Thanks for mentioning this! My tax software actually does have an e-file option for superseding returns, but it specifically says to expect a paper check for the refund rather than direct deposit. Do you know if that's always the case or just depends on the timing?

It depends on the timing and how the IRS processes your return. Some people do receive direct deposits for superseding returns, but paper checks are more common because the superseding return often triggers a manual review process. If your software allows e-filing for the superseding return, that's great! It will process faster than paper filing. Just make sure the software properly marks it as superseding (rather than amended) in the electronic submission. Expect your refund to take a bit longer than the standard 21 days - mine took about 5 weeks last year.

Is there any way to check the status of a superseding return? The Where's My Refund tool only seems to recognize my original return.

4 I always forget about accounting for deductions on the W-4! Do you just use last year's deduction total when filling it out or do you need to estimate the current year? And where exactly on the new W-4 do you put this info?

21 You'd use Step 4(b) on the new W-4 form to list deductions beyond the standard deduction. I typically start with last year's deductions and adjust if I know something significant will change. For example, if you normally take a standard deduction but will itemize this year due to a large medical expense or new mortgage, you'd calculate the difference between your expected itemized deductions and the standard deduction, then put that amount on line 4(b). Just be conservative with your estimates to avoid underwithholding penalties.

9 This is really good advice about adjusting for mid-year changes. When I updated my W-4 last June, I had to account for the over-withholding from January-May. The calculator on the IRS site actually helps with this - it asks when you're making the change and adjusts accordingly.

Thanks for pointing that out! It's a Traditional IRA, so I'll definitely need to plan for the tax impact of withdrawals. Do you have any suggestions for minimizing the tax hit over the 10-year period?

Since it's a Traditional IRA, you'll want to be strategic about your withdrawals. Consider taking larger distributions in years when you might have lower income from other sources, which could keep you in a lower tax bracket overall. If you have years where you expect higher income (bonuses, other investment gains, etc.), you might take smaller distributions or skip withdrawals entirely during those years. Many people also coordinate their withdrawals with charitable donations that can offset some of the tax impact. Just make sure you're on track to empty the account by the end of the 10-year period.

How would you even check if the RMD was taken for the year they died? The statements I got don't make this clear at all.

Thank you for that suggestion! I honestly didn't even think about checking with my insurance. Do you know if making a claim would affect my rates for rideshare insurance differently than regular insurance?

It depends on your specific policy, but many rideshare insurance providers understand that minor cosmetic damages are more common in this line of work. I've filed two small claims in the past year and my rates only went up slightly - much less than the cost of paying for the repairs out of pocket. Make sure to ask specifically about their policy for minor cosmetic repairs for rideshare vehicles. Some have special provisions that won't count these types of claims against you as heavily as accident claims.

How much more in deductions did you get with actual expenses vs standard mileage? I drive about 30k miles a year for rideshare in a 2020 Toyota Camry and I'm wondering if I should switch.

Thanks for bringing up the safe harbor rule - that's really helpful! If my 2024 tax is $43.4k, and I need to meet 110% of that ($47.74k), but I want to owe $8k on a projected $48k tax liability, does that mean I should have approximately $40k withheld throughout the year? Or am I missing something in the calculation?

Your calculation is correct. If your expected 2025 tax liability is $48k and you want to owe $8k at filing time, you'd aim for $40k in withholding throughout the year. The safe harbor rule is just to avoid penalties. Since $40k is less than the safe harbor amount of $47.74k (110% of your 2024 liability), you need to make sure you hit at least $47.74k through a combination of withholding and estimated payments to avoid penalties. So you could do $40k in withholding and then make an estimated payment of $7.74k in Q4 to satisfy the safe harbor while still owing about $8k when you file.

It's actually a valid strategy for credit card churning. If you put an $8k tax payment on a new credit card, you can often meet the spending requirement for a big sign-up bonus. Some cards offer $750-1000 in bonuses for spending $5-8k in the first few months. Plus you get the regular points. As long as you meet the safe harbor rules (withhold 110% of previous year's tax if your income is over $150k), you won't owe penalties. And there's no interest if you pay by the filing deadline. It's totally legal - just a way to get value from money you'd have to pay anyway.