Has anyone who's been in this situation noticed if their tax return the following year was affected? I'm wondering because I switched from 2 jobs to 1 in November, didn't update my W4, and now I'm worried about what will happen when I file next year.

Yes, you absolutely should update your W4 when you go from multiple jobs to one job! The "multiple jobs" checkbox changes how your withholding is calculated - it assumes you have additional income that needs to be accounted for, so it withholds more from each paycheck. Since you mentioned your pay stub still shows minimal federal withholding and HR questioned your resubmission, it sounds like they may not have processed your new W4 yet. I'd recommend being more direct with HR - explain that you previously had two jobs (which is why you checked that box originally), but now you only have one job, so your withholding needs to be recalculated. You can also double-check by looking at your pay stub for any codes like "MJ" (multiple jobs) in the filing status section. If it still shows that, then your new W4 definitely wasn't processed. The difference in withholding you noticed compared to your old job could be due to different payroll systems, pay periods, or benefit deductions, but getting your W4 situation sorted out should help normalize things. Don't let HR make you feel bad about updating your form - it's completely appropriate to submit a new W4 when your employment situation changes!

keep calling them every week thats what i did untill they fixed mine

Code 291 basically means they adjusted your refund amount down from what you originally claimed on your amended return. It's super common with amended returns - they just found something they disagreed with in your calculations. The good news is that once you see 291, you're usually pretty close to getting your refund processed. I'd expect maybe 2-4 weeks before you see the money hit your account, but amended returns can be unpredictable timing-wise. Just keep checking your transcript for updates!

Just wanted to add another perspective on the gift splitting strategy mentioned earlier. If you and your spouse decide to split the gift to maximize the annual exclusion ($38,000 total), make sure you're both actually participating in the gift. The IRS requires that both spouses consent to gift splitting, and you'll need to indicate this on Form 709 if you file one. Also, consider the timing carefully - if you make the gift late in the year, you might want to wait until January to make additional gifts so you can take advantage of the next year's exclusion amounts. This is especially relevant since the annual exclusion amounts are indexed for inflation and tend to increase over time. One last tip: if your son is planning to use this money for major purchases like a house or education, keep records showing the source was a gift from settlement funds. Some lenders or schools might ask about large deposits, and having clear documentation will make those processes smoother.

One aspect that hasn't been covered yet is the importance of keeping contemporaneous records of your gift decisions and timing. The IRS has been increasingly scrutinizing large gifts, especially when they come from settlements, so documentation is key. I'd recommend creating a simple gift log that includes: the date of each transfer, the amount, the recipient, and a note referencing your settlement as the source. If you're splitting gifts across multiple years, this becomes even more critical to show clear intent and proper timing. Also, if your settlement was structured (meaning you receive payments over time rather than a lump sum), the gift tax implications apply each year you make gifts, not just when you received the settlement. This could actually work in your favor for staying under annual exclusion limits if you have flexibility in your payout schedule. Consider consulting with a CPA who specializes in gift tax issues, especially given the complexity of settlement funds and the amounts involved. The cost of professional advice upfront could save you significant headaches later if the IRS has questions about your transfers.

Quick tip from someone who's been an independent contractor for 7+ years: GET QUICKBOOKS SELF-EMPLOYED! It links to your bank accounts and credit cards, automatically categorizes expenses, tracks mileage with GPS, and separates business from personal stuff. Makes tax time so much easier! The mileage tracker alone saved me almost $3k in deductions last year because i literally just open the app when i start driving to a job site and it does everything automatically.

As someone who's been doing contract work for about 3 years now, I can definitely relate to the overwhelming feeling of trying to figure out all the deductions! A few things that really helped me: 1. **Set up a simple system NOW** - I wish I had started tracking everything from day one instead of trying to reconstruct expenses later. Even a basic spreadsheet with columns for date, amount, category, and description works wonders. 2. **Don't forget about business use of your home** - Even if you're on the road most of the time, if you do any administrative work from home (scheduling, invoicing, etc.), you might qualify for the simplified home office deduction. It's $5 per square foot up to 300 sq ft. 3. **Consider forming an LLC** - This won't help with this year's taxes, but for next year it can provide liability protection and potentially some additional tax benefits depending on your situation. 4. **Save for taxes religiously** - I learned this the hard way my first year. Set aside 25-30% of every payment you receive. Open a separate savings account just for taxes so you're not tempted to spend it. The learning curve is steep but once you get a system down, it becomes much more manageable. You're already ahead of the game by thinking about this stuff early in the year instead of scrambling at tax time!

This is exactly why I always recommend keeping detailed records of your 401k contributions, especially when you're making after-tax contributions. The IRS automated system doesn't understand the nuances of these transactions and will often send scary notices that make you think you owe taxes when you don't. I had a similar Code E situation three years ago and nearly paid the tax twice before realizing my mistake. What helped me was calling my 401k plan administrator and asking them to send me a detailed breakdown showing that the returned amount was indeed my after-tax contributions with no earnings. For anyone in this situation - don't panic when you get that IRS notice. Take time to understand what the codes mean on your 1099-R form. Code E with matching Box 1 and Box 5 amounts is your friend - it means you're getting back money you already paid taxes on. Just make sure to respond to the IRS with a clear explanation and documentation to avoid any further confusion.

I'm dealing with something very similar right now! Got a Code E distribution for $4,200 where Box 1 and Box 5 match exactly, and the IRS sent me one of those automated notices claiming the whole thing is taxable income. Reading through everyone's experiences here is so reassuring - I was starting to think I was going crazy or missing something obvious. It's frustrating that the IRS automated system can't distinguish between legitimate returns of after-tax contributions and actual taxable distributions. I'm going to follow the advice here and send them a detailed response letter explaining that this was a return of after-tax contributions with Code E, and that the matching Box 1 and Box 5 amounts indicate no taxable portion. Hopefully they'll clear it up without too much back-and-forth. Thanks everyone for sharing your experiences - it's incredibly helpful to know I'm not alone in dealing with this confusing situation!