Has anyone used the IRS Tax Withholding Estimator tool? It's supposed to help figure this stuff out but I found it super confusing.

For what it's worth, I was in a very similar situation - single, no dependents, making about the same amount as you. I was getting almost no federal withholding and ended up owing taxes last year, which was a shock. What worked for me was using the IRS withholding estimator that someone mentioned, but I also cross-referenced it with one of those AI tools (taxr.ai) to make sure I understood what I was doing. Both pointed me toward putting about $30-40 in section 4c for additional withholding. The key thing I learned is that if you're currently having almost nothing withheld, there's definitely something wrong with your current W4. Even without extra withholding in 4c, you should see some federal taxes coming out of each paycheck. I'd suggest filling out a completely new W4 form rather than trying to modify your existing one - sometimes it's easier to start fresh. Also, don't forget that you can always adjust it later if the withholding amount doesn't feel right after a few paychecks. The W4 isn't set in stone!

One thing nobody mentioned - if you have dividend-generating investments in a retirement account like a Roth IRA or traditional IRA, you DON'T need to report those dividends on your taxes! The taxation is different for retirement accounts. But since you mentioned Charles Schwab sent you a 1099, that means it's a taxable account, so yeah, you gotta report those dividends. But just wanted to point that out in case anyone reading has both types of accounts.

Hey Keisha! You've gotten some great advice here already. Just want to add one more thing that might be helpful - since you mentioned you're using a tax preparer this weekend, make sure to ask them about setting up quarterly estimated tax payments for next year if your dividend income is substantial. Even though you only had the account for a few months in 2024, if you're planning to keep investing throughout 2025, those dividends will add up over a full year. If the dividends end up being significant, you might need to make quarterly payments to avoid an underpayment penalty when you file next year's taxes. Your tax preparer can calculate this for you based on your total tax situation and help you set up the payments if needed. It's much easier to plan ahead than to get hit with a surprise tax bill next April!

ur good fam just gotta wait it out. banks be moving slow af with these deposits sometimes

I work in tax prep and can confirm that California FTB is usually very transparent about offsets on their status page. Since you're not seeing any offset language and the TOP hotline cleared you, you should be good to go! The 10 business day window starts from the authorization date (Feb 4), so you're still within normal timeframes. Some banks can take an extra day or two to process government deposits, especially if they do additional verification. Hang tight - your refund should hit soon!

Don't make the mistake I made! I was co-signer on student loans and claimed the interest for years, but during an audit they disallowed it because I couldn't prove I made the actual payments. Make sure you're keeping bank statements or canceled checks showing the money came from YOUR account, not just the letter showing interest was paid.

This thread has been incredibly helpful! I'm in a similar situation where I co-signed my nephew's student loans and have been making payments for the past year. I had no idea I could claim the student loan interest deduction as a co-signer. One thing I'm wondering about - if the loan servicer sends the 1098-E to my nephew (the primary borrower) but I'm the one making the payments, do I need to get a copy of that form from him? Or is the payment documentation from my bank account sufficient like others have mentioned? Also, has anyone dealt with multiple loan servicers? My nephew has loans with both Navient and Great Lakes, and I've been paying on both. Just want to make sure I can claim the interest from both servicers on my return.

Omg this literally just happened to me!! I got a $13k refund from my loans and freaked out thinking I'd owe a bunch of taxes. My tax guy explained that loan money isn't income bc you have to pay it back. But here's something nobody mentioned yet - keep track of that refund money separately if possible. When I graduated last year and started repaying my loans, I got confused about how much I actually borrowed vs how much went to tuition. Makes it harder to budget for repayment when you don't remember where all the money went! Also pro tip: if you don't need all that refund money, you can actually send some back to your loan servicer and reduce your overall loan balance before interest starts accumulating. Wish someone had told me that sooner lol

Great question Chris! I went through this exact same situation two years ago and was equally confused. The consensus here is correct - your $16k student loan refund is NOT taxable income since it's borrowed money you'll eventually repay. However, I'd recommend double-checking one thing: make sure that entire $16k actually came from loans and not a mix of loans plus grants/scholarships. Sometimes schools bundle different types of aid together, and any portion from grants or scholarships could be taxable if used for non-qualified expenses. Looking at your 1098-T, the $7.1k in box 2 represents scholarships/grants you received. If any of your $16k refund came from those sources rather than pure loan money, that portion might need different treatment. But if you're certain the entire refund was from student loans (check your loan documents to confirm), then you're all set - no reporting required and no taxes owed on that money. Just keep good records in case you ever need to prove the source of those funds later!