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Just an FYI - always double check that you're using the most current address. The IRS and state tax agencies occasionally change their mailing addresses or have different addresses for different types of payments. When in doubt, go directly to your state's department of revenue website (not third-party sites) for the most up-to-date information. For federal taxes, always use irs.gov.
Is there a way to confirm that the IRS actually received your payment if you mail it? I'm always worried it will get lost in the mail and then I'll get hit with penalties even though I sent it on time.
Yes, there are a few ways to confirm the IRS received your payment. The most reliable is to send it via USPS Certified Mail with Return Receipt requested. This gives you proof of mailing and delivery. You can also check your tax account information online through the IRS website after a few weeks to see if the payment has been applied. If you included your phone number on your check, sometimes the IRS can locate your payment status if you call and ask about it, though that can take some time on the phone.
Has anyone else noticed that the IRS website info sometimes contradicts what their own agents tell you? Last year I got 3 different addresses from 3 different sources - the website, an agent on the phone, and the printed instructions. Ended up sending duplicate payments just to be safe lol
Yes!!! This happens to me every year and it's maddening. I've started taking screenshots of everything on the IRS website just so I can prove what they told me if there's ever an issue. The worst is when they update info mid tax season without any clear notification.
For what it's worth, I've had success getting partially unredacted transcripts by using tax preparation software to request them. If you've used TurboTax, H&R Block, or TaxAct in the past, some of them have transcript request services built in that sometimes display different redaction patterns than what you get directly from the IRS online portal. Not completely unredacted, but might show different fields that could help in your situation. Worth checking if you've used any of those services.
I actually do use TurboTax! Didn't know they had this feature - where exactly do I find it? Is it in the regular app or do I need to sign in on desktop?
It's available in both the desktop and online versions of TurboTax. Sign in to your account, go to "Tax Tools" and look for "Tax Documents and Records." From there, you should see an option for requesting transcripts or viewing past returns. The feature might be called something slightly different depending on which version you're using. Remember though, it won't be completely unredacted, but sometimes shows different information than what's masked in the direct IRS portal. Worth trying before making an in-person appointment.
Sorry but nobody seems to be mentioning that the level of redaction on transcripts also depends on which SPECIFIC transcript type you're requesting. There are 5 different types: Tax Return Transcript, Tax Account Transcript, Record of Account, Wage & Income, and Verification of Non-filing. Each one redacts different info. For example, the Wage & Income shows your full SSN on the mailed version but redacts it online. For mortgage stuff they usually want the Tax Return Transcript AND the Wage & Income transcript together.
5 Not sure if this is relevant to your specific situation, but when I had school taxes sent to collections a few years back, I found out that my employer had misclassified my tax district. They had me assigned to the wrong school zone in their payroll system. Might be worth checking if something similar happened to you, especially if you've changed addresses recently or live near a school district boundary.
7 That's a really good point. I did move about 8 months ago but stayed with the same employer. How would I go about checking if they have me in the right district?
5 You should be able to check your pay stub to see which school district they have you listed under. Look for an abbreviation or code that indicates your tax district. Then compare that with the school district that's trying to collect from you. If they don't match, that's your problem right there. You can also ask your HR or payroll department directly what school district they have on file for you. If there's a mismatch, you might have grounds to dispute the collection fees since the error wasn't your fault.
23 Former payroll specialist here. Just wanted to add that in many states, school taxes are handled differently than regular income taxes. Depending on where you live, your employer might not actually be required to withhold school taxes at all. It varies widely by location. Some areas require quarterly estimated payments directly from residents, others have employers withhold it, and some include it as part of property tax rather than income tax. The system is frustratingly inconsistent, and many people don't realize they need to make these payments themselves until they get hit with a bill.
7 Well that explains why nobody told me about this when I started my job! So for future reference, how do I figure out what my school tax obligations are so this doesn't happen again? I definitely don't want another surprise bill.
When I started my first "real" job after college, I accidentally marked exempt on my W4 too. It's an easy mistake to make! The way I handled it was to immediately fix my W4 with HR and then have extra withholding taken out for the rest of the year to try to catch up. If you can afford it, you could increase your withholding for the remainder of 2025 to offset some of what you'll owe. On your W4, there's a line that lets you specify additional withholding from each paycheck. This won't solve the whole problem, but it might reduce the amount you need to pay when you file.
How much extra should they withhold though? Is there some calculator to figure out the right amount to catch up? And does doing this extra withholding help avoid penalties at all?
The IRS has a Tax Withholding Estimator on their website that can help calculate how much extra you should withhold to catch up. You enter your income, current withholding, and how much you've already earned this year, and it suggests an amount for each remaining paycheck. Increasing your withholding now can help reduce or even eliminate underpayment penalties, but it depends on your specific situation. The IRS generally waives penalties if you've paid at least 90% of your tax liability through withholding by the end of the year, or 100% of last year's tax (110% if your income is over a certain threshold). So catching up on withholding is definitely worth doing if you can afford it.
Is anyone going to mention that the employer is partially at fault here? I work in HR and we're supposed to verify that people claiming exempt actually qualified for exempt status the previous year. Like if you had a tax liability last year, you technically can't claim exempt this year. There are specific requirements for claiming exempt status.
Selena Bautista
Quick tip that might help - if you've been living abroad continuously, you might qualify for the foreign residency exception to the early distribution penalty. Check out exception code 02 on Form 5329. You'll need to attach a statement explaining that you're a bona fide resident of a foreign country. This won't help with the withholding issue, but it might mean you can get that 10% refunded if you qualify for the exception!
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Caleb Bell
ā¢Wait really?? I've been living overseas since before the distribution and still am. Does this mean I could potentially get that $2000 back? How would I document that?
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Selena Bautista
ā¢Yes! If you meet the bona fide residence test (generally living in a foreign country for an uninterrupted period that includes an entire tax year), you should qualify for exception code 02. You'd fill out Form 5329, and on line 2, you'd enter exception code "02" and then the amount of the early distribution that qualifies for the exception. Then attach a statement to your return explaining your foreign residency status. Since the 10% was already withheld, when you properly code this exception, you should get that money refunded. Just make sure you can document your foreign residency if asked (rental agreements, utility bills, foreign tax documents, etc.).
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Mohamed Anderson
Has anyone successfully filed Form 5329 using TurboTax? I'm in a similar situation but the software seems to be calculating everything wrong.
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Ellie Perry
ā¢I gave up on TurboTax for complex situations like this. H&R Block's premium version handled my 5329 correctly last year. For some reason TurboTax kept double-counting the penalty even after I entered the withholding.
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