As a fellow freelancer who went through this exact struggle, I can't recommend enough that you set up quarterly estimated tax payments if you haven't already - it makes SEP IRA planning so much easier! When you're paying estimated taxes quarterly, you get a much clearer picture of your actual net self-employment earnings throughout the year. I use a simple tracking spreadsheet where I log my income and expenses monthly, then calculate my running SEP IRA contribution limit. This helps me make smaller contributions throughout the year instead of scrambling at tax time. The key insight that helped me was realizing that your SEP IRA contribution is essentially an additional business deduction that reduces your taxable income. One thing to watch out for with variable income - don't max out your contributions early in the year based on a good quarter, because if your income drops later you might exceed the limits. I learned this the hard way and had to deal with excess contribution penalties. Better to contribute conservatively throughout the year and make a final catch-up contribution after you know your actual annual numbers.

I've been dealing with this same issue for years as a self-employed consultant! One approach that's worked really well for me is using TurboTax's self-employed version - not just for filing taxes, but their mid-year planning tools are fantastic for SEP IRA calculations. The key thing I learned is to be conservative with your projections when income varies month to month. I typically calculate my SEP contribution limit based on 80-90% of what I think my annual income will be, then make a final "true-up" contribution in the following tax year once I know my exact numbers. Also, don't forget that if you have any employees (even part-time), you'll need to contribute the same percentage for them as you do for yourself - this caught me off guard my first year. The SEP IRA rules require equal treatment for all eligible employees. For tracking throughout the year, I just keep a simple spreadsheet with monthly income/expenses and recalculate my projected contribution limit each quarter. It's not perfect but keeps me in the ballpark without overthinking it.

2 Has anyone used H&R Block for S-corp returns? They quoted me $350 which is cheaper than both options the original poster mentioned.

I can help clarify the extension process for S-corps since someone asked about it. You can file Form 7004 to get an automatic 6-month extension, which pushes the deadline from March 15th to September 15th. However, this is only an extension to FILE, not to pay any taxes owed. The key thing with S-corps is that even if you had losses like the original poster, you still need to file the return by March 15th (or September 15th with extension) because the K-1s that flow to your personal return are needed for your April 15th personal filing deadline. Also regarding H&R Block - I've seen mixed results with their S-corp preparation. Their seasonal preparers often lack the specialized S-corp knowledge that dedicated business tax professionals have. For a simple first-year return with losses, they might be fine, but make sure whoever prepares it understands S-corp basis rules and proper documentation requirements for future years.

As a newcomer to this community who just received my 2024 W2 with XXX-XX-4758 format, I can't thank everyone enough for this incredibly comprehensive discussion! I was genuinely panicked when I opened my W2 this afternoon and saw the masked SSN - I actually called my mom thinking there might be identity theft involved before I thought to search online. Reading through all these experiences has been such a relief! My employer uses UKG (formerly Ultimate Software) for payroll, and this is apparently their first year implementing the SSN masking feature. It's really reassuring to see this pattern across so many different payroll systems - it clearly shows this is a legitimate industry-wide security improvement rather than isolated incidents. What I find most helpful is understanding that this change actually protects us in situations where W2s might be lost, stolen, or accidentally seen by others. As someone who's had mail stolen from my apartment complex before, I actually appreciate that my employer is taking these extra security steps. The fact that the IRS actively encourages this practice makes it even more reassuring. The professional confirmation from the tax preparer earlier in this thread was particularly valuable - knowing that the IRS systems will handle all the matching automatically using the unmasked copies they receive directly from employers means I can file with complete confidence. Thank you to this amazing community for turning what started as a moment of panic into a great learning experience about improved tax document security practices!

