Don't forget about state taxes too! My wife is a nonresident alien and we file jointly for federal, but some states have different rules. In California where we live, we had to file a separate nonresident state return for her foreign income even though we filed jointly for federal. Check your state's rules!

Just want to add another perspective here - we went through this exact situation last year and successfully filed jointly with the standard deduction. The key thing that helped us was understanding that the election to treat your NRA spouse as a resident is made simply by filing a joint return and including both spouses' worldwide income. You don't need to file any separate forms to make this election - it's automatic when you file Form 1040 jointly. However, you do need to attach a statement signed by both spouses saying you're making this election (this is the part many people miss). One tip: calculate both ways before deciding. We ran the numbers filing separately vs. jointly and the standard deduction savings from filing jointly more than offset the extra tax on my husband's foreign income. But every situation is different depending on income levels and what country the foreign income comes from (tax treaties matter!). The IRS Publication 519 has the clearest explanation of this if you want the official source, specifically the section on "Nonresident Spouse Treated as Resident.

I went through almost the exact same situation last year during a company merger! Here's what worked for me: First, definitely try the PA Department of Revenue route that @GalacticGuru mentioned - their employer lookup system is actually pretty user-friendly once you know where to look. I was able to find my former employer's state withholding account number there when I couldn't get it anywhere else. Another thing that helped me was checking with my new employer's HR department. Since you mentioned this was a spin-off, your new company's HR might have records or contacts from the transition that could help you track down the missing information. They often maintain documentation about the corporate restructuring that includes tax ID transfers. If you're still stuck, I'd also suggest checking your 2023 state tax return if you filed one - sometimes the state EIN appears on previous returns even if you don't remember it, especially if you worked for the same company before the spin-off. The deadline pressure is real, but you've got several good options here. Don't stress too much - the "APPLIED FOR" route really is accepted practice for these corporate transition situations, and PA handles them routinely during tax season.

Just wanted to add one more resource that might help - if your company was part of a larger corporation before the spin-off, try checking the parent company's website or investor relations page. Many companies publish detailed information about spin-offs, including new tax identification numbers for the separated entities. I'd also suggest calling the IRS Business & Specialty Tax Line at 800-829-4933. While they handle federal taxes, they often have records of state EIN assignments that correspond to federal EINs, especially during corporate restructuring. They might be able to point you toward the right state agency or provide guidance on how the spin-off affected your tax documentation. One last thing - if you have any old benefits statements or 401k communications from around the time of the spin-off, these sometimes contain employer tax information that could help you track down the missing state EIN. Good luck with getting this resolved! It sounds like you have several promising avenues to explore based on all the great advice in this thread.

I completely empathize with your situation - the exact same thing happened to me at our company picnic last summer! Won a nice prize package and then got hit with an unexpected tax deduction weeks later with absolutely no warning. What you're experiencing is unfortunately very common but totally avoidable with better communication. While your company is legally required to withhold taxes on prizes (the IRS treats them as supplemental wages), they definitely should have disclosed this beforehand. The fact that it's not mentioned in your employee handbook and they made no announcement during the raffle is a real failure on their part. I'd encourage you to approach HR about this - not to challenge the taxation itself (since that's required by law), but to request better transparency for future events. When I had this conversation with my HR department, I focused on process improvement rather than complaining. I said something like "I understand prizes need to be taxed per IRS rules, but could we add this to the handbook and announce it before future raffles so other employees don't get surprised like I was?" They were actually very receptive and now make a brief announcement before each drawing. It's a simple fix that prevents exactly what you went through. The silver lining is that this withholding is actually protecting you from owing those taxes as a lump sum when you file next year, but I totally get why the surprise is so frustrating!

