Has anyone had the IRS apply their overpayment to a state tax debt? I heard they can do that but not sure if its automatic or if you have to request it?

I went through something very similar last year with back taxes from 2021. The IRS will definitely refund any overpayment automatically - no special forms needed. What helped me was creating an online account at irs.gov so I could track the status of my payment and see exactly how they calculated the penalties and interest. One thing to keep in mind: if you made the payment recently, it can take up to 6-8 weeks for them to fully process everything and issue the refund. They have to apply your payment, calculate the exact amount owed as of the payment date, and then process the overpayment. You should receive a notice explaining their calculations before the refund arrives. Also, double-check that you don't have any other outstanding federal debts (like student loans) because they might offset your refund against those before sending you the money. Good luck!

Just a heads up that the withholding for social security seems high to me for your income level. Social security tax is 6.2% of your wages and Medicare is 1.45%. Based on the amounts you shared, it looks like your gross pay was around $840 for that check ($52.02 ÷ 0.062 = ~$840). If that's right, your social security withholding does match up! Just wanted to confirm the math looked right since that was one of your concerns.

One more thing to consider - if you're planning to work during the summer when school's out, your income might go up significantly and could push you over the threshold where you'd actually owe federal taxes. If you claim exempt now but then start working full-time hours in June/July, you might want to submit a new W-4 to start having federal taxes withheld again. I made this mistake my junior year - claimed exempt in January when I was only working weekends, but then worked 35+ hours a week all summer and ended up owing money at tax time. It's easy to update your W-4 whenever your situation changes, so don't feel like you're locked into whatever you choose now!

Has anyone ever considered just leaving the excess contribution in and paying the 6% penalty? I'm wondering if mathematically it might be better in some cases to just take the hit rather than removing the money from tax-advantaged accounts. With compound growth over decades, maybe the penalty is worth it?

I went through this exact situation two years ago and can confirm what others have said - you need to act quickly to avoid the ongoing 6% penalty. One thing I learned that might help: if you have both a SEP-IRA and Solo 401k for the same business, you're essentially double-dipping on employer contributions since you're the same employer for both accounts. The IRS sees this as problematic even if you're technically under the aggregate limits. My CPA advised me to pick one account going forward - either consolidate everything into the Solo 401k (which gives you more flexibility with employee vs employer contributions) or stick with just the SEP-IRA. The Solo 401k is usually better if you want to maximize contributions since it allows that $23,000 employee deferral on top of the employer contribution. For fixing your current situation, call both plan administrators this week. Don't wait until closer to the tax deadline - some custodians take several weeks to process excess contribution returns, and you want this resolved before filing.

Has anyone here actually made decent money as a campus ambassador? I filled out W9s for two different clothing brands last year and barely made $300 total. Wondering if it's even worth bothering with the tax paperwork.

Just went through this same process last month! As someone who was equally confused, here's what I learned: 1. Leave the "Business name" section blank - you're working as yourself, not a registered business 2. Check "Individual/sole proprietorship" for tax classification 3. Use your SSN (required) 4. Sign and date One thing I wish someone had told me earlier - start keeping track of any expenses related to your ambassador work right away! Things like phone bills (portion used for work), gas if you drive to events, supplies, etc. These can be deducted when you file taxes next year on Schedule C. Also, don't stress too much about quarterly payments unless you're making serious money (like over $1000 in taxes owed). Most ambassador programs don't pay enough to worry about that. The companies will send you a 1099-NEC if you make over $600 with them in a year, but you still need to report the income even if it's less than that. Good luck with the program - it's actually pretty fun once you get past the paperwork!

My payroll department told me something interesting about the W4 calculator - apparently the 2025 version accounts for the scheduled changes in tax brackets even though Congress will probably extend the current rates. That might explain why your 2025 withholding is lower ($180 vs $250). I'd recommend splitting the difference if you're worried. Put $215 as additional withholding and adjust later when we know more about what tax laws will actually look like in 2025.

One important detail that hasn't been mentioned yet - since you're starting a new job in November 2024, make sure to account for any withholding that already happened earlier this year from your previous employer. The W4 calculator assumes you're working the full year at that salary level. If you had a different job earlier in 2024 with different withholding amounts, you'll need to manually adjust the calculator inputs to reflect your actual year-to-date withholding and income. Otherwise, you might end up over-withholding for the remaining paychecks. Also, for your $15k side gig income - if this is 1099 work, remember you'll also owe self-employment tax (Social Security and Medicare) on that income, which is about 15.3%. The withholding calculator accounts for income tax on that $15k, but not the additional self-employment tax. You might need to withhold even more than the calculator suggests, or make quarterly estimated payments to cover that SE tax portion.