Great thread everyone! I'm also dealing with this transition from college to first "real job" and the tax stuff is definitely confusing. One thing that helped me understand the new W4 was realizing that the old allowances system was basically just a rough way to estimate your tax situation, while the new form tries to be more precise about your actual circumstances. For what it's worth, I ended up in a similar situation as Samuel - filled out just the basic info initially, then monitored my first few paychecks. Turned out my withholding was pretty much spot on without any additional adjustments needed. The new system really does seem to work better for straightforward situations like ours. Also wanted to mention that if your employer has an HR department, they're usually pretty good at explaining how the new W4 works since they've had to help tons of employees through this same confusion. Mine even had a little cheat sheet that explained the differences between old and new forms, which was super helpful. Worth asking if yours has something similar!

As a tax professional who's helped dozens of clients transition to the new W4, I wanted to add some clarity to this discussion. The confusion about "claiming yourself" is completely understandable because the terminology changed so dramatically. Here's what's really happening: On the old W4, that "1" allowance you claimed for yourself was essentially telling your employer to reduce your tax withholding by a specific amount (roughly $4,300 worth of income in 2019). The new W4 eliminates this allowance system entirely and instead calculates withholding based on actual tax law. For recent graduates in your situation (single, one job, no dependents), the new system will typically withhold at the 12% federal tax bracket after accounting for the standard deduction. This often results in withholding that's very similar to what you would have gotten claiming "2" allowances on the old system. One important note: if you have student loan interest, you might want to complete Step 4(b) to reduce your withholding slightly, since that interest is tax-deductible. Most new graduates overlook this and end up with larger refunds than necessary. The bottom line is that the new system is actually more accurate for most people, even though the transition feels confusing!

I went through almost the exact same situation last year! Accidentally sent my entire tax payment (federal + state) to the IRS instead of splitting it. Here's what worked for me: 1. File Form 843 immediately - don't wait. The sooner you submit it, the sooner they can process your refund. 2. Include a detailed explanation letter with your form explaining exactly what happened, including the date of payment, amount, and payment method (pay1040.com in your case). 3. Keep copies of EVERYTHING - your payment confirmation from pay1040.com, bank statements showing the transaction, etc. 4. You can also try calling the IRS at 1-800-829-1040, but be prepared for long hold times. Sometimes they can process overpayment refunds over the phone if it's straightforward. The good news is that this is actually a pretty common mistake, so the IRS is used to handling these situations. I got my overpayment back in about 6 weeks. And definitely pay your state taxes ASAP even if you have to put it on a credit card temporarily - the interest on a card will be way less than state penalties and interest.

I've been through this exact situation! The most important thing is to act quickly on both fronts - getting your IRS refund AND paying your state taxes to avoid penalties. For the IRS overpayment, Form 843 is definitely the right form (not 8849 as someone mentioned earlier). Make sure to include: - Exact payment date and amount - Clear explanation that you accidentally paid state taxes to the IRS - Payment confirmation from pay1040.com - Your contact information Pro tip: You can actually request expedited processing if you're experiencing financial hardship due to the overpayment. Include a brief hardship letter explaining your situation. While you're waiting for the refund (typically 4-8 weeks), definitely pay your state taxes immediately even if you have to borrow the money temporarily. State penalties and interest rates are usually much higher than what you'd pay on a short-term loan or credit card. You can also try calling the IRS Taxpayer Advocate Service at 1-877-777-4778 if you're experiencing significant financial hardship. They sometimes can expedite overpayment refunds in genuine hardship cases. Good luck - this mistake happens more often than you'd think, so the IRS is used to processing these requests!

Just wondering - does anyone know if using TurboTax or another DIY software is reasonable for filing trust returns? My family is in a similar situation and we're trying to save on preparation fees.

I've been dealing with trust taxation for several years now, and I'd strongly recommend getting clarity on whether this is actually a grantor trust or a non-grantor trust before making any filing decisions. The fact that it was created when your dad's mom passed away suggests it might be an inherited irrevocable trust, which would typically be a non-grantor trust requiring its own Form 1041 filing. If it IS a grantor trust, then yes, everything flows to your dad's personal return regardless of whether you file a separate informational return. But if it's a non-grantor trust (more likely given the circumstances), then it must file separately and the trust itself pays taxes on retained income. The potential tax savings your dad's preparer mentioned could make more sense in a non-grantor trust scenario, where the trust can deduct administrative expenses against its own income. I'd suggest having the attorney review the trust document to confirm the grantor status before proceeding with any filing strategy.

Has anyone successfully used TurboTax for handling RSUs? I've been getting different answers each year and I'm not sure if it's calculating everything correctly.

This is such a common problem with RSU taxation! I went through the exact same issue and found that many companies struggle with properly reporting RSU withholding on W-2s, especially when vesting happens near year-end. One thing that helped me was creating a simple spreadsheet tracking each vesting event throughout the year. For each vest, I recorded: the vesting date, number of shares that vested, FMV per share on that date, number of shares withheld for taxes, and the dollar value of those withheld shares. At year-end, I could easily calculate the total tax withholding that should appear in Box 2 of my W-2. Also, don't overlook Box 12 on your W-2 - sometimes companies report additional information about RSU withholding there with codes like "V" or other employer-specific codes. And definitely check if your company provides a supplemental RSU tax statement - mine sends one each January that breaks down all the vesting events and associated tax implications for the year. The fact that you've had consistent tax bills for 3 years strongly suggests there's a systematic reporting issue. I'd recommend documenting everything before approaching HR so you can present them with specific numbers rather than just a general concern.

Just be aware that the TTS requirements are not explicitly defined in tax code, so it's always somewhat subjective. The courts have established guidelines through various cases, but there's no guaranteed formula. I thought I qualified for TTS with my forex and crypto trading (200+ trades monthly), but still got challenged during an audit. What saved me was having documented my trading strategy, maintaining separate accounts for trading vs investing, and keeping time logs showing I spent 30+ hours weekly on my trading business. For anyone serious about trader status, I highly recommend having a specialized tax professional review your specific situation rather than relying solely on general advice or your own research.

As someone who went through the TTS qualification process for crypto futures trading, I wanted to add a few practical points that might help. First, regarding your eligibility question - crypto futures absolutely can qualify for TTS. The IRS focuses on your trading pattern and business intent, not the specific instruments. I've successfully maintained TTS with a mix of crypto futures, forex, and traditional securities. The key is demonstrating substantial, regular, and continuous trading activity. One thing I learned the hard way is that documentation is everything. Beyond just tracking trades, keep detailed records of your research time, market analysis, and trading decisions. I maintain a daily trading journal that shows the business-like nature of my activities. For your friend's funds situation, I'd strongly advise against informal arrangements. Even with good intentions, this could jeopardize your TTS claim and potentially create securities law violations. The IRS might view managing others' money as investment advisory services rather than personal trading, which could disqualify you from trader status. Consider having your friend trade independently using their own accounts while you provide educational content or general market commentary (being careful not to give specific investment advice). This keeps your activities clearly separated and maintains the personal nature of your trading business. Also, don't overlook the self-employment tax implications. While TTS can help with business deductions and Section 475 elections, you may still owe SE tax on your trading profits unless you structure things properly.