I just went through this exact same transition a few weeks ago and want to echo what everyone else is saying - you're definitely not alone in finding the new W-4 confusing! The best advice I can give is to resist the urge to overthink it. I spent hours trying to figure out how to "translate" my old 1 allowance setup to the new form, when the reality is much simpler. Just fill out Step 1 (personal info) and Step 5 (signature), leave everything else blank, and you'll get standard withholding that should be very similar to your old approach. The key insight that helped me was understanding that the new form is designed to work well for most people WITHOUT any manual adjustments. The old allowances system required you to make educated guesses, but the new system's default calculations are much more accurate for straightforward situations like yours. After my first paycheck, I was pleasantly surprised to see that my federal withholding was almost exactly where I wanted it to be. No stress, no complicated calculations, just simple and effective. If you find after a few pay periods that you need small adjustments, you can always submit a new W-4 with changes to Step 4(c), but honestly you probably won't need to. Trust the system - it really does work better than the old one once you stop trying to force it to work like allowances did!

I'm dealing with the exact same W-4 confusion as a new community member here! Just started a new job and was completely baffled by the lack of allowances section. Reading through all these responses has been incredibly helpful - it's reassuring to know this confusion is so widespread. Based on everyone's advice, I'm going to go with the simple approach: just fill out Steps 1 and 5, leaving the middle sections blank. It makes sense that the new system is designed to be more accurate without needing the manual adjustments we used to make with allowances. One thing I'm curious about - for those who have been through this transition, how did you handle the anxiety of not knowing if your withholding would be right? I keep second-guessing myself and wanting to add something to Step 4(c) just to feel like I have more control over the outcome. But from what I'm reading, it sounds like the "set it and forget it" approach with just the basics is actually the smarter move for straightforward situations like mine. Thanks to everyone who shared their experiences - this thread has been a lifesaver for navigating this confusing form change!

Has anyone tried using the IRS online account portal to respond to notices? I was able to upload documents directly for an audit last year without dealing with mail or fax. Not sure if it works for all types of notices though.

I just went through this exact situation last month with a 1098-T response! I ended up choosing FAX and I'm glad I did. Here's what worked for me: I went to a UPS Store (they have reliable fax machines) and made sure to get a transmission confirmation report that shows the date, time, and confirmation that all pages went through successfully. The key thing I learned is to call the fax number first to make sure it's working - some IRS fax lines go down periodically for maintenance. One tip that saved me: I included a cover sheet with my SSN, notice number, and contact phone number on every single page of the document, not just the cover sheet. This way if pages get separated in their system, each page can still be matched to my case. The whole process took about 15 minutes at UPS Store (cost me $2 per page), and I got confirmation from the IRS three weeks later that they received it and processed my amended return. My refund was issued about 6 weeks after that. Since you're expecting a $4K refund, I'd definitely recommend the FAX route for speed, but make absolutely sure you keep that transmission confirmation as your proof of timely filing!

I completely understand your confusion - this is actually a really common question that trips people up! Everyone here is giving you correct advice. The key thing to remember is that a 401k loan is NOT a distribution or withdrawal. You're literally borrowing your own money from your account and paying it back with interest (which goes back to your account). Since it's not income, there's no taxable event and therefore no 1099-R form needed. TurboTax asks those 1099-R questions to everyone because they want to make sure people don't forget about any retirement distributions they might have received during the year. It's just a standard screening question, not an indication that you should have received one. As long as you're making your loan payments on schedule (which it sounds like you are), you're all good. The only time you'd need to worry about tax implications is if you defaulted on the loan - then the unpaid balance would become a taxable distribution. Your $12,000 loan for home repairs was a smart move to avoid high credit card interest rates, and you handled it correctly from a tax perspective. Don't let the software's persistent questioning make you second-guess yourself!

