Is there any advantage to filing the Form 4852 instead of just using the late W2? Like would it help document that the employer was late?

There's no real advantage to using Form 4852 when you already have your actual W2. Form 4852 is specifically for situations where you need to file but haven't received your W2 at all. It's basically a substitute document that allows you to file without waiting indefinitely. Using your actual W2, even if it arrived late, will ensure your tax information exactly matches what the employer reported to the IRS, which reduces the chance of discrepancies that might trigger questions later. The IRS already has the information from your employer, so using the actual W2 is always preferable when available. As for documenting that the employer was late, keeping the postmarked envelope is your best evidence of that, regardless of which form you file with.

Did you ever have any issues with that employer after reporting them? I'm worried about potential blowback if I report my former workplace.

Can your parents just give you the difference in what they would've saved? Like if they get an extra $2000 by not claiming you, but you lose $1200 in credits, could they just give you the $1200 so everyone wins?

Yes, that's actually exactly what my parents did! They calculated that they would save about $800 by claiming me, but I would lose $1200 in credits. So they decided not to claim me and instead gave me $900 as a gift. That way our family as a whole came out ahead, and I still got more than if they had claimed me. The key is that regardless of their decision or any money they give you, you still need to answer the tax form questions honestly. The question isn't asking about what someone else decided to do on their return - it's asking whether you meet the criteria to be claimed as a dependent.

Yikes that's scary! Did you have to pay any penalties too? I wonder how the IRS even figured out that your parents could have claimed you?

Wait, I had no idea about this quarterly payment thing! So for THIS tax year I'm filing now, I just need to pay by the April deadline, but for next year I should be making payments every quarter? Is there a minimum amount you have to owe before this is required?

Yes, for the current tax return you're filing now, you just need to pay your full tax bill by the April deadline. But going forward, you should plan to make quarterly estimated tax payments. The general rule is that you need to make quarterly payments if you expect to owe $1,000 or more in taxes when you file your return. Alternatively, if your withholding and payments cover at least 90% of your current year tax or 100% of your previous year's tax (110% if your income is above $150,000), you won't face penalties. Most self-employed people with significant income end up needing to make these payments to avoid underpayment penalties.

Yes, the IRS offers installment agreements if you can't pay your full tax bill by the deadline. You can apply online through the IRS website if you owe less than $50,000 (combined tax, penalties, and interest). The key is that you MUST file your return by the deadline even if you can't pay. Then apply for the payment plan right away. You'll still pay some penalties and interest, but they're much lower than if you don't file or don't set up a formal payment arrangement. The process is fairly straightforward - the online application takes about 15-20 minutes to complete.

Thanks so much for this info! Do you know if I need to bring additional documentation besides the W2 to prove my address? I'm a little nervous about the DMV rejecting it since it's my first time getting a license.

You should bring at least one additional form of address verification just to be safe. DMV requirements vary by state, but typically a utility bill, bank statement, or lease agreement in your name works well as a secondary proof. For your first license, they'll likely also require your birth certificate or passport for identity verification, along with your Social Security card or a document with your SSN on it (which your W2 satisfies). Check your specific state DMV website for their exact requirements, as they do vary somewhat. Don't be nervous - this is a routine process and they deal with printed W2s all the time!

I printed my Gusto W2 at UPS last year and had zero problems. Just make sure you choose the higher quality printing option if they offer different levels. Mine came out looking super crisp and professional - the DMV didn't even blink when I handed it to them. Cost me like 65 cents for the color copy.

This is exactly the kind of real-world experience I was hoping to hear about. Do you mind sharing roughly what income level you were at when you triggered these various thresholds? I'm trying to gauge how similar your situation might be to mine.

Before the property sales, my AGI was around $225,000 (married filing jointly). The three property sales added about $780,000 in total to my income that year, with approximately $320,000 of that being depreciation recapture. The rest was capital gains. This pushed my total income for the year to just over $1 million, which triggered numerous thresholds. The NIIT kicks in at much lower income levels (around $250,000 for married filing jointly), so you'd likely hit that with even one property sale of significant value. The AMT was the real surprise though - it effectively eliminated many of the deductions I normally claimed. If I could do it over, I would have worked with my CPA to project the exact tax impact before making all the sales in the same year. Timing really is everything with these large transactions.

I did a 1031 exchange last year and while it was definitely paperwork-intensive, it saved me from a huge tax bill. The key is having a good qualified intermediary who keeps you compliant with all the strict timeframes (45 days to identify potential replacement properties, 180 days to close). The main downside is you're somewhat rushed to find a replacement property, which can lead to making compromised investment decisions. Also, you need to get a property of equal or greater value to fully defer the taxes. But if you're planning to stay in real estate anyway, it can be a great strategy.