has anyone considered that maybe the employer is doing something shady here? using 11-year-old tax forms seems really suspicious to me. could they be trying to reduce their own tax liability somehow? or maybe their payroll software is super outdated and they don't want to pay for an upgrade?

I work in payroll compliance and see this issue more often than you'd think, especially with smaller businesses. The good news is that you're catching this early! Here's what I'd recommend: 1. Download the current 2024 W-4 from irs.gov and fill it out properly 2. Submit it to your employer with a brief note explaining that tax laws have changed significantly since 2011 3. Keep a copy for your records and note the date you submitted it The liability for incorrect withholding falls on the employer, but as others mentioned, you could end up with a tax bill if they're under-withholding. Given your $68k salary, this could be significant. One tip: when you submit the new W-4, you might frame it as "I want to make sure my withholding is accurate to avoid any year-end surprises." This sounds less confrontational than pointing out they're doing something wrong. Most employers appreciate employees who are proactive about tax compliance. If they refuse to use the updated form, document that conversation. You may need to adjust your withholding strategy or make quarterly payments to avoid penalties.

Has anyone actually calculated how much NIIT they're paying on their real estate income? I'm wondering if all this effort to avoid it is worth it compared to just paying the 3.8% and focusing on growing the business. I'm in a similar position (about 550 hours/year in real estate) and trying to decide if I should restructure to hit RE Pro status or just accept the tax.

This is a great discussion with some really valuable insights. I'm in a similar situation with about 580 hours annually in my small commercial property portfolio, and I've been wrestling with the same NIIT question. What I've learned from my research and talking to other property managers is that the "trade or business" angle Giovanni mentioned is worth exploring, but it really depends on the specific facts of your situation. The IRS looks at factors like whether you provide substantial services to tenants, maintain a regular business office, have employees, advertise for tenants, and generally operate in a business-like manner. For someone like the original poster who is meticulously tracking time and treating this as full-time work, there might be a stronger argument that this constitutes a trade or business rather than just rental activity. The key is having comprehensive documentation that shows business operations beyond just collecting rent and basic maintenance. That said, I agree with Dylan's point about running the numbers. Sometimes the time and stress of trying to avoid NIIT isn't worth it compared to just paying the 3.8% and focusing on growing the business. In my case, I'm planning to gradually increase my hours to eventually qualify for RE Pro status, but I'm not rushing it at the expense of other profitable activities. The tax tools mentioned here seem helpful for analyzing your specific situation, but definitely work with a qualified tax professional who understands real estate taxation before making any major decisions.

My case got resolved in 3 weeks but that was back in January when they weren't as swamped

Hang in there! I just went through this process last month. My TAS advocate was assigned in early December and my refund finally hit my account on January 8th - so about 5 weeks total. The key thing is that once TAS gets involved, they actually have the power to push things through that regular customer service can't touch. Make sure to respond to any requests from your advocate ASAP and keep checking your transcript like others mentioned. You're in the home stretch now!

its probably ur credit score. happened to my cousin last year and thats what it was

I work at a tax prep office and can confirm what Evelyn said - TurboTax definitely has early filing deadlines for advances, usually around mid-February. They also do income verification and look at your tax history with them. Even with good credit, if you had any issues with previous advances or filed late in prior years, that can disqualify you. It's frustrating because they don't always explain the criteria upfront!

Single, no kids, making $67k here. My refunds have been: 2023: $1,470 2024: $1,650 2025 (estimated): $1,400 I contribute 10% to 401k and take standard deduction. My refunds are pretty consistent year to year. I could adjust my W-4 to get less refund/more in paychecks, but honestly I like the forced savings aspect of getting a refund. Keeps me from spending that extra bit each paycheck.

Does anyone else in this bracket owe money instead of getting a refund? I made $73k last year, single no dependents, and ended up owing $850. I have side gig income though (about $4k) which probably explains it, but was surprised since I thought my main job withheld enough.