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Has anyone used TurboTax for reporting both types of mileage? I'm in a similar situation with coaching and wondering if it handles the split between charitable and business miles well.
I used TurboTax last year for this exact situation. It does handle both types of mileage but it doesn't prompt you to separate them very clearly. You have to be careful to enter the charitable miles in the deductions & credits section under charitable contributions, and the business miles under the self-employment/1099 income section. If you're not paying attention, you might put all miles in one place.
Just wanted to add something important that hasn't been mentioned yet - make sure you're only deducting the miles from your home to the sports activities, not any personal errands you might combine with those trips. The IRS is pretty strict about this. For example, if you drive from home to practice (deductible), then stop at the grocery store on the way back (personal), you can only claim the home-to-practice portion. I learned this the hard way during an audit a few years back. Also, keep receipts for any tolls or parking fees related to these trips - those are deductible too in addition to the mileage. For your paid coaching position, these would go on Schedule C along with your business miles. For volunteer activities, they'd be additional charitable deductions if you're itemizing. One more tip: consider using a mileage tracking app like MileIQ or Everlance. They use GPS to automatically log your trips and let you categorize them as business, charitable, or personal. Much more reliable than trying to recreate your logs from memory later.
Don't forget that you MUST continue making your scheduled payments even after they take your refund. The refund offset doesn't replace your monthly payments - it just reduces the overall balance. Missing a payment could cause your installment agreement to default.
Thanks for this reminder - I might have assumed I could skip a payment or two after they take the refund.
I'm sorry you're dealing with this stress! Unfortunately, yes, the IRS will automatically take your refund even with a payment plan in place. The Treasury Offset Program runs separately from installment agreements. However, there are a couple of silver linings: 1) Your total debt will be reduced by $3,800, which means less interest accruing over time, and 2) You can call the IRS after the offset to request a recalculation of your payment plan based on the new lower balance - this might reduce your monthly payment from $275 to something more manageable. Also, for future years, consider adjusting your withholding so you don't get large refunds that can be seized. I know it doesn't help your immediate car and medical bill situation, but at least you'll be debt-free faster!
Has anyone had success claiming WOTC for long-term unemployment recipients? I'm finding it really hard to get proper documentation proving they've been unemployed for 27+ weeks. What specifically counts as proof?
I've done it successfully. You need a letter from the state unemployment office showing the benefits history, or if they weren't receiving benefits, you can use a self-attestation form plus any documentation showing they were actively looking for work (job application records, emails with recruiters, etc).
Thanks for the info! I didn't realize self-attestation could be used if they weren't receiving benefits. That makes it a lot easier. I'll check with our state workforce agency about the proper forms.
Just wanted to add some practical advice from someone who's been claiming WOTC for about 3 years now. The biggest mistake I see small business owners make is not asking the right questions during the hiring process. You can't just assume someone qualifies - you need to actually ask potential hires about their veteran status, unemployment history, SNAP benefits, etc. I created a simple questionnaire that I have all candidates fill out that covers the main target groups. It's not invasive, just straightforward questions like "Are you a veteran?" and "Have you been unemployed for 6+ months?" Also, keep really good records! The IRS can audit these credits, so document everything. I keep a file for each WOTC employee with their original application, the 8850 form, certification from the state, and all supporting docs. It's saved me headaches during audits. One more tip - don't forget about the credit for hiring people from rural renewal counties. It's one of the lesser-known target groups but if your area qualifies, it can apply to a lot more potential hires than you'd think.
Something similar happened to me! Check if you accidentally checked the box that says "Multiple Jobs or Spouse Works" on BOTH W-4 forms. You're only supposed to check it on ONE form, usually the higher-paying job. If you check it on both, they both reduce the withholding assuming the other job is withholding more.
This happened to my brother too. If you check that box on both forms, each employer thinks the other one is handling most of the withholding. It's counterintuitive but checking that box actually LOWERS the withholding from that job because it assumes withholding is happening elsewhere.
This is a really common issue that catches a lot of people off guard! The main problem is that when you have multiple jobs, each employer's payroll system calculates your withholding as if that's your only source of income. So they're both using tax tables based on lower annual earnings than what you're actually making combined. Here's what's likely happening: Your first job sees $45,500 annual income ($1,750 Ć 26), and your second job sees $54,600 ($2,100 Ć 26). For a single person or head of household with 2 dependents at those individual income levels, the standard deduction and child tax credits would significantly reduce or eliminate federal tax liability. But your actual combined income of about $100,100 puts you in a much higher tax situation. The fix is definitely updating your W-4 forms using the multiple jobs worksheet or the IRS withholding calculator. I'd recommend: 1. Use the IRS Tax Withholding Estimator online first 2. Fill out Step 2 on both W-4 forms following the calculator's guidance 3. Consider having extra amount withheld from the higher-paying job to catch up Don't wait too long to fix this - the sooner you update your withholding, the less likely you'll face underpayment penalties next year!
Beth Ford
Is it possible you hit the paycheck limit for your pay period? Sometimes if your gross pay is above the upper limit or below the lower limit for FICA taxes in your specific pay period, you might not see FICA withheld. When you increased your withholding did your net pay go down significantly? Just trying to understand the full picture.
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Morita Montoya
ā¢That's not how FICA taxes work. There's no "lower limit" where you stop paying them. And the annual upper limit for Social Security is $168,600 for 2025 - OP wouldn't hit that on a $47k salary. Medicare tax has no upper limit at all. Both should be withheld from every paycheck regardless of what other withholdings are set at.
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Beth Ford
ā¢Thanks for the correction. I was confusing this with another situation.
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Taylor To
This is definitely a payroll system error that needs immediate attention. As others have mentioned, FICA taxes (Social Security and Medicare) are completely separate from federal income tax withholding and should appear on every single paycheck regardless of any W-4 changes you make. The timing is very suspicious - the fact that these taxes disappeared right after you adjusted your withholding suggests your employer's payroll system may have a bug or configuration issue. When you speak with HR/payroll tomorrow, ask them to: 1. Show you exactly what was changed in the system when you requested increased withholding 2. Verify that you're still classified as a W-2 employee (not a contractor) 3. Run a test calculation to show what your FICA taxes should be based on your salary 4. Provide a timeline for when this will be corrected Don't let them brush this off as "it'll work itself out" - missing FICA contributions can create problems with your Social Security earnings record and potentially cause issues at tax time. If they can't fix it immediately, ask for written documentation of the error and their correction plan. You might also want to keep detailed records of this conversation in case you need to escalate or contact the Department of Labor if your employer doesn't resolve it promptly.
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