Just a quick warning based on my experience with amended returns - make sure you're checking the "Where's My Amended Return" tool regularly. I waited 8 months assuming they were processing my amendment, only to discover they never received it! Apparently it got lost in the mail and I had to resubmit everything. If you don't see your amendment showing up in their system after about 3 weeks, I'd recommend calling to confirm they received it or sending a follow-up copy via certified mail. Better to be paranoid than to find out months later they never got it and you're accruing more interest and penalties!

Great advice from everyone here! I went through a similar situation last year with a filing status error (filed Married Filing Separately when I should have filed Married Filing Jointly). A few additional tips from my experience: 1. Document everything - I kept copies of all correspondence, payment confirmations, and dates. This was crucial when I had to call the IRS later. 2. Consider setting up an online account with the IRS if you haven't already. It makes tracking your amended returns much easier than relying solely on the "Where's My Amended Return" tool. 3. When you do make that payment (which I'd recommend doing sooner rather than later), make sure to include a clear memo indicating which tax years the payment is for. I initially made a payment without specifying and it got applied to the wrong year, creating more confusion. The good news is that the IRS is generally reasonable when you voluntarily correct mistakes. In my case, they waived the accuracy-related penalty entirely since I caught and corrected the error myself. The interest was unavoidable, but stopping it from accruing further by paying early saved me several hundred dollars. Hang in there - the process is slow but you're handling it the right way!

This is such a frustrating situation but you're definitely not alone! I went through something very similar at my first retail job. The combination of improper W-4 setup plus those sneaky uniform and meal plan deductions can really shock you on that first paycheck. Since you've already identified the extra deductions, definitely push back on those - especially the uniform charge. In many states, employers can't legally charge you for required work uniforms. The meal plan should definitely be optional if you didn't explicitly agree to it. For the tax withholding part, the key is getting that W-4 corrected ASAP. When you talk to your manager tomorrow, ask specifically which version of the W-4 form they use. If it's the newer 2020+ version, the IRS Tax Withholding Estimator will be your best friend for figuring out exactly what to put in each section. One thing that might help ease your stress - if you're working part-time and making under about $12,000-$13,000 for the year, you likely won't owe any federal income tax at all. That means everything being withheld for federal taxes will come back to you as a refund. Still worth fixing now though so you can actually use that money for textbooks instead of waiting until next spring! Keep us updated on how the conversation with your manager goes. Most employers are pretty understanding about fixing these new employee W-4 issues once you bring it to their attention.

I'm really glad to see how supportive everyone has been in helping you figure this out! As someone who works in payroll processing, I can confirm that what happened to you is incredibly common with first-time employees. The combination of default W-4 settings plus those automatic deductions can create a real shock. A few additional tips for your conversation with your manager tomorrow: 1. Bring a calculator and your paystub so you can work through the numbers together. Show them that $268 in total deductions on what sounds like a $350 gross pay doesn't make sense for your situation. 2. Ask to see exactly what boxes were checked on your original W-4. Sometimes during busy hiring periods, HR might have filled parts out incorrectly or made assumptions. 3. If your manager seems unsure about the tax withholding calculations, suggest they contact their payroll service provider (if they use one) or the IRS business helpline. Small business owners sometimes aren't experts on payroll tax rules. 4. Definitely push back on any deductions you didn't explicitly agree to. Keep documentation of what they agree to change. The silver lining is that this experience is teaching you to carefully review your paystubs from day one - a habit that will serve you well throughout your career! Most people don't learn to do this until much later. You're already ahead of the game by catching this and taking action.

Has anyone used a structured settlement instead of taking a lump sum? My tax guy mentioned this might help spread out the tax burden over multiple years.

Great question about EEOC settlements! I went through this exact situation about 18 months ago with a $95K settlement. Here's what I learned that might help: First, make sure your settlement agreement clearly breaks down what each portion represents - back pay, compensatory damages, punitive damages, attorney fees, etc. This is crucial for tax purposes. Back pay gets treated as W-2 wages (subject to employment taxes), while compensatory damages are taxable income but not subject to employment taxes. One key thing - if you had any documented physical symptoms from the workplace stress (ulcers, migraines, high blood pressure, etc.), those portions may qualify as tax-free under IRC Section 104(a)(2). You'll need medical documentation linking these conditions to the workplace discrimination. Also consider timing - if you're close to year-end, you might want to delay the settlement payout until January to push the tax liability into the next year, especially if you expect lower income next year. The "higher tax bracket" fear is common but remember that tax brackets are marginal - only the income above each threshold gets taxed at the higher rate, not your entire income. Still, spreading it out through installments or maximizing deductions can definitely help reduce the overall tax hit. Definitely consult with a tax professional who has experience with employment settlements - regular accountants often miss the nuances of these cases.

22 My sister told me that some states aren't following the federal extension and are still requiring taxes to be filed by April 15th. Can anyone confirm if this is true and which states are sticking with the original deadline? I live in Ohio if that helps.

This is such helpful information, thanks for sharing! I've been putting off filing because I wasn't sure about all the different deadlines. One thing I'm still confused about though - if I owe money on my 2020 taxes but can't pay the full amount by May 17th, what are my options? I know the extension covers penalties and interest until May 17th, but what happens if I still can't pay everything by then? Are there payment plan options available, or should I pay whatever I can by the deadline and then deal with penalties on the remainder?

I'm surprised nobody has asked this yet - but what tax software is your accountant using? Some programs organize the information differently. In Drake Tax software, for example, all the detail about owner payments might be in a supplemental worksheet that doesn't print with the final return unless specifically selected. Ask your accountant for the "full return with all worksheets" rather than just the filing copy. That might show more detail about how your payments were categorized.

Just wanted to add that you should also check if your accountant provided you with a "client organizer" or summary sheet that breaks down how your payments were treated. Many accountants create these internal documents that show the logic behind how owner compensation was handled, even if it doesn't appear explicitly on the tax forms themselves. Also, don't feel bad about not understanding this - the tax treatment of LLC owner payments is genuinely confusing and even some accountants don't explain it clearly. The key thing to remember is that if you're a regular LLC (not S-Corp elected), your "salary" and "draws" are treated the same way for tax purposes - they're just you taking your share of the profits, which you owe tax on whether you take the money out or not. If you're still concerned, you could always get a second opinion from another tax professional. Sometimes a fresh perspective can help clarify things your current accountant might have assumed you understood.