I've been using the IRS Tax Withholding Estimator for a few years now and can confirm what others have said - definitely use your GROSS pay amounts. One thing I'd add is to be really careful about timing when you run the calculator. I always wait until I have at least 2-3 recent paystubs from the current year to get more accurate year-to-date numbers, especially if you got a raise or bonus early in the year. Also, don't forget to update your estimates if your situation changes during the year (new job, marriage, kids, etc.). I run it twice a year - once in spring and once in fall - just to make sure I'm still on track. Better to catch any issues early than get surprised at tax time!

Great thread everyone! I just wanted to add a tip that helped me a lot - when you're entering your gross pay in the Tax Withholding Estimator, make sure to double-check that you're looking at the right line on your paystub. My paystub has like 6 different numbers that could be "gross pay" but only one is the actual total gross before ANY deductions (including pre-tax stuff like health insurance and 401k contributions). I was accidentally using my "taxable gross" which excludes pre-tax deductions, and that threw off my whole calculation. The IRS tool wants your TRUE gross - the very top number before anything comes out. Once I figured that out, my withholding estimates became much more accurate and I stopped getting those scary "you may owe money" warnings from the calculator!

I'm confused about the whole 1099-NEC vs 1099-MISC thing still. I paid a contractor $1200 last year for some website work. Do I need to file the NEC or MISC version? And do the red form requirements apply to both?

Just wanted to add another perspective here - I've been dealing with 1099 forms for my small business for years, and I think you're right to be frustrated with the red form situation. It really does feel outdated in 2025! One thing that might help is checking if your local library has computers with tax software installed. Many libraries offer free access to programs like TurboTax Business or H&R Block that can handle 1099 printing. You could bring your red forms there and print directly onto them using their equipment. Also, if you're planning to hire contractors regularly in the future, it might be worth investing in basic accounting software like QuickBooks Simple Start. It's around $15/month and handles all the 1099 reporting automatically throughout the year, then can either e-file for you or print perfectly onto the red forms. Much less stressful than scrambling every January! The electronic filing options people mentioned are definitely the way to go for a one-off situation though. Good luck getting this sorted out!

I'm confused about something else with these apps...If I sell stuff on Facebook and they pay me through Venmo, isn't that different than just sending money to friends? My brother says I should be keeping track of all that for taxes.

One thing that might help clarify this for everyone - the IRS has actually published guidance specifically about payment apps in Publication 525. The key distinction they make is between "personal payments" and "payment for goods and services." Personal payments include: - Splitting a dinner bill - Paying your share of rent to a roommate - Reimbursing someone for concert tickets - Birthday gifts or holiday money - Loan repayments between friends/family These are NOT taxable income to the recipient, regardless of amount or frequency. Business payments include: - Selling items (even personal items for profit) - Freelance work payments - Service payments (babysitting, tutoring, etc.) - Any payment where you're providing goods/services The $600 reporting threshold only applies to business payments. For personal payments, there's no reporting requirement at any amount level. The confusion often comes from people mixing these two categories or not understanding that selling your old stuff online counts as business income if you sell it for more than you paid.

Quick question for anyone who's done this: Do you have to file Form 3115 with your regular tax return or is it submitted separately? And does it need to be mailed or can it be e-filed?

I went through almost the exact same situation last year - depreciation correction from 39-year to 27.5-year schedule on rental property improvements. The $1,200 fee is definitely steep, but honestly it was worth it for me. What really helped was getting multiple quotes. I ended up finding a CPA who specialized in Form 3115 filings and only charged $850. The key is finding someone who does these regularly - they have templates and processes that make it much more efficient than a generalist who might be starting from scratch. One thing to consider: make sure your current CPA is experienced with 3115s specifically. I initially went with my regular tax preparer who quoted $1,400 and admitted she'd only done "a few" of these forms. Ended up switching to someone who does dozens per year and got better service for less money. Also, don't forget that the professional fee is likely deductible as a tax preparation expense. So your actual out-of-pocket cost is reduced by your marginal tax rate. In my case, the $850 fee only cost me about $640 after tax savings. The refund took about 5 months to arrive, but it was exactly what we calculated. Worth the wait and the professional fee!

make sure u update ur address on IRS website if u moved recently. They wont forward refund checks!!

Same thing happened to me last year! The waiting is the worst part. Just to add to what others said - you can also call the IRS refund hotline at 1-800-829-1954 to check the status once it's been about 10 business days since the bank rejection. They'll be able to tell you if they've processed it for a paper check yet. Hang in there! 🤞