This is really helpful info I hadn't considered. The check I received was for exactly the excess amount ($1,350) minus the 10% withholding. Does that mean they didn't include any earnings, or would the earnings have been calculated into that amount? Should I specifically ask about the earnings portion?

Based on the amount you received, it sounds like they may not have calculated earnings separately, which is actually a mistake. Even a small excess contribution will generate some earnings while it was in the account. You should definitely call your 401k provider and specifically ask about the earnings on your excess contribution. Ask them how those earnings were calculated and how they'll be reported on your 1099-R. The correct procedure is to distribute both the excess contribution and its earnings. If they haven't properly accounted for the earnings, you might need to request an additional distribution specifically for those earnings. The provider should be able to calculate what those earnings were for the period the excess contribution was in your account.

That number has been impossible to get through on. I tried for weeks and never spoke to anyone. The wait times are insane or they just tell you to call back later.

If I started working from home mid-year, can I only deduct for the months I actually had the home office set up? Or is it an all-or-nothing for the tax year?

You can absolutely prorate the deduction for just the months you had the home office. If you started working from home in July, for example, you'd only take the deduction for 6 months of the year. Just make sure to document when you established the home office. Having dated photos of the setup process or receipts for office furniture can help establish your timeline.

That sounds nightmarish! Did you end up getting to keep the deduction or did they make you pay it back?

What if they DID rent it out while traveling though? Doesn't that change things?

Good question. If you rented the property while traveling, it gets more complicated but doesn't automatically disqualify you. The IRS uses a facts-and-circumstances test. If you rented it out occasionally (like on Airbnb) when you weren't using it, that's generally not a problem. If you converted it to a full-time rental property, you'll need to calculate the portion of ownership that qualified as primary residence vs. rental property. You might still get a partial exclusion based on the percentage of time it was your primary residence during the 5-year period before sale.

I was audited on this exact issue last year. The key was providing documentation proving the house remained my "tax home." I submitted copies of my voter registration, driver's license, bank statements showing the address, utility bills in my name (even with minimal usage), and property tax statements. The IRS accepted my explanation that my travels were temporary absences and I had always intended to return to my home. I didn't lose my exclusion. Document everything!

Thanks for sharing your experience! That's really reassuring. I'll definitely gather all those documents. Did you have to provide any evidence about your travels too, or just focus on proving the house was still your main residence?

Thank you so much for this insider perspective! I don't have the contract anymore since it was so long ago and I didn't expect any issues. Do you think they're just making up this debt to be difficult, or could there legitimately be a bookkeeping error they just never bothered to tell me about until now?

In my experience, it could be either scenario. Some centers do have disorganized bookkeeping, especially smaller operations. They might have genuinely found an accounting error during tax preparation. However, the timing and the fact they never contacted you about it for a full year is suspicious. Given the personal conflicts you mentioned, it's not unreasonable to think they might be using this as leverage. Regardless of their motivation, withholding tax documentation isn't an appropriate way to handle a payment dispute. Most reputable centers keep these issues separate precisely to avoid these conflicts.

Not a dumb question at all! The Child and Dependent Care Credit can be worth up to 35% of your qualifying expenses, depending on your income. Even for just two months, if your childcare was expensive (as most is these days!), it could be worth $200-500 or more. For example, if you paid $1000/month for those two months, that's $2000 in expenses. If you qualify for a 20% credit, that's $400 back on your taxes. Definitely worth pursuing, especially since you can still claim it without their form!

This is really helpful, thank you! I didn't realize I could just submit a new W-4. Does it matter that we're already partway through the tax year? Will changing my W-4 now cause any issues with what's already been withheld?

You can submit a new W-4 anytime during the year! There's no penalty or issue with changing midyear. Your employer will simply start using the new withholding instructions from your next paycheck forward. If you're concerned about having the right total amount withheld for the year, the IRS Withholding Estimator takes that into account. It asks for how much has already been withheld year-to-date and then calculates what your remaining paychecks should withhold to end up with the right total. This is especially useful if you're trying to hit a specific refund target or avoid owing too much.

I went down this rabbit hole last month! Page 25-29 of Pub 15-T has the tables for the old withholding system. If you're paid semi-monthly, your employer is probably using either the percentage method or the wage bracket method. For percentage method: They take your gross, subtract pre-tax deductions and a value for each allowance (around $4,350 annually per allowance, divided by pay periods), then calculate the tax using the tables on page 26. Wage bracket method is even more confusing because they use those giant look-up tables where you find your income range and allowances, then read the withholding amount directly.