How do you calculate the right amount for line 4(c)? Is there a formula or something? Also, is there any risk to withholding too much?

A quick way to estimate is to take the amount she owed this year ($320) and divide by the number of paychecks she receives annually. If she's paid biweekly, that's 26 paychecks, so about $12.50 per check. I suggested $25 to give a buffer for a small refund rather than owing. There's no real risk to withholding too much except that you're giving the government an interest-free loan of your money until you file your taxes and get a refund. Some people actually prefer larger refunds as a form of forced savings, even though financially it's not optimal.

This happened to me too! My employer reclassified me as a different type of employee with the same hours and slightly higher pay, but my withholding dropped by almost 40%. Ended up owing $900 and was NOT happy about it.

Is it possible to file previous years' Form 8606 if you missed them? I've been making non-deductible contributions for 3 years but only learned about Form 8606 recently.

Yes, you can and absolutely should file Form 8606 for previous years if you missed them. You'll need to submit them separately as standalone forms - you don't need to amend your entire return. There's no penalty for filing Form 8606 late if you're only establishing basis (though there would be if you were reporting distributions). File a separate Form 8606 for each tax year, make sure to use the form version for that specific tax year, and write "Filed Pursuant to Section 301.9100-2" at the top to indicate you're filing it late under the automatic extension provisions.

Partial conversions are even trickier in TurboTax. Search for "1099-R" like others suggested, but when it asks what you did with the money, choose "Converted part to a Roth IRA." Then you'll need to specify how much went to the Roth vs how much stayed in the traditional IRA. The pro-rata rule will likely apply in your case since you kept some in the traditional IRA.

14 Is that really necessary? I've been doing one annual payroll for my single-member S corp for 3 years with no issues. Seems like extra work and payroll fees for no reason.

22 While not technically required, it can definitely help establish the legitimacy of your employment relationship with the S corp. The IRS often raises eyebrows at once-a-year payments because regular employees typically don't get paid just once annually. Multiple payroll runs throughout the year can strengthen your position that you're treating the employment relationship properly. Plus, it helps with cash flow planning and can make your estimated tax payments more manageable rather than dealing with one large tax hit. My accountant specifically mentioned this was one of the factors that can help avoid unwanted IRS attention.

9 Yes! I'm in California and they required quarterly payroll tax reporting even though I was below the federal threshold. Got hit with a $250 penalty my first year. Definitely check your specific state requirements.

I'm in Pennsylvania. I finally found the answer after calling the state department of revenue directly. For PA residents, you use your SSN for most cases with 1099-B forms. However, if you're filing as a business entity that has investments, you would use your state business tax ID. The confusion came from my tax software which wasn't state-specific in its wording. It asked for a "state ID number" generically when what it really meant was my SSN for my particular situation.

Good detective work! Yes, Pennsylvania is one of the states that primarily uses your SSN for individual 1099-B reporting. The tax software really should make that clearer - they cause so much unnecessary stress with their vague terminology. For anyone else reading this with the same issue, always check your state's specific department of revenue website or call them directly if you're unsure. The requirements can change from state to state and sometimes even year to year as tax laws are updated.

This is helpful but i still don't understand why my 1099-B from Fidelity doesn't have my state ID printed anywhere on it?? Shouldn't they include that information since they're the ones issuing the form??

Your 1099-B from Fidelity doesn't have your state ID printed on it because federal 1099-B forms are standardized by the IRS and don't include state-specific information. Brokerages like Fidelity are required to report to the federal government, but state reporting requirements vary widely. When you're entering this information into tax software, the software is trying to match your 1099-B to your state tax return, which is why it asks for a state ID. You provide this information yourself - usually your SSN for individual filers - rather than it coming from Fidelity. This connects your investment income reported on the federal level to your state tax obligation.

Is there any way for an employee to confirm that their employer actually submitted the corrected W2 to the SSA? I'm worried my employer might have given me a corrected one but forgotten to update it with the government.

Unfortunately, there's no direct way for employees to verify SSA submissions in real-time. However, you can indirectly check by creating an account on the SSA website (my.ssa.gov) and viewing your reported wages after tax season. This won't help immediately for filing, though. Your best approach is to contact your payroll or HR department directly and ask them to confirm they've submitted the corrected W2 to the SSA. Most payroll systems automatically handle this when generating a replacement W2, but it's fair to ask for confirmation. If they're using proper payroll software, they should be able to tell you the submission date of the corrected information.

Good advice. I keep all my tax docs for 7 years just to be safe. Electronic copies are fine too - I scan everything and keep it in a secure folder.