Just wanted to add - if you're using ADP, you should be able to log into their employee portal online and see a much more detailed breakdown of your taxes. They usually have a year-to-date summary that shows exactly how much you've paid in each category (federal, state, FICA, etc.) which can help you understand where that 24% is going. Also, something to keep in mind is that your withholding might be slightly different from your actual tax liability. The withholding tables are designed to be close, but factors like dependents, deductions, credits, etc. can affect your final tax bill. You might end up with a small refund or owe a small amount when you file, even with proper withholding. If you want to optimize your take-home pay, consider running your numbers through the IRS withholding calculator once a year to make sure you're not having too much or too little withheld. It's better to get your money throughout the year rather than a big refund!

The 24% total tax rate you're seeing is absolutely normal for your income level! A lot of people get confused because they focus only on the federal income tax brackets (10%, 12%, 22%), but those percentages don't include all the other taxes that come out of your paycheck. Here's what's likely making up your 24%: - Federal income tax: probably around 10-12% effective rate for your income - Social Security tax: 6.2% (this is a flat rate on wages up to ~$168K) - Medicare tax: 1.45% (flat rate on all wages) - State income tax: varies by state, could be anywhere from 0-6%+ - Possibly local/city taxes depending on where you work So when you add federal income tax + Social Security (6.2%) + Medicare (1.45%) + state taxes, you easily get to that 24% range. To see exactly where your money is going, look at your ADP paystub - it should have separate line items for each type of tax. You can also log into your ADP employee portal online to see year-to-date totals for each tax category, which gives you an even clearer picture of your overall tax burden. The good news is your 6% 401k contribution is actually helping reduce your taxable income, so you're saving on taxes there!

Just make sure you're keeping really detailed records of all your ESPP transactions!!! I got audited last year because I messed up reporting my ESPP sales and it was a nightmare 😩 I didn't have proper documentation of my purchase prices and discount amounts for each lot of shares, and had to reconstruct everything from scratch. Now I keep a spreadsheet with every purchase date, offering date, discount amount, purchase price, fair market value, and sale information.

For handling ESPP sales with multiple lots, I've found that FreeTaxUSA actually handles these transactions much better than TurboTax. It has a more intuitive interface for entering the ordinary income portion separately from the capital gains/losses. The key is to make sure you're reporting each lot sale correctly: 1. The discount portion goes on your W-2 as ordinary income (your employer should handle this) 2. The capital gain/loss goes on Schedule D, using the fair market value on purchase date as your cost basis (NOT the discounted price you paid) If you're still having trouble, consider using Form 8949 to provide additional details for each transaction. The IRS wants to see that you understand the difference between the compensation element (discount) and the investment element (capital gain/loss). And definitely keep those detailed records like StormChaser mentioned - having everything documented by lot makes tax time so much easier!

Great question! I just went through a similar situation when I moved $45k from Wells Fargo to a local credit union last month. The key thing to understand is that there are two different types of reporting that people often confuse: 1. **Currency Transaction Reports (CTRs)** - These are filed by banks for cash transactions over $10,000. Since you're doing electronic transfers (wire or ACH), not cash deposits, this doesn't apply to your situation. 2. **Tax reporting for income** - This only happens when you receive NEW money that counts as income. Moving your existing money between your own accounts isn't income, so there's no tax reporting required. Your $15k and $32k transfers are completely normal and won't trigger any IRS reporting. The banks might have their own internal procedures for large transfers (like temporary holds for verification), but that's different from tax reporting. One heads up though - make sure both accounts are clearly in your name with matching information. I had a minor delay because my middle initial was different on the two accounts, but the credit union sorted it out quickly once I provided ID. You're making a smart move with better interest rates! Just keep your transfer confirmations for your records, though you won't need them for tax purposes.

