Don't forget about the estate tax loophole! The wealthy use trusts and life insurance to pass MILLIONS to their kids tax-free while regular people get nothing. The stepped-up basis at death is another huge advantage - all the capital gains on investments essentially disappear when assets are inherited.

The system really is designed with built-in advantages for different types of income and wealth levels. What frustrates me most is that many of these "loopholes" aren't actually loopholes - they're intentional policy decisions that favor capital over labor. For example, the carried interest provision that lets private equity managers pay capital gains rates (around 20%) instead of ordinary income rates (up to 37%) on what is essentially their salary. That's not available to regular employees no matter how good our accountants are. But there are some strategies middle-income folks can use that we often overlook: - Tax-loss harvesting in taxable investment accounts - Bunching itemized deductions in alternating years - Contributing to dependent care FSAs if you have kids - Taking advantage of the American Opportunity Tax Credit for education expenses The real barrier isn't just the cost of fancy accountants - it's that the most lucrative strategies require having significant assets or business ownership to begin with. You can't depreciate real estate you don't own, and you can't defer income you don't control the timing of. The system isn't broken by accident - it's working exactly as designed to reward wealth accumulation over wage earning.

Welcome to the club bestie 💅 been dealing with this for weeks. The IRS systems are held together with duct tape and prayers at this point lmaooo

Have you tried clearing your browser cache and cookies? Sometimes the IRS website gets stuck with old session data. Also make sure you're using the refund amount from line 35a of your 1040 (not what you expect to get after withholdings). I had this exact issue last year and it turned out I was using the wrong amount from my return.

Does anyone know if using a PEO (Professional Employer Organization) for remote workers changes the nexus situation? My client is considering using a PEO to handle their multi-state employees to simplify compliance.

This is such a helpful thread! I'm dealing with a similar situation with my consulting practice. One thing I learned the hard way is to also check if the states where your remote employees work have any specific registration requirements beyond just income tax filing. For example, some states require you to register as a "foreign entity" doing business in their state if you have employees there, even if you're just an LLC from another state. This can involve additional fees and annual reports that are separate from your tax filings. Also, don't forget about potential local taxes! Some cities and counties have their own business taxes or licensing requirements that might apply to businesses with employees working within their jurisdiction. It's not just about state-level compliance. I'd recommend creating a compliance calendar once you figure out all the filing requirements across the different states. Multi-state tax compliance can get overwhelming fast if you don't stay organized!

Just want to add that timing matters here too. If you were married on ANY day in 2024, the IRS considers you married for the ENTIRE tax year when filing your 2024 taxes in 2025. So your marital status on December 31st determines your filing status for the whole year.

I went through this exact same situation two years ago when I married my wife from the Philippines! Here's what I learned after making some mistakes the first time around: You definitely CAN file Married Filing Jointly even without your wife having an SSN - you'll need to get her an ITIN first. But here's the key thing that tripped me up initially: make sure you understand the "nonresident alien spouse election" that Marcus mentioned. You can elect to treat your nonresident spouse as a US resident for tax purposes, which opens up joint filing. One tip that saved me a lot of headaches: before applying for the ITIN, call the IRS (or use one of those callback services others mentioned) to confirm which specific documents they'll accept from your wife's country. Different countries have different acceptable documents, and the IRS agents can tell you exactly what works best. Also, don't stress too much about the foreign income reporting if you do file jointly - most countries have tax treaties with the US that prevent double taxation. My wife's income from the Philippines was covered by the Foreign Earned Income Exclusion, so it didn't actually increase our US tax burden. The whole process took about 3 months from start to finish, but it was definitely worth it for the tax savings compared to filing single. Good luck!

Another possibility - are both W2s actually identical copies? Sometimes employers will send duplicate W2s by mistake or if you requested an additional copy. Double check the control numbers on the forms (usually in box d) - if they're different, they're separate forms that both need to be entered. If they're identical, it's just a duplicate.

Great question! I was in a similar situation last year. Yes, you absolutely need to enter both W2s separately in TurboTax - never combine them. Each W2 has its own unique control number and the IRS receives copies of both, so your return needs to match exactly what they have on file. The most common reasons for multiple W2s from the same employer include mid-year changes like promotions, department transfers, payroll system changes, or even temporary leaves of absence. Each form represents a different classification or period of your employment. TurboTax makes this pretty straightforward - just follow the prompts to add each W2 individually. The software will automatically combine all your income and withholdings when calculating your taxes. Make sure to enter the employer information exactly as it appears on each form, even if it looks identical. Don't worry about it looking repetitive - that's completely normal and expected! One tip: keep both W2s handy when you file and double-check that the total wages from both forms matches your final paystub from December. This helps catch any potential errors before you submit.