Don't forget that there's also Form 8027 (Employer's Annual Information Return of Tip Income) if your business is a "large food or beverage establishment" - basically if you have more than 10 employees. That form has specific tip reporting requirements beyond just the regular payroll forms.

One thing to keep in mind is the timing of when you actually pay out the tips to employees. If you're holding onto credit card tips for a few days before including them in payroll, you need to be careful about the IRS requirement that tips be paid out by the next regular payday after the tip was received. The IRS considers tips to be wages when they're received by the employee, not when you collect them through your credit card system. So if you batch tips weekly with payroll, that's usually fine, but holding them for longer periods could create compliance issues. Also, make sure you're keeping detailed records of daily tip amounts by employee - the IRS may want to see this documentation if they ever audit your payroll tax returns. A simple daily tip log showing date, employee, and tip amount received can save you a lot of headaches down the road.

I work in a university billing office (not financial aid) and can tell you this happens all the time! When a student withdraws mid-year, there are often adjustments that happen in the following calendar year. Some common reasons for a Box 4 amount with blank boxes elsewhere: - Housing deposit applied retroactively to tuition - Scholarship or grant adjusted after the calendar year ended - Fee refunds processed in the new year - Dropped class adjustments that happened after December 31 - Corrections to prior billing errors The school is required to report these adjustments on a 1098-T for the year they were processed, even if the student is no longer enrolled. But since you didn't claim education credits for 2022, you probably don't need to worry about it from a tax perspective!

This is a great question that many parents face when their kids withdraw from college! As someone who went through a similar situation, I can share what I learned. The Box 4 amount on a 1098-T represents "adjustments made for a prior year" - essentially corrections or changes the school made to your son's 2022 account that they processed in 2023. This could be anything from a late scholarship payment, a housing deposit credit, or even a billing correction. The key thing to understand is that since you didn't claim any education credits on your 2022 taxes, this adjustment likely won't affect your tax situation at all. The IRS requires schools to report these adjustments even when the student is no longer enrolled, which is why you're seeing a 2023 form. I'd suggest checking your son's student account portal for any transactions from early 2023 that reference his 2022 semester. You might also want to look at his bank statements to see if there were any small refunds he might not have mentioned. Many students don't realize these types of adjustments are happening behind the scenes. If you really want peace of mind, you could always consult with a tax professional, but based on what you've described, it sounds like this is just administrative bookkeeping that won't impact your taxes.

Has anyone used both ProSeries and Drake tax software for their independent practice? I'm trying to decide which one to go with when I leave my firm.

Your pricing strategy sounds reasonable for starting out! I made the transition from Block to my own practice three years ago, and one thing I learned is to be confident about your rates from day one. $125-130/hour is actually quite fair for the Chicago market, especially with your Jackson Hewitt experience. A few practical tips: Consider offering a free 15-minute initial call to discuss their needs - this helps you qualify clients and gives them confidence in your expertise. For that first consultation, prepare a structured agenda so you maximize the value you provide in that hour. I also recommend getting everything in writing with a simple consultation agreement that outlines what you'll cover. Don't forget to factor in your prep time when pricing - reviewing their documents beforehand often takes 15-30 minutes that you should account for. And definitely get comfortable talking about money upfront. Clients respect professionals who are clear about their fees and payment terms. Good luck with your new venture!

Has anyone tried using TurboTax or other tax software for filing multiple years of back taxes? I'm in a similar situation and wondering if it's worth paying for.

Just wanted to add another perspective here - if you're really overwhelmed by the whole process, consider reaching out to a local VITA (Volunteer Income Tax Assistance) program. They provide free tax help for people who generally make $64,000 or less, and many volunteers have experience with back tax situations. I used VITA when I was catching up on 4 years of unfiled returns and the volunteer was incredibly patient and knowledgeable. They helped me understand which deductions I could claim and even caught some errors I would have made filing on my own. You can find VITA locations on the IRS website - just search "VITA site locator." The best part is it's completely free, and they can often help you file electronically even for prior years, which gets your refunds processed faster than mailing paper returns.

Yes! The 846 code with a date means the IRS has officially released your refund for that date - that's the best confirmation you can get! With Chime, you should definitely see it before the 28th, possibly as early as tomorrow. I had the exact same anxiety my first year switching from TurboTax to a different service, but FreeTaxUSA and similar platforms work just as reliably. The main difference with Chime is they don't hold your money for processing days like traditional banks do. Once they receive the ACH transfer from the IRS, it hits your account immediately. Keep checking - you're likely going to wake up to a nice surprise in your account soon! 🤞

Great success story! I'm also with Chime and filed around the same time as you. One thing I'd add for anyone reading this - make sure to screenshot your transcript when you see that 846 code with your DDD. I learned this tip from a friend who had issues last year where the bank claimed they never received the deposit, but having that transcript screenshot was crucial proof when sorting it out. Also, for those worried about the timing, I've noticed Chime typically releases funds between 12-3 PM on weekdays when they get the ACH notification, so don't panic if you don't see it first thing in the morning. The waiting is definitely the hardest part, but posts like this really help keep spirits up! 💪