Sorry you're dealing with this! Just to add another perspective - double-check if you filled out a new W-4 when you started this job. The W-4 form changed completely in 2020 and no longer uses allowances. If you're using an old W-4 form from before 2020, the employer might have misinterpreted something. Or it could just be a data entry error where someone typed "9" instead of "0" or "1". For your bonuses, the standard supplemental wage withholding is 22% federal, not 18%. If they withheld less than that, it could explain part of why you're owing so much.

This sounds incredibly frustrating! The 9 allowances situation is definitely a red flag - that would drastically reduce your withholding throughout the year, which explains the large tax bill you're facing now. A few things to check immediately: 1. Request copies of all your paystubs from this year to verify what was actually withheld 2. Ask your HR/payroll department for documentation showing when and how your allowances were set to 9 3. Double-check that all your bonus withholding is properly included in Box 2 of your W-2 The good news is that if your employer made an error with your withholding allowances without your consent, you may be eligible for penalty relief from the IRS. They have provisions for situations where underwithholding wasn't the taxpayer's fault. For immediate relief, you can set up a payment plan with the IRS if you can't pay the full amount right away. And definitely submit a new W-4 form immediately to fix your withholding going forward - you don't want to be in this situation again next year! The bonus withholding should indeed be at 22% if they used the flat rate method, so 18% suggests there might have been an error there too.

Everyone's talking about adjusting withholding, but don't forget to check if you qualify for tax credits! As a recent grad, you might still be able to claim education credits like the Lifetime Learning Credit if you paid tuition in the same tax year. Also check if you can deduct student loan interest if you've started repaying. Those credits and deductions can make a huge difference when you actually file your taxes, even if they don't affect your immediate paycheck situation.

Welcome to the world of adulting and taxes! 31% does seem shocking at first, but it's unfortunately normal for California. I remember my first "real" paycheck - I literally called HR thinking there was a mistake! A few quick tips that helped me when I was in your shoes: 1. Max out that 401k match ASAP - it's free money and reduces your taxable income 2. Look into an HSA if your company offers one - triple tax advantage 3. Consider if you have any tax-deductible expenses like home office setup for remote work The silver lining? You'll likely get a decent refund when you file since withholding tends to be conservative for new grads. But definitely run the IRS withholding calculator to see if you can optimize your W-4. Just don't go too aggressive - owing money at tax time plus penalties is worse than getting a refund. Also, start tracking any work-related expenses now - even small things like professional development courses or work clothes can add up to deductions.

Be careful with income on line 11 - sometimes it can have foreign tax withholding associated with it that you can claim as a credit. My partnership K-1 had foreign interest income on line 11 last year and I almost missed claiming the foreign tax credit. Check if there's anything on line 16 about foreign taxes paid!

Great question! In addition to the excellent answers already provided, I'd like to mention a few more types of income that can show up on line 11: - Income from Real Estate Investment Trust (REIT) distributions that don't qualify as dividends - Gain/loss from mark-to-market elections on securities - Income from commodity futures contracts held as investments - Certain foreign currency gains/losses from investment activities - Income from credit default swaps and other derivative instruments One important tip: if you have significant amounts on line 11, especially from complex financial instruments, consider keeping detailed records of the source documents. The IRS may ask for additional information during an audit since this line often contains less common types of investment income. Also, don't forget to check if any of this income has associated expenses that might be deductible - sometimes partnerships will report the gross income on line 11 and related investment expenses elsewhere on the K-1.

Don't forget that as a non-resident alien, you can't file jointly with a US spouse if you have one! My buddy got absolutely wrecked by this rule last year. He's from UK, married to American, and they filed jointly which is a big no-no. IRS rejected everything and he had to refile as married filing separately on 1040-NR. Also, the tax rate depends on visa type too sometimes. What visa are you on? That can change everything.

Quick question - I need to understand how tax treaties work for non-residents. I'm from India working in US, but all the tax software I try doesn't seem to handle non-resident status with treaty benefits properly. Any recommendations?

idk about walmart card but im still waiting on my refund from last year lmaooo irs is a joke

Protip: Just use a regular bank account. These prepaid cards are literally making money off people who think theyll get paid faster. Its all marketing fluff and fees