This is such a common and frustrating issue! I went through something similar with my employer not withholding city taxes correctly. Here's what I learned from my experience: First, definitely keep detailed records of every interaction - dates, names, what was promised, etc. This documentation becomes crucial if you need to escalate. Second, consider sending a formal written request (email works) to both your direct supervisor and HR, clearly stating that your local income tax withholding is incorrect and requesting immediate correction. Sometimes putting it in writing gets more attention than verbal requests. If they continue to drag their feet, you absolutely should make quarterly estimated payments to your local tax authority. It's much better to stay current than deal with penalties and interest later. Most local tax departments have online payment systems that make this pretty straightforward. One thing that worked for me was calculating the exact dollar amount I was losing each pay period and presenting that to HR as a "this is costing me X dollars every two weeks" - sometimes putting a specific dollar figure on it helps them understand the urgency from your perspective. Don't give up! You have every right to have your taxes withheld correctly, and there are definitely ways to get this resolved.

I went through this exact same frustration a couple years ago! What finally worked for me was escalating beyond just HR to the actual payroll department manager or finance director. Sometimes HR doesn't have the technical knowledge to fix payroll system issues, but the people who actually run payroll do. Here's what I'd suggest: Send one final email to HR with a clear deadline (like "Please confirm this will be resolved by [specific date]") and copy your supervisor. If that doesn't work within your stated timeframe, reach out directly to whoever manages payroll operations at your company. In the meantime, definitely start setting aside that 2.3% yourself, but consider opening a separate high-yield savings account just for this purpose. That way the money earns a little interest while you're waiting, and it's completely separate so you won't accidentally spend it. Also, when you do get this resolved, make sure to ask them to calculate and withhold the back-taxes they missed from previous pay periods. You shouldn't have to chase them for that too!

How does everyone track the 74% rental vs 26% personal use split accurately? I'm using a spreadsheet but it's getting super confusing with all the different categories of expenses.

Just went through this exact scenario last year! One thing that really helped me was creating a detailed timeline of when the property transitioned from personal to rental use. I marked the exact date I moved out as my primary residence versus when it became available for rent - these can be different dates and it matters for your calculations. Also, don't forget about the "de minimis safe harbor" rule if you have small repairs during the transition. Items under $2,500 can often be fully deducted in the year incurred rather than depreciated, which can be beneficial for expenses incurred while preparing the property for rental. For your 74%/26% split, make sure you're using the right method - some expenses get allocated based on time (like utilities), while others might need to be allocated based on square footage if you're dealing with mixed-use spaces. The IRS is pretty specific about which allocation method to use for different types of expenses.

Don't forget to document EVERYTHING if you're claiming a partial exemption. We sold our house 4 months short of the 2-year mark due to a family health emergency, and the IRS initially questioned our exemption. What saved us was having thorough documentation: doctor's letters explaining the necessity of the move, correspondence showing when we made the decision, and a clear timeline of events. We also kept all receipts for home improvements to increase our cost basis. Also, TurboTax has a specific section for calculating partial exemptions that was actually pretty helpful for us. We ended up paying some capital gains tax but much less than we would have without the partial exemption.

Another option to explore is the "safe harbor" test for unforeseen circumstances. The IRS specifically lists certain situations that automatically qualify, including: - Death of a family member - Divorce or legal separation - Multiple births from the same pregnancy - Becoming eligible for unemployment compensation - Change in employment that leaves you unable to pay housing costs The "multiple births" provision might be relevant if you're having twins! Also, if the cost of living increase has genuinely made your current housing unaffordable (especially with childcare costs), you might qualify under the unemployment/inability to pay provision. I'd strongly recommend getting a consultation with a tax professional who specializes in real estate transactions before making your final decision. The potential tax savings from finding the right exemption could easily pay for professional advice, and they can help you document your case properly if you do qualify for a partial exemption. Given your timeline and the amounts involved, this is definitely worth professional guidance rather than trying to navigate it alone.

Just wanted to add something important: make sure whatever software you use understands the "Substantial Presence Test" for F1 students! This determines whether you file as a resident or nonresident alien for tax purposes. Generally, F1 students are considered nonresident aliens for the first 5 calendar years in the US, which means you need software that can handle Form 1040-NR, not the regular 1040 that most free software supports. I made this mistake my first year and had to refile everything because I used regular free software that didn't ask about my visa status.

Hey Malik! I totally feel your pain - the tax situation for F1 students is confusing and most of us learn the hard way. Since you're in your second year, you're still considered a nonresident alien for tax purposes, which means you'll need Form 1040-NR instead of the regular 1040. For your situation with just campus employment and a stipend, I'd strongly recommend checking out your university's international student services office first. Many schools have partnerships with tax software companies or offer free VITA services specifically for international students. Michigan has some good programs for this. If you need to go the online route, make sure whatever you use specifically mentions "nonresident alien" or "F1 visa" support - regular free file options won't work for you. Don't forget you'll need to file Form 8843 regardless of your income level, and with your W-2, you'll likely get a refund since they probably over-withheld on your taxes. Also, since you didn't file last year, you might want to consider filing that return too if you had any income - there's no penalty for filing late when you're owed a refund, and you have up to 3 years to claim it!

Has anyone used FreeTaxUSA for reporting Twitch income? TurboTax keeps trying to charge me for the self-employment version even though I just need to file a Schedule E for royalties.

This is exactly the kind of confusion I had when I first started getting 1099s from my side income! The distinction between royalties and self-employment income is really important and can save you money. Just to add to what others have said - since you're operating at a net loss, make sure you keep detailed records of all your streaming-related expenses (equipment, software subscriptions, games, internet upgrades, etc.). Even though you're reporting on Schedule E for the royalty income, you can still deduct ordinary and necessary expenses against that income. Also, don't let TurboTax upsell you into the self-employment package if you don't need it! The basic version should handle Schedule E just fine. If your tax software is pushing you toward Schedule C, it's probably because it's seeing "1099" and assuming it's all self-employment income, but as others have explained, the 1099-MISC Box 2 royalties are different. One last tip - keep good documentation about the hobby vs. business question. The IRS looks at factors like whether you're trying to make a profit, how much time you spend on it, and whether you have the expertise to make it profitable. Since you mentioned you're still in the "costs money" phase, documenting your efforts to grow the channel and become profitable could be helpful if this ever comes up.