Has anyone actually dealt with getting the penalty reduced? I filed almost 90 days late for 2024 taxes and am looking at about $600 in penalties on a $2,500 tax bill. First time I've ever filed late.

Based on everyone's experiences here, it sounds like there are actually several penalty relief options that most people don't know about! For anyone dealing with penalties: 1. **First Time Penalty Abatement** - If you've had clean filing history for 3 years, you can get penalties completely removed for your first offense. Just call and ask specifically for this. 2. **Reasonable Cause Abatement** - If you had medical issues, natural disasters, or other circumstances beyond your control, you may qualify for penalty removal. 3. **Payment Plans** - Even if you can't get penalties removed, the IRS offers payment plans that are pretty flexible once you've actually filed. The key takeaway seems to be: **always file on time even if you can't pay**. The failure-to-file penalty (5% per month) is 10x worse than the failure-to-pay penalty (0.5% per month). And don't just accept penalties without exploring your options - sounds like many people are getting significant relief by simply asking for it or getting proper help understanding their situation.

Have you considered adjusting your W-4 at your main job to have more taxes withheld? That might help offset the freelance tax burden. I do this since I have rental income that creates extra tax liability.

This exact same thing happened to me two years ago! The combination of freelance income + bonus really does create a perfect storm for tax surprises. One thing that helped me was understanding that the "tax brackets" are marginal - so when that extra $19k pushed you into higher brackets, only the income ABOVE each threshold gets taxed at the higher rate, not your entire income. Still expensive, but not as bad as it initially seems. Also, definitely look into whether you can still contribute to a traditional IRA for 2024 (you have until the filing deadline). Even a $6k contribution could reduce your tax bill by $1,320-$1,980 depending on your bracket. Every bit helps when you're staring down an $8,700 bill! For this year's freelance work, open a separate savings account and automatically transfer 30% of every freelance payment. Treat that money as already gone - it makes the quarterly payments so much less painful.

Pro tip: Keep checking your transcript weekly. Sometimes they move faster than the Where's My Refund tool shows.

I'm going through something similar with my 2022 amended return. Been waiting since August and just had my second ID verification last week. Your transcript breakdown is super helpful - I need to pull mine to see if I have those same transaction codes. The "RETURN NOT PRESENT" thing is confusing when they clearly have your filing status on file. Hoping yours moves soon since the freeze is lifted! 🤞

Has anyone tried the "Two Earners/Multiple Jobs Worksheet" on the W4? My tax person recommended it when my husband and I were both working but had uneven incomes. It's supposed to get your withholding closer to your actual tax liability.

I'm dealing with a very similar situation! My spouse also left their corporate job to start a freelance business, and the income uncertainty was stressing me out when filling out my W4. What ended up working for me was selecting "Married, but withhold at higher Single rate" like others mentioned, and then I used the IRS Tax Withholding Estimator about halfway through the year to see if I needed to adjust. The estimator lets you input your year-to-date earnings and estimated income for the rest of the year, which was perfect for dealing with my spouse's variable freelance income. One thing I learned is that you can update your W4 multiple times throughout the year as your situation becomes clearer. So if your husband's photography business starts generating steady income, you can always adjust your withholding then rather than trying to guess perfectly right now. The "higher Single rate" option has been a good safety net for us - we'd rather get a refund than owe money, especially during this transition period where his business income is so unpredictable.

Quick question - does anyone know if the Child and Dependent Care Credit is refundable for 2025? It was temporarily refundable during covid but I can't remember if that's still the case.

Just wanted to add one more thing that might be helpful - if you're using a nanny or babysitter instead of (or in addition to) the preschool, make sure you're handling the household employee tax requirements correctly. If you pay them more than $2,700 in 2025, you'll need to withhold and pay Social Security and Medicare taxes, plus provide them with a W-2. This can affect your Child and Dependent Care Credit eligibility if not done properly. Also, for your situation with the $375k AGI, you're still well within the phase-out range so you should get a decent credit. The phase-out actually starts around $15,000 AGI and gradually reduces the credit percentage, but even at higher incomes you can still claim the full $3,000/$6,000 in expenses - you just get a lower percentage back as a credit.