I'm dealing with this exact same situation right now! Got my EIN a few months ago and checked the box saying I might hire employees, but my freelance business isn't at that point yet. The IRS sent me the same 940/944 notices and I've been stressed about it. Based on all the advice here, it sounds like the key is updating your information with the IRS rather than just ignoring it or filing zero returns. I'm going to try that Claimyr service since I've had zero luck getting through their phone lines myself. Thanks everyone for sharing your experiences - this thread has been way more helpful than anything I could find on the IRS website!

I was in almost the exact same boat with my consulting LLC about 6 months ago. Got the EIN, optimistically said I might hire employees, then reality hit and I realized I wasn't ready for that step yet. What worked for me was calling the IRS Business line (800-829-4933) super early in the morning - like right at 7 AM Eastern. Still took about 45 minutes to get through, but way better than the multiple hours I was waiting when calling later in the day. The agent was actually really helpful once I got connected. She explained that since I indicated potential employees on my SS-4 form, their system automatically enrolled me for employment tax filings. She was able to update my account status to show no employees and removed the filing requirements for Forms 940 and 944. The key thing she told me was to call back when I actually do hire my first employee so they can reactivate the employment tax requirements. Don't want to deal with this headache again when that time comes! Definitely don't ignore the notices - the IRS systems will keep generating them and could eventually lead to penalties even if you don't owe anything.

Welcome to the community! I've been following this thread and it's been incredibly educational to see how everyone broke down your withholding situation. As someone who also experienced sticker shock with my first "real job" paycheck, I completely understand that initial panic when you see 25% disappearing from your gross pay. What I found most helpful about this discussion is how it demonstrates that understanding your paycheck is really about financial literacy and empowerment. The fact that you took the time to ask questions and seek understanding rather than just accepting the situation shows great financial awareness that will serve you well throughout your career. The community response here has been outstanding - from explaining the new W4 format to breaking down FICA taxes to highlighting the importance of that automatic 401k enrollment. It's clear that your "problem" was actually just a lack of familiarity with how comprehensive modern benefit packages work. One thing I'd add is to remember that this 25% withholding is essentially automating several important financial responsibilities: your tax obligations, Social Security/Medicare contributions, and retirement savings. When you think about it that way, it's actually quite efficient to have it all handled through payroll rather than trying to manage these separately. Thanks for starting such a valuable discussion that I'm sure will help many other community members who find themselves in similar situations with new jobs!

Welcome to the community! This thread has been absolutely fascinating to follow as someone who's also navigated paycheck confusion in the past. What started as a straightforward question about withholding percentages turned into such a comprehensive education on modern payroll systems. I'm really impressed by how this community came together to help break down every component - from the updated W4 forms to FICA taxes to automatic benefit enrollments. The way everyone shared both technical knowledge and personal experiences made complex tax concepts actually accessible and understandable. Your proactive approach to understanding your finances rather than just accepting confusion is really admirable. The tools and strategies mentioned here (IRS withholding calculator, coordinating W4s between spouses, tracking paystubs systematically) are valuable practices that more people should adopt. It's also great to see how the discussion evolved from viewing this as a "problem" to understanding it as normal payroll operations that can be optimized based on personal preferences. That automatic 401k enrollment that initially seemed like just another deduction is actually setting you up for long-term financial success. This is exactly the kind of educational, supportive discussion that makes complex financial topics less intimidating for everyone. Thanks for asking the question that sparked such a valuable conversation for the whole community!

I've been tracking EV charging expenses for my consulting business for over a year now, and wanted to share what I've learned. The key is finding the right balance between accuracy and practicality. I started with the actual expense method using my car's built-in energy tracking. Most modern EVs show you exactly how many kWh you've used, so I'd note the reading before and after business trips, then multiply by my electricity rate. This gave me precise numbers, but became tedious after a few months. What I found is that for most independent contractors, the standard mileage deduction of 67¢/mile often comes out ahead anyway. EVs have lower maintenance costs than the rate assumes, so you're essentially getting "credit" for repairs and maintenance you're not actually paying for. My advice: try both methods for a month or two if you want to be thorough, but don't overthink it. Keep detailed mileage logs either way (that's required regardless), and unless you're driving huge miles or have unusually cheap electricity, the standard rate will probably serve you well while keeping your bookkeeping simple.

