I'm going through a very similar situation after my divorce last year, and this entire thread has been incredibly helpful! Like so many others here, I was completely confused by those "TP Tax Figures (Reduced By IRAF per Computer)" entries on my tax transcripts and was convinced they indicated hidden retirement accounts. It's such a relief to learn from everyone's expertise that these are just normal IRS processing codes, not secret accounts. The systematic approach outlined here - starting with Form 4506-T to get wage and income transcripts, then looking specifically for Form 5498s and W-2 Box 12 retirement codes - gives me a clear path forward instead of spinning my wheels on mysterious transcript entries. What really strikes me is how many newly divorced people end up in this same confused state when we suddenly have to understand financial documents that our ex-spouses always handled. The community support and shared experiences in this thread have been invaluable for turning what felt like an impossible mystery into a manageable investigation process. Thank you to everyone who shared their knowledge and experiences - it's comforting to know we're not alone in this post-divorce financial detective work!

I'm also going through a divorce situation and dealing with confusing IRS documents! This thread has been incredibly educational - I had no idea that those "TP Tax Figures (Reduced By IRAF per Computer)" entries were just normal processing codes. I was also convinced they meant something more significant. What I'm finding most valuable is how everyone has broken down the investigation process into manageable steps. The Form 4506-T approach for getting wage and income transcripts seems like the logical starting point, and having specific things to look for (Form 5498s, W-2 Box 12 codes, Schedule 1 deductions) makes it feel less overwhelming. I'm curious - for those who've been through this process, how long did it typically take to receive the wage and income transcripts after submitting Form 4506-T? I'm eager to get started but want to set realistic expectations for the timeline. It's really reassuring to see so many people who've successfully navigated this same confusion. The community support here is amazing for those of us trying to understand our financial situation after divorce!

Your $812 extra withholding calculation sounds about right for your income situation. With combined income of $275k, you're likely hitting the 24% or even 32% tax bracket on the higher portions of your income, but each employer's withholding system assumes their job is your only income source. Here's what's happening: when employers withhold taxes, they use tables that assume that specific job is your only income. So your wife's employer withholds as if she's making $158k total, and your employer withholds as if you're making $117k total. But your actual tax liability is based on $275k combined income, which pushes you into higher brackets. The $812 per paycheck works out to about $21k annually in extra withholding, which could very well be the difference between what your employers naturally withhold versus your actual tax liability at that income level. You absolutely can split this between both your W4s - it doesn't matter to the IRS which employer withholds the extra amount. If cash flow is a concern, splitting it might make more sense for your budget. Just make sure the total extra withholding across both jobs equals what the calculator recommended. I'd also suggest running a quick sanity check by estimating your total tax liability for the year and comparing it to what would be withheld without the extra amount. That difference should be close to your calculated extra withholding.

I went through this exact same situation last year when my wife got promoted! The $812 per paycheck does sound high, but it's probably accurate given your combined income level. One thing that helped us was using the IRS Safe Harbor rule - if you withhold at least 100% of last year's total tax liability (or 110% if your prior year AGI was over $150k), you won't owe penalties even if you end up owing some tax at filing time. This gave us peace of mind that we weren't massively over-withholding. Also, consider that you might be eligible for additional deductions or credits that could reduce your actual tax liability - things like maxing out 401k contributions, HSA contributions if available, or other pre-tax benefits that weren't factored into the basic W4 calculator. My recommendation would be to start with the calculated amount but definitely split it between both your W4s for better cash flow management. You can always adjust mid-year if it seems like too much when you see how your paychecks look.

19 The benefits your employer is offering (vacation, sick days, holidays) are actually a red flag for proper 1099 classification. True independent contractors don't typically receive these employee-style benefits because they're supposed to be running their own business and setting their own schedules. Beyond the tax implications others have mentioned, consider this: if the IRS later determines you were misclassified, you could be liable for penalties and interest on unpaid taxes. Your employer would also face significant penalties for avoiding payroll taxes. My advice? Run the numbers both ways, but also document everything about your work arrangement - hours, location, equipment used, who controls your work methods, etc. This will help determine if you're legally supposed to be W-2 or 1099 regardless of what your employer offers. The classification should be based on the actual working relationship, not what sounds financially better.