I had a very similar experience at our company's annual retreat! Won a weekend getaway package and then was completely shocked when I saw the tax deduction on my paycheck two weeks later - nobody mentioned anything about taxes during the entire event. After doing some research, I learned that while companies are legally required to withhold taxes on prizes (the IRS considers them supplemental income), the way your company handled the communication is really problematic. The fact that there's nothing in your employee handbook about this and no announcement was made during the raffle is a significant oversight on their part. What worked for me was approaching HR with a constructive mindset rather than just complaining. I said something like "I understand that prize taxation is required by IRS regulations, but could we improve our process by adding this information to the employee handbook and making a brief announcement before future raffles? This would help other employees avoid the same surprise I experienced." They were actually quite receptive and now they include a quick disclaimer before each drawing - something simple like "Please be aware that all prizes are subject to applicable tax withholding." It literally takes 10 seconds but would have saved you (and me) all this confusion and frustration. The silver lining is that having the taxes withheld now actually saves you from owing a larger amount when you file your tax return next year. But I completely understand why the lack of transparency is so frustrating - it's entirely preventable with better communication!

dont forget state taxes!!! my LLC in california costs $800/year minimum tax just to EXIST even if i make zero profit. make sure u check ur state fees before setting anything up!!!

Thanks everyone for all this helpful info! I had no idea there were so many factors to consider beyond just the basic tax savings. The QBI deduction thing is completely new to me - definitely need to research that more. @Fatima Al-Qasimi - when you mention modeling both scenarios with QBI, is that something a regular tax software can handle or do I need to find a tax professional? I've been doing my own taxes with TurboTax but this is getting way more complex than I expected. Also @StarStrider thanks for the state tax reminder - I'm in Texas so no state income tax, but I should definitely check if there are any LLC fees here. The last thing I want is to save money on federal taxes but get hit with surprise state costs! I think I'm leaning toward trying that taxr.ai tool that @Jamal Harris mentioned to get a clearer picture of my specific situation before making any moves. Better to spend a little time upfront than make the wrong choice and regret it later.

Don't panic! You absolutely can handle this on your own, especially for your first year. I was in the exact same situation when I started contracting - couldn't find an accountant anywhere and was totally overwhelmed. Here's what I wish someone had told me when I started: **Start simple:** You don't need to figure out S-corps or LLCs right away. Just focus on tracking your income and expenses properly this first year. You can always form an entity later once you understand your income patterns. **Essential first steps:** - Open a separate business checking account (makes everything cleaner) - Start tracking ALL business expenses immediately - home office, internet, phone, computer equipment, software subscriptions, etc. - Set aside 25-30% of every payment for taxes in a separate savings account - Make quarterly estimated tax payments (due dates are Jan 15, April 15, June 15, and Sept 15) **Marriage question:** Don't make major life decisions based on taxes alone! The marriage penalty/benefit depends on both your incomes, so run some scenarios with tax software first. For your first year, I'd recommend using TurboTax Self-Employed or FreeTaxUSA. They're designed for 1099 contractors and will walk you through everything. You can always upgrade to an accountant next year once you have a full year of data and know what questions to ask. You've got this! The first year feels overwhelming, but it gets much easier once you establish good systems.

I completely understand the panic - I went through the exact same thing when I transitioned to 1099 work two years ago! The good news is that while an accountant is definitely helpful, it's not absolutely essential, especially for your first year. Here's my practical advice for getting started: **Immediate priorities:** - Open a separate business bank account ASAP (makes tracking so much cleaner) - Start tracking every business expense from day one - dedicated workspace, internet, phone, equipment, software, professional development - Set aside 35-40% of each payment for taxes (federal + state + self-employment tax) - Sign up for quarterly estimated tax payments to avoid penalties **The S-corp question:** Don't stress about this yet. Generally only worth considering once you're consistently making $80K+ annually. The administrative costs and complexity usually outweigh benefits below that threshold. **Marriage decision:** Never make major life decisions purely for tax reasons! Run some scenarios with tax software to see the actual impact, but remember the "marriage penalty" varies greatly based on both partners' incomes. For your first year, I'd recommend starting with TurboTax Self-Employed or FreeTaxUSA - they're designed specifically for contractors and will guide you through everything. You can always hire an accountant next year once you have a full year of data and better understand your specific situation. The first year feels overwhelming, but you absolutely can handle this! Focus on good record-keeping habits now, and everything else will fall into place.