I'm wondering if anyone knows what happens if only part of your loan is forgiven? I took out a $35,000 loan for my business, but only $24,000 was forgiven because I didn't meet all the requirements. Do I only report the forgiven portion as income?

As a small business owner who went through this exact situation, I can share some practical advice. First, the key thing to understand is that forgivable loans are treated differently depending on the specific program. For example, PPP loans that were forgiven are NOT taxable income at the federal level due to specific legislation, but other forgivable loan programs might be. Here's what I recommend for documentation: Keep everything in a dedicated folder - loan application, approval letter, all bank statements showing how you used the funds, payroll records if applicable, rent/utility receipts, and most importantly, your forgiveness application and approval documentation. I also created a simple spreadsheet tracking every dollar of how the loan funds were used. One thing that caught me off guard - even if the forgiven loan isn't taxable income, you might not be able to deduct the business expenses you paid with those funds. This is called "double dipping" and the IRS doesn't allow it for some programs. Make sure you understand this rule for your specific loan type. Also, don't wait until tax season to figure this out. Contact your lender now to understand exactly what tax documents they'll send you and when. Some send 1099-C forms, others don't depending on the program. Getting clarity early will save you a lot of stress later!

Just want to add one more important point that I learned the hard way - make sure to double-check all the numbers on your transcript against any pay stubs you might have saved throughout the year. Sometimes there can be small discrepancies if your employer made corrections or adjustments that didn't get properly reflected. I found a $200 difference in my federal withholding when I compared my transcript to my pay stub records, and it turned out my employer had made an error in their filing. I had to call the IRS to get it sorted out, but having those pay stubs as backup really helped prove the discrepancy. It's always better to catch these things before you file rather than having to amend your return later! Also, if you're self-employed or had any side income in addition to your W-2 job, make sure you're not double-counting anything. The transcript only shows what that specific employer reported, so you'll still need to handle any 1099s or other income sources separately.

I went through something very similar last year and can confirm that using the wage transcript is totally legitimate! One thing that really helped me was organizing all the transcript information in a simple spreadsheet before entering it into my tax software - it made it much easier to double-check everything and catch any potential errors. Just a heads up though - if you had any benefits like health insurance premiums or retirement contributions that were deducted from your pay, make sure those are properly reflected on the transcript. Sometimes the codes can be confusing, but those deductions can affect your taxable income calculations. Also, since your employer was unresponsive about sending the W-2, you might want to consider whether they properly handled other year-end requirements. If you had a 401k or other retirement account with them, make sure you receive those statements separately since they won't be on your wage transcript.

Quick question - is ur aircraft a single engine or multi? I'm looking at buying a Piper Seminole to put on leaseback with a flight school and wondering what kind of depreciation schedule to expect. Also what state are u in? I heard some states have personal property tax on aircraft that can really add up!

Just wanted to chime in as someone who went through this exact same situation last year with my Cessna 172 on leaseback. A few quick tips since you're down to the wire: 1. Definitely use business code 532400 as mentioned earlier - that's exactly what I used and it worked perfectly. 2. For your depreciation, since the aircraft was purchased last year, make sure you're claiming the right bonus depreciation rate. If it was placed in service in 2023, you can take 80% bonus depreciation which is a huge tax advantage. 3. One thing I learned the hard way - make sure you're properly allocating expenses between your maintenance work for the club vs. your aircraft ownership. The IRS will want to see clear separation between these two income streams on your Schedule C. 4. Don't forget about Form 4562 for depreciation - it's required when you have assets like aircraft. Since you mentioned having good documentation of your 500+ business hours, that should help establish this as a legitimate business rather than a hobby. Just make sure you have receipts for all your deductible expenses ready in case of questions later. Good luck with the filing! Even if it's not perfect, getting something reasonable submitted and then amending later with a CPA is a solid plan.

One thing nobody's mentioned - even if you're taking the standard deduction now, it might be worth tracking large purchases like cars just in case your situation changes later in the year. For example, if you have unexpected medical expenses or make large charitable donations that push you over the threshold for itemizing, having that car sales tax information ready could be valuable. The tax software asks everyone because it doesn't know your full situation until all information is entered.

I just want to add that H&R Block's software is just gathering ALL possible information that could affect ANY taxpayer. They don't know your specific situation until you finish everything. Most ppl take the standard deduction ($13,850 single, $27,700 married) but some with lots of mortgage interest, medical expenses, or charity might benefit from itemizing. That's why they ask about the car - it's just covering all bases.

You might want to look into filing Form 8082 (Notice of Inconsistent Treatment) with your return. This lets the IRS know you're reporting something differently than how it was reported to you. Since the 1099 has both names but you're only reporting part of the income, this form can help explain the discrepancy and potentially avoid automatic notices.

This is a really complex situation that requires careful handling. Based on what you've described, I'd strongly recommend getting professional help from a tax attorney or CPA who specializes in divorce situations, especially since you're dealing with multiple years of unfiled returns. Here's my understanding: Since your name appears on the 1099, you likely have some obligation to report income, even though only your husband's SSN is listed. The IRS could potentially come after you later if they determine you received unreported income. However, the exact amount you should report depends on your actual involvement and benefit from the business. A few key points to consider: - Document everything about your role in the business (emails, texts, bank records showing deposits/expenses) - Determine what percentage of the business operations and income you were actually responsible for - Consider whether you want to file amended returns for those past years or just handle going forward properly Given that you're in divorce proceedings and dealing with $28k annually, the cost of professional tax advice will likely be much less than potential penalties or problems down the road. Don't try to navigate this alone - the stakes are too high and the rules too complex.