Has anyone used TurboTax for calculating how bonuses affect your taxes? I'm trying to figure out if I should upgrade to their premium version this year since I got a significant bonus.

One thing that might help with your planning - if you're concerned about underwithholding on your bonus, you can submit a new W-4 to your employer to increase your withholding for the rest of the year. This way you can avoid owing a large amount at tax time without having to set aside cash separately. You can use the IRS withholding calculator on their website to figure out if you need to adjust. It takes into account your bonus and helps determine if your current withholding will cover your total tax liability. If not, you can increase your withholding on future paychecks to make up the difference. Another option is to make estimated quarterly tax payments if you prefer to handle the extra tax obligation that way rather than adjusting payroll withholding.

I'm experiencing the exact same thing! Filed on January 29th and my transcript looks identical to yours - all zeros, "Return Not Present" message, blank fields everywhere. It's been driving me crazy checking every day but after reading these responses I feel so much better knowing it's normal. The IRS processing times are definitely longer than usual this year. I called their automated line yesterday and it said they're experiencing higher than normal volume and returns are taking 21+ days to process. Hang in there - sounds like we just need to be patient while they work through the backlog. At least we're not alone in this waiting game! 😅

I had the exact same panic last year when I filed in early February and didn't see my return show up for almost a month! The "Return Not Present" message is honestly the worst wording they could have chosen - it makes it sound like your return disappeared into the void. What helped me was understanding that the IRS transcript system and their actual processing system are separate. Your return can be sitting in their processing queue for weeks before it ever shows up on the transcript. The transcript basically just reflects what's been entered into their master computer system, not what they've actually received. Since you filed electronically on Jan 31st, you're still well within the normal processing window. The IRS is probably drowning in returns right now since that's peak filing time. I'd honestly stop checking the transcript daily (easier said than done, I know!) and maybe check once a week instead. Your return is almost certainly fine - just stuck in the processing backlog like everyone else's. The anxiety is real but try not to stress too much about it! 🙂

Don't forget that US Social Security benefits paid to non-residents also fall into this middle category! If you worked in the US in the past but now live abroad, your Social Security payments are US-sourced income not effectively connected with a trade or business. These are generally subject to 30% withholding unless your country has a tax treaty with better terms. For example, Canada's treaty makes US Social Security completely exempt from US tax for Canadian residents.

This is such a helpful thread! I've been struggling with this exact issue as a non-resident. One thing that really helped me understand the distinction was thinking about it in terms of "passive" vs "active" income. The middle category (US-sourced income NOT effectively connected with a US trade or business) is essentially passive income - you're not actively working or conducting business in the US to earn it. Examples include: - Bank interest from US accounts - Dividends from US stocks in your investment portfolio - Capital gains from selling US securities - Rental income from a property you own but don't actively manage - Lottery or gambling winnings in the US - Annuity payments from US sources The key test is whether you have a "US trade or business." Simply owning investments or property doesn't create a trade or business - you need to be actively engaged in commercial activities with some regularity and continuity in the US. So if you're sitting in Tokyo and receive Apple dividends, that's passive US-sourced income taxed at 30% (or your treaty rate). But if you're flying to New York every month to actively manage a trading business, that same investment income might be "effectively connected" and taxed at regular US rates.

I had cycle code 20240505 on my transcript last month. My account updated exactly on February 1st (Thursday night/Friday morning). Then again on February 8th. My direct deposit hit my account on February 14th. The Thursday cycle pattern held true throughout the entire process. I've been tracking this for years and the cycle day is remarkably consistent - it's one of the few reliable patterns in the otherwise unpredictable IRS process.

I can confirm the cycle code pattern from personal experience. Had 20240505 last year and tracked updates religiously - my transcript updated every Thursday night/Friday morning like clockwork for 8 weeks straight. The pattern was so consistent that I eventually stopped checking daily and just looked Friday mornings. One thing to add: while your main updates will follow the Thursday cycle, don't panic if you occasionally see small adjustments on other days. The big movements (like refund approval, direct deposit dates) almost always happen on your cycle day. Also, if you're in review or have any issues, those resolution updates typically still follow your cycle pattern too. The IRS may not officially document this for the public, but their internal batch processing absolutely runs on weekly cycles. Your 20240505 puts you in the Thursday group, so mark your calendar and save yourself the daily stress!

This is such a comprehensive discussion! As a financial planner who works with a lot of engaged couples, I see the marriage penalty/bonus confusion all the time. What I love about Brady's approach is that it goes beyond the oversimplified "high earners = penalty" narrative that causes so much anxiety. One area I'd love to see explored more is how retirement account contribution strategies can help mitigate penalties. For couples facing significant penalties, maximizing both 401(k) contributions ($23,000 each for 2024) plus backdoor Roth conversions can meaningfully reduce AGI and move you out of some penalty territory. I've also noticed that couples often focus too heavily on the federal penalty while ignoring state-level impacts. Some states like New York actually have larger marriage penalties than federal, while others like Florida (no state tax) make the federal penalty more tolerable. The real-world examples everyone's sharing here - healthcare workers with irregular income, tech folks with RSUs, federal employees with TSP - really highlight why generic online calculators fall short. These edge cases are actually pretty common but rarely addressed in standard tax planning resources. Would be interested to hear if anyone has experience with "tax equalization" strategies where couples actively balance their individual tax burdens even when filing jointly. Sometimes restructuring who owns what investments or timing income differently can create significant savings.

This thread has been incredibly educational! I'm getting married in 6 months and had no idea about the complexity of marriage tax penalties until reading through everyone's experiences. My fiancé and I are both teachers making around $65k each, so we're not in the super high-income brackets that seem to get hit hardest, but I'm still concerned about how our student loan payments and education credits might be affected. The point about student loan interest deduction phase-outs that @Camila Castillo raised really resonates - we're both still paying off substantial loans and losing that $5,000 combined deduction capacity could be a real hit to our budget. What I find most helpful about this discussion is seeing so many real-world examples with actual dollar amounts. It's made me realize that we probably need to do more detailed planning rather than just assuming "middle income = probably fine." The education credit impacts alone could be significant since my fiancé is finishing up a master's degree. Brady, I'd definitely be interested in testing your simulator once it's ready - seems like having a tool that accounts for education-related tax benefits would be incredibly valuable for couples in teaching/academic fields. Thanks for sparking such an informative conversation!