I was in almost the exact same situation last year - new job after unemployment and accidentally claimed 0 allowances on my W4. The stress is real when you see those huge tax withholdings! Here's what I learned: You're absolutely allowed to adjust your withholding to reflect your actual tax situation. The key point everyone's making about being unemployed for half the year is spot-on - your total annual income will be much lower than what payroll assumes when they see your current salary. I ended up using the IRS withholding calculator just like you did, and it suggested a similar adjustment. Changed my W4 from 0 to 4 allowances (this was before the new form) and it worked out perfectly. Got a small refund instead of the massive one I was heading toward. Don't stress about the legal aspect - adjusting your W4 for legitimate reasons like unemployment periods is exactly what the system is designed for. The IRS wants you to pay the right amount throughout the year, not massively overpay. Just make sure to use their official calculator and you'll be fine.

I'm dealing with a very similar situation right now! Started my job in August after being laid off in March, and I also mistakenly put 0 allowances on my W4. My paychecks have been painful to look at with how much they're taking out. What really helped me understand this was realizing that the payroll system doesn't know about your unemployment period - it just sees your current salary and calculates as if you've been making that amount all year. So of course it's going to overwithhold massively. I used the IRS calculator last week and it told me I could claim up to 6 allowances and still get a small refund. I was nervous about such a big jump, but after reading through all these responses, I'm definitely going to submit my new W4 tomorrow. One thing I wanted to add - make sure you run the calculator again in January to adjust for the full year of income at your new salary. The adjustment you make now is specifically because of the unemployment period, so you'll want to recalculate for next year when you'll be working the full 12 months.

This is exactly why I still do paper returns. Everyone thinks I'm crazy but computers fail, software glitches, systems crash, and suddenly hours of work vanish. With paper, what you write stays written.

I feel your pain - losing hours of tax work is absolutely maddening! I had a similar experience with different software a few years back and it taught me to be paranoid about backups. Beyond what others have suggested about contacting TaxAct support, I'd recommend checking if your browser has any cached data that might help. Sometimes going to your browser history and finding the TaxAct pages you were on can reveal temporary files or cached forms that might have some of your data. Also, if you used any browser autofill features while entering information, check your browser's saved form data - you might be able to recover some of the basic info like names, addresses, and employer information that way. For next time (with any software), I learned to take a screenshot after completing each major section AND save a PDF of the return in progress every 30 minutes or so. It's a bit tedious but saves so much heartache when things go wrong. The tax software companies really need to do better with their autosave and recovery features - this shouldn't be something taxpayers have to worry about!

Has anyone used TurboTax for filing with both 1042-S and W-2? Wondering if it handles this situation correctly or if I need to go to a professional?

Just want to add some clarity on the estimated tax payment timing since there's been some confusion in the thread. You absolutely should make that Q4 estimated payment by January 15th, 2026 - this is separate from your actual tax return filing. However, there's a potential strategy you might consider: if your W-2 withholdings from January-April were substantial enough to cover 90% of your total 2025 tax liability (including the fellowship income), you might not owe penalties at all. You can calculate this roughly by estimating your total tax for the year and seeing if your W-2 withholdings hit that 90% threshold. Also, since you mentioned you're a foreign resident considered a US tax resident - make sure you understand which test made you a tax resident (substantial presence test vs green card test). This affects how certain treaty benefits apply and whether you need to file Form 8840 or other forms. Given the complexity with multi-state filing (FL and CA), treaty considerations, and mixed income types, I'd honestly recommend getting professional help for this first year. Once you understand the process, future years will be much easier to handle yourself.

Welcome to the working world, Alexander! I remember being just as confused when I got my first job at 17. The tax withholdings you're seeing are completely normal, but there are definitely ways to optimize them for your situation. Since you're only 16 and working part-time, you'll likely qualify to claim exempt from federal income tax withholding if your total earnings for the year stay under the standard deduction (around $14,600 for 2025). This would stop the $32.18 federal withholding but you'd still pay Social Security and Medicare taxes - those are required for everyone. Here's what I'd recommend: Keep detailed records of your hours and pay, and use that to estimate your total yearly income. If it looks like you'll stay well under $14,000, go ahead and update your W-4 to claim exempt. You can always change it back if your hours increase significantly during summer break. Also, even though your parents will likely claim you as a dependent, you should still file your own tax return to get back any federal taxes that were withheld. Most online tax software is free for simple returns like yours. Good luck with your first job - you're asking all the right questions!

Great question, Alexander! I went through the same confusion when I started my first job at 16. Your withholdings look completely normal - those are the standard deductions everyone pays. Here's a quick breakdown: Federal, state, and city taxes go to different government levels, while Social Security (6.2%) and Medicare (1.45%) are mandatory for all workers regardless of age. The good news is that as a part-time student worker making around $5,000 annually, you'll likely get most of that federal tax back when you file your return next year. I'd definitely recommend talking to HR about updating your W-4 to claim "exempt" from federal withholding. Since your yearly income will probably be well under the standard deduction (~$14,600), you won't owe federal income tax anyway. This would put that $32.18 back in your pocket each paycheck while you'd still pay the required Social Security and Medicare taxes. And yes, you can absolutely file your own tax return even at 16! Your parents can still claim you as a dependent on their return, but you should file your own to get back any over-withheld federal taxes. Keep all your pay stubs - you'll need them to verify the W-2 form your employer sends you in January. You're being really smart by asking these questions early. Most people don't think about optimizing their withholdings until they've been working for years!

Anyone use any good apps for tracking these kinds of receipts from private sellers? I'm terrible at keeping paper and my phone is always with me.

Great question! I run a small cabinetry business and deal with this all the time. The IRS doesn't require formal receipts from businesses for every expense, but you do need "adequate records" to substantiate your deductions. For private seller purchases, I create simple handwritten receipts that include: date, seller's name and contact info, detailed description of materials, quantity, price paid, and business purpose. I have the seller sign it and keep a copy. For smaller purchases under $75, the IRS is generally more lenient on documentation requirements. A few other tips: Take photos of what you bought, pay by check or electronic transfer when possible (creates a paper trail), and keep a purchase log in your truck. I also recommend getting a simple receipt book from an office supply store - makes the whole process look more professional and sellers don't mind filling them out. The key is consistency. Pick a system and stick with it for all your purchases, whether from Home Depot or your neighbor's barn. Your future self (and accountant) will thank you!