Just a heads up - while this strategy works, remember that if your state refund gets delayed for any reason (audits, verification, etc.), you'll still be on the hook for paying federal taxes by the deadline. Might be good to have a backup plan just in case. And definitely e-file both returns for fastest processing!

Great advice from everyone here! Just wanted to add that you should also check if your state has any specific timing for refund processing. Some states are faster than others - for example, California typically processes e-filed returns with direct deposit in 7-10 days, while other states might take 2-3 weeks. You can usually find current processing times on your state's tax department website. This will help you plan better for timing your federal payment. Also, if you're really cutting it close to the April 15th deadline and your state refund hasn't arrived yet, remember you can always pay the minimum amount to avoid penalties and then pay the rest when your refund comes in.

I'm also completely new to this W4 situation and feeling overwhelmed! Just started my first "real" job out of college and they gave me this form that might as well be written in another language. I kept looking for where to put "0" like my parents always told me to do, but that option doesn't even exist anymore! Reading through all these responses is incredibly helpful - especially knowing that @Natasha Petrova and others with simple situations could just fill out Step 1 and sign. I'm single, this is my only job, no kids or anything complicated, so it sounds like I can keep it simple too. One question though - since this is my very first W4 ever, should I err on the side of having too much withheld rather than too little? I'd rather get a refund than owe money since I have no idea what to expect. Would adding like $25 in Step 4(c) be a reasonable safety net for someone completely new to this?

As someone who works in HR and helps employees with W4s regularly, I want to reinforce what others have said - the new form really is much simpler for basic situations once you understand it! The key thing to remember is that the IRS redesigned it to be more accurate by default. For anyone still feeling overwhelmed, here's my simplified checklist for single filers with one job: - Step 1: Fill in your name, address, SSN, and filing status - Step 2: Skip entirely (only for multiple jobs/working spouse) - Step 3: Skip if no dependents - Step 4: Only use if you want extra withholding for peace of mind - Step 5: Sign and date That's literally it! The form does the math automatically based on current tax brackets and the standard deduction. I've seen hundreds of employees successfully use this approach. And remember, you can always submit a new W4 to your payroll department if you need to make changes later - you're not stuck with your first attempt forever. The anxiety around "messing up your taxes" is understandable but usually unfounded. The worst case scenario is owing a small amount or getting a slightly larger/smaller refund than expected, both of which are easily fixed by adjusting your W4 for the following year.

This thread has been incredibly comprehensive and helpful! I'm just getting started with gambling record-keeping this year and was completely overwhelmed by the session method until reading through all these detailed experiences. One area I haven't seen much discussion about is sports betting, which has become legal in my state recently. Does the session method work the same way for sports betting as it does for casino gambling? I'm thinking each individual bet might be considered its own "session," but I'm not sure if that's the right approach. Also, with sports betting, you often have bets that are placed on one day but don't resolve until weeks later (like futures bets on championship outcomes). How do you handle the timing for tax purposes - do you record the win/loss when you place the bet or when it actually resolves? I've been keeping detailed records of all my bets using a spreadsheet similar to what others described for casino play, but I want to make sure I'm thinking about the session definition correctly for this type of gambling. Any insights would be really appreciated! The advice throughout this thread about consistency and good record-keeping definitely applies regardless of the type of gambling, but the specifics of how to define "sessions" for sports betting seems like it might be different from casino visits.

This has been such an incredibly helpful thread! As someone who started gambling more regularly this year, I was completely confused about how to handle the tax reporting side of things. The session method seemed really complicated at first, but reading through everyone's detailed explanations and real-world examples has made it so much clearer. I especially appreciate the emphasis on consistency throughout this discussion - it's reassuring to know that the IRS cares more about having a reasonable, systematic approach than perfect precision in every tiny detail. The tips about taking photos of receipts, keeping digital backups, and tracking everything in real-time have already changed how I approach my record-keeping. One thing that really stood out to me was the distinction between regular session tracking and W-2G reporting requirements. I had no idea that W-2G amounts need to be reported in full regardless of whether you had a winning or losing session overall. That's definitely something I'll need to watch out for. The practical advice about using spreadsheets with one row per session makes so much sense too. I've been keeping a handwritten diary, but I think switching to a digital format will make year-end tax prep much easier. Thanks to everyone who shared their experiences - this community discussion has been more valuable than any professional consultation I could have paid for! It's given me the confidence to handle my gambling taxes myself rather than worrying about finding a specialist.

I went through this exact same nightmare last year! The hyphenated last name is almost certainly your issue. Here's what finally worked for me: First, try entering your name in ID.me exactly as it appears on your most recent tax return if you have a copy. Even if your parents filed it, your name should appear consistently with how the IRS has it stored. If you don't have that, here are the variations to try with your hyphenated name: - With the hyphen: "Smith-Jones" - Without the hyphen but with a space: "Smith Jones" - Without the hyphen, no space: "SmithJones" - Sometimes they store it as two separate last names Also, make sure you're using your full legal first name, not a nickname. If your birth certificate says "Elizabeth" but you go by "Liz," use Elizabeth. The other thing that helped me was checking my credit report first - sometimes the way your name appears there matches how it's stored in government databases, since they often cross-reference the same sources. Don't panic about the deadline! You can always file for an extension if needed, and like someone else mentioned, you can enter "0" for prior year AGI if you absolutely can't retrieve it. The IRS would rather have your return with a small processing delay than not have it at all.

I went through this exact same issue a few months ago and it was incredibly frustrating! The ID.me error 6001 is definitely a name formatting mismatch between what you entered and what the IRS has on file. Since you mentioned you have a hyphenated last name, that's almost certainly the culprit. Government systems are notoriously inconsistent about how they handle special characters like hyphens. Some store them, others strip them out, and some replace them with spaces. Here's what I'd recommend trying first before calling anyone: 1. Try your name with the hyphen, without the hyphen (as one word), and with a space instead of the hyphen 2. Make sure you're using your full legal first name exactly as it appears on official documents, not any nicknames 3. Double-check that you're not accidentally adding extra spaces anywhere If those don't work, calling the IRS at 1-800-829-1040 is actually your best bet. Yes, the wait times are terrible, but they can verify your identity using other information and tell you exactly how your name appears in their system. I ended up having to do this and the agent was actually very helpful once I got through. Don't stress too much about the deadline - you can always file for an extension if needed, and entering "0" for prior year AGI won't prevent you from filing. The IRS deals with these verification issues constantly during tax season.

Random question - does anyone know if we need to report the free lunch they give us during SAT proctoring? They fed us pizza and drinks during the lunch break when I proctored in December. Is that a taxable benefit?? 🤔

I just wanted to add another data point for anyone else dealing with this - I had almost exactly the same situation last year with $195 from College Board proctoring. Like others mentioned, I reported it as "Other Income" in TurboTax and it worked out fine. One thing that might help: when you're in the "Other Income" section, be specific in the description field. I wrote "SAT Proctoring Services - College Board" so there's a clear paper trail of what the income was for. The IRS agent I spoke with (using one of those callback services mentioned earlier) said being descriptive helps avoid any confusion later. Also confirming what others said - no 1099 needed under $600, but you still report it. The extra tax hit was minimal since I'm in the 12% bracket. Definitely not worth stressing over!