Has anyone used the IRS online payment system when filing Form 8832? There's a user fee for late elections if you request a private letter ruling, but the IRS website is so confusing about how to actually pay it.

I went through this exact same situation with my LLC about 6 months ago! At $85,000 projected income, you'll definitely want to run the numbers carefully before electing corporate treatment. One thing that really helped me was creating a simple spreadsheet comparing the tax scenarios. As a single-member LLC (assuming that's your situation), you'd pay self-employment tax on the full $85K under default treatment. But with corporate election, you'd face potential double taxation if you take distributions. The sweet spot for corporate treatment is usually when you can justify a reasonable salary (subject to payroll taxes) that's lower than your total profit, leaving the remainder as retained earnings taxed at corporate rates. But at $85K, this might not provide much benefit. Also, don't forget about state considerations - some states have minimum franchise taxes for corporations that could eat into any federal tax savings. I'd strongly recommend running the actual numbers with a tax pro before making the election, especially since you can't easily reverse it once made. The 75-day window Keith mentioned is crucial - mark your calendar! And if you do elect corporate treatment, make sure you're prepared for the additional compliance requirements like corporate tax returns and payroll processing.

Stupid question maybe, but what exactly is backup withholding and how much do they take? I think I might have this issue too but never understood what it actually means.

Just wanted to add that timing is really important with B notices. The IRS gives banks specific instructions about when to start backup withholding, and while some banks are lenient (like in your case), others are very strict about the deadlines. Since you mentioned wanting to open a high-yield savings account soon, I'd recommend getting this fully resolved before you apply. Some banks will actually check if you have any outstanding B notice issues when you open new accounts, and having an unresolved notice could complicate the process. Also, make sure when you fill out the W9 that you include a brief note explaining that the SSN was corrected in your account on [date] and that you're responding to ensure proper tax reporting. This gives the bank's tax department context about why there was a delay in your response.

One thing nobody mentioned yet - have you looked into getting certified in specialized care areas? I got certified in dementia care and diabetes management, which allowed me to charge $7-10 more per hour than the standard caregiver rate. My clients don't mind paying more because they're getting specialized knowledge, and it helps offset the tax burden.

As someone who's been doing this for a few years, I totally feel your pain about the competitive pricing issue! One strategy that really helped me was creating a simple one-page document explaining the value of working with a legitimate, insured caregiver. I highlight things like background checks, bonding, proper training documentation, and the fact that their payments are legitimate tax deductions for them if they're paying for a parent's care. I also started offering packages - like a "peace of mind" rate that includes liability insurance coverage and guaranteed availability during emergencies. Sometimes framing it as premium service rather than just "more expensive because of taxes" helps clients understand the value proposition. Another thing - make sure you're maximizing your health insurance deduction if you're paying for your own coverage. As self-employed, you can deduct 100% of health insurance premiums for yourself and your family, which can be substantial savings that help offset those brutal self-employment taxes.

As a newcomer to this community, I want to thank everyone for this incredibly detailed discussion! I'm in almost the exact same situation as @LunarLegend - been holding stocks for a few years but never really understood the tax implications beyond "don't report unless you sell." Reading through all these responses has been eye-opening. I had no idea that dividend reinvestment still counts as taxable income even when you never see cash. I just spent the last hour going through my Schwab account after seeing all the advice here, and sure enough, I found dividend payments from an S&P 500 ETF that I completely forgot about. The part about checking transaction history for terms like "DRIP" was especially helpful - that's exactly how I found mine. I also discovered that Schwab has a really clear tax documents section that I never knew existed. One question for the group: if I find these dividend payments now but already filed my taxes a few weeks ago without reporting them, what's the best way to correct this? Should I file an amended return immediately, or wait to see if the IRS contacts me first? Thanks again to everyone sharing their experiences - this kind of practical advice is exactly what newcomers like me need to avoid costly mistakes!

As a newcomer to this community and investing in general, I want to echo what others have said about checking your brokerage account thoroughly! I just went through this exact situation last month. I had been holding some index funds for about 18 months and assumed since I never sold anything, there was nothing to report. But after reading similar discussions online, I logged into my Vanguard account and discovered I had received over $200 in dividends that were automatically reinvested throughout the year. The tricky part was that these dividends showed up in different places depending on the investment type. My total stock market index fund dividends appeared in one section, while dividends from an international fund appeared separately. I had to look at both the "Transaction History" and the "Tax Center" to get the complete picture. For anyone in a similar situation - don't just look for a single 1099-DIV form. Some brokerages break them down by fund or account type, so you might have multiple forms. Also, the dividend amounts might seem small individually (like $15-30 per quarter), but they definitely add up over the course of a year and need to be reported as income. The good news is that once you know what to look for, it becomes much easier to track going forward. I've now set up email alerts for all dividend payments so I don't miss anything for next year's filing!

Don't forget you can also deduct equipment you buy for the team if it's not reimb

Great question! I've been in a similar situation volunteering with youth basketball. One thing that really helped me was keeping a detailed log from day one - not just mileage, but also dates, times, and purposes of each trip. The IRS can be pretty strict about documentation for volunteer deductions. Also worth noting that if you use your personal vehicle for volunteer work, make sure you're not double-dipping by claiming both the charitable mileage rate AND actual gas expenses - it's one or the other. The standard rate often works out better anyway since it covers wear and tear on your vehicle too. Have you checked if your league provides any documentation at year-end? Some organizations will send volunteers a summary letter acknowledging their service and expenses, which can be helpful for your records.