As someone who just went through a very similar situation, I can definitely relate to the initial panic! I had the exact same thing happen where my W2 showed a PEO (in my case, it was Trinet based in California) instead of my actual employer, even though I work remotely from Texas. What really helped me understand the situation was learning that PEOs are essentially co-employers for administrative purposes only. Your actual work location and state tax obligations don't change just because the PEO is in a different state. The key thing to focus on is boxes 15-17 on your W2 - as long as those show Indiana (which it sounds like they do based on your follow-up), you're only responsible for filing Indiana state taxes. I was worried about this for weeks until I finally filed my return with just Texas taxes despite the California PEO, and everything processed normally with no issues. The IRS and state tax agencies are very familiar with these PEO arrangements since they're becoming so common with remote work and smaller companies outsourcing HR functions. You should be completely fine filing only in Indiana as long as your state information in boxes 15-17 is correct!

I just want to echo what everyone else has said here - you're definitely not alone in this situation! As someone who works in payroll processing, I see PEO arrangements like this all the time, and they're becoming increasingly common especially for smaller companies and remote workers. The confusion is totally understandable when you first see an unfamiliar company name on your W2, but Decision HR is just handling the payroll and tax administration for your actual employer. Think of it like your employer hiring an accountant to do their books - the accountant handles the paperwork, but you still work for your original company. Since you've confirmed that Box 15 shows Indiana and Box 17 has your Indiana state withholding, you're all set to file only in Indiana. The fact that Decision HR is in Arizona is completely irrelevant to your tax obligations. I've processed thousands of these situations and have never seen anyone run into issues as long as the state information on the W2 is correct. Don't stress about it - just file your Indiana state return as you normally would. The IRS processes these PEO situations routinely and there's nothing unusual or problematic about your situation!

This is a great question that many married couples struggle with! You're absolutely right to get clarification before making any mistakes. The short answer is that you can choose either approach - making one combined quarterly payment or separate payments for each spouse. Since you file jointly, the IRS treats your tax liability as one combined amount, so they don't care how the estimated payments are structured as long as the total covers what you owe. Given that you're already comfortable with handling quarterly estimates, I'd suggest sticking with one combined payment for simplicity. Just expand your current calculation to include your wife's gig income along with yours. Use the Form 1040-ES worksheet to determine the new quarterly amount that covers both of your self-employment incomes. One key advantage you have is that your wife's W-2 withholding will actually work in your favor here. That withholding applies to your joint tax liability, so it should reduce the total amount you need to pay through quarterly estimates. You might find that your quarterly payments don't increase as much as you initially expected. Don't forget to account for self-employment tax (15.3%) on both gig incomes when doing your calculations. And remember the quarterly deadlines remain the same: January 15, April 15, June 15, and September 15. Getting this sorted out now will save you headaches later - good thinking to plan ahead!

Having been through this exact situation, I can confirm that making one combined payment is definitely the way to go for simplicity. My spouse and I both have gig income on top of our regular jobs, and we've been doing combined quarterly payments for the past two years without any issues. The key insight that saved us money was realizing that the withholding from our W-2 jobs significantly reduces the estimated tax burden. We were initially panicking about having to pay huge quarterly amounts, but it turned out our regular job withholdings covered a substantial portion of our joint tax liability. Here's what I'd recommend: Use the safe harbor rule for your first year doing this together - pay 100% of last year's total tax liability divided by 4 quarters (110% if your AGI was over $150k). This approach eliminates any guesswork about underpayment penalties while you get comfortable with the new arrangement. For making the actual payments, EFTPS.gov is great for electronic payments, or you can mail in Form 1040-ES vouchers. Just make sure whoever's name is on the payment matches your primary taxpayer on your joint return. One last tip: keep good records of both your quarterly payments and your individual gig income throughout the year. Even though you're making combined payments, you'll still need to report each spouse's self-employment income separately on Schedule C when you file.

Just to add a data point - I've been in this exact situation (work in Nevada, live in Arizona) for 3 years. I use FreeTaxUSA and it handles it perfectly. You're right that Nevada has no state income tax so you only need to file an Arizona return, but you do need to report all your income to Arizona since you're a resident. One thing nobody mentioned yet - if you spend a lot on gas for that commute, keep track of those expenses! While you can't deduct commuting expenses generally, if your employer reimburses you for any business travel (separate from commuting), that could be tax-relevant.

