4 Hey, just wanted to share what I did in a similar situation. My husband and I got married mid-2023, and I was working while he was in med school. I actually filled out my W4 as "Married filing jointly" but then used the "Multiple Jobs Worksheet" that comes with the W4 form to calculate additional withholding. It worked perfectly - we ended up with a small refund instead of owing. The key is that Step 2 of the form lets you account for situations where one spouse works or when both work but earn different amounts.

19 Is anyone else annoyed that the W4 became so complicated after they redesigned it? I miss the old simple withholding allowances. Now I feel like I need an accounting degree just to fill out a basic form...

I work at a tax prep office and see this EXACT issue with Webull forms all the time. It's a known glitch in their reporting system. Here's what we do: 1. Make Box 5 match Box 1a exactly 2. Document the original values somewhere in your records 3. File normally The discrepancy is due to how Webull handles fractional shares and dividend rounding. Since Section 199A dividends (Box 5) are supposed to be a subset of ordinary dividends (Box 1a), the numbers get slightly misaligned in their system. This is so common with Webull that we have a standard procedure for it. I've never seen a client get any follow-up questions from the IRS about this minor adjustment.

I discovered that you can actually override TurboTax's error check for this! When you get the error message, look for a small "continue anyway" or "override" option (it's easy to miss). I've been doing this for the past two years with my Webull forms since they always have this issue. For what it's worth, I've never had any problems filing this way - no audit, no questions, nothing. It's such a small amount that the IRS systems probably don't even flag it. Their automated systems are looking for much bigger discrepancies than a few pennies.

Remember that if this is a Final K-1, you need to check if the distribution exceeds your client's basis in the partnership interest. If it does, the excess is generally treated as capital gain. Section 731(a) covers this. The tricky part with partnership-to-partnership distributions is applying the tiered partnership rules correctly. Make sure you're accounting for any Section 751 "hot assets" in the distributing partnership as well.

Has anyone mentioned carried interest yet? If this partnership investment involves any carried interest arrangements, that adds another layer to track correctly. The tax treatment can vary significantly.

Im in a similar situation but my numbers are different - my line 15 is -2,453 and line 16 is 3,102. I put the -2,453 on line 3 of the worksheet but then tax software is giving me an error saying I cant have a negative number there?? So confused.

Just a heads up - make sure you're using the correct worksheet version for your tax year. The Qualified Dividends and Capital Gain Tax Worksheet gets updated, and using last year's version could lead to errors. I learned this the hard way when I was using old instructions I printed out last year. Also double-check that you correctly calculated lines 15 and 16 on Schedule D in the first place. Line 15 should be your net long-term capital gain or loss, and line 16 is typically your net short-term and long-term combined. If those aren't calculated right, it cascades through the rest of your forms.

Just want to add something important about Section 174 that confused us - you need to be careful about the "first-year convention" when doing your calculations. The tax regs actually have you amortize only HALF of the first-year amount. So for that $125k engineer salary, you'd actually deduct $12.5k in year 1, then $25k in years 2-5, and the final $12.5k in year 6. Spreads it over 6 tax years technically. Our accountant missed this at first and we had to adjust our quarterly estimates. Make sure whoever does your taxes understands this nuance!

Does anyone know if there's still a chance Congress might reverse the Section 174 amortization requirement? Our company's cash flow is getting killed by this change since we're heavily R&D focused but still pre-revenue. Being able to deduct only 1/5 of our actual expenses each year is brutal for our tax situation.