Just to add a practical perspective - my husband and I run a 2-member LLC consulting business. We started taking draws only (partnership taxation) for the first two years when profits were lower. In year 3, we switched to S-Corp status once we crossed $120k in annual profit. Now we each take a $45k salary and the rest as distributions. That saves us around $4,600 in SE taxes annually, which more than covers the extra $1,800 we pay for payroll processing and additional tax preparation complexity. The other benefit is that having W-2 income makes it easier to qualify for mortgages and other loans compared to just having Schedule K-1 income, which lenders sometimes view skeptically.

I've been following this thread and wanted to share some additional perspective as someone who's helped several family members navigate LLC taxation decisions. One thing I'd emphasize for your daughter is timing - if they decide to elect S-Corp status, they need to file Form 2553 within 75 days of forming the LLC (or by March 15th of the tax year they want it to be effective). Missing this deadline means waiting until the next tax year. Also, since they're college students, consider their other income sources. If either has significant scholarship income, work-study jobs, or parents claiming them as dependents, this could affect their overall tax situation and influence whether the S-Corp election makes sense. For a brand new consulting business run by 19-year-olds, I'd honestly recommend starting simple with partnership taxation and draws. They can always elect S-Corp status later once they have a better handle on their profit levels and business operations. The administrative burden of payroll processing might be more than they want to deal with while also focusing on growing their business and managing college coursework. The most important thing right now is that they're setting aside money for quarterly estimated taxes and keeping good records of all business expenses.

Cycle 05 here too! 🙋‍♀️ The struggle is SO real with the constant checking. I was literally setting alarms to check at 3am EST thinking maybe I'd catch the update happening live 🤡 What helped me was learning that 05 cycles process Thursday nights and transcripts update early Friday mornings (usually between 12am-6am EST). WMR typically doesn't update until Saturday morning though, so don't rely on that for real-time info. Honestly, save yourself the mental torture and just check Friday mornings. I know it's easier said than done when you're desperate for that refund, but checking 50 times a day won't make it process any faster! The IRS moves at their own pace regardless of how often we refresh 😩 Hang in there - we're all in this waiting game together! 💪

Cycle 05 filer checking in! 🙋‍♀️ I totally get the obsessive checking - I've been there too and it's exhausting. From my experience, cycle 05 transcripts typically update Thursday nights/early Friday mornings (around 12am-6am EST). That's when the IRS does their weekly batch processing for our cycle. Here's what I learned the hard way: checking multiple times a day literally does nothing except stress you out more. The updates happen on a schedule, not based on how often we refresh lol. I'd recommend checking Friday mornings only and giving yourself a break the rest of the week. Also, if you're seeing no movement at all, it might be worth calling the IRS to make sure there aren't any holds or missing documents. Sometimes we're waiting for nothing when there's actually an issue that needs to be resolved first. Stay strong - the waiting game is brutal but we'll get through it! 💪

I'm going through something very similar right now! Just got a 2017 K-1 in the mail from an old business partnership that I honestly forgot I was even part of. The whole situation is giving me major anxiety about whether I messed up my taxes years ago. Reading through this thread has been incredibly helpful - it's reassuring to know that delayed K-1s are apparently pretty common when partnerships are dissolving or going through complex wind-down processes. The advice from the tax professionals here about the statute of limitations and focusing on whether the dollar amounts are actually material makes a lot of sense. My K-1 has some entries in Box 13 with different codes that I have no idea how to interpret. Based on what everyone's saying here, it sounds like unless we're talking about significant amounts, it's probably not worth the stress of trying to figure out amendments for returns from so many years ago. Has anyone here dealt with multiple late K-1s from the same partnership? I'm wondering if I should expect more of these to show up in my mailbox as they work through their final paperwork. This whole experience is making me think twice about any future partnership investments!

I'm dealing with almost the exact same situation! Got a 2018 K-1 in the mail last week from a partnership I invested in years ago - completely forgot about it until this form showed up. Like you, I'm scrambling to get my 2024 taxes done and this unexpected form has me stressed. After reading through all the helpful responses here, it seems like late K-1s are way more common than I thought, especially from partnerships that are winding down. The advice from the tax professionals about the statute of limitations being past for 2018 returns is really reassuring. My Box 13 also has some codes I don't understand, but based on what everyone's saying about focusing on the dollar amounts rather than panicking, I'm feeling much better about the whole situation. If the amounts are small and we're well past the amendment period, it sounds like we're probably overthinking this. Thanks to everyone who shared their experiences and expertise - this thread has been a lifesaver for understanding how to handle these surprise partnership forms! Sometimes it's just nice to know you're not alone in dealing with confusing tax situations like this.

Why don't you just claim exempt? I did that when I was making $16/hr and got way more in my checks. You can always pay what you owe at the end of the year if needed.

Hey Olivia! I totally understand your frustration - that first paycheck shock is real! Based on what you're describing, it sounds like your withholding might be set too high for your actual situation. A few things to consider: First, make sure this paycheck was for a full pay period and not just partial days when you started. Second, with two jobs, the withholding can get tricky because each employer doesn't know about your other income. Here's what I'd suggest while you wait for payroll to get back to you: 1. Look at your pay stub to see exactly what's being withheld (federal income tax vs. FICA vs. state, etc.) 2. Check if you filled out your W-4 correctly - especially the multiple jobs section 3. Consider using the IRS Tax Withholding Estimator online to see what your withholding should actually be At $17/hr as your main job plus part-time work, you're probably in the 12% federal tax bracket, so 20% withholding does seem excessive. The good news is this is totally fixable with a new W-4! You might be able to get significantly more in your take-home pay while still covering your actual tax liability. Hang in there - once you get this sorted out, your budget should work much better!

ur good fam. tt152 means its processing. just gotta wait out this PATH act nonsense

I'm in the exact same situation! Filed January 25th with EITC and still stuck on "Return Received" with Tax Topic 152. It's so frustrating checking every day and seeing zero movement, but reading these comments actually helps knowing we're all in the same boat. The PATH Act is such a pain - I get why they need to prevent fraud but it really does hit the people who need their refunds most. At least Tax Topic 152 seems to be a good sign that everything is processing normally. Fingers crossed we all see some movement soon! 🤞