I went through this exact same concern when I moved $23k from my checking account at a big bank to a local credit union for better rates. The anxiety about triggering IRS reporting was real! Here's what I learned: Electronic transfers between your own accounts (same name, same SSN) are not reportable events to the IRS regardless of the amount. You're not creating new income - you're just moving money you already own and have already paid taxes on when you originally earned it. The $10,000 reporting threshold everyone talks about applies specifically to CASH transactions (Currency Transaction Reports), not electronic transfers. Wire transfers, ACH transfers, and online banking transfers between your own accounts are all treated the same way - no special reporting required. For your $15k and $32k transfers, you won't have any tax implications or IRS reporting concerns. The receiving credit union might place a temporary hold for verification (mine did a 1-day hold on the larger amount), but that's just standard banking procedure, not tax-related. Pro tip: Call your new credit union ahead of time to let them know large transfers are coming. They can often expedite the verification process and reduce any holds. Also keep your transfer confirmations for your records, though you won't need them for tax purposes. You're making a smart financial move with those better interest rates - don't let reporting worries hold you back!

The cash basis rule for W2 reporting has been explained perfectly by everyone here, but I wanted to add one practical consideration that might help you sleep better at night: this timing difference is incredibly common and payroll systems are designed to handle it properly. Your employer processes hundreds or thousands of these year-end transitions, so while their "depends on our accounting system" answer wasn't very helpful, they're likely following standard procedures that ensure everything gets reported correctly. The fact that they mentioned their accounting system actually suggests they have established cutoff dates and procedures for this exact situation. One thing I'd recommend is sending a quick email to your payroll department asking for written confirmation of which tax year your final December pay period will be reported on. This gives you documentation for your records and forces them to give you a definitive answer rather than being vague about it. Most payroll departments can tell you this immediately since they have to plan their year-end W2 processing schedule well in advance. Having that written confirmation will also be helpful if you need to reference it later when doing your taxes or if any discrepancies come up on your W2 forms.

I can confirm everything that's been said here about the cash basis rule - it's definitely based on when you receive payment, not when you earned it. As someone who's dealt with this confusion before, I'd strongly recommend getting ahead of this for future years by asking your HR department about their year-end payroll cutoff dates sometime in November. One additional tip that helped me: if your company uses direct deposit, check whether they consider funds "paid" when they initiate the transfer or when it actually hits your bank account. Most companies go by the initiation date, but it's worth clarifying since this can sometimes shift things by a day or two around holidays when banks have different processing schedules. The good news is that once you understand how your specific employer handles their year-end timing, you'll be able to plan much better for future tax years. Keep good records of your final December paystub and you should be all set to verify everything when your 2025 W2 arrives!

I completely understand your concern about this! I went through a similar situation last year when I was dealing with my own name change issues after getting married. The uncertainty around whether everything would process correctly was really stressful on top of everything else. From what I've seen and experienced, the banking system is generally pretty accommodating with these types of name variations, especially maiden/married name differences since they're so common. The IRS typically processes direct deposits based on your SSN and the routing/account number combination rather than focusing on the exact name match. That said, I think your plan to call your bank tomorrow is absolutely the right move. Each financial institution has their own internal policies for handling ACH deposits with name discrepancies, and getting that confirmation directly from them will give you the peace of mind you need right now. If for some reason your bank does have strict name matching requirements, you still have options - you could either update your account information or request a paper check instead (though that would obviously take longer to receive). I hope everything works out smoothly for you! You're already dealing with so much with the divorce process, and this should be one less thing to worry about once you get that confirmation from your bank.

I'm going through something very similar right now! Just went through my divorce last month and I'm in the exact same boat - filed with my married name but my bank account is still under my maiden name. Reading through all these responses has been so helpful and honestly such a relief. It sounds like the consensus is that most banks handle these name discrepancies pretty well, especially for common situations like divorce/marriage name changes. The IRS seems to focus more on the account and routing numbers rather than exact name matches. I think your plan to call your bank tomorrow is really smart. I'm planning to do the same thing with my credit union just to get their specific policy in writing. After everything we've been through with divorce paperwork, the last thing either of us needs is more delays or complications with something that should be straightforward. Fingers crossed both our refunds go through smoothly! It's nice to know there are others dealing with the same post-divorce administrative headaches. Thanks for posting this question - it helped me realize I'm not the only one worried about these kinds of details.