically through your spouse's job. The form just documents two basic facts: "We offered this employee health insurance" and "Employee declined our offer." If your HR department is asking for additional information beyond just acknowledging that you're waiving their coverage, that's likely their internal policy rather than a legal requirement for 1095-C reporting. You're well within your rights to ask them to clarify what specific company policy requires any additional documentation and how that information will be stored and used. The bottom line is that your personal healthcare situation stays private - your employer just needs to document that they fulfilled their obligation to offer you coverage. Hope this helps ease some of your concerns!

Does your parenting plan specifically state who claims which child each year? Or does it just say you "split" them? This could make a difference.

I understand your frustration completely. The disconnect between family court orders and actual IRS rules creates these impossible situations for parents. Based on what you've described, you likely had your son for significantly more than 183 nights this year (the IRS threshold for custodial parent status), especially with that 4-month absence. Under IRS rules, the custodial parent has the primary right to claim the child as a dependent. However, you're caught between two systems: the IRS rules that would likely support your claim, and a court order that could hold you in contempt if violated. My suggestion would be to document everything - every night each child stayed with you versus your ex, all expenses you covered during the absence period, any communication about the missed parenting time. Then consider going back to court specifically requesting a one-year modification to the tax arrangement based on the actual custody time this year, not a permanent change to the parenting plan. You might also want to speak directly with an IRS agent about your specific situation. They can clarify whether your actual custody time this year would qualify you as the custodial parent under their rules, which could strengthen your position if you need to return to family court.

Don't fret too much about this. The real question is whether you're entitled to the larger refund that TurboTax calculated. If yes, then definitely file an amended return to get that money. If the difference is small (like under $100), honestly it might not be worth the hassle of amending.

I went through something very similar a few years ago! The stress is real, but you're going to be okay. Here's what actually happened in my case: Credit Karma filed first and was accepted, TurboTax got rejected automatically about 10 days later with a duplicate filing notice. The key thing is that you NEED to file that amended return since your Credit Karma filing was missing the Medicaid waiver income. This isn't just about getting a bigger refund - it's about reporting your income correctly to the IRS. I made the mistake of thinking "close enough" initially and almost got hit with an audit notice later. For the amendment process, I'd recommend using the same software that gave you the more accurate return (TurboTax in your case) to prepare Form 1040-X. They usually have good step-by-step guidance for amendments. Just be very clear in the explanation section that you accidentally filed twice and are correcting the income reporting. One tip: keep copies of both returns and all your documentation. If the IRS has any questions down the line, having everything organized will save you major headaches. The whole process took about 4 months for me to get the amended refund, but it was worth doing it right.