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Another thing to remember is that if you get a huge refund every year because you claim "0" dependents even though you have kids, you're doing it wrong! I see so many people who think this is some kind of "tax hack" when really you're just overwithholding. The new W-4 doesn't even use allowances anymore but people still talk about "claiming 0" like it's some magic formula. If you have kids or other credits/deductions, you should account for those on your W-4 so you're not giving the govt a huge loan every year.
So how exactly do you account for the child tax credit on the new W-4? I have 2 kids but always end up with a $5000 refund. I feel like I'm filling something out wrong but I'm afraid to adjust it and end up owing money.
On the current W-4 form, you'll want to use Step 3 specifically for tax credits. For each dependent child under 17, you can enter $2,000 per child (so $4,000 total for your two kids). This tells your employer to withhold less throughout the year because they know you'll be getting these credits. If you're still getting a huge refund after doing this, look at your most recent tax return and see where the extra refund is coming from. It might be from other credits or deductions you qualify for that aren't accounted for in your withholding. You can further adjust your W-4 by using line 4(b) to list additional deductions or 4(c) to request additional withholding if needed.
Can someone explain how bonuses work with taxes? I got a $3000 bonus last year and they took out like $1200 for taxes! Is there any way to get some of that back or have less taken out next time?
Thanks for explaining! That makes so much more sense now. So basically there's nothing I can do to prevent the high withholding when I get the bonus, but I'll get the extra back when I file my taxes if I'm in a lower bracket?
Exactly right! The 22% withholding on bonuses is just the default rate employers use - it's not necessarily your actual tax rate. When you file your return, that bonus income gets added to your regular salary and taxed at your normal marginal rate. If you're in the 12% bracket, for example, you'll get back about 10% of what was withheld from your bonus. It's one of those situations where the withholding system errs on the side of taking too much rather than too little.
USPS has been super slow lately ngl. Had a mail date of 8/25 and didnt get mine til almost October in Michigan
fr fr the postal service been lacking
Same here! Mail date 9/9 and still waiting in Ohio. Called my local post office and they said to give it another week since there have been delivery delays in my area. Really frustrating but trying to stay patient. At least we're not alone in this!
I moved to France last year and just filed with both forms. Here's what I learned: keep DETAILED records of every single day you're in and out of the foreign country! I almost failed the physical presence test because I didn't realize my vacation back to the US for Christmas counted against my 330 days. Had to dig through old emails to find flight confirmations.
This is so true. I use a simple app called TravelSpend to track all my days in and out of countries. Makes filling out Form 2555 way easier come tax time. It's saved me so many headaches.
Hey Amina! I went through this exact same situation when I was working in the UAE last year. You definitely need both forms - Form 1040 is your main tax return that reports all your income, and Form 2555 is like an attachment that calculates your Foreign Earned Income Exclusion. Since you're in Dubai (no income tax), the FEIE is definitely your best bet rather than the foreign tax credit. With your $73,200 income, you should be able to exclude most or all of it if you qualify for either the physical presence test (330 days in a foreign country over 12 months) or bona fide residence test. One heads up - make sure you keep detailed records of all your travel dates! Even short trips back to the US can affect your physical presence test qualification. I learned this the hard way when I almost missed the 330-day requirement because of a family visit I forgot to account for. The IRS website is definitely confusing for international stuff. If you get stuck, don't hesitate to reach out to a tax professional who specializes in expat taxes - it's worth the peace of mind!
This is really helpful, Sean! I'm actually in a similar boat - been working in Dubai for about 6 months now as a marketing consultant. Quick question about the physical presence test - do the days have to be consecutive, or can they be spread out over the 12-month period? I had to make a few quick trips back to the US for client meetings and I'm worried I might not hit that 330-day threshold. Also, did you end up using any specific software or service to help with the Form 2555 calculations? The whole thing seems pretty complex and I want to make sure I don't mess anything up!
Call the tax advocate service! They helped me when I had this issue last year
1-877-777-4778 but heads up the wait times are crazy rn
I've been through this exact situation! Code 570 with EIC claims is super common - the IRS automatically flags returns with large credits for verification. With your $5,769 EIC and total refund over $9k, they just want to make sure everything checks out. The good news is your transcript shows all the right codes (806, 766, 768) with April 15 dates, which means the system already calculated and approved your credits. The 570 is just a temporary hold while they do their review. Based on your cycle code (20250605), you should see movement within the next 1-2 weeks. Look for code 571 to appear - that's when the hold gets released. Then you'll likely see code 846 with your actual refund date shortly after. Don't stress too much about the April 15 dates on those credit codes - those are just placeholder dates. Once the 570 clears, you'll get updated dates that are much sooner. Most people in your situation get their refund within 21-30 days total from filing.
LilMama23
got mine! deposited at 3am this morning. hang in there!
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KylieRose
ā¢what bank do you have? š
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LilMama23
ā¢Capital One
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Sean Kelly
I'm in the same situation! Filed early and got the 2/14 date too. Been refreshing my banking app every hour like it's going to magically appear lol. Reading through these comments is actually really helpful - didn't realize Valentine's Day being a holiday could affect processing times. Guess I'll try to be patient for a few more days before I start panicking!
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