I never thought to check that! We do use Workday actually. Is this something in the benefits section or somewhere else? I'll have to poke around tomorrow. If I could set preferences that would be awesome.

Check under the Payroll section in Workday. Look for something called "Tax Withholding" or "W-4 Elections." Most versions have a withholding calculator where you can play with different scenarios. Some even have a slider where you can choose between maximizing paychecks (0 refund) or getting a specific refund amount. It's usually in the same place where you would update your W-4 information. The calculator is pretty helpful because it shows how each change affects both your paycheck and your expected refund. If you don't see it, your HR department can tell you if this feature is enabled for your company.

This is actually a myth that needs to die. For most normal people, the "interest" you'd earn on the extra $20-40 per paycheck is minimal compared to the psychological benefit of getting a larger refund. Most people don't invest that small difference anyway.

You're missing the bigger financial picture. Even small amounts add up significantly over time, especially with compound interest. An extra $40 per paycheck is $1,040 annually that could be in your investment accounts growing instead of sitting with the IRS. But more importantly, having access to your full earnings gives you financial flexibility throughout the year. That money could go toward paying down high-interest debt, building an emergency fund, or investing in retirement accounts with tax advantages. It's about having control of your own money rather than voluntarily restricting access to it. For people struggling with cash flow issues, every dollar in their regular paycheck matters.

Does this mean you still have to pay taxes during that waiting period? Our animal rescue just applied for 501(c)(3) status but we're not sure how to handle income and expenses while waiting.

Generally, if your 501(c)(3) application is ultimately approved, the tax-exempt status is retroactive to your date of incorporation, provided that was within 27 months of your application. So technically, you might not owe taxes even during the waiting period. However, you still need to file the appropriate information returns (usually Form 990 series) during this time. It's also smart to set aside funds just in case your application is denied and you do end up owing taxes on income received during this period. For your animal rescue, I'd recommend tracking all income and expenses very carefully, following non-profit accounting practices from the start, and being transparent with donors about your pending status.

This is actually an important distinction that others haven't mentioned! Are we talking about personal tax returns or the organization's filing? I've been assuming the organization's taxes, but now I'm confused.

Thank you for sharing your experience! That's really reassuring. Did you use any specific tax software to file your amended return or did you work with a professional? I'm trying to figure out the best way to handle this correctly.

I used TurboTax to prepare the amended return since that's what I'd used for my original filing. It walks you through the process pretty well. I just entered the additional income and it recalculated everything. For peace of mind, I did have a tax preparer review it before submitting just to make sure I did it right. It was worth the small fee to have a professional double-check my work. If your situation is fairly straightforward (just missing income), you can probably handle it yourself, but having someone review it isn't a bad idea.

This isn't great advice. While it's true the IRS prefers to collect rather than prosecute, deliberately not reporting income is tax evasion. Your cousin was lucky. The IRS can and does pursue criminal charges in some cases, especially when they can prove intent.

Thanks for the tip! I actually went back and checked my W-2 and you're right - the retirement plan box is checked but I definitely didn't select that in TurboTax. I didn't even notice that option when going through the questions. Do you remember where in TurboTax I need to go to fix this?

You should be able to find it by going back to the W-2 entry section in TurboTax. Look for a section that says something like "Does your employer offer a retirement plan?" or there might be a specific checkbox when entering your W-2 information. If you're not seeing it there, try looking in the "Deductions & Credits" section under retirement savings options. Sometimes TurboTax splits these questions into different sections which can cause these kinds of mismatches. Once you get the information entered correctly to match your W-2, the paper filing requirement might disappear.

This is a good point. I ran into this with New York one year because I'd moved mid-year and the address discrepancy triggered a paper filing requirement. Double check all your personal info matches what the IRS has on previous returns or communications.

If there's no amount to report do I still need to include this form when filing my taxes? Or can I just ignore it?

You technically don't need to report a form with zero income on it. The IRS doesn't require you to report income that rounds to $0. Your accountant's advice to not worry about it is correct from a filing perspective. However, I still recommend contacting your bank to fix the classification issue for future years. Otherwise, you might keep getting the wrong form, and if you do earn reportable interest in the future, it could create confusion or even compliance issues with both the bank and the IRS.

It's actually required by law in many states. Landlords have to keep security deposits in interest-bearing accounts separate from their personal funds. In some states, they even have to pay you the interest earned on your deposit annually or when you move out.