Just to add another perspective - I've been a server for 15 years and ALWAYS keep a small tip journal with me. I write down my cash tips daily. I've had allocated tips show up on my W-2 before, but because I had good records showing my actual tip income, I didn't have to pay taxes on the allocated amount. The key is documentation.

If this is your first year filing with allocated tips, don't stress too much about not having perfect records for this year. Just be aware of what they are, report them correctly, and then start keeping better records going forward. I got allocated tips for years before I figured out how to handle them properly!

One thing to keep in mind is that if you're just doing this as a one-off project, the costs of maintaining an LLC might outweigh the benefits. In my state there's an annual $800 minimum tax for LLCs even if you don't make any money that year, plus filing fees and possibly an operating agreement drafted by a lawyer. For a multi-year project that might add up to thousands in costs just to maintain the entity. Might be worth it for liability protection but tax-wise it could actually cost you more if you're just doing one house.

I went through this exact decision last year when I built and sold a spec home. After consulting with my CPA and doing a lot of research, I ended up going the LLC route and I'm glad I did. The key benefits I found were: 1. **Cleaner expense tracking** - Having a separate business bank account made it much easier to track all construction-related expenses come tax time 2. **Professional credibility** - Subcontractors and suppliers took me more seriously when I was operating as an LLC rather than just as an individual 3. **Liability protection** - This was huge for me. Construction has inherent risks, and I didn't want my personal assets exposed if something went wrong Tax-wise, you're right that a single-member LLC is typically disregarded for federal taxes, so the income flows through to your Schedule C anyway. But the cleaner separation of business and personal expenses made my tax prep much smoother and gave me confidence I wasn't missing any legitimate deductions. One tip: if you do form an LLC, make sure to open a dedicated business bank account immediately and run ALL project expenses through it. Don't commingle personal and business funds or you could lose some of the liability protection benefits. The annual LLC fees in my state were only $50, so the ongoing costs were minimal compared to the peace of mind I got.

My credit union doesn't send 1099s unless the interest is over $10 but they do include the total interest earned for the year on the December statement. Might want to check your year-end statement to see if your bank does the same thing. Saves you from having to add up all the monthly amounts yourself.

Just to add another perspective - I've been dealing with small checking account interest for a few years now and it's really not as complicated as it seems at first. The key thing to remember is that even though the amounts are small, the IRS considers all interest taxable income. Here's what I've learned: Most banks will automatically send you a 1099-INT by January 31st if your interest was $10 or more for the year. Since you mentioned around $90 total, you should definitely get one. If for some reason you don't receive it by early February, you can always call your bank and request it. The reporting itself is straightforward - it goes on Line 2b of Form 1040 if it's under $1,500 total interest for the year. If you use tax software, it will walk you right through it. Don't stress too much about this one - it's actually one of the easier parts of filing taxes!

Adding to what everyone else has said - I think the confusion comes from how the tax software presents these questions without proper context. When H&R Block asks "did you buy a car?" it sounds like it's mandatory to report, but really it's just checking if you might benefit from itemizing deductions. Here's the simple rule: if you're taking the standard deduction (which is $14,600 for single filers in 2024), then the car sales tax question is irrelevant to your tax situation. The software asks because some people DO benefit - like those in states without income tax, or people who already have high mortgage interest and charitable donations that put them close to the itemizing threshold. But for most people buying a personal vehicle, especially if they typically take the standard deduction, it won't change anything. You can answer the question honestly, but don't expect it to affect your refund. The software will calculate both scenarios and automatically pick whichever saves you more money. The key takeaway is that you're not missing out on anything by not claiming it if you're taking the standard deduction anyway!

One thing that might help clarify this for future filers - H&R Block and other tax software companies ask about car purchases because they're legally required to help you find all possible deductions, even if most won't benefit from them. The car sales tax question is essentially the software saying "we need to check if the sales tax deduction route might save you money compared to deducting state income tax." For most people, it won't make a difference, but the software has to ask to ensure they're not missing potential savings. Think of it this way: if you had bought a $60,000 truck and lived in a state with no income tax, plus had high mortgage interest and charitable donations, that sales tax deduction could potentially push your itemized deductions above the standard deduction threshold. The software doesn't know your full situation until it asks all the questions. So don't stress about it - answer honestly, let the software run the calculations, and it will automatically choose the option that gives you the best result. You're not missing out on anything by not manually tracking every sales tax receipt throughout the year!

I feel your frustration! This exact thing happened to me two years ago and it was such a headache. Since you have email documentation proving you selected single/0, you're in a much better position than I was. Here's what worked for me: I escalated beyond payroll to the HR director with my email proof and demanded they provide a written explanation of how the error occurred. Once I involved someone higher up, they took it seriously and not only corrected my withholding going forward but also calculated exactly how much I was underwitheld. For the immediate fix, ask your employer to process a "supplemental withholding" on your next paycheck to help catch up some of the difference. Many payroll systems can do this as a one-time adjustment. Also, don't panic too much about owing taxes - as long as you end up paying at least 90% of what you owe by the tax deadline, any underpayment penalties are usually pretty small. The IRS is generally reasonable about honest mistakes, especially when you can document that it wasn't your fault. Keep pushing your employer on this - they made the error and they should help make it right!

This is such a stressful situation, and I completely understand your frustration! I went through something very similar last year where my employer incorrectly processed my W-4 as married filing jointly instead of single, and it was a nightmare to sort out. The fact that you have email documentation is huge - that's your smoking gun. Don't let payroll brush you off again. Here's what I'd recommend based on my experience: 1) Print out that email documentation and schedule a formal meeting with HR (not just payroll). Bring copies of your recent paystubs showing the incorrect withholding amounts. 2) Ask them to provide you with a written timeline for when they'll correct your withholding status and how they plan to address the underwithholding that's already occurred. 3) Request they calculate the exact dollar amount you've been underwithheld so far this year - you'll need this number regardless of how you choose to make up the difference. For the immediate stress relief, remember that owing taxes isn't the end of the world. The IRS has payment plan options, and if you can show the error was your employer's fault (which you can with that email), they're often willing to work with you on any potential penalties. Also, definitely run your numbers through the IRS withholding calculator once you get this sorted out - it'll give you peace of mind about your tax situation going forward. You've got this! The documentation puts you in a strong position to get this resolved.