Just to add another perspective on timing - if you're still working at age 73+ and participating in your current employer's 401(k), you might be able to delay RMDs from that specific 401(k) until you actually retire (assuming you don't own 5% or more of the company). This is called the "still working exception." However, this only applies to your current employer's plan - you'd still need to take RMDs from IRAs and previous employers' 401(k)s. If you have old 401(k)s sitting around, you might want to consider rolling them into IRAs for easier management, but be aware this would subject them to the normal RMD rules without the still-working exception. This won't help with your 2024 RMD situation since that's from an IRA, but it's something to keep in mind for future planning if you're still employed.

One important detail to clarify about the tax year reporting - while your March 2025 withdrawal will be reported on your 2025 tax return, make sure you understand how this affects your quarterly estimated tax payments if you make them. Since you'll have potentially two RMDs worth of income in 2025 (your delayed 2024 RMD plus your regular 2025 RMD), you may need to adjust your estimated payments to avoid underpayment penalties. The IRS expects you to pay taxes throughout the year, not just when you file your return. If you decide to take your 2024 RMD in December 2024 instead, you could spread this tax burden more evenly and potentially avoid having to make large estimated tax payments in 2025. Just something to factor into your planning beyond just which tax return the income appears on.

Great question! I've dealt with this exact decision before. Based on your situation with investment income and a side business, I'd lean toward the EA. Here's why: EAs have more comprehensive training specifically in federal tax law - they either pass a rigorous 3-part IRS exam or have 5+ years of IRS experience. For investment income and business taxes, this deeper knowledge base can be really valuable for identifying deductions and handling complexities you might not even know exist. CRTPs are great for straightforward returns, but your side business adds layers that benefit from someone with broader training. Plus, if any issues come up later, EAs can represent you fully before the IRS, while CRTPs have very limited representation rights. That said, don't ignore experience! An EA who's been practicing for 20 years with business clients will likely serve you better than a newly certified one, regardless of credentials. Ask both preparers about their specific experience with small businesses and investment income situations like yours. You might also want to get quotes from both and see if the price difference justifies the additional credential value for your specific situation.

As someone who's worked with both types of tax professionals, I'd definitely recommend going with the EA for your situation. The combination of investment income and a side business creates potential complexities that benefit from the more comprehensive federal tax training that EAs receive. The key difference is that EAs must demonstrate mastery of the entire tax code through their exam or IRS work experience, while CRTPs focus more on basic tax preparation skills. With a side business, you'll want someone who really understands business deductions, quarterly payments, potential self-employment tax implications, and how your business income interacts with your investment income. Also worth considering - if you plan to grow that side business or your investments become more complex over time, establishing a relationship with an EA now means you won't need to switch preparers later when your taxes inevitably get more complicated. That said, definitely ask both preparers specific questions about their experience with small businesses similar to yours and how they handle investment income reporting. The right fit matters more than credentials alone.

Thanks for all the helpful responses everyone! Just wanted to give a quick update - I went ahead and used my husband's SSN (primary taxpayer) in Direct Pay and the payment went through smoothly. Got a confirmation number and everything. I really appreciate everyone clarifying that even though I'm the one earning the freelance income, the IRS system only recognizes the primary taxpayer's info for joint filers. That makes total sense now that I understand how their computer systems work. I'm definitely going to look into some of the tools mentioned here (like taxr.ai) to help me calculate the right amounts for future quarters. I've been kind of winging it with estimated payments and want to make sure I'm not underpaying and getting hit with penalties. One last question - should I be making these payments every quarter even if my freelance income varies a lot month to month? Sometimes I have big projects and sometimes barely anything. Is it better to estimate conservatively and potentially overpay, or try to match the actual income more precisely each quarter?

One thing I'd add to the safe harbor discussion - you can also use the "annualized income installment method" if your freelance income is really sporadic throughout the year. This lets you calculate each quarterly payment based on your actual income for that specific period, rather than spreading an annual estimate evenly across four quarters. It's more paperwork (you'll need to file Form 2210 with your return), but it can save you money if most of your income comes in just one or two quarters. For example, if you have a huge project in Q3 but barely any income in Q1 and Q2, you could make smaller payments early in the year and a larger payment in Q3 when you actually earned the money. The downside is it's more complex to calculate and track. For most people with moderately variable income, the safe harbor approach that Mateo mentioned is much simpler and still protects you from penalties. But if your income swings are really dramatic (like making 80% of your annual freelance income in one quarter), the annualized method might be worth looking into.

