Has anyone used QuickBooks for tracking these home office reimbursements in an S-corp? I'm trying to figure out the best way to handle the accounting part of this.

This is exactly the situation I found myself in when I switched from LLC to S-corp last year! One thing I learned the hard way is that you absolutely need to establish that Accountable Plan in writing BEFORE you start making reimbursements - don't just start paying yourself and figure it out later. I made the mistake of doing informal reimbursements for the first few months, and my accountant had to help me clean it up retroactively. Now I have a formal board resolution (even though I'm the only shareholder) that establishes the plan and specifies what expenses are covered, documentation requirements, and timing for submissions. For the home office calculation, I measure my dedicated office space monthly and keep a simple spreadsheet tracking utilities, mortgage interest, insurance, and maintenance costs. Then I apply my business percentage (about 12% in my case) and reimburse myself monthly. It's way more paperwork than the old Schedule C simplified method, but the tax benefits of the S-corp structure make it worthwhile. The key is treating yourself like any other employee - formal documentation, regular processes, and keeping everything at arm's length even though you own the company.

I've verified my identity with the IRS for three years in a row now, despite them saying it should be a one-time thing. Each time they hold my refund until I jump through all their hoops again. The system is completely broken. I've literally sent them the same documents year after year. my advice: just expect to verify every year and be pleasantly surprised if you don't have to.

Based on my experience and what I've seen from others, it really depends on several factors. Generally, ID.me verification should carry over year to year - that was the whole point of implementing it. However, certain triggers can require you to verify again: - Major changes in income or filing status - Moving to a new address - Adding new dependents or credits you didn't claim before - The IRS fraud detection system flagging something unusual Since your tax situation is similar to last year, you'll probably be fine. But honestly, the IRS system can be unpredictable. Some people go years without having to verify again, while others get flagged annually for seemingly no reason. My suggestion: go ahead and file. If they need verification, you'll get a notice or see it when you check "Where's My Refund." No point in worrying about it beforehand since there's nothing you can do to prevent it if their system decides to flag you.

Protip: Always keep a folder with ALL your tax docs, even the ones you think you don't need. You never know when the IRS is gonna come knocking! 📁💼

I went through this exact same situation a few months ago! The CP063 can be really stressful, but here's what worked for me: First, don't panic - you have time to respond. Second, gather ALL your income documents (W-2s, 1099s, bank statements, etc.) and compare them to what you reported. In my case, I had missed a small 1099-MISC from some freelance work. Once I found the discrepancy, I filed an amended return (1040X) and included the missing income. The whole process took about 6 weeks to resolve. If you can't find any missing income and think the IRS is wrong, you can dispute it, but make sure you have solid documentation. Good luck! 🤞

This confused me too last year! Here's what I learned: Standard deduction has NOTHING to do with MAGI. MAGI calculations happen BEFORE any standard or itemized deductions are applied. The sequence is: 1. Calculate total income 2. Subtract adjustments (IRA contributions, student loan interest, etc.) = AGI 3. Add back certain adjustments (like IRA contributions) = MAGI 4. THEN later you subtract standard/itemized deductions to get taxable income So no, MAGI is definitely not AGI plus all deductions. It's more like AGI plus SELECTED adjustments added back in.

Just wanted to share my experience as someone who went through this exact confusion last year! The key thing that helped me was understanding that MAGI isn't a single calculation - it changes depending on what you're using it for. For your specific situation with the health insurance marketplace, your MAGI will be your AGI ($42,300 after the IRA deduction) PLUS your traditional IRA contribution ($5,200) = $47,500. This is exactly what your tax software is showing you. The reason this matters for your premium tax credit eligibility is that the government wants to see your "true" income capacity before retirement savings, since theoretically you could choose not to contribute to an IRA and have that money available for health insurance premiums instead. At $47,500 income, you should definitely qualify for some level of premium tax credit depending on your location and the plans available. The credit phases out completely around $60,240 for a single person in 2024, so you're well within the eligibility range. Make sure to use the healthcare.gov calculator with your MAGI figure to get an accurate estimate of your subsidy!

Just to add a practical perspective from someone who's been through this - I've been receiving money from my grandparents in Germany for years (around $20-30k annually) and have never had any tax issues. I invest about half of it in index funds. The only complication I ever ran into was when I crossed the $10k threshold in a single transfer, which triggered a currency transaction report by the bank. That's not a tax form - it's just an automatic report banks file for large transfers. Didn't affect me at all, but it did freak me out when the bank called to ask questions!

As someone who works in international tax compliance, I want to emphasize a few key points that might help clarify your situation: 1. **Gifts vs. Income**: The money your parents send you is considered a gift, not taxable income, regardless of whether you use it for living expenses or investments. The IRS cares about the nature of the transfer, not how you spend it afterward. 2. **Investment Gains**: While the gift itself isn't taxable, any profits you make from investing that money will be subject to capital gains tax when you sell. Keep good records of your cost basis for tax purposes. 3. **Documentation**: Even though you're under the $100k reporting threshold, I'd recommend keeping records of the transfers (bank statements, wire transfer receipts) and perhaps a simple letter from your parents stating these are gifts for educational/living expenses. This creates a clear paper trail if questions ever arise. 4. **State Considerations**: Don't forget to check if your state has any additional reporting requirements for foreign gifts, though most follow federal guidelines. Your $24k annual amount is well below any reporting thresholds, so you should be in the clear from a compliance standpoint. The key is maintaining good documentation and understanding that investment gains from gifted money are still taxable as investment income.