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Has anyone here tried using the IRS's Tax Withholding Estimator on their website? I'm wondering if it's actually accurate for situations like this with multiple income sources?
I used it last year and it was pretty accurate for me. I have a W-2 job and do some freelance work on the side. The key is being honest about ALL your income sources when you fill it out. Make sure you include projected side income. I ended up owing just $43 at tax time, which felt pretty perfect to me!
This is such a common situation and honestly the tax system could be way clearer about this! The short answer is yes, your side income is exactly what caused you to owe money. Here's what happened: Your W-4 withholding at your main job was calculated based on a $62,000 annual salary. But when you add the $4,300 from consulting work, your actual income became $66,300. That extra income gets taxed at your marginal rate (likely 22%), but since no taxes were withheld from the side gig payments, you ended up short. For next year, you have a few options: 1. Increase withholding at your main job by filling out a new W-4 and requesting an extra $25-30 per paycheck 2. Make quarterly estimated tax payments for your side income (Form 1040-ES) 3. Set aside 25-30% of each consulting payment in a separate account for taxes The quarterly payments might be your best bet if you plan to keep doing consulting work - it keeps your business income separate and you won't over-withhold if the side work varies year to year. Don't feel bad about this - it catches almost everyone off guard the first time!
This is really helpful advice! I'm in a similar situation where I just started doing some freelance graphic design work alongside my regular job. I've been wondering whether I should adjust my W-4 or do the quarterly payments. How do you figure out the right amount for quarterly payments? Is it just 25% of whatever you earned that quarter from side work, or is there a more precise calculation? I'm worried about underpaying and getting hit with penalties.
Has anyone actually done the math on whether it's worth filing MFS just for the EV credit? I did this calculation last year and was surprised.
I ran the numbers for my situation (similar income levels) and MFS cost us about $4,800 more in taxes overall, making the $7,500 credit still worthwhile by about $2,700. But it's definitely not the full $7,500 benefit most people expect.
I'm dealing with a very similar situation with my Rivian R1T! My spouse and I are also just over the joint filing income limit. After reading through all these responses, I'm leaning toward the IRA contribution strategy that Jessica mentioned rather than filing separately. One thing I discovered that might help - if your wife has access to a Health Savings Account (HSA) through work, that's another way to reduce AGI. The 2025 HSA contribution limit is $4,300 for individual coverage or $8,550 for family coverage, and those contributions reduce your AGI dollar-for-dollar just like traditional retirement contributions. Between maxing out the traditional IRA ($7,000) and potentially an HSA contribution, you might be able to get her AGI down enough to stay under $150k while still filing jointly and keeping all your other tax benefits intact. Just a thought!
Great point about the HSA! I hadn't thought about that option. We do have access to an HSA through my wife's hospital system, and we've only been contributing the minimum for the employer match. Between the IRA contribution ($7,000) and potentially increasing our HSA contribution, that could definitely get us under the threshold. Plus, as you mentioned, we'd keep all the benefits of filing jointly. This seems like a much cleaner approach than trying to navigate the complexities of MFS and the joint vehicle ownership issues. Do you know if there's a deadline for increasing HSA contributions for the prior tax year, or does it have to be done by December 31st unlike IRAs?
Just got mine! Anyone else checking their Chime every 5 minutes today? Was beginning to think something went wrong with my return, but it finally showed up at 3:42pm EST. Didn't even get a notification until I opened the app. Why is tax season always so stressful? At least it's over for another year!
Same here! Filed with H&R Block on Jan 28th and have been waiting all day. My transcript shows today as DDD but still nothing in my Chime account as of 4:15pm EST. Starting to get worried something went wrong, but reading these comments is reassuring that deposits are still trickling in throughout the day. Going to try to be patient and check again this evening. Thanks for posting this - nice to know I'm not the only one anxiously refreshing my banking app every few minutes!
The WMAR tool is notoriously unreliable for 2023 amended returns. Many taxpayers (myself included) received their refunds while the tool still showed "received" status. If you filed Form 1040-X electronically on June 18, 2023, you should be approaching completion based on current processing timelines. Have you checked if your account transcript shows any TC 971/977 codes? Those indicate amendment processing activity even when WMAR doesn't update.
I'm dealing with a very similar timeline - filed my amended return in late June 2023 as well. From what I've gathered reading through everyone's experiences here, it seems like 7-8 months is becoming the new normal for amended returns, which is frustrating when you're counting on that money. The inconsistency with the WMAR tool is really concerning - it sounds like many people are getting their refunds without any status updates online. I've been checking weekly too and mine still just says "received." One thing I'm wondering - for those who got their refunds after 7+ months, did you receive any notice beforehand or did the check just show up? I'm trying to figure out if I should expect any kind of heads up or if it'll just appear one day. The uncertainty is the worst part of this whole process. Thanks for starting this thread - it's helpful to know others are in the same boat, even though the wait is incredibly frustrating when you need the money for legitimate expenses like moving costs.
I'm in almost the exact same situation! Filed my amended return on June 22, 2023 (just 4 days after you) and still waiting. Based on what everyone's sharing here, it sounds like we're right in that 7-8 month window where refunds are starting to come through. From what I've read in this thread, it seems like most people didn't get any advance notice - the refund check just showed up in the mail one day while their WMAR status was still stuck on "received." That's both reassuring and nerve-wracking at the same time! I've been debating whether to try calling using that Claimyr service that @Andre Dupont mentioned, but honestly after reading everyone s'experiences, it sounds like we might be close enough to resolution that it s'worth waiting another month or two before taking that step. The waiting game is definitely the hardest part, especially when you have expenses you re'counting on that money for. Hang in there - sounds like we should hopefully see movement soon based on the timeline patterns others have shared!
Amina Diallo
PRO TIP: Try calling right when they open at 7am EST. Still might take a few tries but way better than mid-day π
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Lena MΓΌller
β’gonna try this tmrw, wish me luck!
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Kayla Jacobson
I feel your frustration! The disconnect between "Where's My Amended Return" and your transcript is actually pretty common. The amended return tool and transcript systems don't always sync up in real time. Since your amended return shows as completed on 1/25, but your transcript As Of date is stuck on 1/13, here's what's likely happening: The IRS processed your amended return, but the changes haven't hit your account transcript yet. This can take anywhere from 2-6 weeks after the "completed" date. For the phone situation, try calling the main customer service line (1-800-829-1040) instead of that extension. Ask to speak to someone about your amended return status. The key is calling right when they open at 7am or being persistent with callbacks. You could also try ordering a full account transcript by mail (Form 4506-T) which sometimes shows more recent updates than the online version. Don't panic yet - the system lag is frustrating but normal!
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