Thanks for the detailed explanation. This is getting me really worried now. If he's been doing this for the full 9 years I've worked there, could I be in trouble with the IRS too? I've always just reported what was on my W-2.

You shouldn't face penalties if you've been reporting the income shown on your W-2s. The IRS generally recognizes that employees rely on these documents for their tax filing. The primary responsibility for accurate payroll reporting falls on the employer. However, now that you're aware of the issue, you should work with a tax professional to determine if amendments are needed for recent tax years. Most tax pros recommend focusing on the last three years, as that's typically how far back the IRS looks unless fraud is suspected. The good news is that if your reported income was higher than your actual income, you might be entitled to tax refunds for overpayment once the record is corrected.

Wow, I didn't even catch that math error. You're right - the numbers are even more off than I realized. I thought I was just missing out on pay for those phantom 47 hours, but it sounds like there might be issues with my actual hourly rate calculation too.

Exactly. Based on the numbers you provided, if your gross pay on your W-2 is $6,753 for 450 hours, that's only about $15/hour - not the $18 you mentioned. And if your take-home is $5,642, that's about 16.5% being withheld, which seems low for combined federal, state, and FICA taxes. I suspect your boss might be pocketing some of what should be your wages while also potentially underpaying the employer portion of taxes. This is unfortunately common in cash-heavy small businesses. Document everything moving forward - dates, times, amounts paid - and consider reporting this to your state's department of labor and the IRS whistleblower program.

This is really important info. My brother had an employer who "conveniently" never sent W-2s to employees who left mid-year. Turned out they weren't reporting all wages to avoid taxes. When several former employees filed using Form 4852, it triggered an IRS investigation.

I second this advice! I had to file with a 4852 last year and then got my W-2 three weeks later with slightly different numbers. I called the IRS and they said small differences weren't worth filing an amendment for, but never told me what "small" meant. Anyone know what the threshold is for needing to file an amendment?

There's no official threshold published by the IRS for when to file an amendment, but generally, tax professionals suggest amending if the difference affects your tax liability by more than $100 or changes any tax credits you claimed. The most important thing is whether the difference increases your tax liability - if you would owe more tax with the correct W-2 information, you should definitely file an amendment to avoid penalties and interest. If the difference would result in a larger refund for you, it's still worth amending to get that money back.

I used TurboTax last year for my crypto and it was ok for basic stuff, but got REALLY confusing with multiple platforms. Had to manually enter a ton of transactions. If you have more than like 10-15 trades, I'd recommend a specialized crypto tax software instead.

Thanks for sharing your experience! That's really helpful to know. I probably have about 25-30 transactions so I think I'll look into one of the specialized options mentioned in this thread instead of struggling with manual entry.

Thanks for the heads up. I definitely want to report everything correctly. Better to pay what I owe than deal with an audit. Seems like I need to get organized with all my transactions before filing.

No problem! And yeah, being organized is key. Since you used Cash App, you should be able to download your full transaction history as a CSV file. Save this along with any tax forms they provide. If they don't give you detailed enough info, you can always request your account history directly. Remember that crypto exchanges are increasingly reporting to the IRS directly, so your transactions are likely already on their radar. Being proactive and thorough in your reporting is definitely the way to go.

Thanks for pointing this out! My parents were actually suggesting sending it in smaller chunks over a few months because they thought it would be "easier." I'll make sure to tell them to just do one direct transfer instead. Do you happen to know if they need to fill out any special forms in Vietnam to send such a large amount overseas?

Definitely tell your parents not to split it up! You're right that it could look like structuring, which can trigger all kinds of unwanted scrutiny from both banks and the government. Regarding Vietnam specifically, your parents will likely need to complete forms at their Vietnamese bank explaining the purpose of the transfer and possibly showing documentation of the source of funds. Vietnam has currency control regulations, and for amounts over about $5,000 USD, there are usually additional verification steps. The exact requirements vary by bank, but generally they'll need to provide your information, their relationship to you, and sometimes proof of how they acquired the money (especially for large amounts like $100k). Their bank in Vietnam will guide them through their specific requirements.

Which states still have gift taxes? I thought that was just a federal thing. I'm in Minnesota if that matters.

Are the H&R Block/Liberty courses expensive? Is it worth it compared to just using the free IRS materials someone mentioned above?

The tax courses typically run between $200-400 depending on your location. They're more comprehensive than the free IRS materials and include guided practice with an instructor who can answer questions. The VITA training mentioned above is great for basic returns, but the paid courses go deeper into things like investment income, small business issues, and rental properties. If your situation is simple (W-2 income only, standard deduction), stick with the free materials. If you have investments, freelance income, or rental property, the paid course is worth considering.

This is exactly right. I wasted $350 on a tax course only to realize 80% didn't apply to me. What software do you recommend for someone who wants to learn while doing their own taxes but with some guidance?