Do you think this would affect different types of restaurants differently? Like would high-end places where servers make $300+ per night handle it differently than diners where tips might be way smaller?

Absolutely. High-end establishments would likely see even more dramatic effects. In fine dining where servers can make $70,000-$100,000 annually primarily through tips, the impact on lending, retirement, and benefits would be catastrophic. Their reported income would suddenly appear to be just $15,000-$20,000 on paper. Smaller diners and casual places would still see negative effects, but the dollar amount difference wouldn't be as extreme. However, servers at these establishments often rely more heavily on programs like EITC and healthcare subsidies, which are all income-based. So while the absolute numbers might be smaller, the relative impact on their financial lives could actually be worse.

I did the calculations for my situation. Last year I made about $42k total, with $35k from tips. I paid roughly $4,800 in federal taxes on that income. But I received $2,300 in EITC and child tax credits. I also qualified for a $1,200/month apartment based on that income and got approved for a car loan at 5.9% interest. If only my hourly wage counted ($7k), I'd save $4,800 in taxes but lose $2,300 in credits. Plus my apartment application would be rejected (they require income 3x rent) and my car loan interest would jump to 18.5% as a "high-risk" borrower. Not worth it at all.

This is actually a smart suggestion, but be careful. Even though wash sale rules don't technically apply to crypto yet, the IRS is increasingly scrutinizing these transactions. But if you have genuine crypto losses, this could help offset some investment income.

How difficult was the NAEA content? I don't have any formal accounting background - just basic bookkeeping for my business. Would I be in over my head?

You wouldn't be in over your head with NAEA courses. They're designed to be accessible to people without accounting backgrounds, starting with fundamental concepts and building from there. Each module typically begins with basics and progressively gets more detailed. The S Corporation course specifically explains concepts like reasonable compensation and pass-through taxation in plain language before diving into the more technical aspects. They also provide plenty of real-world examples that make it easier to understand how the concepts apply to actual businesses. Most of my fellow students were business owners like yourself rather than accounting professionals.

I did their S Corporation specialist course last year. It's good info but very focused on California tax issues, so if you're in another state, just be aware of that limitation. Their materials are easy to understand though, and they explain things much better than the dry IRS publications.

How do you even check what's on your current W-4? Do you have to ask HR or is there somewhere you can see it yourself?

Most companies have an employee portal or HR system where you can view your current tax withholding settings. Look for something like "Tax Withholding" or "W-4 Information" in your employee portal. If you can't find it there, you'll need to ask your HR or payroll department for a copy of your current W-4 on file. Some companies also include your withholding status on your paystub, which might say something like "Single-0" or "Married-2" indicating your filing status and allowances. Though with the newer W-4 forms, they've moved away from allowances to more specific withholding calculations.

Not the OP but this happened to me too - both federal and state withholding were less even though I made more. In my case it was because my state (Pennsylvania) adjusted their withholding tables but didn't publicize it very well, so a lot of people got surprised at tax time.

What tax software do you recommend for handling crypto? I've heard TurboTax messes it up sometimes.

I've had the best experience with TaxAct for crypto reporting. TurboTax has improved but still struggles with some of the more complex crypto situations like liquidity mining or certain DeFi transactions. If you have straightforward buying and selling, most tax software will handle it fine. But if you're into more advance

This is correct but keep in mind Robinhood also reports to the IRS, so make sure what they told you matches what they actually reported. Sometimes companies say one thing to customers but send different info to the IRS.