Quick tip - I'm an accountant (not giving professional advice tho) and I always tell friends to just put "single" on their W4s if both spouses work similar incomes. It's not technically correct, but it's the easiest way to avoid owing. If your incomes are very different (like one person makes 80% of the money), then do "married" but add extra withholding. The IRS doesn't actually check or care what you put on your W4 as long as you don't severely underwithhold. They just want their money eventually lol.

Laura, you're definitely not alone in this situation! Marriage and tax withholding can be really tricky to navigate. Here's what I'd recommend based on your situation: Since you and your spouse have similar incomes ($78k vs $72k), you have a few solid options: 1. **The "technically correct" approach**: Update your W4 to "Married" and check the box that your spouse also works. This will increase your withholding to account for your combined income pushing you into higher brackets. 2. **The "practical" approach**: Many couples in your situation just select "Single" on their W4s. While not technically your filing status, it withholds at a higher rate and often prevents owing taxes. The IRS doesn't penalize this as long as you're not severely underwithheld. 3. **The "precise" approach**: Use the Multiple Jobs Worksheet on the W4 or the IRS Tax Withholding Estimator online to calculate exactly how much extra withholding you need. For state taxes, rules vary by state, but generally you should match your federal approach for consistency. Don't beat yourself up about this - the W4 changes in recent years have confused a lot of people, and owing taxes after marriage is super common. The important thing is you're addressing it now! I'd probably start with option 2 (selecting "Single") since it's simple and usually works well for couples with similar incomes like yours.

Quick question for the group - does anyone use any specific tax software that handles day trading well? I tried using TurboTax last year and it was a nightmare with all my trades!

This is such a common confusion for new traders! I went through the exact same thing when I started trading full-time. The key thing to understand is that your LLC structure doesn't change the fundamental tax treatment of trading profits - they're still considered capital gains, not business income subject to self-employment tax. However, I'd strongly recommend getting professional help to navigate this properly. As others mentioned, while your trading profits won't be subject to SE tax, you need to be careful about separating any other business activities (like if you start offering trading courses or signals). Also, make sure you're tracking all your trading-related expenses properly - home office, equipment, data feeds, etc. can all be deductible. One thing to keep in mind for next year: if you do qualify for TTS, you'll want to make that election by the filing deadline. It won't change the SE tax situation, but it will give you better expense deductions and allow you to deduct trading losses above the $3k capital loss limit. Definitely start making quarterly estimated payments based on your expected annual profits - the IRS doesn't care that you're not paying SE tax, they still want their income tax!

Protip: Stop checking WMR its garbage. Transcripts are the source of truth for everything tax related

Just wanted to chime in as someone who went through this exact same thing last year! The 846 code is definitely what you want to see - that's the IRS saying "we're sending your money." WMR is notorious for being slow to update and honestly kind of unreliable. I've seen people get their refunds while WMR still showed "accepted" for days afterward. Trust your transcript over WMR every time!

This is a really common confusion! The key thing to understand is that the W-4 is about withholding the right amount of taxes from your paychecks throughout the year, not about who gets to "claim" your child on your actual tax return. Since you're married filing jointly, you'll both benefit from having your daughter as a dependent when you file your return regardless of your W-4 setup. However, if you both put your child's credit amount ($2,000) in Step 3 of your W-4s, you'd be telling your employers to withhold $4,000 less in taxes combined - but you're only entitled to one $2,000 child tax credit. This would likely result in underwithholding and you'd owe money at tax time. The best approach is to coordinate your W-4s. Since you both make similar incomes (~$58k each), you could either have one of you claim the full $2,000 child tax credit and the other claim zero, or you could each claim $1,000. I'd recommend using the IRS Tax Withholding Estimator at irs.gov to run the numbers and see what works best for your specific situation. Don't worry - this trips up a lot of couples! The important thing is making sure your combined withholding matches your actual tax liability.

Great question! This is exactly the kind of confusion that trips up many married couples filing jointly. The short answer is: you should NOT both claim your daughter on your separate W-4 forms. Here's why: When you both claim the same child on your W-4s, you're essentially telling both of your employers to withhold less tax from your paychecks because you each expect to receive the $2,000 child tax credit. But since you're filing jointly, you'll only receive ONE $2,000 credit for your daughter - not two. This means you'll have underwitheld taxes throughout the year and likely owe a significant amount when you file. With your similar incomes ($58k each), I'd recommend one of these approaches: 1. One spouse claims the full $2,000 child tax credit in Step 3 of their W-4, the other claims $0 2. Each spouse claims $1,000 in Step 3 (splitting the credit) The IRS Tax Withholding Estimator tool on irs.gov is perfect for your situation - just plug in both of your income info and it will tell you exactly how to fill out both W-4s to get close to the right withholding amount. This way you avoid both owing too much or getting a huge refund (which is essentially an interest-free loan to the government). Your coworker was right that coordination is key, but it's not that "only one parent can claim" - it's that the total credits claimed across both W-4s shouldn't exceed what you'll actually get on your joint return.

I'm dealing with this exact situation right now too! Got a 1099-NEC when I should have received a W-2 based on my work arrangement. After reading through all these comments, I'm planning to try the direct conversation approach first with my employer. For anyone in a similar spot, I found this IRS publication really helpful: Publication 15-A (Employer's Supplemental Tax Guide) has a detailed section on worker classification. It covers the three main categories they look at: behavioral control, financial control, and relationship type. The key factors that suggest employee status include: the company controlling when, where, and how you work; them providing equipment and facilities; you working set hours; having a continuing relationship; and the work being a key part of their business operations. If the direct approach doesn't work, I'm prepared to file Form SS-8 for an official determination. The peace of mind of knowing you're following the correct tax procedures is worth potential workplace tension, especially when thousands of dollars in self-employment taxes are at stake. Has anyone had success using the IRS's online resources to build their case before approaching their employer?

This is such a stressful situation, but you're absolutely right to question the classification! I went through something similar a few years ago and it's worth fighting for proper classification. One thing I'd add to the great advice already given - make sure you document EVERYTHING about your work arrangement before having that conversation with your employer. Write down specific examples of: - How they control your schedule (do they set your hours?) - What equipment/software they provide - Whether you have a dedicated workspace at their office - How they train and supervise you - Whether you can work for other clients (spoiler: probably not if you're working full-time) Having concrete examples makes it much harder for them to argue you're truly an independent contractor. The fact that you work at their office with their equipment on a set schedule sounds like textbook employee classification to me. Also, don't panic too much about the tax bill. Even if you end up having to file as a contractor this year, you can set up a payment plan with the IRS if needed. But definitely pursue the reclassification - at your income level, the difference between contractor and employee taxes is substantial. Keep us updated on how it goes! This community has been really helpful for these kinds of situations.