Just wanted to add - make sure you're doing volunteer work for a qualified 501(c)(3) organization. I learned the hard way last year that not all "charitable" activities qualify! For example, if you're helping a friend's gofundme or doing nice things for neighbors, that mileage isn't deductible even though it feels charitable.

One thing nobody mentioned - if youre tracking mileage for a bunch of diff't charities, the Stride app is free and lets you track diff't categories. I use it for my volunteer work at the animal shelter, food bank AND habitat for humanity and it keeps everything seperate. Super helpful at tax time!!

Quick question - if OP changes their W-4 now to withhold a bunch of extra money from their last few 2025 paychecks, will that actually help with the underpayment penalty? I thought the penalty was calculated by quarter, so fixing it in December wouldn't help with the earlier quarters when nothing was withheld?

I actually just went through this exact same situation earlier this year! Made the same mistake with the exemption box and didn't notice for months. Here's what I learned: First, don't panic - this is more fixable than you think. The key thing to understand is that withholding from your paycheck gets treated as if it was paid evenly throughout the year, even if you do it all in December. This is huge because it can help with penalties retroactively. I'd strongly recommend doing BOTH things mentioned above - submit a new W-4 with maximum additional withholding for your remaining paychecks AND make a Q4 estimated payment if needed. Calculate roughly what you'll owe for the full year, subtract what was already withheld from your first job, then split the remainder between increased withholding and estimated payment. Also look into first-time penalty abatement if you haven't had issues before - it can waive penalties entirely if you qualify. The IRS is actually pretty reasonable about honest mistakes like this, especially if you're proactive about fixing it before filing. One last tip: when you do your W-4 next year, maybe set it to withhold slightly more than needed so you have a buffer. Better to get a small refund than deal with this stress again!

I work in tax preparation and see this confusion a lot - luxury purchases that people hope might somehow qualify for deductions. The reality is that the IRS has very strict guidelines about what constitutes a legitimate business expense, and personal luxury items almost never make the cut. Even if you could somehow argue the watch is for business purposes, you'd need to demonstrate that a $14,000 timepiece is both "ordinary" (common in your industry) and "necessary" (required for your work) - which would be nearly impossible for most professions. The IRS looks at the reasonableness of expenses, and they'd likely question why a much less expensive watch wouldn't serve the same business purpose. Save yourself the headache and potential audit risk. If you want the Rolex and can afford it, buy it for what it is - a luxury personal purchase that you'll enjoy. Don't try to turn it into a tax strategy.

I appreciate everyone sharing their experiences and insights here! As someone who's been through a similar situation, I wanted to add that it's really important to keep business and personal expenses completely separate, even when the lines might seem blurry. I learned this the hard way when I tried to justify some expensive equipment purchases a few years back. The IRS doesn't mess around with luxury items that could be seen as personal use. Even if you genuinely use something for business occasionally, if it's also something you'd want for personal reasons (like a beautiful watch), that's a red flag for auditors. The peace of mind that comes from keeping everything above board is worth way more than any potential tax savings. Plus, when you do buy that Rolex, you'll be able to enjoy it without any worry about whether you documented it properly or if it might cause issues later. Sometimes the straightforward approach really is the best approach!

Has anyone tried using FreeTaxUSA for filing past returns to claim stimulus? I've heard it's cheaper than TurboTax for prior year returns but not sure if it handles the Recovery Rebate Credit correctly.

Just wanted to add some important timing info for anyone in this situation - you generally have 3 years from the original due date of the tax return to claim a refund, so for the 2020 tax year (where you'd claim the first two stimulus payments), you have until April 15, 2024 to file. For 2021 (third stimulus payment), you have until April 15, 2025. Since we're in 2025 now, you've likely missed the deadline for the 2020 return, which means you can probably only claim the third stimulus payment ($1,400) by filing a 2021 return. I'd definitely recommend calling the IRS or checking with a tax professional to confirm what's still available to you before spending time on returns you can't benefit from anymore. The good news is even if you can only get the third payment, $1,400 is still worth the effort of filing that 2021 return!

I'm currently experiencing this exact same situation and finding this thread has been incredibly helpful! My spouse successfully completed identity verification on March 16th, but when I attempted to verify two days later, I received the same "already processing" message that everyone is describing. I was initially concerned that something had gone wrong with our joint return, especially since we're expecting a significant refund. After reading through everyone's experiences, it's clear this is just a quirk in how the IRS verification system handles joint returns - the messaging is confusing but the process is actually working correctly. I've been monitoring "Where's My Refund" daily since my spouse's verification, and I'm hopeful we'll see movement soon based on the timelines others have shared. It's really reassuring to know that for most joint filers, once the primary taxpayer completes verification, it satisfies the requirement for both spouses. The IRS definitely needs to improve their messaging to prevent this unnecessary stress for joint filers!

I'm going through this exact same situation right now and this thread has been a lifesaver! My wife successfully verified her identity on March 18th, but when I tried to verify on March 20th, I got that same confusing "already processing" message. I was starting to panic thinking our joint return was stuck or that we'd somehow made an error. After reading everyone's experiences here, it's clear this is just how the IRS verification system works (or fails to work clearly) for joint filers. I've been checking "Where's My Refund" daily since my wife's verification, and yesterday it finally updated to show our return is processing with an expected refund date of April 5th! So it seems like her verification alone was sufficient for our joint return. The messaging from the IRS is definitely misleading - they really need to update their system to clearly indicate when verification is complete for both spouses on a joint return. Based on everyone's shared experiences, it looks like once the primary taxpayer (usually listed first on Form 1040) completes verification, that typically satisfies the requirement for the entire joint return. Thanks to everyone who shared their timelines - you've saved me from countless hours of stress and failed attempts to reach the IRS by phone!