Has anyone tried adjusting their W-4 to increase withholding on just one person's paycheck instead of both? My wife and I found it easier to have extra withholding from just the higher income so we could better track it, rather than messing with both paychecks.

One strategy that's worked really well for us is maxing out HSA contributions if you have access to a high-deductible health plan. It's triple tax-advantaged (deductible going in, grows tax-free, tax-free withdrawals for medical expenses) and can really help reduce your taxable income. With two kids, you probably have plenty of medical expenses to justify it. Also, don't overlook the Child and Dependent Care Tax Credit - it phases out at higher incomes but you might still qualify for some benefit. And if your employer offers dependent care FSA, you can set aside up to $5,000 pre-tax for childcare expenses. For the side income withholding issue, consider setting up a separate business checking account and automatically transferring 25-30% of each payment into a "tax savings" account. Then make quarterly estimated payments from there. It helps psychologically because you never see that money as "yours" to spend.

I had a similar issue and found out I needed to look at the ACCOUNT transcript specifically, not the RETURN transcript. They show different information! The return transcript just shows what you submitted, while the account transcript shows all the actions the IRS has taken. Make sure you're looking at the right one!

Just wanted to add another perspective - if you're seeing a much smaller amount than expected, check if your state taxes were withheld from your federal refund. This happened to me and I was so confused until I realized the IRS had applied my federal refund to outstanding state tax debt I didn't even know about. You can see this on your account transcript as a code 766 "credit to your account" followed by a code 767 "credit applied to another tax period/form." The difference between these two amounts would be what was sent to your state for back taxes. Also, since you mentioned unemployment income - if you filed early before the unemployment tax exclusion was passed, your transcript might show adjustments related to that. Look for codes starting with "29" which indicate additional assessments or refunds related to those changes.

Don't forget about state R&D credits too! Many states offer their own version on top of the federal credit. We're in California and actually got a bigger benefit from the state credit than the federal one last year. Also, if you're a startup or small business without much tax liability, look into the federal payroll tax offset. You can apply up to $250,000 of your R&D credits against your Social Security payroll taxes instead of income tax. This was a game changer for us when we were pre-profit but spending heavily on development.

This thread has been incredibly helpful! I'm in a similar situation with a 15-person software company and had no idea about the R&D credit until recently. A couple of follow-up questions based on what I've read here: 1. For those who've successfully claimed this - how do you handle the gray area between regular software maintenance vs. qualifying R&D activities? We spend a lot of time fixing bugs and optimizing existing code, but I'm not sure if that counts as "resolving technical uncertainty." 2. The payroll tax offset option sounds perfect for us since we're still growing and don't have huge income tax liability. Is there a specific form or process for electing this option, or does your accountant handle it automatically? 3. Has anyone tried claiming credits for developing internal tools or processes that improve how your team works, or does it need to be customer-facing products? Thanks again everyone - this has been way more informative than anything I found through Google searches!

Have you tried these alternative approaches? • Contact Taxpayer Advocate Service (they can help when normal channels fail) • Request your Account Transcript online instead of waiting for return processing • Visit local IRS office in person (appointment required) • Check if your state has a tax agency that can confirm receipt of federal return Do any of these sound feasible with your schedule? Many parents I know have had success with the TAS route when dealing with paper returns.

I'm dealing with the exact same frustrating situation! Filed my paper return on February 15th and it's radio silence from the IRS. Like you, I'm juggling work and family obligations and can't spend entire days trying to get through to them on the phone. It's incredibly stressful not knowing if they even received it or if there's an issue. I've been checking "Where's My Refund" obsessively but it still shows no information available. Reading through these responses gives me some hope that others have eventually gotten through - might have to try some of these suggested approaches since the standard waiting game clearly isn't working for any of us paper filers this year.

Quick question - has anyone used any specific software to track donations for their charity events? I'm helping with a fundraiser golf tournament next month and wondering if Excel is good enough or if there's something better?

Great question about charity event taxation! I organized a similar fundraiser last year and learned a lot through the process. One key thing to remember is that you'll want to work directly with the animal shelter from the beginning - having them officially endorse or co-sponsor the event can simplify things significantly. Many established nonprofits have experience with third-party fundraisers and can provide guidance on proper documentation. Also, make sure to separate your personal expenses from event expenses in your record-keeping. If you pay for things like flyers, registration materials, or other event costs out of pocket, those are generally not tax-deductible for you personally, even though you're doing it for charity. Consider setting up a separate bank account just for the event funds - it makes tracking much cleaner and provides a clear paper trail if you ever need to document where every dollar went. This also helps establish that you're acting as a conduit rather than receiving personal income. The $8,000 amount you mentioned definitely puts you in territory where proper documentation becomes really important, so don't cut corners on the record-keeping!