Anyone know how long employers typically take to issue a corrected W2? My company found an error similar to this a few weeks ago and said they'd send corrected forms, but I'm still waiting and getting anxious with the filing deadline coming up.

This is a tricky situation, but you're doing the right thing by catching this error early! I went through something similar two years ago where my employer had a system glitch that duplicated certain tax withholdings on W2s for about 30 employees. Here's what I'd recommend: Don't file until you get the corrected W2-c. Even though it might delay your refund, filing with incorrect information will create bigger headaches later. The IRS computer systems will flag the mismatch between what your employer reports and what you file. While you're waiting for the correction, gather all your paystubs from the year and add up the actual local tax withholdings. This will tell you if they actually overwitheld money from your paychecks (in which case you'd be due a refund) or if it was just a W2 reporting error. If they did overwithhold, that money should come back to you when you file with the corrected form. Also, if your employer is slow to respond, document everything - your emails, their responses, dates, etc. Sometimes you need that paper trail if the correction takes too long and you need to involve the IRS directly.

Just wanted to add one more option to consider - I've been using FreeTaxUSA for 3 years after switching from TurboTax, and it's saved me hundreds. But this year I also discovered Tax Hawk, which is actually made by the same company as FreeTaxUSA but has a slightly different interface and sometimes different promos. For what it's worth, I have a pretty similar situation (married, 3 kids) and FreeTaxUSA worked great for claiming all the child tax credits correctly. The step-by-step guidance is really clear, and I never felt like I was missing anything important.

I can relate to your situation with the high H&R Block fees - $510 is definitely steep for a straightforward family return! Based on your description (married with 4 kids, primarily W-2 income), you're actually dealing with a pretty standard tax situation that most DIY software can handle well. To directly answer your question: FreeTaxUSA is strictly DIY software - they don't offer professional preparation services where someone does your taxes for you. However, their interface is really user-friendly and walks you through everything step by step. The child tax credits are handled automatically once you enter your dependents' information. If you absolutely need someone to prepare your taxes, you might want to look into local CPAs or enrolled agents who often charge less than the big chains. Many charge $200-350 for a return like yours, which would still save you money. But honestly, with your situation being fairly straightforward this year (before the business income kicks in), FreeTaxUSA could save you hundreds. Their Deluxe version is under $15 total and includes audit support. The software asks clear questions and you can always save your progress and come back to it if you get stuck on something.

Had the exact same issue. The worksheet you need is called the "State and Local Income Tax Refund Worksheet" in the 1040 instructions. BUT if you used tax software last year, you could just look at Schedule A, line 5e from your 2024 return to see exactly how much state tax was actually deducted. The rule is pretty simple: only pay tax on refund $ for which you actually received a federal tax benefit.

This is such a common confusion! I went through the exact same thing last year. The key insight that finally clicked for me is that you only report as taxable income the portion of your state refund that corresponds to taxes you actually got a federal deduction for. Since you hit what sounds like the SALT cap and only deducted $650 of your $6,200 in state taxes, you'd calculate: ($650 ÷ $6,200) × [your refund amount] = taxable portion. So if your state refund is, say, $1,500, you'd only report about $157 as taxable income ($650/$6,200 = 10.5%, so $1,500 × 10.5% = $157). The IRS has a specific worksheet for this calculation in the Form 1040 instructions - look for the "State and Local Income Tax Refund Worksheet." It walks you through the exact calculation using your specific numbers. Don't let your tax software intimidate you into reporting the full refund amount if you didn't get the full deduction benefit!

Just a heads up that the 1099-B from your broker will break everything down and should include all the wash sale adjustments properly. They'll report both to you and the IRS. You'll get it around February. When you file your taxes, you'll report all of this on Schedule D and Form 8949. Most tax software can import all this directly from major brokers and will handle the calculations correctly.

I've been through this exact situation before! The key thing to understand is that disallowed losses from wash sales don't disappear - they get added to the cost basis of your replacement shares. So while your broker might show a net gain of $66,800, the actual taxable amount could be different once all wash sale adjustments are properly calculated. Here's what I'd recommend: First, try to identify all your wash sales manually if you can - look for any stocks you sold at a loss and then repurchased within 30 days. Second, don't rely completely on your broker's current gain/loss summary until you get your official 1099-B in February, as that's when everything gets properly adjusted. If you need a more accurate estimate now for planning purposes, consider using tax software or a service that can analyze your trades and account for wash sales properly. And definitely start setting aside money for taxes - short-term gains are taxed as ordinary income, so depending on your tax bracket, you could owe 22% or more in federal taxes alone.

I had this exact same confusion when I missed my 2022 RMD. The key thing to understand is that Line 55 on Form 5329 serves two purposes depending on whether you're requesting a waiver or not. If you're NOT requesting a waiver, you calculate and enter the 10% penalty amount ($67.50 in your case) and pay it with your return. If you ARE requesting a waiver (which you should since you've corrected the mistake), you enter $0 on Line 55, write "RC" next to it, and attach your explanation letter. You don't pay anything upfront. Your calculation is correct - the penalty would be $67.50 if you had to pay it. But since you've already taken the corrective distribution and have reasonable cause, you should request the waiver by putting $0 on Line 55. Make sure your explanation letter mentions that this was an honest oversight, you corrected it as soon as you realized the mistake, and you've put systems in place to prevent it from happening again. The IRS is generally very reasonable with first-time RMD penalty waivers when people show good faith by correcting the situation promptly. Don't stress too much about this - it's a very common mistake and the IRS processes thousands of these waiver requests successfully every year.

I've been through this exact situation and want to emphasize a few key points that might help clarify the process: First, you're absolutely correct to be confused - the Form 5329 instructions aren't very clear about the waiver process. The consensus here is right: put $0 on Line 55 with "RC" written next to it when requesting a waiver. Your calculation of the $67.50 penalty is mathematically correct (10% of the $675 shortfall), but you only pay that if the waiver gets denied, which is unlikely for a first-time missed RMD that you've already corrected. A couple of additional tips from my experience: - Make sure your explanation letter is dated and signed - Include the exact date you took the corrective distribution - If this is your first year of RMDs, mention that in the letter - the IRS is particularly understanding of first-time confusion - Keep a copy of everything you submit for your records The waiting period can be nerve-wracking, but most people I know who've gone through this process (including myself) have had their waivers approved without issue. The fact that you caught the mistake and corrected it shows good faith, which the IRS values highly in these situations. Don't overthink it - you're on the right track with the $0/RC approach!