I've been dealing with a very similar multiple W-2 situation and want to share what ultimately worked for me after trying several of the strategies mentioned here. First, confirming what everyone has said - there's absolutely no way to opt out of FICA taxes as a W-2 employee. I spent way too much time researching this before accepting it's just not possible. What actually solved my 401k contribution problem was a combination of three approaches: 1) I moved my health insurance and FSA deductions from my smaller W-2 to the larger one (took about 3 weeks through HR), 2) I used a spreadsheet to project when I'd hit the Social Security wage base limit (turned out to be early December), and 3) I temporarily reduced my 401k contribution to 5% early in the year, then ramped it up to 25% for the final two months. The key insight was realizing that the Social Security tax relief in December would give me an extra 6.2% of my gross pay to work with - that was exactly the breathing room I needed to push my contributions over the finish line. For anyone in a similar boat, I'd highly recommend creating that tracking spreadsheet others mentioned. Being able to see exactly when the Social Security withholding stops was a game-changer for my planning. The math worked out perfectly and I managed to max out my 401k with just $200 to spare!

I'm in almost the exact same situation as you! Multiple W-2s from one employer, trying to squeeze out every dollar for 401k contributions. After reading through this thread, I realize I've been approaching this all wrong by trying to find ways around the FICA taxes. The strategies that seem most promising are: 1) Moving other pre-tax deductions (like health insurance) from your smaller W-2 to the larger one to free up cash flow, 2) If you're anywhere close to the $168,600 Social Security wage base limit, calculating exactly when that 6.2% tax stops so you can boost contributions in those final paychecks, and 3) Adjusting your contribution percentages between the two W-2s rather than trying to eliminate mandatory taxes. I'm definitely going to try the spreadsheet approach that @71c79734e414 mentioned to track my projected Social Security wage base timing. Even if I don't hit the limit this year, having that visibility into my total earnings across both W-2s will help me plan better for next year. Thanks to everyone who shared their experiences - this thread has been incredibly helpful for understanding what's actually possible vs. what we wish was possible with W-2 tax withholdings!

Great question! Yes, you absolutely need to maintain a mileage log even when your vehicle is primarily used for business. The IRS requires documentation to support any business vehicle deductions, regardless of the percentage of business use. However, your approach of tracking the rare personal trips could work! This is called the "adequate records" method where you document total annual mileage and subtract personal use. Just make sure you: 1) Record your odometer reading at the beginning and end of each year 2) Keep detailed records of every personal trip (date, destination, mileage, purpose) 3) Have supporting documentation for your business travel (client appointments, receipts, etc.) Since you're already meticulous with receipts and expenses, you're on the right track. Consider using a mileage tracking app like MileIQ or Everlance to make logging easier - they can automatically detect trips and you just categorize them as business or personal. One important note: once you choose between the standard mileage rate or actual expense method for a vehicle, you generally need to stick with that method for the life of the vehicle. Given that you're tracking all actual expenses already, make sure to calculate which method gives you the better deduction before deciding!

I'm dealing with a very similar situation! I run a freelance graphic design business and my car is probably 90% business use since I meet clients all over the region. I've been stressing about the mileage log requirement too. After reading through all these responses, I think I'm going to try the approach of tracking just my personal miles and using that to calculate my business percentage. It seems much more manageable than trying to log every single client visit. One question though - has anyone here actually been through an audit with this method? I'm curious how the IRS actually reviews these records in practice. The idea of having to justify every trip sounds terrifying, but if the documentation is solid it should be fine, right? Also, for those using apps like MileIQ - do you find it drains your phone battery significantly? I'm on the road a lot and battery life is always a concern.

Did you use one of those rewards apps or digital coupons? Sometimes the receipt shows the original price but the discount is applied after and the tax is calculated on the pre-discount amount. Makes it look like the tax percentage is higher than it actually is if you're calculating based on the final price.

I work in retail tax compliance and see this issue more often than you'd think. A 14% effective tax rate on a convenience store purchase in California is definitely wrong - even in the highest-tax jurisdictions like parts of LA County, you shouldn't see more than about 10.25% total. Here's what likely happened: Either their POS system has the wrong tax table programmed for your location, or there's a glitch where it's double-taxing certain items. Sometimes when stores update their systems or change locations within tax districts, the tax rates don't get updated properly. I'd recommend going back with your receipt and asking to speak with a manager. Most chain stores have corporate policies about fixing tax errors and will refund the difference once they verify the mistake. If they won't help, definitely file a complaint with the California Department of Tax and Fee Administration - they have an online form for reporting businesses that aren't collecting the correct tax amounts. Also keep that receipt! If this is a systematic error affecting multiple customers, you might be helping identify a bigger issue that needs to be corrected across multiple locations.

Has anyone had issues with the age verification part? My son turned 17 in December and the system is counting him as 17 for the whole tax year even though he was 16 for 99% of the year. Seems unfair that if your kid's birthday is January 2nd they count for the credit but December 31st they don't.

Another thing to check is whether you accidentally entered any of your children as "qualifying relatives" instead of "qualifying children" - this is a common mistake that can zero out your child tax credits. In most tax software, there's usually a section where you specify the relationship and dependency status. If a child is marked as a "qualifying relative" rather than a "qualifying child," they won't be eligible for the Child Tax Credit even if they meet all other requirements. Also, double-check that you didn't accidentally enter any of their birthdates as being in the wrong year. I've seen people accidentally enter 2008 instead of 2018 for a child's birth year, which would make the software think the kid is way older than they actually are. Given that you found the solution (the dependent checkbox issue), this might help others who run into similar problems but don't have that specific issue.

Absolutely do NOT skip filing the 1099! Your friend's advice could get you in serious trouble. The IRS has automated systems that match income reports, so when that brokerage files their tax return showing $72,500 in income from your business, the system will immediately flag that you didn't file the corresponding 1099-NEC. Beyond the penalties (which can be substantial), you're also creating a nightmare for the brokerage. They need that 1099 to properly account for their income, and if they get audited and can't produce the proper documentation showing where that $72,500 came from, it creates problems for them too. The good news is that filing a 1099-NEC is actually pretty straightforward once you know what you're doing. Based on everything discussed here, you need Form 1099-NEC with the $72,500 in Box 1 and Box 2 checked. Use the exact business name and EIN from their W-9, and you'll be all set. It's really not worth the risk to skip it!

Just to add one more important detail that I haven't seen mentioned yet - make sure you file your 1099-NEC by January 31st. Unlike some other tax forms that have different deadlines, 1099s must be filed with the IRS AND provided to the recipient by January 31st. Also, since your commission payment was $72,500 (well over the $600 threshold), you're definitely required to file. The consensus here is spot on - use Form 1099-NEC, put the full amount in Box 1, check Box 2 for the real estate transaction, and use the exact business information from their W-9. One last tip: keep a copy of that W-9 with your records along with documentation of the commission payment. If there are ever any questions from the IRS down the road, having that paper trail makes everything much smoother. You've got this!