The QBI deduction can definitely be confusing, especially with multiple income sources! One thing that might help is understanding that the phase-out isn't a cliff - it's gradual. Between the lower and upper thresholds, your deduction is calculated using a blend of the standard 20% rule and the more restrictive W-2 wage/property limitation. For your S-corp situation, you're actually in a pretty good position because S-corp shareholder wages DO count toward the W-2 wage limitation test. This means even if you're above the upper threshold, you might still qualify for a significant deduction if your business pays reasonable wages. One strategy some S-corp owners use is optimizing their salary vs. distribution mix. While you need to pay yourself reasonable compensation, having adequate W-2 wages can help preserve your QBI deduction when you're in the phase-out range. Just make sure any salary adjustments still meet the "reasonable compensation" requirements for S-corp shareholders. Have you calculated where your taxable income falls relative to the 2025 thresholds? That would help determine which calculation method applies to your situation.

One aspect of QBI that often trips people up is the "specified service trade or business" (SSTB) rules. If your business falls into categories like consulting, law, accounting, health, or financial services, the QBI deduction phases out completely once you exceed the income thresholds - there's no W-2 wage or property test that can save you. However, many businesses think they're SSTBs when they're actually not. For example, if you're an engineer who owns a manufacturing business, that's typically NOT an SSTB even though engineering services would be. The key is what your business actually does, not your professional background. Also worth noting: if you have multiple businesses and some are SSTBs while others aren't, you calculate QBI separately for each. The non-SSTB businesses can still qualify for QBI even if your SSTB income is completely phased out due to high income. For your S-corp, make sure you're also considering the impact of any rental properties or other passive investments you might have. Rental real estate can qualify for QBI (with some limitations), and this income is calculated separately from your active business QBI, which can sometimes help offset phase-out limitations.

I'm a self-employed consultant who went through this exact process last year, and I want to share some additional insights that might help. One thing I learned is that Jackson Hewitt's approval process for self-employed people can vary significantly between locations - some offices are much more experienced with 1099 contractors than others. Before applying, I'd recommend calling ahead to ask if they have staff who specialize in self-employment tax situations. I made the mistake of going to a location where the preparer seemed unfamiliar with Schedule C deductions, which made the whole process take way longer and almost resulted in a denial. Also, something that really helped my case was bringing a simple profit & loss statement for the current year (even if it's just a basic spreadsheet). They want to see that you understand your business finances, not just that you have income. It shows you're serious about tracking expenses and likely to have legitimate deductions. One final tip - if you've had any major business expenses this year (new equipment, software, vehicle for work), make sure to highlight those early in the conversation. Business deductions can significantly increase your expected refund, which directly impacts how much they'll advance you.

Just wanted to share my recent experience as a self-employed Uber driver who successfully got a Jackson Hewitt holiday advance. I was nervous because my income is all over the place - some weeks great, others pretty slow. What really helped was organizing my driver summary reports from Uber's tax documents section before going in. They show total earnings, expenses, and mileage which made it super clear that I'm legitimately self-employed. I also brought my 2023 Schedule C since rideshare driving involves significant vehicle expense deductions. Got approved for $650 with about $95 in total fees. The process took about 90 minutes, mostly because they had to calculate my vehicle deduction estimates. The preparer mentioned that gig economy workers like Uber/DoorDash drivers are pretty common now, so they're familiar with that type of 1099 income. One heads up - they asked detailed questions about whether I track my business miles properly since that's usually the biggest deduction for drivers. Having a mileage log app helped a lot in showing I'm serious about proper record keeping.

22 A quick tip that helped me: the IRS has Form 1040-ES worksheet that helps calculate your estimated quarterly payments. It's not the most user-friendly thing, but it gives you a basic idea of what you should be paying.

As someone who just went through this exact situation last year, I can confirm that quarterly estimated taxes are indeed required for most single-member LLCs, but there are exceptions that might explain why you haven't been penalized. The general rule is that if you expect to owe $1,000 or more in taxes (including self-employment tax), you need to make quarterly payments. However, you can avoid penalties if you meet the "safe harbor" provisions - paying at least 100% of last year's total tax liability (or 110% if your prior year AGI exceeded $150,000). What likely happened in your case is that when you paid your full tax bill annually, you were inadvertently meeting this safe harbor rule. But as your photography business grows and your income increases, you might find yourself outside this protection zone. I'd strongly recommend sitting down with your tax professional to review your specific numbers. They can show you exactly where you stand and whether you need to start making quarterly payments going forward. Better to be proactive than get surprised with penalties later!

If you're tracking multiple depreciated assets for a business, I'd strongly recommend starting a spreadsheet to track everything going forward. Include purchase date, cost, business use %, method, recovery period, Section 179 amount (if any), and depreciation taken each year. I learned this the hard way and now updating my taxes is SO much easier. You can even calculate future depreciation in advance.

This is such a common headache! I went through this exact situation last year. One thing that helped me was checking if TurboTax saved any "depreciation worksheets" or "asset detail reports" as separate PDFs when you originally filed. Sometimes these get saved as additional documents beyond just the main tax return. Also, if you're missing detailed records, you can reconstruct your depreciation history by looking at your business expense receipts and calculating what you should have claimed each year. For office equipment from 2022, if you used Section 179 expensing, you might have deducted the full amount in year one. If you used regular MACRS, it would be 5-year property (20%, 32%, 19.2%, 11.52%, 11.52%, 5.76% over 6 years due to half-year convention). For the vehicle from 2023, that gets trickier with the luxury auto limits and business use percentage. Keep detailed mileage logs going forward - the IRS loves those for vehicle depreciation audits!

Other countries like Estonia and Denmark have much simpler tax systems and they work fine. Some even pre-fill your tax forms with known information so you just need to verify it's correct. The complexity in the US system isn't a necessity - it's a choice we keep making.

The scale argument is interesting but I'm not sure it holds up. California alone has almost 40 million people and processes state taxes just fine. The complexity isn't really about population size - it's about policy choices. Countries like Germany (83 million people) and the UK (67 million) have much simpler tax systems than ours. Even if you scaled up Denmark's approach, the fundamental principle of pre-filled returns based on third-party reporting would work the same whether you have 6 million taxpayers or 160 million. The real barrier is that we've chosen to use our tax code as a delivery mechanism for social policy instead of keeping it focused on revenue collection. Every special interest group wants their preferred activity to get a tax break rather than direct government support, which creates this maze of credits and deductions. If we moved all that stuff out of the tax code and into direct spending programs, we could absolutely have return-free filing for the majority of Americans who just have W-2 income and basic investments.