Just want to add one more important point that might help you plan for next year - if you're going to be in a similar income situation, you might want to consider adjusting your withholdings so you don't have as much federal income tax taken out of each paycheck. Since you'll only owe federal income tax on about $50 of your income, you're probably having way more federal tax withheld than necessary. You could use Form W-4 to reduce your withholdings and get more money in each paycheck instead of waiting for a big refund. Just remember that SS and Medicare taxes (7.65% total) will always be taken out regardless. This way you'd have more cash flow throughout the year instead of essentially giving the government an interest-free loan. Just make sure to set aside a small amount for that ~$50 in federal tax you'll actually owe!

Thanks everyone for all the detailed explanations! This is super helpful. I had no idea that Social Security and Medicare taxes were completely separate from the standard deduction - I thought the deduction would reduce all my taxes. @Fiona Gallagher That's a great point about adjusting my withholdings for next year. I'll definitely look into the IRS withholding calculator. It would be nice to have more money in my paychecks instead of waiting for a refund. @Sebastian Scott I'll be 24 when I file for 2025, so sounds like I'll miss the EITC by one year, but good to know for the future! One follow-up question - since I'll only owe federal income tax on about $50, roughly how much should I expect to get back? I think I've had around $300-400 in federal taxes withheld throughout the year from my paychecks.

I'm dealing with a very similar situation right now - got hit with a $380 tax warrant last month that I completely missed due to some mail delivery issues at my apartment complex. Reading through all these responses has been incredibly helpful and honestly made me feel so much less alone in this mess! One thing I wanted to add that might help others - I called my state tax office (I'm in Ohio) yesterday and found that they actually have a dedicated "lien withdrawal unit" that handles these requests. The regular customer service rep transferred me directly once I mentioned I wanted to discuss withdrawal options after payment. The specialist I spoke with was much more knowledgeable about the different programs available. She told me about Ohio's "First-Time Penalty Abatement" program that I had never heard of, which can potentially help with both removal AND reducing some of the penalties if you have a clean tax history. Apparently each state has slightly different programs, so it's worth asking specifically about any relief programs for first-time issues when you call. I'm planning to pay mine off next week and submit the withdrawal paperwork immediately. Thanks to everyone who shared their experiences here - it's made navigating this whole process so much less intimidating!

I just wanted to thank everyone who contributed to this thread - the information here has been incredibly valuable! I'm actually dealing with a federal tax lien (not warrant) of about $850 that I need to resolve, and while it's a slightly different situation, many of the principles you've all discussed seem to apply. The advice about using specific terminology when calling is so important. I called the IRS yesterday and specifically asked about "withdrawal options under the Fresh Start program" instead of just asking about payment plans, and the representative was much more helpful. She explained that for liens under $25,000 that are paid in full, they have streamlined withdrawal procedures that can completely remove the lien from public records. For anyone else reading this thread later, I'd definitely recommend calling and asking specifically about: 1) Fresh Start withdrawal options (for federal) 2) State-specific penalty abatement programs 3) Complete removal vs. satisfaction marking 4) Any first-time taxpayer relief programs It's clear that the tax agencies don't always volunteer information about these programs, but they're often available if you know to ask. The community knowledge shared here has been invaluable in helping me understand what questions to ask and what options might be available. Thanks again to everyone, especially the tax attorney who provided such clear guidance!

I went through this same problem last year! Tax laws are so confusing... I used TurboTax Free Edition and it walked me through everything. Since your income is under $12k, you should qualify to file completely free. Just make sure you go directly through the IRS Free File program so you don't get upsold on paid services.

I've been helping people with tax questions for years, and yes, you absolutely need to file. Unemployment compensation is 100% taxable income at the federal level, regardless of the amount. The $12,000 filing threshold doesn't apply when you have unemployment income - it's always reportable. The silver lining is that with your low total income ($11,230), you'll likely qualify for the Earned Income Tax Credit (EITC) which could actually get you money back even though you didn't have taxes withheld. The EITC is designed to help working people with low to moderate income, and your W-2 wages of $650 plus the $180 contractor work should qualify you. Also, don't forget about the standard deduction of $13,850 for 2023. Your income is actually below that threshold, so you might not owe any federal tax at all, but you still need to file to report the unemployment and claim any credits you're eligible for. I'd recommend using the IRS Free File program since your income qualifies you for completely free tax preparation software. Don't let anyone charge you for filing with your income level!

Just a tip for the future - take a picture of your W2 before filing and keep digital copies of everything. I use a tax checklist app that reminds me to check every single box on my forms before submitting. Helps catch these small things!

This is a really common issue that trips up a lot of people! You're definitely not alone in being confused by this. Based on what you've described about getting that appreciation bonus in November, that's almost certainly what's showing up in Box 12b. Many employers use special bonus classifications that get reported as "tip-like income" for tax purposes, even when they're not actual tips. It's a quirk of how payroll systems handle certain types of supplemental pay. Since your amount is only $4.76 and you've already filed, you're absolutely fine leaving things as they are - the IRS won't flag something that small. For future reference, any time you see unfamiliar codes on your W2, it's worth asking your HR or payroll department about them before filing. They can usually explain exactly what each entry represents. But in this case, you can stop stressing - everything sounds perfectly normal!

these clowns at the IRS need to get it together fr fr... been waiting since february with the same code 🤡

Code 420 can definitely be stressful! From my experience, it's usually just a routine review rather than a full audit. The IRS computer system flags returns for various reasons - could be income matching, deduction verification, or even just random selection. Most of these resolve automatically once their systems finish cross-checking your info with third-party documents (W-2s, 1099s, etc.). Try not to worry too much unless you receive an actual notice requesting documentation. The waiting is the worst part but it's typically just their backlog processing through.