2 Has anyone noticed that the blended tax rate shown in different tax software programs can vary slightly? When I calculated mine in TurboTax it showed 23.8% but when I checked with H&R Block online it showed 23.5%. Same numbers entered in both! Which one is right??

Thanks for asking this question - I was having the exact same confusion! The explanation about progressive tax brackets makes perfect sense now. One thing that helped me understand it better was looking at the actual tax bracket amounts for our filing status. For 2024 Married Filing Jointly, you're only paying that 35% rate on income between $364,200 and $462,500. Everything below that gets taxed at lower rates (10%, 12%, 22%, 24%, 32%), which is why your average comes out to 23.6%. I found it helpful to think of it like this: if you made $400,000, only $35,800 of that would be taxed at 35%, while the rest gets taxed at progressively lower rates starting from 10%. When you average it all out, you get that blended rate that's much lower than your top bracket.

Would salon capes and towels fall under De Minimis or regular supplies? Each towel is like $8 but I buy them in bulk orders of $200-300. And what about things like a new salon software subscription? FYI I also use freetaxusa and its been so confusing trying to categorize everything correctly!

Great thread! As someone who's been doing taxes for small businesses for over 10 years, I wanted to add a few clarifications that might help Carmen and others in similar situations. First, you're absolutely right that consumable salon supplies (shampoo, hair color, etc.) are regular business expenses and don't need the De Minimis election. However, I've seen many salon owners miss deductions by not properly categorizing mixed-use items. Here's a practical tip for FreeTaxUSA users: Instead of trying to fit everything into "Other Expenses," use the main expense categories first. Put your consumable supplies under "Supplies," equipment repairs under "Repairs and Maintenance," and software subscriptions under "Office Expenses." Only use "Other Expenses" for truly unique items that don't fit elsewhere. Also, for record-keeping, I always recommend my salon clients take photos of their major supply deliveries and keep a simple monthly log of what they purchased. It doesn't need to be fancy - just enough detail that you can defend your deductions if questioned. The IRS loves to see organized, consistent record-keeping, especially for cash-heavy businesses like salons.

Anyone else had entries in box 14 for "moving expenses"? My company relocated me last year and they put some code in box 14, but part of the moving costs also showed up in box 1 as taxable income. So confused about how to handle this.

Box 14 can definitely be confusing since it's not standardized! Based on what everyone's shared here, it sounds like you have several good options to figure out what that code means. Since you mentioned you're in California (from your response to Nina), there's a good chance it could be SDI (State Disability Insurance) withholding, which is pretty common. If you want a quick answer without having to track down your old employer's HR department, the taxr.ai suggestion seems like it worked well for others here. Otherwise, calling your former restaurant's payroll department would be the most direct route - they should be able to tell you exactly what their internal code means. The good news is that most Box 14 entries don't complicate your federal return at all. TurboTax should handle whatever it is automatically once you enter your W-2 information. But knowing what it is could help you claim any applicable state deductions if it turns out to be something like SDI contributions.

I went through this exact same situation last year and it was incredibly frustrating. After verifying in person in January, I got another notice in March asking me to verify again. What I learned is that the IRS has multiple verification "checkpoints" in their system, and sometimes completing one doesn't automatically clear the others. The key is to be persistent but strategic about how you approach it. Here's what worked for me: I called the dedicated Identity Verification line (800-830-5084) early in the morning around 7 AM when call volumes are lower. When I got through, I specifically asked them to check my "identity verification history" for the current tax year and requested they document in my account that I had already completed verification on [specific date]. The representative was able to see my previous verification and manually cleared the duplicate flag. My refund was released within 5 business days after that call. Don't just accept "the system shows you need to verify" - ask them to look deeper into your verification history. Keep all your documentation from your February verification handy when you call, including any confirmation numbers or paperwork you received.

I'm dealing with this same frustrating situation right now! I verified my identity in person back in January and just got another verification notice last week. It's so confusing because I thought once you verify, that's it for the tax year. Reading through everyone's experiences here, it sounds like this is unfortunately more common than it should be. The system glitch explanation makes sense - it's like their different departments don't communicate properly with each other. I'm planning to call the Identity Verification line (800-830-5084) tomorrow morning early like Hunter suggested. I kept my paperwork from January, so hopefully that will help when I explain I've already been through this process. Has anyone here had success getting this resolved without having to go through the entire verification process a second time? I'm hoping the phone call will be enough to clear whatever flag is stuck in their system.

For anyone wondering about timing - I filed an amended return for a similar issue (wrong 1099) in February last year. It took about 14 weeks to process. The IRS says to allow up to 16 weeks, but it could take longer during busy periods. Just make sure you pay any additional tax owed when you submit the amendment to avoid extra interest and penalties. The IRS will charge interest from the original due date until you pay.

This is exactly why I keep all my tax documents in separate folders by year now! Made a similar mistake a few years back with my 1099s and it was such a pain to fix. One thing I learned from that experience - when you file the 1040-X amendment, make sure to write a clear explanation in Part III about what happened. Something like "Used incorrect W-2 form from tax year 2022 instead of 2023" helps the IRS processor understand the situation quickly. Also, since you mentioned you haven't received your refund yet, the IRS will automatically adjust your refund amount once they process the amendment. If you end up owing more (which sounds likely given the raise), they'll reduce your refund accordingly. If you end up owing significantly more than your refund amount, you'll get a bill for the difference. The update in your post is really helpful for others - thanks for sharing how it worked out! That $4 refund check is probably just the remaining balance after they applied your original refund to the additional tax owed.