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.

Some tax software allows you to download your W-2 info as a CSV file which you can then import to Excel. Check if your employer's W-2 provider offers this. I use H&R Block and they have a feature to export the data.

Thanks for the tip! Just checked and our payroll provider (ADP) actually does have an export option. This will save me so much time on my spreadsheet setup.

Oh that's really good to know! So if we owed $2000 for 2024, as long as our withholding for 2025 is at least $2000, we won't get penalized even if we end up owing again? That seems more manageable than trying to predict exactly what we'll owe.

That's exactly right! As long as your total withholding for 2025 equals or exceeds what you owed for 2024 ($2000), you'll meet the safe harbor requirement and avoid penalties even if you still end up owing when you file. This is often the simplest approach because you don't have to predict your exact tax liability. Just make sure your withholding meets or exceeds last year's total tax (not just what you owed at filing time, but your total tax liability from last year's return). Many people find this much easier than trying to calculate quarterly payments.

This is exactly what happened to us! We both checked "Married" thinking it was the right thing to do, but ended up owing $3,400 at tax time. After fixing our W-4s to account for two incomes, our withholding is now spot on.

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.

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.