We probably don't qualify for that one then, since our combined income is still around $78k even with my wife's unpaid leave. But thanks for mentioning it! Are there any other credits or deductions we should look into as new parents?

You might still qualify for the child and dependent care credit I mentioned earlier if you're paying for childcare. Also look into whether you can deduct any medical expenses related to the birth - if your total medical expenses for the year exceed 7.5% of your adjusted gross income, you can deduct the amount over that threshold if you itemize deductions. Some employers also offer dependent care FSAs which let you set aside pre-tax money for childcare expenses. It's too late for 2024, but something to consider for 2025. And start looking into 529 college savings plans - there's no federal tax deduction for contributions, but earnings grow tax-free when used for education expenses.

I used the IRS Free File system last year to claim the child tax credit for my son. It was actually pretty straightforward - it asks clear questions about dependents. If your income is under $73,000, you can use it for free. If you make more, TurboTax or H&R Block might be easier, but they'll charge you for the forms needed to claim child-related credits.

That's weird, my 401k is through Vanguard and they literally just had me check a box saying I qualified under the CARES Act. No documentation required at all. I wonder if different companies have different policies?

Yes, each 401k administrator sets their own verification policies. Fidelity was being extra cautious with my company's plan, but Vanguard and others often just require the checkbox as you mentioned. It varies widely by both the administrator and sometimes even by the specific employer's plan. The actual IRS guidelines only require self-certification, but plan administrators can add their own layer of verification if they choose to. Always best to check directly with your specific plan before proceeding.

Wait seriously? I thought the CARES Act provisions were extended! This completely changes things for me. So there's no special COVID-related withdrawal option for 401ks anymore?

That's mostly correct, but there's a small caveat. While the general CARES Act withdrawal deadline was December 30, 2020, some COVID-related relief provisions were extended through other legislation. However, the specific 401k withdrawal provisions with penalty waivers and extended repayment options did indeed expire.

That's really helpful! I'm in Illinois - do you know if they're pretty good about this kind of thing? I've never filed any kind of complaint before.

Illinois actually has a pretty strong stance on worker misclassification! They have a specific task force called the Illinois Task Force on Misclassification that investigates these exact situations. You can file a complaint through the Illinois Department of Labor. The state takes these issues seriously because misclassification costs them tax revenue and deprives workers of benefits and protections. The complaint process is straightforward - you'll need to provide information about the company, your working arrangement, and copies of any documentation you have (pay stubs, text messages about scheduling, etc). Even without recorded conversations, your description of the working relationship can be enough for them to investigate.

This! When I was a house cleaner, I tracked my mileage between client houses (NOT from home to first job or last job to home, that's commuting), and all my supplies. Reduced my taxable income by almost 40%. Even if you didn't track it at the time, you can reconstruct reasonable estimates with calendar entries, texts arranging jobs, etc.

Thanks for the perspective! I did double-check my AGI from last year since I switched from paper filing to electronic. I actually had to dig out my old return to make sure I had the number right. Sounds like I just need to be patient for a couple more days.

Glad you verified that! Another tip is to create an account on the IRS website if you haven't already. Sometimes you can see the status of your return there before your tax software updates. The "Where's My Refund" tool won't help until your return is accepted, but having the account set up now will save you time later.

I've used both and noticed the same thing! I think TurboTax only updates their status a few times a day while some of the others check more frequently. The actual processing time at the IRS is probably the same.

6 How do I check what I put on my W-4? Do I need to ask HR for a copy? And if that's the problem, can I still fix my current tax return or is it too late?

9 You can ask your employer's HR or payroll department for a copy of your W-4 on file. They should be able to provide it or at least tell you what you selected. For your current tax return, if you've already filed it and the calculations are correct based on what was actually withheld, you can't change the outcome now. The tax bill is based on your actual income and withholding for the year. However, you can immediately submit a new W-4 to fix the problem for this year so you don't end up in the same situation next April.

2 The EITC is refundable too, so it could actually give you money back instead of just reducing what you owe! But I think there are age requirements if you don't have kids - you have to be at least 25 but under 65 to qualify without dependents.