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One piece of practical advice: if you're a student filing taxes for the first time, I HIGHLY recommend using tax software instead of trying to fill out the actual 1040 form manually. The software asks you simple questions about your situation and fills in the right lines automatically. Most students qualify for free filing through IRS Free File or programs like FreeTaxUSA. They handle education credits and the specific situations students face. Even with just a W-2, trying to figure out which lines are relevant on a paper 1040 is unnecessarily stressful.
Would you recommend any specific free software for students? I tried TurboTax last year but ended up getting charged at the end when it turned out my "simple return" wasn't so simple because of my education credits.
I personally recommend FreeTaxUSA for students. Unlike TurboTax, they don't bait-and-switch you with unexpected charges for education credits or simple deductions. Federal filing is completely free, and state returns are only about $15 if you need them. The IRS Free File program is also good if your income is under $73,000. You can access various free options through the IRS website, and they're required to keep it truly free for qualifying taxpayers. Just be careful to access them through the official IRS.gov site rather than going directly to their websites, as that's how you ensure you get the truly free version.
Don't overthink it! For most students, the 1040 is actually super simple. You'll probably only need to fill out: - Your personal info at the top - Line 1 for W-2 wages - Skip most of the other income lines (they'll be zero) - Take the standard deduction on line 12 - Maybe education credits if they apply - Calculate your refund Everything else can be left blank if it doesn't apply to you! Just put zeros or leave blank.
One thing nobody's mentioned yet - did either of you have any side income or freelance work that wasn't having taxes withheld? Even a small amount of 1099 income can result in a surprisingly large tax bill because you're paying both the employee and employer portions of FICA taxes (an extra 7.65%). Also, check if your employer changed payroll providers. My company switched last year and something got messed up in the transition, resulting in significantly lower withholding for several pay periods before it was caught.
Actually, I did start doing some consulting work on the side that brought in about $14k. I made quarterly estimated tax payments, but I'm wondering if I underestimated how much I needed to pay. How do you calculate the right amount for side income?
That side income is almost certainly a big contributor to your surprise tax bill! For side income, you generally need to pay: - Your regular income tax rate on the earnings (likely 22% or 24% at your income level) - Self-employment tax of 15.3% (this covers both employee and employer portions of Social Security and Medicare) So for $14k in consulting income, you'd need to set aside roughly 37-40% for taxes, which would be about $5,200 just from that side income. If your quarterly payments were significantly less than this, that could explain a big chunk of what you owe. Many people underestimate how much to set aside for self-employment income, especially the first year they have it. For next year, aim to set aside at least 35-40% of any consulting income for taxes, or use the IRS Form 1040-ES worksheet to calculate more precisely.
Has anyone actually compared 2023 vs 2024 tax brackets? They were adjusted for inflation but the withholding tables that employers use don't always perfectly match your actual tax situation, especially with two high incomes. Also check if either of you maxed out Social Security tax at different times. If one of you hit the SS wage cap earlier in the year, you'd see more take-home pay for those months but it wouldn't change your total tax liability.
This happened to my spouse and me. Once I hit the Social Security cap around October, my paychecks got bigger but no additional tax was withheld to account for our combined income putting us in a higher bracket. It was like getting a raise but without proper tax withholding. Maybe check if that happened?
Another option nobody's mentioned is checking if your local community college offers tax assistance. The one near me has accounting students (supervised by their professors who are CPAs) who do free tax reviews. They can't file for you, but they'll go over your return and answer specific questions. Might be worth looking into if you're trying to save money. Just call the business/accounting department and ask if they have a VITA or tax assistance program.
That's really interesting! Would students really know enough to handle self-employment questions though? My main concerns are around business deductions and depreciation.
The students themselves might be hit or miss on complex issues, but the supervising CPAs definitely know their stuff. I should've been clearer - the students do basic returns, but the professors oversee everything and handle the more complex questions like business deductions. When I went, I specifically mentioned I had self-employment questions, and they made sure the professor reviewed that part of my return. They actually found a home office deduction I had missed!
If your questions are specifically about depreciation under $1000, you might not need paid help at all. Look up "de minimis safe harbor election" - basically, the IRS allows you to immediately expense (not depreciate) business property that costs less than $2,500 per item. You just need to have an accounting policy in place (even if it's just written down for yourself) and elect this on your tax return. Could save you a lot of hassle with depreciation schedules.
For future reference, whenever you make IRS payments, always keep confirmation numbers and screenshots of the payments. I had a similar issue last year where my online account and paper notice showed different amounts. When I finally got through to an IRS rep, having those confirmation numbers ready made the process much smoother. The agent was able to trace the payments immediately and confirm they were applied correctly.
Thanks for the advice! I did save my confirmation numbers from all three payments. Do you think I should call them now or wait for the online system to update after my last payment processes?
I would wait at least 14 days after your last payment for the system to update completely. If you still see a discrepancy after that, then call them with all your confirmation numbers ready. Most of these timing issues resolve themselves within two weeks. The IRS is notorious for sending out notices that are already outdated by the time you receive them. The online account is generally more current than any paper notice.
This is why I always mail a check instead of using Direct Pay. When you mail a check, the postmark date is considered your payment date even if it takes them weeks to process it. With electronic payments, there can be weird delays in how they apply them.
That's not actually good advice. Electronic payments through Direct Pay give you an immediate confirmation number and are generally credited to your account much faster than checks. The benefit of the postmark date only matters if you're cutting it close to a deadline.
Ravi Kapoor
Something similar happened to me in 2023. Here's the form you need that nobody tells you about: Form 3911 "Taxpayer Statement Regarding Refund." This officially alerts the IRS that your refund is missing and starts a trace. You can download it from the IRS website. Also try contacting your local Taxpayer Advocate Service office - they can sometimes work miracles when normal channels fail.
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Amina Diop
ā¢Thank you for mentioning Form 3911! Is there a waiting period before I should file this, or can I submit it now since it's been over 3 months since I mailed my return?
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Ravi Kapoor
ā¢You can file Form 3911 now since it's been more than 8 weeks since you mailed your return. The IRS recomm
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Freya Larsen
Just wondering if you filed an extension just in case? Even though you sent your return, if they truly lost it and you have no proof of mailing it (like certified mail), the IRS could potentially hit you with late filing penalties. Might be worth filing Form 4868 for an extension if you haven't already, just to cover yourself.
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GalacticGladiator
ā¢This is actually bad advice. Filing an extension now would be pointless since we're past the original filing deadline. Extensions have to be filed BEFORE the due date. At this point OP needs to focus on getting the original return processed or filing a duplicate.
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