Wouldn't this definitely cause problems with OP staying in the industry though? The DOL investigation would name them specifically right? Unlike the IRS where there's at least some level of confidentiality?

You're right that there's less anonymity with a state labor board complaint. They typically inform the employer who filed the complaint during the investigation process. That said, there are strong anti-retaliation laws that make it illegal for your former employer to badmouth you in the industry or interfere with future employment. Whether this causes industry problems really depends on your specific situation - how vindictive your former employer might be, how large the industry is in your area, and how much power they have within it. It's definitely something to weigh carefully based on your individual circumstances and tolerance for potential conflict.

I did try talking to her about it while I was still working there. She blamed her accountant for all the mistakes but never actually fixed anything. When I brought it up again after getting my W2 and seeing all the problems, she got defensive and basically said her books were correct and I must be mistaken. That's when she cut my pay citing "tax errors" that needed to be "corrected" going forward. I've been hesitant to reach out again since quitting because our last conversations were pretty tense. But maybe a formal letter outlining the issues with copies of the checks would be worth trying before filing anything official?

A formal letter is definitely worth trying. Make it professional, not accusatory, and focus on the factual discrepancies with your documentation attached. Suggest that you're hoping to resolve this directly before having to involve tax authorities. Send it certified mail so you have proof she received it. Give a reasonable timeframe for response (like 14 days). This approach gives her one last chance to correct things, and if she doesn't respond, you've created additional documentation of your good-faith efforts to resolve the situation before filing official complaints. That paper trail of attempting resolution can be beneficial if you do need to escalate things.

That's a really good point I hadn't considered. I'm in Texas so I don't have state income tax, but I did live in California for part of 2020 before moving. Does that mean I need to file a partial year California return for that period?

Yes, you would need to file a part-year resident California return for 2020. California is particularly aggressive with non-filers and has a longer statute of limitations than the IRS for certain things. Since you sold property during that period, California will be especially interested in whether any capital gains tax is due to them. When you file as a part-year resident, you'll only pay California tax on income earned while living there, plus any California-source income (like rental income from California property) earned after you moved. Given the housing market in 2020, there might be significant tax implications depending on how long you owned the California property.

You can use TurboTax for prior years, but you'll need to buy the desktop software for each specific tax year you need to file - the online version only works for current year. And if your situation includes property sales or complex investments, you'll definitely need the premium versions.

Do you need to make estimated tax payments if you have a decent amount withheld from your W-2 salary? Like could I just increase my W-2 withholding and skip the quarterlies?

Yes, you absolutely can increase your W-2 withholding instead of making separate quarterly payments! This is actually a great strategy many S-corp owners use. You can use the higher withholding from your S-corp salary to cover your tax liability on both your salary AND distributions. Just complete a new W-4 form requesting additional withholding to cover the tax on your distributions. The IRS doesn't care whether the tax comes through withholding or estimated payments, as long as you're paying enough throughout the year to avoid underpayment penalties.

I've been using QuickBooks Online for my S-corp for 3 years now. It's not perfect but it lets you categorize distributions vs owner draws properly and generates decent reports for tax time. Just make sure you set it up correctly from the beginning!

That's a really good point about the gift tax exclusion - I hadn't even thought about that angle. My uncle definitely hasn't given me anywhere near the $18,000 limit, so we should be fine there. And yes, you're absolutely right about the management company. Looking closer at my statements, they've already deducted their management fee, cleaning costs, and a couple minor repairs from the rental income reported on the 1099. The expenses my uncle covered were mainly the property taxes, insurance premium, and a major plumbing repair that happened outside the management company's scope. Thanks for pointing this out!

I tried doing this in H&R Block software last year and it was super confusing. It kept asking who paid what and I couldn't figure out where to note that my dad had paid some expenses as gifts. Did TurboTax have a specific field for this?

Did you have to pay penalties when you withdrew the excess contribution? I'm in a similar boat and wondering what the damage might be.

No penalties as long as I withdrew the excess contribution (plus any earnings on that amount) before I filed my taxes for that year. The earnings were treated as taxable income, but that was minimal in my case. If you've already filed or it's been longer than your tax deadline, there's a 6% excise tax on excess contributions for each year they remain in the account. Don't delay dealing with it - that penalty can add up!

This is great advice. Our company did the same thing when the limits changed in 2022. HR sent out a notice that they were adjusting the deductible to maintain HSA eligibility for everyone. They said it was easier than dealing with all the payroll adjustment requests that would happen otherwise.