As someone who just went through this exact situation during my first year as an independent contractor with an EV, I wanted to add a few practical tips that might help. First, if you do decide to track actual expenses, many EVs (including Teslas, newer Chevy Bolts, and most other models) have mobile apps that show detailed charging history with dates, times, and energy amounts. This makes tracking much easier than manually recording meter readings. Second, consider your local electricity rates when making the decision. I'm in an area with relatively high electricity costs (about 18¢/kWh), so my actual charging expenses were pretty significant. But if you're in a region with cheaper power, the standard mileage rate might be more generous. One thing I learned the hard way - if you choose actual expenses, you need to be consistent for the entire tax year. You can't switch between methods partway through. So it's worth doing some quick math upfront based on your expected business miles and local rates to see which approach makes more sense. Also, don't forget that if you go the actual expense route, you can deduct the business portion of your home charger installation costs too, not just the ongoing electricity. That was a nice surprise on my taxes last year.

One thing to consider that hasn't been mentioned is your business expenses. Are you actually netting $54k, or is that your gross income? If it's gross, then you need to subtract all your legitimate business expenses before calculating any taxes. Common deductions for self-employed people: - Home office (if used regularly and exclusively for business) - Business portion of internet and phone - Mileage for business trips (58.5 cents per mile in 2024) - Software, equipment, supplies - Professional development and subscriptions - Health insurance premiums - Retirement plan contributions These can significantly reduce your taxable income. I thought I made about $65k last year but after properly tracking expenses, my taxable business income was closer to $48k.

As someone who went through this exact panic last year, I feel your pain! The good news is you're definitely overthinking the numbers. The other commenters have given you solid advice about the self-employment tax calculation and deductions. One thing I'd add - don't forget about business expenses that are specific to photography. You can deduct: - Camera equipment and lens purchases/repairs - Photography software subscriptions (Lightroom, Photoshop, etc.) - Props, backdrops, lighting equipment - Travel to shoot locations - Client meetings (including meals at 50%) - Photography workshops and education - Website hosting and domain costs - Business cards and marketing materials I was shocked at how much my taxable income dropped once I properly tracked all my photography-related expenses. Also, definitely look into that QBI deduction - it's a game changer for self-employed folks. The 25-30% rule for setting aside taxes is spot on. I learned that lesson the hard way! Consider opening a separate savings account just for taxes so you're not tempted to spend that money.

This is such a comprehensive discussion! I'm in a very similar situation - my partner and I have been together for 4 years, and I'm making around $170K while she's finishing her PhD with no income. We've been going back and forth on this exact decision. What really strikes me from reading everyone's experiences is how consistent the actual tax savings have been compared to the projections. It's reassuring to see multiple people report results within a few hundred dollars of their estimates. One thing I haven't seen discussed much is the psychological aspect of being "secretly married." Has anyone found it emotionally challenging to be legally married but still referring to each other as boyfriend/girlfriend? I worry that it might feel weird or dishonest, even though logically I understand the distinction between legal paperwork and the ceremonial commitment. Also, for those who went through with it - did you feel like you needed to have any special moment or acknowledgment between just the two of you after signing the papers? Or was it really just treated as pure paperwork? I'm trying to figure out how to handle the emotional side of this decision alongside all the practical financial benefits. The $15K+ we'd save would definitely make a huge difference for our wedding budget, but I want to make sure we're both emotionally comfortable with the approach, not just financially motivated.

This thread has been incredibly valuable! As someone who works in tax preparation, I see this situation frequently and want to add a few practical considerations that might help. Your $16K savings estimate is very realistic given the income disparity. When filing jointly, your $195K income gets spread across both of your standard deductions and lower tax brackets, creating substantial savings compared to single filing status. A few operational tips if you move forward: **Timing considerations**: You mentioned December 31st, but consider getting married a bit earlier in December to avoid any year-end processing delays at the courthouse. Some jurisdictions get backed up right before New Year's. **Withholding strategy**: Plan to submit your new W-4 (married filing jointly) to your employer on January 2nd, 2026. Don't wait until you file your 2025 taxes - you'll want the correct withholding from your first 2026 paycheck. **State tax verification**: While most states follow federal filing status, a few (like California for certain situations) have quirks. Double-check your specific state's rules to ensure the savings apply to both federal and state returns. **Documentation trail**: Keep multiple certified copies of your marriage certificate. You'll need them for tax filing, potential employer benefit changes, and other administrative updates. The financial math clearly works in your favor, and based on what I've seen, couples who frame this as "administrative efficiency" while preserving their ceremonial celebration tend to have the best outcomes. The tax code doesn't care about the emotional timing - it only cares about your legal status on December 31st.