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A tip from someone who's been in this situation for years: if you don't want to mess with complicated W4 calculations, you can also just put an additional flat dollar amount to withhold on line 4(c) of your main job's W4. A rough estimate: take your expected annual income from the second job, find your marginal tax bracket percentage, and divide that amount by the number of pay periods left at your main job. For example, if your side gig pays $6,000/year and you're in the 22% bracket, that's $1,320 in potential additional tax. If you get paid bi-weekly at your main job and have 10 pay periods left in the year, add $132 to line 4(c). This isn't perfect but it's a simple approach that has kept me from owing big amounts at tax time.
Would this still work if both jobs have widely different pay? My main job is about $75k but my weekend job only brings in like $9k. I'm worried about being in different tax brackets.
Yes, it still works with different pay levels! The important thing is to calculate based on your highest marginal tax bracket when combining all income. At $75k for your main job, you're already in the 22% federal bracket (assuming single filing status). The additional $9k from your weekend job would also be taxed at 22% federally. So you'd take $9,000 Ć 0.22 = $1,980 in additional tax for the year. Then divide that by your remaining pay periods to get the per-paycheck additional withholding amount. Just remember this is a simplified approach. If you're close to moving into a higher bracket with the combined income, you might want to use the IRS calculator for more precision.
don't forget about social security and medicare taxes!! those are flat percentages (6.2% for social security up to the wage base and 1.45% for medicare on all earned income). so even if your income tax withholding is correct, having two jobs might mess with these calculations if you're near the social security wage base limit also some states have their own withholding forms separate from the federal W4. i learned this the hard way and ended up owing $800 to my state even though my federal was fine!!!
Have you checked to see if your W-2 is available electronically? Many large companies use services like ADP or Workday where you can still access your tax documents even after leaving. Sometimes they don't mail physical copies if you were enrolled in electronic delivery when you worked there.
I actually tried that first! We used Workday, but my login stopped working shortly after I left the company. I called about getting it reactivated but that just led me back to the same HR department that never answers. Frustrating because I know the W-2 is probably sitting right there in the system.
That's unfortunately pretty common - companies often disable access but don't communicate how former employees should get their tax documents. One thing you could try is reaching out to your former manager or even colleagues still at the company. Sometimes they can put internal pressure on HR that gets better results than calling from the outside. If that doesn't work, a former coworker might be able to tell you who specifically in HR handles tax documents, so you could email them directly instead of calling the general HR line. Large companies often have dedicated tax specialists who are separate from the regular HR team.
You could try filing a complaint with your state's labor department or employment commission. In my state, they take failure to provide wage statements pretty seriously and will sometimes intervene on your behalf.
As a married guy who's been filing jointly for years, here's my two cents - if your financial situation is just two W-2s and standard deductions, TurboTax will work fine. But if you start having investments, rental property, or significant itemized deductions, an accountant starts to pay for themselves. The first year filing jointly is a good time to establish a relationship with an accountant. Even if you don't use them every year, having someone who knows your tax situation can be invaluable when more complex questions come up. One thing to consider - at your income level, you might be approaching some phase-out thresholds for certain deductions and credits. An accountant might help identify tax planning opportunities for future years.
For the tax debt situation specifically, an accountant can provide strategic advice, but they don't have any special access to the IRS. They'd likely advise you to contact the IRS directly to set up a payment plan or explore settlement options. A tax professional might be able to help determine if any of the debt can be addressed through penalty abatement requests or other relief programs. They can also advise on whether filing jointly or separately makes more sense given the outstanding debt. But for actually resolving the debt, you'll still need to work directly with the IRS one way or another.
Make sure you look into the marriage penalty! My spouse and I were shocked when we filed jointly for the first time. Our combined income pushed us into a higher bracket and we ended up owing way more than we expected. The worst part was realizing after the fact that we could have saved money by filing separately that year. Def run the numbers both ways before deciding!!
The marriage penalty isn't as bad as it used to be after the 2017 tax changes, but it can still hit high earners. At their income level (over $400k combined), they could definitely face some penalty. I'd suggest looking at the actual tax brackets for 2024 and calculating both ways. Don't just assume joint is better!
A word of caution - I was in almost exactly your situation in 2023 and I made a mistake with my dual-status filing. I incorrectly reported some foreign income I received during my NRA period and ended up getting a CP2000 notice from the IRS requiring additional tax plus interest. Double-check everything and consider using a tax professional who specializes in international taxation. The rules for dual-status aliens are super complicated, especially regarding things like foreign tax credits and treaty benefits. Definitely not something I'd recommend doing yourself unless you're 100% confident.
Has anyone successfully e-filed a dual-status return? I tried last year and every tax software I used (even the "premium" versions) said I had to print and mail it. Seems ridiculous in 2024 that we still have to mail these returns.
Aidan Percy
Something to note - the insurance payout itself ($72k in your case) is generally not taxable since it's considered a reimbursement for damage, not income. You only need to worry about the tax credits for the additional energy efficient upgrades you paid for out of pocket. One exception: if the insurance payout exceeds the adjusted basis of your property, that excess could potentially be taxable. But that's rare for roof replacements.
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Fernanda Marquez
ā¢What exactly is "adjusted basis" in this context? Is that like what I originally paid for the house?
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Aidan Percy
ā¢Adjusted basis is basically what you paid for the house (original basis) plus improvements you've made that add value, minus any depreciation you've taken on the property. For example, if you bought your home for $300,000 and later added a $50,000 kitchen renovation, your adjusted basis would be $350,000. If you're using your home purely as a personal residence (not for business), you typically don't take depreciation, so that part wouldn't apply to most homeowners.
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Norman Fraser
Has anyone tried claiming this credit without proper documentation from the contractor? I replaced my roof last year with energy efficient materials but my contractor went out of business and I can't get the manufacturer certification now.
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Kendrick Webb
ā¢You might still be able to get the certification directly from the shingle manufacturer. Most major brands have downloadable certification statements on their websites. Just look up the exact model of shingles you installed. Receipts showing the specific type of shingles purchased are also crucial.
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