Can anyone tell me which line on Form 1040 I would use to claim alimony paid? I've got a similar situation but my divorce was finalized in 2017, before those 2018 law changes everyone's talking about.

Based on your situation, you won't be able to deduct the $78,500 as alimony on your tax return for two key reasons: 1. **Post-2018 divorce rules**: Since your divorce was finalized in July 2024, it falls under the Tax Cuts and Jobs Act changes. For divorces finalized after December 31, 2018, alimony payments are no longer deductible by the payer (and not taxable income to the recipient). 2. **QDRO transfer mechanics**: When you transfer 401k funds via a QDRO, you're not actually taking a distribution yourself. The QDRO legally transfers both the assets AND the tax liability to your ex-spouse. She becomes responsible for any taxes when she withdraws the money (unless she rolls it into her own retirement account). The good news is that you also don't have to report this as a taxable distribution on your return, and you avoided the 10% early withdrawal penalty that would have applied if you had taken the money out yourself and then paid her. Your 401k administrator should have handled all the proper reporting to show this as a non-taxable QDRO transfer for you. Just keep the QDRO documentation with your tax records, but you don't need to file anything special with your return. This is actually a tax-efficient way to handle the settlement compared to taking a distribution yourself and paying her directly!

One important detail that hasn't been mentioned yet - since you're starting a new job in November 2024, make sure to account for any withholding that already happened earlier this year from your previous employer. The W4 calculator assumes you're working the full year at that salary level. If you had a different job earlier in 2024 with different withholding amounts, you'll need to manually adjust the calculator inputs to reflect your actual year-to-date withholding and income. Otherwise, you might end up over-withholding for the remaining paychecks. Also, for your $15k side gig income - if this is 1099 work, remember you'll also owe self-employment tax (Social Security and Medicare) on that income, which is about 15.3%. The withholding calculator accounts for income tax on that $15k, but not the additional self-employment tax. You might need to withhold even more than the calculator suggests, or make quarterly estimated payments to cover that SE tax portion.

Adding to the excellent points about self-employment tax - there's another consideration for your W4 withholding that might help explain the difference between 2024 and 2025 calculations. The IRS withholding calculator for 2025 is likely factoring in the scheduled expiration of several TCJA provisions, including changes to the child tax credit, earned income tax credit, and other credits that could affect your overall tax liability. This might be why you're seeing a lower additional withholding recommendation for 2025 ($180 vs $250). However, since you mentioned owing $1,200 last year, I'd strongly recommend being conservative with your withholding. Consider using the higher 2024 amount ($250) even when you switch to 2025 calculations next year, at least until we have more clarity on what tax legislation Congress will actually pass. For your immediate situation starting in November, you'll definitely want to increase that per-paycheck withholding significantly since you'll only have a few paychecks left in 2024. You might also want to consider making a fourth-quarter estimated payment in January 2025 to cover any shortfall from your side gig income, especially the self-employment tax portion that others mentioned.

11 Has anyone had issues with the "born alive" requirement? My twins were born December 24th, but one had complications and sadly passed away two days later. The hospital issued a birth certificate AND a death certificate. Can I still claim both as dependents for 2021?

Congratulations on your new baby! Yes, you can absolutely claim your December 21st baby as a dependent for the entire 2021 tax year. The IRS has a simple rule: if a child is born at any point during the tax year, they can be claimed as a dependent for the full year. You'll be eligible for the full $3,600 Child Tax Credit for 2021 - there's no proration based on how many days your baby was actually here. And you're correct about the $1,400 Economic Impact Payment - since your baby wasn't born when those went out, you'll claim it as the Recovery Rebate Credit on your 2021 tax return. Regarding the SSN and birth certificate timing - you'll need your baby's Social Security Number to actually file your tax return and claim her as a dependent. The good news is that the date the documents are issued doesn't matter, only her actual birth date. So even if her SSN card doesn't arrive until February 2022, you can still claim her on your 2021 taxes as long as you have the number before you file. If you're getting close to the filing deadline and still don't have the SSN, you can always file for an extension to give yourself more time. But once you have that number, you're all set to claim all the benefits for your little one!

Has your friend contacted QuickBooks Payroll support directly? I had a similar issue and discovered that QuickBooks actually has a tax resolution team specifically for these situations. Since he's been using QuickBooks Payroll, they should have records of all the calculated taxes even if they weren't paid. Their tax specialists can generate all the necessary documentation showing what's owed for each period, which makes setting up a payment plan with the IRS much easier. In my case, they even helped connect me with the right IRS department and provided guidance on which forms to file. Might be worth a call to them before trying some of the more expensive options.

I've been following this thread and wanted to add one more option that hasn't been mentioned yet - your friend can also make federal payroll tax payments by wire transfer directly to the IRS Treasury account. This completely bypasses EFTPS and the PIN requirement. He'll need to contact his bank's wire department and provide them with the IRS Treasury routing number (which varies by region) and account number, along with his EIN and tax period information. Most banks can process same-day wire transfers for tax payments, though there's usually a fee ($15-30). This is actually the fastest way to get payments posted to his account while dealing with the PIN situation. The IRS processes wire transfers within 1-2 business days, and it immediately stops additional penalties from accruing on the paid amounts. For the $45K total, I'd also strongly recommend he request penalty abatement under "reasonable cause" provisions. The fact that he's been actively trying to resolve this since January and the IRS hasn't processed his address change or PIN request should qualify. Form 843 is what he needs, and he should include documentation of all his attempts to contact the IRS and resolve the issue. Given the amount involved, the multi-pronged approach several people mentioned makes sense - wire transfer for immediate payments, Taxpayer Advocate Service for the systemic issues, and penalty abatement for the accumulated charges.

Thank you all for this incredibly helpful discussion! As someone new to navigating grad school finances, this has been so educational. I really appreciate everyone sharing their experiences and tools. A couple follow-up questions based on what I've learned here: 1. Since my son will be getting a W-2 for his research assistant position, should we expect any federal or state taxes to already be withheld from his stipend payments, or will he need to make quarterly estimated payments? 2. For the record-keeping that several people mentioned - what specific documents should we be sure to save beyond the W-2? Should we request something in writing from the university specifically documenting the tuition waiver amount and its tax-free status? 3. His program is 5 years, so we want to make sure we're setting him up for success long-term. Are there any common mistakes grad students make in years 2-5 that we should be aware of now? This community has been amazing - I feel so much more confident about helping him navigate this properly now. The tools mentioned (taxr.ai and Claimyr) sound like great backup options if we run into complications down the road.

One thing I haven't seen mentioned yet is the importance of understanding how summer funding might be handled differently. Many grad programs have different funding structures for summer months - sometimes it's research assistant wages (W-2), sometimes it's fellowship money (1099 or no form at all), and sometimes students are on their own to find funding. I learned this the hard way when my summer research stipend was processed as a fellowship rather than wages, which meant no taxes were withheld at all. I ended up with a surprise tax bill the following year because I wasn't prepared for the different treatment. If your son's program has summer funding, I'd recommend asking the graduate program coordinator or financial aid office specifically how summer stipends are classified and reported. This way you can plan ahead for any potential tax differences rather than being caught off guard later. Some students end up needing to make quarterly estimated payments during summer months if taxes aren't being withheld from fellowship-type funding. Also, international students have completely different tax rules that can be even more complex, but I'm assuming your son is a US citizen/resident based on your post. Just wanted to mention it in case it's relevant for anyone else reading this thread!