Just to add another perspective here - NOL carryforwards from S-corps have some additional complexities people often miss. Remember that your ability to deduct the loss is limited by: 1) Your basis in the S-corp 2) At-risk limitations 3) Passive activity loss rules Without sufficient basis, you can't take the loss even if it flows through on the K-1. If your S-corp had debt that you personally guaranteed, that can increase your basis and allow more loss deduction.

Has anyone used TurboTax for handling NOL carryforwards from an S-corp? I'm in a similar situation and wondering if it can handle this correctly or if I need to go to a CPA.

Just a quick clarification that might help - the main reason Form 8606 is so important even though your 1040 numbers were correct is that it establishes your "basis" in the IRA. Without it, you risk getting taxed twice on the same money when you eventually take distributions. When you do backdoor Roth contributions yearly, each Form 8606 builds on information from previous years. That's why filing last year's form before doing this year's return is really important - the calculations carry forward.

Another tip - make sure you're using good tax software this year that specifically prompts you about Form 8606. I used FreeTaxUSA last year and it actually stopped me during the process and specifically asked about backdoor Roth conversions, making it impossible to miss the form.

Don't forget about Schedule SE for self-employment tax! Each partner will need to file this separately with their individual returns based on their K-1 income. My partner and I missed this our first year and got hit with penalties. The partnership itself doesn't pay self-employment tax, but each partner does on their share of partnership income.

For your marketing expenses - make sure you separate out meals if you took potential clients out for business discussions. Those are only 50% deductible while your other marketing costs are likely 100% deductible. Form 1065 has specific lines for this. The equipment you purchased might qualify for Section 179 expensing too, which lets you deduct the full cost immediately rather than depreciating it over several years.

This happened to me too! I freaked out when I saw strange banking info on my return from Jackson Hewitt. Make sure to ask Fiesta these questions: 1. What is the TOTAL fee including tax prep AND refund transfer fees? 2. When exactly will you get your money after the IRS sends the refund? 3. How will you receive the remaining funds? (direct deposit, check, prepaid card) They should have given you a document explaining all this before you signed your return. If they didn't, that's shady business practice and should be reported to the Better Business Bureau.

There's a form you were supposed to sign called a "Refund Authorization Form" or something similar that gives permission for this arrangement. Did they have you sign anything like that? If not, that's a big red flag. Check all your paperwork carefully. Also, just for future reference, there are free tax filing options that don't pull this refund transfer stuff. The IRS Free File program lets most people file for free if your income is under $73,000, and they don't play these games with your refund. Looking at section 35 is smart - always check where your money is going! Not a dumb question at all.

Something nobody has mentioned yet - check if you can deduct it on your state taxes! Even if you can't benefit from itemizing on your federal return, some states have different rules or lower thresholds for medical expense deductions. For example, my state allows medical expense deductions that exceed just 4% of income instead of the federal 7.5%. Also, some states offer special credits for people with lower incomes who have high medical costs.

One thing to consider - are you eligible for the Earned Income Tax Credit (EITC)? With an income of $22k, you might qualify for a refundable credit that could be more valuable than trying to deduct the dental expenses. Also, if your income is actually $22k from employment and you paid for the dental procedure yourself, you might look into an HSA for future medical expenses if your employer offers one. Too late for the current expense, but helpful for the future.