This has been such an educational thread! I'm also a newcomer to the workforce and was completely confused by the FED MWT EE deduction on my paystub. It's really reassuring to see that literally everyone goes through this same confusion when they start working. What I found most helpful from all these responses is learning that this is just regular federal income tax withholding - not some mysterious extra fee or Medicare-related charge like I initially thought. The fact that different companies use different abbreviations for the same thing (Fed Income Tax, Federal W/H, etc.) definitely adds to the confusion for new employees. I'm planning to use several of the suggestions from this thread: checking with HR that my W-4 was entered correctly, trying the IRS Tax Withholding Estimator once I have a few more paystubs, and keeping better track of my year-to-date withholding amounts. It's amazing how much more confident I feel about managing my finances just from understanding what these deductions actually represent. Thanks everyone for sharing your experiences and making this less intimidating for those of us just starting out in our careers!

This thread has been incredibly valuable for understanding paycheck deductions! As someone who recently started my first full-time position, I was equally confused by the "FED MWT EE" line item on my paystub. What really helped me was discovering that many companies have employee handbooks or HR resource portals that explain their specific payroll abbreviations. My company actually has a "payroll decoder" document that lists all the codes they use - I just had to ask HR where to find it. Might be worth checking if your employer has something similar! I also learned that some companies offer optional financial literacy workshops for new employees that cover topics like understanding your paystub, 401(k) basics, and tax withholding. Mine offered one about three months after I started, and I wish I had known about it sooner. If your company has anything like this, it could be a great complement to all the excellent online resources people have mentioned here. Thanks to everyone who contributed to this discussion - it's made me feel much more confident about understanding my paycheck and managing my withholding properly!

Your CPA is definitely confusing two different deadlines here! This is actually a really common mix-up that I see all the time. The March 2026 date they mentioned is when you'll FILE your 2025 S corp tax return (Form 1120S), but to actually ELECT S corp status for 2025, you need to file Form 2553 by March 15, 2025. If you wait until March 2026 to make the election, it would only be effective starting in 2026 - meaning you'd completely lose out on a full year of S corp tax benefits. Depending on your income level, this could easily cost you thousands in unnecessary self-employment taxes. You're absolutely right to be concerned about the salary and distribution setup. You cannot legitimately take S corp distributions until after you've filed the election. The proper sequence is: 1) File Form 2553 by March 15, 2025, 2) Set up payroll for reasonable salary, 3) Then take distributions beyond salary. I'd strongly recommend printing out the Form 2553 instructions and having a clarifying conversation with your CPA immediately. Show them the "2 months and 15 days" rule that's clearly stated in the IRS instructions. This is way too important financially to leave any room for confusion - trust your instincts on this timeline!

I've been following this thread closely as someone who just went through the S corp election process myself, and I want to emphasize how critical it is to get this timeline right. Your CPA is absolutely mixing up the election deadline with the tax filing deadline - this is unfortunately a very common and costly mistake. The March 15, 2025 deadline is NON-NEGOTIABLE for S corp status to apply to your entire 2025 tax year. If you miss this date, you're stuck waiting until 2026, which could cost you thousands in additional self-employment taxes depending on your business income. Here's what I learned from my experience: Start preparing NOW, not in March. You'll need to set up payroll systems, register for state payroll taxes, and have a clear plan for reasonable salary determination before you can properly operate as an S corp. I started this process in October for a January election and was glad I gave myself that much time. Most importantly, do NOT take any distributions until after you've filed Form 2553. Operating like an S corp before the election is official can create serious compliance issues with the IRS. I'd recommend scheduling an urgent meeting with your CPA this week, bringing the Form 2553 instructions, and asking them to explain exactly which March 2026 deadline they're referring to. Once you clarify this confusion, you'll realize you need to act much sooner than they initially told you. Trust your gut on this one - the timeline they gave you doesn't make sense because it's wrong.