I never thought to check that! I just looked at my most recent stub and you're right - they ARE separating regular pay from my call bonuses and withholding at different rates. So does that mean I should leave it alone since they're already handling it correctly?

In that case, your payroll department is actually handling it correctly! The 22% flat rate for supplemental wages (like bonuses, overtime, etc.) is the standard IRS method. For most people in the 10%, 12%, or even 22% tax brackets, this might result in slight overwithholding, but it's generally pretty accurate. I'd suggest keeping things as they are for now. If you want to fine-tune it further, track your pay for 3-4 months and then use the IRS Tax Withholding Estimator to see if any adjustments are recommended. But from what you're describing, your payroll system is already doing what it's supposed to do.

Absolutely! That's what I do. When I have a paycheck with tons of call pay that I know will be taxed higher, I temporarily increase my 403b contribution for just that pay period. It brings my taxable income down and boosts my retirement. Just remember to change it back for your next regular paycheck.

Thanks for the heads up about documentation! I've been pretty good about keeping receipts but definitely need a better organization system. Do you use any specific apps for tracking business expenses? And do you separate your business and personal bank accounts?

I use QuickBooks Self-Employed now and it's been a lifesaver. You can connect your accounts and it automatically categorizes most transactions, plus you can snap photos of receipts and attach them to expenses. Absolutely separate your business and personal accounts! This was actually one of the red flags that triggered my audit - I was mixing personal and business expenses in one account. Open a separate checking account for your business transactions, even if it's just a free one. Makes tax time so much easier and looks more legitimate to the IRS.

You're lucky! Texas doesn't have state income tax so you don't have to file state income taxes. But you might need to look into sales tax collection depending on what you're selling on Etsy. Some states require you to collect sales tax from buyers in your state.

Would I need to include a corrected Form 8995 if my QBI deduction changed because of the lower AGI from the unemployment exclusion?

Yes, absolutely include the corrected Form 8995. If your QBI deduction amount changed due to the lower AGI from the unemployment exclusion, that's exactly the type of form you need to include with your 1040X. The key principle is to include any form where the numbers are different from what you originally filed. Since the QBI calculation is affected by AGI thresholds, the UCE could definitely impact those calculations.

I filed in April and got my refund last week. I did include a note explaining it was for the 2020 UCE and highlighted the unemployment line on Schedule 1. Maybe that helped speed things up?

Thanks for mentioning that. Do foreign ETFs completely avoid Subpart F issues? And would I still be able to get exposure to similar Singapore/Asian markets through these ETFs?

Foreign ETFs that trade on US exchanges are structured to handle the reporting requirements for you. They'll send you a normal 1099 instead of you having to deal with Subpart F or PFIC reporting yourself. Much cleaner from a tax perspective. Yes, there are plenty of Singapore-focused and broader Asian market ETFs available on US exchanges that would give you similar exposure. Some examples are FLSG, ASEA, or broader ones like AAXJ. The expense ratios are usually reasonable too compared to the tax preparation costs of direct foreign ownership.

Yes, you absolutely can claim foreign tax credits against your Subpart F inclusion. You'll need to file Form 1116 along with your tax return. The credit is based on the foreign taxes paid by the corporation that are attributable to the Subpart F income you're reporting.

That's a great suggestion I hadn't even thought of. I've been so focused on analyzing the retirement options that I forgot I could just try negotiating! Do you have any specific tips on how to approach that conversation? I don't want to come across as just trying to get more money.

Frame the conversation as wanting to join their team but needing to make a financially responsible decision. Be specific about what you like about their practice and the 401k plan, then mention you have another offer with a higher base but that you'd prefer to join them if the compensation gap wasn't so wide. If they can't budge on salary, see if there are other benefits they might be flexible on - maybe productivity bonuses, continuing education allowance, or more vacation time. Sometimes practices have more flexibility with these benefits than with base salary.

This is a good point about early retirement accessibility. But remember that Roth contribution portions (not earnings) can be withdrawn penalty-free anytime, which helps with the early retirement ladder strategy. And 401k funds can be accessed penalty-free before 59½ using Rule 72t SEPP distributions. The tax-advantaged growth over decades usually outweighs the flexibility of taxable accounts, especially at OP's high savings rate.