I switched from TurboTax to an accountant three years ago and never looked back. Yes, it's more expensive ($375 vs the $120 I paid for TurboTax), but my accountant finds deductions I didn't know existed. She's saved me at least $1500 each year. Just make sure you find someone with good reviews who specializes in your situation (self-employed, rental properties, whatever applies to you).

I was in your exact situation last year. TurboTax said I owed $1850. I panicked and went to H&R Block thinking they'd find some magic deduction. They charged me $220 and I still owed $1750. Barely any difference. If your tax situation is simple, software probably isn't missing much.

Just to offer another perspective here: Your accountant might be partially right about the capital account benefit, but they're missing the bigger picture. When a business assumes a personal debt, it should be recorded as a liability of the business with a corresponding entry to your capital/equity account. What likely happened is that your accountant increased your capital account (correctly) but failed to record the liability on the business books (incorrectly). This artificially inflated your basis. Now when you want to pay off the loan, the business is essentially making a distribution to you because the liability isn't on the books. The proper correction would be to record the liability on the business books now (which would decrease your capital account) but then the debt payment would be a proper business expense, not a distribution. You might need to file Form 3115 to change accounting method rather than amending all previous returns. And yes, the ERC funds would absolutely increase your capital account and available business assets, so your accountant should be including those in the calculations.

I think there's confusion about what your accountant actually did. Based on your description, it sounds like they treated the original loan amount as an owner contribution (increasing your basis/capital account) but never recorded the loan as a business liability. Each payment the business made toward the loan was likely treated as a distribution to you. This isn't necessarily "wrong" from a tax perspective - it's just one way to handle it. The alternative would have been to record the loan as a business liability with no impact on your capital account. Then payments would be business expenses. If the business has been profitable and generating basis, those distributions might have been tax-free. But now that you want to pay it off completely, there could be issues if the distribution exceeds your current basis. I'd suggest getting a copy of the business balance sheet and your capital account statement to see exactly what's been recorded over the years. That would clarify what's actually happening here.

Does anyone know if there's a simple calculator online where I can see exactly how much of my income falls into each tax bracket? I'm trying to figure out if I should contribute more to my 401k to stay in a lower bracket.

Something nobody mentions about tax brackets - they're adjusted for inflation each year! The income thresholds for each bracket typically increase a bit annually. So if your salary just keeps pace with inflation, you shouldn't "bracket creep" into higher rates.

Another thing to consider with 1099 work is that you need to figure out your own health insurance, retirement, and you don't get paid time off or sick days. When comparing offers, factor in what these benefits would cost you. For health insurance, check your state's marketplace. For retirement, look into a SEP IRA or Solo 401k - you can actually save more for retirement as a self-employed person than as an employee. The best part about being a contractor is the tax deductions. Keep track of EVERYTHING related to your work - part of your internet, phone bill, any equipment, software subscriptions, professional development courses, mileage if you drive for work, etc. It all adds up!

Just a heads up - make sure they're classifying you correctly! Some companies try to classify employees as 1099 contractors to avoid paying benefits and employment taxes, but there are specific IRS rules about who can legally be considered a contractor vs. employee. If they control WHEN and HOW you do the work (set hours, at their location, using their equipment, etc.), you might legally be an employee, not a contractor. Worth looking into before accepting the offer.

Another strategy the ultra-wealthy use is timing their income recognition. For example, Musk exercised a ton of options in 2021 when he knew he'd have to pay tax on them anyway, creating a huge tax bill that year. But this was likely strategic timing based on his overall financial plan. Also, many wealthy individuals establish charitable foundations and donor-advised funds. They donate appreciated stock directly to these entities (avoiding capital gains tax) and get a tax deduction for the full market value. The foundation can then sell the stock tax-free and use the proceeds for charitable activities that may align with the donor's interests.

Everyone is talking about loans but missing a key point - for people like Musk, a lot of their "spending money" comes from other cash flows: board seats at other companies, speaking fees, book deals, etc. These provide regular income streams separate from their main stock holdings. Also, these ultra-wealthy people often have business expenses that are legally paid by their companies. Company car, security, travel on company aircraft - these reduce their need for personal spending while maintaining their lifestyle.