This is a really complex situation that goes beyond just the tax math. While everyone's focused on the financial calculations, I want to emphasize what others have touched on - the legal classification issue is huge here. The fact that your employer is offering you "benefits" like vacation and sick days while calling you a 1099 contractor is a major red flag. The IRS looks at three main factors: behavioral control (do they control how you do your work?), financial control (do you have opportunity for profit/loss?), and relationship type (permanent vs project-based work, benefits, etc.). If you're doing the same job at the same location with the same schedule, just switching your tax classification doesn't make you a legitimate contractor. This could expose both you and your employer to penalties down the road. Before making any decision, I'd strongly recommend consulting with a tax professional who can review your specific work arrangement. They can help you understand not just the tax implications, but whether this classification change would even be legally defensible if questioned later. The short-term financial benefits might not be worth the long-term compliance risks.

I've been dealing with a similar situation with my Altrua HealthShare membership. One thing that helped clarify things for me was understanding that the IRS Publication 502 specifically addresses what qualifies as medical expenses. The key distinction is between what you pay FOR medical care versus what you pay TO SUPPORT a health sharing arrangement. Your monthly shares are considered contributions to support the ministry's operations and other members' needs - not direct payments for your own medical care. However, any medical expenses you pay out-of-pocket (deductibles, copays, services not covered by the sharing ministry) can potentially be deductible if you itemize. This includes things like prescription costs, dental work, or specialist visits that the ministry didn't fully cover. One tip: if your sharing ministry has a "personal responsibility" amount (similar to a deductible), those out-of-pocket payments for your own care would likely qualify as deductible medical expenses, subject to the 7.5% AGI threshold. Keep detailed records separating your monthly ministry contributions from your actual medical expense payments - this will make tax time much easier and help if you face any IRS questions down the road.

Just wanted to add another perspective as someone who's been using Medi-Share for about 5 years now. The tax treatment can definitely be confusing, but I've found it helpful to think of it this way: your monthly shares are like insurance premiums (not deductible), while any medical expenses you pay yourself are potentially deductible. One thing I learned the hard way is to keep separate bank accounts or at least very detailed records. I use one account for my monthly shares to other members, and track all my out-of-pocket medical expenses separately. This makes it much easier at tax time to calculate what might be deductible. Also, don't forget about things like medical travel expenses if you had to go out of town for treatment that your sharing ministry covered. The IRS allows deduction of mileage or actual transportation costs to and from medical appointments, even if the treatment itself was paid for by other members. For what it's worth, I've never had any issues with the IRS regarding my health sharing ministry arrangement, but I always keep very detailed records just in case. The key is being able to clearly separate what you paid to support the ministry versus what you paid for your own medical care.

Anyone using specific software to track PUC? Our firm has been using an ancient Excel template that's prone to errors, especially with complex corporate groups. We lost a client last year because of a major PUC calculation error that resulted in unexpected tax on what they thought was a return of capital.

The key breakthrough for me was understanding that tax PUC is essentially a "tax cost" concept while corporate PUC is a "legal capital" concept. They serve completely different purposes. Think of it this way: corporate PUC protects creditors by ensuring shareholders can't withdraw their capital contribution without proper procedures. Tax PUC prevents taxpayers from extracting corporate surplus tax-free by disguising it as a return of capital. The Income Tax Act deliberately reduces tax PUC in many situations (like non-arm's length transfers under s. 84.1) because otherwise taxpayers could artificially inflate their tax PUC and then extract corporate earnings without paying tax on deemed dividends. For your exam, focus on the policy reasons behind the adjustments - once you understand WHY the tax rules reduce PUC in certain situations, the mechanical calculations make much more sense. The textbook contradictions you're seeing are probably different fact patterns where different anti-avoidance rules apply. Good luck with your CPA exam! The PUC concepts are definitely challenging but they're fundamental to understanding Canadian corporate tax.