As a newcomer to this community who just received my 2024 W2 with XXX-XX-3829 format, I want to add my voice to this incredibly helpful discussion! I was initially quite alarmed when I saw the masked SSN this morning - I've been filing my own taxes for about 8 years and had never encountered this before. My employer uses Sage Payroll, and this is their first year implementing SSN masking. After reading through everyone's experiences here, I'm now completely reassured that this is a legitimate and actually beneficial security practice. It's amazing to see how many different payroll systems have adopted this change - the list keeps growing with each person who shares their experience! What really resonates with me is how this thread has helped shift my perspective from concern to appreciation. Instead of worrying about whether my W2 is valid, I now understand that my employer is taking proactive steps to protect my personal information. Given how much identity theft happens these days, having that extra layer of protection on documents that get mailed out makes perfect sense. The confirmation from the tax preparer earlier in this discussion was particularly reassuring - knowing that the IRS not only accepts this format but actually encourages it really puts any filing concerns to rest. It's clear that the masked format only affects the employee copy while all the official processing copies retain the complete SSN for proper matching. Thank you to everyone who has shared their experiences and knowledge in this thread - this community is such a valuable resource for understanding these important changes in tax document practices!

I had a similar transcript error last year and it turned out my return was stuck in an automated review queue. The identity theft hotline mention doesn't always mean fraud - sometimes it's just the system's way of routing you to the right department when there are verification issues. Definitely call that number, but be prepared for long hold times. In my case, they were able to manually push my return through after verifying some basic info. Hope this helps and you get your refund soon!

I went through something very similar last year! That "unable to process" message with the identity theft hotline reference had me panicking too, but it turned out to be much less scary than it sounds. In my case, my return had been flagged for manual review because of some inconsistencies in my W-2 reporting (my employer had made a small error). The system couldn't generate my transcript because there was a hold on my account, not because of actual identity theft. When I called that 800-908-4490 number, they were able to see exactly what was going on and walked me through the next steps. The hold times were brutal (like 2+ hours), but the rep was actually helpful once I got through. They had me fax some additional documentation and my refund was released about 3 weeks later. Definitely call that number - the uncertainty is worse than knowing what's actually happening!

I'm dealing with a similar situation and wanted to share what I learned from my tax preparer. The key thing to remember is that RSUs and SSARs are handled differently for tax purposes, but both should already be included in your Box 1 wages. For your specific situation with the $7,500 SSAR sale, you absolutely need to find the original exercise documentation to determine your cost basis. This is critical because without it, you might end up paying taxes twice - once when the SSARs were exercised (already included in a previous year's W2) and again when you report the sale. A few places to check for this information: 1. Your company's equity portal (Fidelity NetBenefits, E*TRADE, etc.) 2. Email confirmations from when you exercised the SSARs 3. Previous year tax documents if you exercised them recently 4. Contact your HR department - they should have records of all equity transactions Don't guess at the cost basis or leave it blank on Form 8949. The IRS will assume zero basis if you don't provide it, which could result in paying tax on the full $7,500 sale amount even though you already paid income tax when the SSARs were exercised.

I went through this exact same confusion with RSUs and SSARs last year, so I totally understand the frustration! Here's what I learned that might help: The Box 14 amounts on your W2 are indeed already included in your Box 1 income - they're just there for informational purposes to help you understand what types of compensation you received. So you don't need to report the $4,050 RSU or $19,250 SSAR amounts separately as additional income. For the $7,500 SSAR sale, you absolutely need to find your original exercise documentation to determine the cost basis. Without it, you'll likely overpay taxes since the IRS will assume zero basis if you don't provide proper documentation. A few tips from my experience: - Check your company's stock plan website (like Fidelity NetBenefits or E*TRADE) - they usually have a "Tax Documents" or "Cost Basis" section - Search your email for confirmations from when you exercised the SSARs - Contact your company's stock plan administrator directly - they're required to maintain these records The key thing to remember is that you already paid income tax on these SSARs when they were exercised (they would have appeared in a previous year's W2), so you only owe capital gains tax on any appreciation from the exercise date to the sale date. Don't leave the cost basis blank on Form 8949 - it could cost you thousands in unnecessary taxes!