i'm so confused after reading all this lol. so does reducing my income mean i get more money back or not?? i made like $42k last year and already filed but now i'm worried i messed up

Hey Heather! Your confusion is totally understandable - taxes can be really overwhelming. The simple answer is yes, reducing your taxable income can increase your refund, but let me break it down in plain terms. Think of it this way: throughout the year, your employer withheld taxes from each paycheck based on your gross income. But when you file your tax return, the IRS only taxes your "taxable income" - which is your gross income minus deductions. So if you can legitimately reduce that taxable income number, you've essentially overpaid taxes all year, and the IRS owes you that money back as a refund. With your situation ($62k job starting in August, $43k before that, 7% to 401k, $2,100 student loan interest), you're already doing some good things! Your 401k contributions and student loan interest are both reducing your taxable income right now. Since you're still within the filing deadline, you could potentially contribute to a traditional IRA for 2024 (up to $7,000 if you're under 50) and designate it as a 2024 contribution. This would directly reduce your 2024 taxable income and likely increase your refund. Don't stress too much - you're asking the right questions and already on a good path!

This is so frustrating! I'm in the same exact situation - filed federal weeks ago and have been waiting on Missouri forms forever. That 01/30/2025 date keeps getting pushed back and TurboTax support just gives generic responses. I'm seriously considering switching to H&R Block or FreeTaxUSA at this point since they seem to have their Missouri forms ready. Has anyone had success with Missouri Department of Revenue's free filing option? Wondering if that might be faster than waiting for TurboTax to get their act together.

I'm in the exact same situation and it's driving me crazy! Been checking TurboTax every day hoping to see Missouri forms available but keep getting that same "01/30/2025" message. What's really annoying is that I can see other states have their forms ready but Missouri is just stuck in limbo. I even tried contacting TurboTax support and they basically just said "wait for the email notification" which isn't helpful at all. At this point I'm seriously considering just doing my Missouri return directly through the state website since it sounds like they might have their forms ready sooner than TurboTax does. Has anyone else noticed if the delay is specifically with TurboTax or if other tax software companies are having the same Missouri issues?

I've been running my single-member S Corp for about 18 months now and went through this exact same confusion when I started. You're absolutely right that Gusto and similar services don't handle distributions - and that's actually by design, not a limitation. Here's what I learned: distributions aren't "payroll" in the traditional sense, so they don't go through payroll processing systems. They're profit distributions that you take as an owner, and they're handled completely differently for tax purposes. My setup that works really well: - Gusto processes my monthly salary (which I set based on industry research for my role) - I take distributions quarterly by simply transferring money from business to personal account - I track everything in QuickBooks Online, categorizing distributions properly - My CPA handles the tax reporting on forms 1120S and K-1 The key is making sure your salary meets the "reasonable compensation" test. I researched what people in similar roles in my area earn and documented my reasoning. The IRS wants to see that you're not trying to avoid payroll taxes by taking everything as distributions. Don't stress about finding a single platform that does both - the two-part system actually makes more sense once you understand the tax implications. Focus on good documentation and you'll be fine!

I went through this exact same confusion when I started my single-member S Corp last year! You're absolutely right that most payroll services don't handle distributions, and honestly, that's actually how it should work from a tax compliance perspective. Here's what I ended up doing after a lot of research and talking with my CPA: **For salary:** I use ADP Run for my payroll processing. They handle all the tax withholdings, quarterly filings, and generate my W-2. I set my salary at about 60% of what I'd pay myself if I were an employee doing the same work. **For distributions:** These are just simple transfers from my business checking account to my personal account. I document them in QuickBooks as "Owner Distributions" and track them monthly. No payroll service needed because they're not subject to payroll taxes. The key insight my accountant shared: trying to process distributions through payroll would actually create problems because they're fundamentally different types of payments with different tax treatments. Distributions show up on your K-1, not your W-2. My advice is to stick with Gusto for payroll (they're solid) and just handle distributions separately. Focus your energy on documenting why your salary amount is reasonable for your industry and role - that's what really matters for IRS compliance. The two-system approach felt clunky at first, but now it makes perfect sense and keeps everything clean for tax purposes.

I completely understand your frustration! I went through this exact same issue earlier this tax season and it's maddening when you think you're almost done filing. From what you've described with your W-2, 1099-INT, and 1099-MISC, those aren't typically the forms causing delays. The culprit is most likely Form 8863 (Education Credits) if you paid for any courses, training, or education expenses last year - even things like professional development courses or certification programs count. Here's what I learned after dealing with this: The "IRS Hasn't Finalized" message usually means the IRS is still making last-minute updates to tax credit calculations or qualification rules. It's super common in January and February, especially with education-related forms. My advice: Don't start over with a different tax software! Save your TurboTax return as a draft and check back every 3-4 days. Most of these form delays resolve within 1-2 weeks. You can also try clicking deeper into that error message - sometimes TurboTax will tell you exactly which form number is causing the delay if you look for a "details" or "more information" link. The good news is once the form gets finalized and you submit your return, your refund processing time will be exactly the same as if you'd filed on day one. You're not losing your place in line or anything like that. Hang in there - this is way more common than it should be!

I'm so glad I found this thread! I'm dealing with the exact same frustrating situation right now - got all the way through my TurboTax return and hit that dreaded "IRS Hasn't Finalized One or More of Your Forms" message. Like you Emily, I have pretty straightforward tax documents (W-2, couple of 1099s) so I was completely confused about what could possibly be holding things up. After reading through everyone's experiences here, I'm pretty sure my issue is also the education credits form since I took some professional development courses last year that I completely forgot would count as education expenses. It's such a relief to know this is super common and not something I did wrong! I was literally about to start my return completely over with a different tax service, but after seeing how many people here went through the same thing and eventually got their refunds without any issues, I'm going to save my TurboTax draft and wait it out. The advice about checking back every few days instead of obsessing over it daily is exactly what I needed to hear. Thanks to everyone who shared their timelines - knowing that most of these delays resolve within 1-2 weeks gives me hope that I won't be stuck in limbo much longer!

When I was audited in 2022, I took a different approach than waiting to see if they'd hold my refund. I estimated what I might owe from the audit (added about 20% for safety) and adjusted my W-4 to have less withheld from my paychecks. This way, I wasn't giving the IRS an interest-free loan they might keep anyway. Then I set aside that money in a high-yield savings account. When the audit concluded, I had the funds ready plus had earned interest on it. Even if your audit results in zero additional tax, this approach gives you more control over your money.

I'm going through something similar right now and wanted to share what I've learned from my tax attorney. The IRS has something called an "offset" process where they can indeed hold your current year refund if there's an ongoing audit that might result in additional taxes owed. However, there are a few key factors that influence this decision: 1. **Timing matters**: If your audit is in the early stages (just requesting documents), they're less likely to hold your refund compared to audits nearing completion where deficiencies are already identified. 2. **Amount at stake**: Larger potential tax liabilities increase the likelihood of a refund hold. 3. **Your compliance history**: If you have a clean record and respond promptly to audit requests, they may be more lenient. My attorney suggested contacting the examining agent directly (their info should be on your audit notice) to ask specifically about refund processing. Also, consider filing Form 911 (Request for Taxpayer Advocate Service Assistance) if the refund hold creates financial hardship - the TAS can sometimes expedite resolution. One last tip: keep making your quarterly estimates as normal unless your audit reveals you've been significantly underpaying. Better to stay current on the current year while sorting out the past!