Does anyone know if FreeTaxUSA has a way to import W-2s directly? I'm doing my taxes for the first time too and I really don't want to type everything in manually...especially all these weird codes in different boxes. My W-2 has like 6 different things in Box 14 alone!

Hey there! Don't stress too much about Box 14 - it's one of those things that seems scary but is usually pretty straightforward for most people. For your specific items: - "UNION DUES" - These are the union membership fees deducted from your paycheck. Generally not deductible on federal taxes unless you itemize (which you probably won't as a first-time filer). - "VOL LIFE" - This is voluntary life insurance premiums you're paying through payroll deduction. Also not deductible. Since you're using FreeTaxUSA and likely taking the standard deduction, you can safely ignore both of these items for your federal return. The software will ask you about itemizing vs. standard deduction, and it'll automatically choose whichever saves you more money (almost always standard deduction for someone in your situation). The main thing to remember is that Box 14 is mostly informational - it shows what was deducted from your pay, but doesn't usually affect your tax calculation. You're doing great by being careful and asking questions! That's exactly the right approach for your first time filing.

19 Has anyone considered just waiting until filing your 2024 tax return and paying everything then? I missed my Q4 payment too, but my accountant said sometimes it's simpler to just pay the small penalty rather than jumping through hoops to make a late estimated payment separately.

23 Another option if you're having trouble with the IRS website is to make the payment by phone. You can call 1-888-PAY-1040 (1-888-729-1040) and make your late Q4 2024 estimated payment over the phone. There's usually a small convenience fee (around $2-3), but it might be worth it to avoid the website navigation issues. When you call, tell them you want to make a 2024 estimated tax payment, and they should be able to process it properly. They can also confirm that your payment is being applied to the correct tax year, which gives you peace of mind that it won't get mixed up with 2025 payments. I've used this method before when the website was being glitchy, and it's usually pretty straightforward. The automated system walks you through everything step by step.

Just throwing this out there - have you considered whether this accounting method change is really necessary? Switching from cash to accrual is a big deal and creates a lot of complexity. My CPA advised against it for my business because the ongoing compliance burden wasn't worth the temporary tax benefits.

I actually went through this exact situation with a client last year and can confirm what others have said - you CAN file Form 3115 with your 2023 return as long as it's timely filed (including extensions). The critical thing is making sure you qualify for the automatic change procedures. Most cash-to-accrual changes for businesses under the $27 million threshold qualify, but you need to be careful about the Section 481(a) adjustment calculation. One thing I'd add that I haven't seen mentioned - if your client has a positive Section 481(a) adjustment (meaning they'll owe more tax), they can spread it over 4 years to soften the impact. If it's negative (tax savings), they get the full benefit in the year of change. Also make sure you send the duplicate copy to the IRS National Office within the required timeframe - that's a common mistake that can cause the whole method change to be rejected. The address and timing requirements are in the Form 3115 instructions.

Miguel, I completely understand your confusion! When I first started really paying attention to my paystubs, I felt like I needed a decoder ring. Here's something that might help that others haven't mentioned yet: Check if your company has a "cafeteria plan" or "Section 125" deductions - these are pre-tax benefits like health insurance, FSA/HSA contributions, or transit passes that reduce your taxable income. Sometimes these get implemented or changed mid-year and can significantly impact your take-home pay even though they're actually saving you money on taxes. Also, look for any deductions labeled "GARNISH" or "LEVY" - these would be court-ordered wage garnishments for things like child support, student loans, or tax liens. They can start suddenly if there's been a legal judgment. One more tip: if you have direct deposit, your bank statement might show the net amount differently than your paystub if there are any post-payroll deductions (like loan payments to your employer or union dues). The $127 increase really does sound like something specific happened - maybe a retroactive benefits enrollment or a correction from previous pay periods. Definitely worth getting that detailed explanation from HR. You're absolutely right to want to understand where every dollar of your hard-earned money is going!

Miguel, you're definitely not alone in being confused by paycheck deductions! One thing I haven't seen mentioned yet is to check if your employer recently updated their payroll software or changed how they calculate withholdings. Sometimes system updates can cause temporary discrepancies while everything gets recalibrated. Also, since this is April, it's worth checking if your company does annual "true-ups" for things like Social Security wage base limits or if any local tax rates changed for the new fiscal year. Some municipalities adjust their tax rates in April rather than January. Another possibility - if you've been getting overtime or bonuses recently, those are often taxed at a higher supplemental rate (usually 22% federal) which could explain why your withholding percentage seems higher than expected. I'd definitely recommend keeping copies of your last few paystubs and asking HR for a side-by-side comparison of this period versus the same period last year if possible. The $127 increase is significant enough that there should be a clear explanation for it. Don't feel bad about asking questions - your paycheck should make sense to you!

One thing I learned the hard way: the 25% employer contribution rate for an S-Corp is only for the profit sharing portion. If you want to do a Solo 401k match instead of profit sharing, the limit is only 4% of compensation (which would be $480 in your case). Big difference! Profit sharing is almost always better for single-employee S-Corps unless you have some very unusual circumstances.

Great thread! Just wanted to add something that might help with the confusion about reasonable compensation - I've found that keeping documentation is key. When I set my S-Corp salary, I saved job postings for similar roles in my area and wrote a brief memo explaining my reasoning. Also, one thing that caught my eye in your numbers - with $35k revenue and $6k expenses, you have $29k in net profit. Taking $12k as salary leaves $17k in distributions. While this might be reasonable now, if your business grows significantly, you'll want to revisit that salary level not just for IRS compliance, but also to maximize your retirement contributions. The sweet spot is finding that balance where you're paying enough in salary to satisfy reasonable compensation requirements while maximizing your retirement savings potential. Sometimes paying a bit more in payroll taxes is worth it for the extra retirement contribution space you get!