I'm an accountant and see this issue constantly. Here's what's happening: 1) The $650 was probably her final paycheck from 2017 work, but it was issued in 2018, making it 2018 income for tax purposes. 2) The specific date they're claiming she worked in January is likely just their payroll system requiring an "event date" to process a payment, and someone just picked that date. 3) The 1095-C for two months is standard - companies typically extend COBRA eligibility for a period after termination. My advice: Just report the W2 as is on your 2018 taxes. The amount is small enough that trying to get a corrected W2 will be more hassle than it's worth. If you're really concerned about the January date showing work she didn't do, request your wife's complete time records from 2017-2018 to see what's actually recorded.

I had a very similar situation a few years back! My wife worked at a hotel through December 2016, but they held her final check until January 2017 for "processing." We were confused when we got the W2 showing 2017 income for work she did in 2016. After talking to a tax preparer, we learned this is actually normal and legal. The IRS follows the "cash basis" rule - income is taxed in the year you actually receive it, not when you earn it. So even though your wife worked those shifts in November 2017, if the payment came in 2018, it's 2018 income. The suspicious part is that January 4th date they're claiming she worked. I'd definitely ask for her detailed timecard records from that period. If someone was clocking in under her employee number after she left, that's wage theft and needs to be reported. But if it's just how they coded her final payment in their system, then you're probably fine reporting it as is. For $650, fighting with corporate HR might not be worth the headache, but getting those records would give you peace of mind about whether anything shady happened.

Has anyone tried both TurboTax and H&R Block online to compare the results? Sometimes I get different amounts from different software.

I'd definitely recommend trying both the taxr.ai suggestion from @Connor Murphy and comparing results across multiple tax software platforms before you finalize anything. A swing from getting $2,800 back to owing federal taxes is a huge red flag that something's not right with your current filing. Also, make sure you're entering ALL your tax documents correctly - sometimes people forget about interest statements from banks, unemployment compensation from earlier in the year, or even small 1099s from freelance work. Even a small missed document can throw off your entire calculation. Before paying any service fees, try the IRS Free File program (https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free) which gives you access to brand-name software for free if you qualify. At minimum, it'll give you another data point to compare against your current results.

9 Something similar happened to me last year. Here's exactly what I did: 1) Called my bank and asked if they'd deposit it anyway (they said no) 2) Called IRS at 7am exactly when they open (got through after only 20 min) 3) They told me to write "VOID" on the check and mail it back with a letter 4) Included my name, social, phone number, and explanation in the letter 5) Mailed it certified so I could track it 6) Got new check about 5 weeks later Don't just mail it back without writing VOID on it or they might think you're trying to cash it twice! That's what the agent specifically warned me about.

Just wanted to add another option that worked for me - if you have a local IRS Taxpayer Assistance Center (TAC) near you, you can make an appointment through the IRS website and bring the expired check with you. They can often process a replacement on the spot or at least expedite it significantly. I had an expired refund check from 2023 and was dreading the whole mail-back process. Made an appointment at my local TAC, brought the check and my ID, and they were able to start the reissuance process immediately. The agent told me it would take 2-3 weeks instead of the usual 6-8 weeks for mailed requests. Plus, they can verify and update your address in real-time, which might prevent this from happening again. You can find locations and make appointments at irs.gov/help/contact-your-local-irs-office. Way less stressful than playing phone tag!

Has anyone dealt with a settlement that spanned multiple tax years? I received part of my settlement last year and will get the rest this year, but all the attorney fees came out of last year's payment. Trying to figure out if I can deduct all fees last year or need to split them somehow.

I went through something very similar last year and wanted to share what I learned. The key thing that helped me was getting organized with all the paperwork first. Make sure you have your settlement agreement that breaks down exactly what each portion of the $78,000 was for - physical injuries vs. lost wages. One thing to watch out for is that some settlement agreements aren't super clear about the breakdown, so you might need to contact your attorney to get a clearer allocation letter. This becomes really important because the IRS could ask for documentation later. Also, since you're using TurboTax, look for the section on "Other Income" and then "Legal Settlements." It should walk you through the process of reporting only the taxable portion. The software has gotten better at handling these situations in recent years. The math everyone described above is correct - allocate the attorney fees proportionally based on what percentage of your settlement was taxable income. Just make sure to keep copies of everything because settlement tax issues sometimes get flagged for review.

I actually did exactly this last year - cashed out at about a 20% loss to pay down debt. The mental relief of getting rid of the credit card debt was honestly worth way more than waiting for my investments to maybe recover someday. Plus the guaranteed "return" of not paying 22% credit card interest beats whatever I might have made in the market. Just my two cents!

Just wanted to add that you should also consider the timing of when you sell within the tax year. Since you're already at a loss, selling before December 31st means you can claim that loss deduction on this year's tax return, which could help offset any other income and potentially get you a bigger refund or lower tax bill. Also, once you pay off that credit card debt, try to resist the urge to rack it up again! The guaranteed savings from eliminating 20%+ interest rates is way better than any potential market gains. You're making a smart financial decision here - sometimes cutting losses and focusing on guaranteed debt reduction is the right move.