Great thread! I'm actually a tax preparer and wanted to clarify a few things I'm seeing in the responses. You're absolutely correct that Nevada has no state income tax, so ignore any "withholding" you think you're seeing for Nevada state taxes - that's likely something else on your paystub. Since you're an Arizona resident, you'll file a full Arizona resident return reporting ALL your income, including what you earned in Nevada. Arizona taxes you on worldwide income as a resident. A few practical tips: 1) Consider asking your employer to withhold additional federal taxes that you can apply toward your Arizona state tax liability, 2) You might want to make estimated quarterly payments to Arizona to avoid underpayment penalties, and 3) Keep excellent records of your work location if you ever work from home in Arizona - those days create Arizona-sourced income. The standard tax software like TurboTax, H&R Block, or FreeTaxUSA can absolutely handle this situation. You don't need a professional unless you have other complicating factors. This is actually one of the simpler multi-state scenarios since Nevada has no income tax!

This is such a common issue that causes unnecessary panic every tax season! I had the exact same problem with TurboTax last year - the summary screen showed $0.00 for my HSA contributions even though I had contributed the full amount. What I learned after digging into it is that TurboTax's summary screens are notoriously unreliable for showing the actual tax impact of various deductions. The software often displays $0.00 when it's already accounted for the benefit elsewhere in your return, or when there are display bugs in the interface. The key is to ignore those summary screens entirely and focus on the actual tax forms. Go straight to Form 8889 in the Forms section - that's where your HSA contributions are officially reported to the IRS. Then check Schedule 1, line 25 to see if your HSA deduction is properly reflected there. If those numbers look right, you're good to go regardless of what the summary screen says. I've found that TurboTax's interview process works fine for gathering information, but their summary and "tax breaks" displays are often misleading or incomplete. Always verify the actual forms before filing!

I'm dealing with something similar right now! Just wanted to add that if you're still seeing weird display issues after checking the actual forms, try refreshing your TurboTax session or even logging out and back in. Sometimes the summary screens get stuck showing old data even after you've made corrections. I had a situation where I fixed the double-entry issue that others mentioned (where I'd entered HSA contributions in both the W-2 section and separately), but the tax breaks screen kept showing $0.00 for hours afterward. A simple logout/login fixed the display issue and suddenly showed the correct tax benefit amount. Also worth noting - if you're filing jointly and your spouse also has HSA contributions, make sure you're not accidentally combining them in the wrong sections. TurboTax sometimes gets confused when there are multiple HSA accounts in a household. Each person's contributions need to be entered separately even on a joint return.

I'm new to this community but dealing with the exact same situation! I'm 64 and just filed for Social Security last month, with a 457b from my county job that I need to start tapping into soon. Reading through all these responses has been incredibly educational - I had no idea about the timing strategy for the year you reach full retirement age, or that Roth vs traditional 457b doesn't matter for the earnings test. The systematic withdrawal plan idea sounds perfect for my situation too. One thing I'm curious about that I haven't seen addressed - if you're married and your spouse is also receiving Social Security, do their 457b distributions affect YOUR benefits at all? Or is the earnings test calculated completely individually? My husband is 66 and already at full retirement age, but he's considering starting withdrawals from his 457b plan too. I want to make sure his decisions don't accidentally impact my benefit calculations while I'm still under the earnings limit. Thanks to everyone who's shared their real experiences here. It's so much more helpful than the generic information you find on government websites!

I'm 65 and went through this same situation last year - yes, 457b distributions definitely count as income for the Social Security earnings test when you're taking benefits before full retirement age. What really helped me was calling my 457b administrator to ask about setting up quarterly distributions instead of annual lump sums. This way I could better control my timing and stay under the $21,840 limit (for 2025). One thing that surprised me was learning that the month you receive the distribution matters, not when you request it. So if you submit a withdrawal request in December but the check doesn't arrive until January, it counts toward the next year's earnings limit. This timing detail saved me from accidentally going over the limit in my first year of collecting Social Security. Also, keep really good records of exactly when each distribution hits your bank account. The Social Security Administration will eventually cross-check this with your tax returns, so having documentation helps avoid any confusion about which year the income should be counted in. I use a simple calendar to mark distribution dates and running totals throughout the year.