Has anyone used the IRS Tax Withholding Estimator? I tried it last year but my refund was still over $900 which seems way off from the "zero" it predicted.

The psychological aspect is huge here! I think a lot of people don't realize they're essentially giving the government a zero-interest loan when they overwithhold. But honestly, as someone who's terrible at saving money, I kind of appreciate getting that forced "bonus" each spring even though I know it's not optimal financially. What really helped me was using the IRS withholding calculator mid-year after I got my tax refund. I adjusted my W-4 to claim one additional allowance and ended up with only a $200 refund the next year instead of $1,500. That extra $100+ per month in my paychecks was way more useful than waiting for the lump sum. The key is being honest about your financial discipline. If you're someone who would just spend the extra monthly income on random stuff, maybe the forced savings of overwithholding isn't such a bad thing. But if you're disciplined enough to save or invest that extra money, definitely adjust your withholding!

Has anyone used the cost segregation strategy for rental property renovations? I heard you can depreciate some components much faster than 27.5 years. My accountant mentioned it might be worth looking into for my fourplex renovation but wanted to charge me $3000 for a study.

One thing to keep in mind is that if you're planning to hold this rental property long-term, depreciation is almost always the better choice over trying to claim repairs. Even if some of your $23,000 in costs could arguably be classified as repairs, the IRS tends to be pretty strict about what qualifies - especially for extensive work like kitchen and bathroom remodels. Since you mentioned using a property management company and having good documentation, you're already ahead of the game. Make sure to separate your costs by category (appliances, flooring, fixtures, etc.) because as others mentioned, some items may qualify for accelerated depreciation schedules. Also consider that you're required to take depreciation whether you claim it or not - the IRS will assume you took it when you sell, so you might as well get the tax benefit now rather than miss out on deductions and still face recapture later.

Thanks for all the helpful responses everyone! As someone who just started freelancing this year, this thread has been incredibly valuable. I was definitely overthinking the 1040-ES requirement - it sounds like I can just use the IRS Direct Pay system without worrying about submitting any forms. One follow-up question: If I'm using the safe harbor method (paying 100% of last year's tax liability), do I still need to use the 1040-ES worksheet to calculate my payments, or can I just take last year's total tax and divide by 4? My tax situation is pretty straightforward - just freelance income with standard business expenses. Also, does anyone know if there's a minimum income threshold where estimated payments become required? I've seen conflicting info about whether you need to pay if you'll owe less than $1,000.

Great question! I went through this same confusion when I started freelancing. The 1040-ES form is just a worksheet - you don't actually "file" it with the IRS. It's designed to help you calculate how much to pay each quarter. Here's what I learned: You can absolutely make your quarterly payments online without any paperwork. I use IRS Direct Pay (irs.gov/payments/direct-pay) - it's free, secure, and you just need your SSN and bank account info. When you make the payment, you'll select "Form 1040ES" as the form type and choose which quarter you're paying for. The key is keeping good records. Save your confirmation numbers and consider setting up an online account with the IRS so you can track your payment history. I keep a simple note in my phone with the confirmation numbers and dates - that's all the "filing" you really need for quarterly payments. Don't stress about not having a printer or avoiding tax prep services for this. The online payment system is actually much more convenient than mailing vouchers anyway!

This happened at my last job - turns out they were having cash flow problems and cutting corners illegally. If a company is willing to do this, they're likely cutting other corners too. Start looking for another job immediately while you address this issue. Companies that steal from employees are rarely great places to build a career.

This is absolutely illegal and you need to act fast. As others have mentioned, employers are required by law to pay their portion of FICA taxes (7.65%) separately - they cannot deduct it from your wages. Here's what I'd recommend doing immediately: 1. Document everything - save digital and physical copies of all pay stubs 2. Calculate exactly how much they've taken (sounds like about $294 per paycheck based on your math) 3. Contact your state's Department of Labor to file a wage complaint 4. Consider filing a complaint with the IRS since this involves tax law violations The fact that this is happening at a small firm makes me wonder if they're struggling financially and trying to cut costs illegally. I'd also start quietly looking for other opportunities - companies that are willing to steal from employees often have other serious problems. You mentioned being hesitant since you just started, but remember: they're the ones breaking the law, not you. You have every right to be paid correctly according to federal and state regulations. Don't let them take advantage of you being new.

I went through this exact thing with my consulting business last year. The UK subsidiary ended up being its own corporation that paid UK taxes, but we still had to deal with US tax implications. The most annoying part was filling out Form 5471 - it's super complicated and the penalties for doing it wrong are insane (like $10k+ per form)!

This is exactly the kind of complex international tax situation where getting professional help early can save you thousands down the road. Based on what others have shared here, it sounds like your uncle and aunt will definitely need to understand CFC rules, Form 5471 requirements, and how the US-UK tax treaty applies to their specific situation. One thing I'd add is to consider the timing of when they set up the UK subsidiary. If they're expecting losses in the first year or two (which is common with international expansion), the branch vs subsidiary decision becomes even more important for tax planning. With a branch, those UK losses might be deductible against US income immediately, while with a subsidiary they'd be trapped until the subsidiary becomes profitable. Also, make sure they understand the compliance deadlines - some of these international forms have earlier due dates than regular corporate returns, and the penalties for missing them are brutal. The IRS takes foreign reporting requirements very seriously.