Thank you for the specific numbers! Do we both need to check the "Married but withhold at higher single rate" box, or just one of us? And how did you calculate those additional withholding amounts?

You both should check that box. The problem is that when two spouses both select "Married" on their W-4s, the withholding system assumes each job is the only income in the household, essentially giving you both the full benefit of the lower tax brackets twice. I calculated those additional withholding amounts based on your total household income of about $205,800, which puts part of your income into the 22% bracket, with some approaching the 24% bracket. The withholding tables typically undershoot by about 5-6% for dual-income households at your income level. If you're paid biweekly (26 paychecks/year), that means you need approximately $5,500 additional withholding annually, or about $211 per paycheck between both of you. I suggested a bit more ($400 total) to build in a safety margin and hopefully get a small refund instead of owing next year.

That's a terrible approach! They'd be drastically overwithholding. They need a proper W-4 calculation, not a random multiplier.

Thanks for breaking it down! Is FreeTaxUSA actually accurate though? I know TurboTax is expensive but I'm scared of using something cheap and getting audited or missing out on money I should get back.

FreeTaxUSA is absolutely accurate - I've used it for years including with some complicated situations (rental property, investments, etc). The calculations are all based on the same tax laws regardless of which software you use. Regarding audit concerns, your audit risk is based on what's reported on your return, not which software you use to file it. TurboTax doesn't have any special "audit protection" in their standard packages anyway - they just try to upsell you on that service. The best protection against audits is simply reporting all your income accurately and keeping good records of your deductions.

I used the IRS Direct File pilot program when they expanded it this year. It's completely free and pretty straightforward if you have a simple tax situation (W-2 income, standard deduction). The interface isn't as polished as TurboTax, but it gets the job done and there are absolutely zero upsells or hidden fees. The main limitation is that it only supports certain types of income and credits right now - no self-employment income, no itemized deductions, etc. But if you qualify, it's the most straightforward option.

Does anyone have a recommendation for a good mileage tracking app? I've been using a paper logbook but it's getting to be a pain.

I use MileIQ and it's been really solid. It automatically tracks all your drives and then you just swipe right for business or left for personal. Takes maybe 30 seconds a day. At tax time, you can generate reports that show all your business mileage in the exact format the IRS wants. A couple others I've heard good things about are Everlance and Hurdlr. Both have free versions but the paid versions (around $5-10/month) are worth it for the automatic tracking and report generation. Whatever you choose, just be consistent with it. An incomplete log is almost as bad as no log at all if you get audited.

That's a really good point! I hadn't considered the ongoing costs being so much higher for these larger vehicles. Would you say the Section 179 benefit was still worth it despite these higher costs, or do you regret the purchase?

Honestly, I regret it. If I had it to do over, I'd buy a vehicle that actually matched my NEEDS rather than maximizing the tax deduction. The one-time tax savings of about $25K (in my tax bracket) will be completely wiped out by the higher operating costs within about 3 years. Unless you truly NEED a large, heavy vehicle for your business operations, I'd recommend focusing on efficiency and appropriate sizing rather than tax benefits. A smaller, more efficient vehicle might offer fewer tax advantages upfront, but the long-term math often works out better.

Thanks for this tip! How long does it typically take for transcripts to become available after e-filing? Is it something I can access immediately after getting the acceptance confirmation?

Transcripts are usually available within 2-3 weeks after your e-filed return is accepted, sometimes even faster. You won't have access immediately after acceptance - the IRS needs to do some initial processing first. You can request them through the "Get Transcript" tool on IRS.gov once they're available. If you set up an online account with the IRS in advance, you'll be ready to download them the moment they're processed. Some mortgage lenders can also request the transcripts directly through a service called 4506-T if you sign an authorization form, which might save you some time.

I tried this route last year. You need to make an appointment first by calling 844-545-5640. They won't just let you walk in anymore. When I went, they helped me fill out the forms but still had to submit them through regular channels. They did give me a stamped copy though which my lender accepted as proof of filing.

Thanks for bringing this up! They did give me a small severance package (about $3,200). I hadn't even thought about how that would be taxed. I haven't applied for unemployment yet, but I probably will soon. Do they automatically withhold taxes from unemployment or do I need to request that?

Yes, your severance package will be included on your W-2 along with your regular wages. The company will typically withhold taxes from it just like they do from regular paychecks. For unemployment benefits, they don't automatically withhold taxes in most states unless you specifically request it. You can fill out a form (usually Form W-4V) to request voluntary withholding of 10% for federal taxes. If you don't have taxes withheld from unemployment, you might need to make quarterly estimated tax payments to avoid a penalty when filing next year, or you could end up with a larger tax bill than expected. Many people are surprised by this come tax time, so it's good you're thinking about it now!

You're right, there are income thresholds. For 2025, a single person under 65 needs to file if they earn $13,850 or more. But you were smart to file anyway - if you had any taxes withheld from your paychecks, filing is the only way to get that money back!