My accountant charges me $275/hr and I've spent over $800 just trying to understand this exact issue lol. One tip that helped me: create a spreadsheet comparing your gross receipts (line 1a) all the way down to ordinary business income (line 21) for the last few years. I did this and finally could see exactly which expenses were causing the biggest differences between total income and ordinary business income. Gave me a much clearer picture of my business finances and helped me explain it to my partners.

As someone who went through this same confusion when I first started my S Corp, let me add another perspective. The key thing to remember is that the 1120-S is really just an informational return - the actual taxation happens on your personal return through the K-1. Here's what helped me understand it: Think of "total income" as everything your business brought in the door, while "ordinary business income" is what's left after you pay for the cost of running the business. The ordinary business income is what actually matters for your taxes because that's what flows through to your Schedule K-1. For the "how much does your business make" question, I've learned to be specific: "We did $X in revenue last year with $Y in profit." This way you're not misleading anyone, and it shows you understand your financials. Banks especially appreciate when you can speak to both numbers clearly. One more tip: Keep a simple one-page summary that shows both figures with a brief explanation of the major expense categories that bridge the gap. It's been super helpful when I need to explain my business performance quickly to lenders, partners, or even family members who ask how the business is doing.

Consider using a tax professional with military expertise rather than trying to navigate this yourself. VITA (Volunteer Income Tax Assistance) programs on military bases specifically handle these situations and they're free. Most bases have them from January through April. Alternative option: Military OneSource offers free tax filing with H&R Block that includes state returns and access to tax consultants who understand military-specific situations. Their service is available until October 15th for extensions. These specialized services understand PCS moves, multiple state filings, and combat zone tax exclusions better than general tax preparers.

As someone who's dealt with military tax situations across multiple states, I want to emphasize checking your Leave and Earnings Statement (LES) for state tax withholdings - this can give you a clue about how your unit's finance office is handling your state tax situation. Also, make sure you understand California's "safe harbor" provisions under Revenue and Taxation Code 17014. If you maintained California voter registration, driver's license, and bank accounts, you're likely still a CA resident for tax purposes. One thing that trips up many military families is assuming that being stationed somewhere automatically makes you a resident there - military orders specifically prevent this under SCRA. Document everything about your California ties (voter registration, vehicle registration, etc.) in case you need to prove residency status later. The key is consistency - don't claim non-resident status in California while maintaining all the legal indicators of being a California resident.

Guys, the IRS website has free calculators that can help with this! Check out the Tax Withholding Estimator tool. You put in your gross income, deductions, and withholdings, and it gives you an estimate of your refund or amount owed. It's at irs.gov - way better than trying to do the math yourself and getting confused between net and gross.

Based on your numbers, you should definitely be using your $97,000 gross income as your starting point. Here's a rough calculation for your situation: Gross income: $97,000 Less standard deduction (2024): $14,600 (assuming you're single) Less your other deductions: $6,300 Taxable income: ~$76,100 For someone with $76,100 in taxable income, the federal tax would be roughly $12,000-13,000 depending on your filing status. Since you paid $9,400 in withholdings, you might actually owe a bit more rather than getting a refund. Of course, this is just a rough estimate and doesn't account for credits, state taxes, or other factors that could significantly change the outcome. But it gives you a ballpark idea of where you stand. The key thing to remember is always start with that gross income figure from your W-2!

I'm dealing with the exact same situation right now! Filed jointly for the first time in February and just noticed the 570 code appeared on my transcript yesterday. It's reassuring to read everyone's experiences here - some of you have really detailed knowledge about these codes! Based on what I'm reading, it sounds like this might just be part of the normal verification process for joint filers or certain credits. I think I'll follow the advice to wait another week or two before calling, especially since several people mentioned their holds cleared automatically within that timeframe. Will definitely keep monitoring for that 571 code that indicates the hold is released. Thanks for sharing your experiences - this community is so helpful for navigating these stressful tax situations!

I'm going through this exact same thing right now! Got the 570 code about a week ago and have been checking my transcript obsessively every morning. It's my first time filing jointly too, so I'm wondering if that's triggering some extra verification steps. Reading through everyone's experiences here is really helping calm my nerves - it sounds like most of these resolve within 2-3 weeks without any action needed. I'm particularly interested in what @Matthew Sanchez mentioned about the automated verification for joint filers. Has anyone else noticed if first-time joint filing seems to trigger these holds more frequently? I'm trying to decide if I should wait the full 21 days or start calling sooner. The uncertainty is definitely the worst part!

Would it cause problems if you just filed with the error? Like, would the IRS automatically reject it or something? My friend said he had an error on his W-2 last year but still filed and nothing bad happened.

I work in payroll and see this type of error more often than you'd think! Code T for adoption benefits is definitely something that stands out on a 68-year-old's W-2. The good news is that most employers are pretty responsive to these kinds of obvious mistakes once you point them out. When you contact HR/payroll, be specific about what you're seeing - mention the exact code (T), the amount ($4,300), and that it doesn't apply to your father's situation. Ask them to check what the correct code should be for that amount. As others mentioned, it's likely a retirement contribution that got miscoded. One tip: if you're having trouble reaching the right person at his company, try calling first thing in the morning or right after lunch. Payroll departments are usually swamped at certain times but more available during those windows. Also, get the name and direct contact info of whoever helps you in case you need to follow up. Don't file without the corrected W-2 - trust me, the headaches from IRS notices later aren't worth trying to save a few weeks now.