You've gotten excellent advice here! Just to add one more perspective - I work in HR and deal with 401k questions all the time. What you're experiencing is totally normal and Empower is 100% correct. The confusion often comes from people not realizing there's a big difference between a 401k LOAN and a 401k WITHDRAWAL/DISTRIBUTION. With a loan, you're essentially your own bank - the money never actually leaves the retirement system, you're just temporarily accessing it with a promise to pay it back with interest. Since no money is actually distributed out of the retirement system, there's no taxable event and therefore no 1099-R form. The IRS only cares about money that permanently leaves tax-advantaged accounts, not money that's temporarily borrowed and being repaid. TurboTax's persistent questioning is just their way of making sure people don't accidentally forget about any actual distributions they might have received. It's better for them to ask too many times than to let someone miss reporting actual taxable income. You made a smart financial decision using your 401k loan instead of credit cards for those home repairs. Keep making those payments on schedule and you'll have no tax issues whatsoever!

fyi i didnt report my etsy income last year (about 5k) and nothing happened. the irs has bigger fish to fry than small sellers. just sayin

I'm a tax preparer and see this situation ALL the time. You absolutely need to report that $4400 even without a 1099-K. The IRS is very clear that ALL income must be reported regardless of whether you receive tax documents. Since you're making handmade jewelry specifically to sell (not just decluttering personal items), this is definitely business income that goes on Schedule C. The silver lining is you can deduct business expenses like materials, tools, packaging, Etsy fees, payment processing fees, and even a portion of your home if you have a dedicated workspace. Don't wait for 1099-K forms that may never come - the reporting thresholds are much higher than your income level. File your taxes with the income included. It's much better to be proactive than to have the IRS find unreported income later through their increasingly sophisticated data matching systems. Keep detailed records going forward - receipts, bank statements, payment app summaries. This protects you and maximizes your deductions!

As someone who recently went through a similar inherited IRA situation, I can't stress enough how important it is to get this fixed immediately. Your advisor made a fundamental error that could have serious tax consequences. When my grandmother passed and left me her IRA, I initially worked with an advisor who almost made the same mistake. Fortunately, I caught it before the transfer was completed after doing my own research. Non-spouse beneficiaries simply cannot roll inherited IRAs into their own accounts - this is IRA inheritance 101. The fact that your account is now labeled as a "traditional IRA" instead of "inherited IRA" is a major red flag. This incorrect rollover could be treated by the IRS as a taxable distribution of the entire inherited amount, potentially creating a massive tax bill for you this year. Here's what worked for me when I had to correct a smaller error with my inherited account: - Contact both institutions immediately and use the phrase "administrative rollover error" - Reference Revenue Procedure 2016-47 which allows self-certification for rollover corrections - Get everything in writing, especially acknowledgment that this was advisor/institutional error - Request expedited processing since this affects your current tax year Don't let your advisor minimize this or claim it's "not a big deal." This is exactly the kind of mistake that can cost people tens of thousands in unexpected taxes. The good news is that it's fixable if you act quickly and persistently. Good luck - you've got this!

This is exactly the kind of situation that makes my blood boil - advisors who don't know basic inherited IRA rules but act like experts! Your advisor made a fundamental error that could cost you thousands in taxes. The silver lining is that this mistake is fixable, but you need to move fast. I went through something similar when my uncle's advisor tried to roll his inherited 401k into a regular IRA. Here's what saved me: First, call both financial institutions TODAY and specifically ask for their "retirement account corrections department" or "IRA specialist." Don't waste time with general customer service. Tell them you need to process a "Revenue Procedure 2016-47 correction for an administrative rollover error." Second, document everything. Get your advisor's mistake acknowledged in writing. If they try to downplay it or blame you, that's a huge red flag about their competence. Third, the correct account title should read something like "Andrew Pinnock as Beneficiary of [Father's Name] IRA" - make sure they get this exactly right when they fix it. You mentioned you were fine following the 10-year rule, which tells me you understand inherited IRA basics better than your advisor apparently does. Trust your instincts here and don't let them convince you this "isn't a big deal." Most institutions will cooperate once they realize the liability exposure from giving incorrect advice. If yours doesn't, escalate to their compliance department immediately.