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11 Just wanted to add another option - you can request a Wage and Income Transcript directly from the IRS. It's free and shows all information reported to the IRS, including W-2 data. You can get it online through the IRS website if you create an account, or use Form 4506-T to request it by mail. The only downside is that it might not be available until May or later for the current tax year, so it might mean filing an extension if you're up against the deadline. But it's official IRS data that will match what they have on file.
7 Does the Wage and Income Transcript show state tax withholding too? Or just the federal stuff? I'm worried about both returns.
11 The Wage and Income Transcript only shows federal information, not state withholding. That's an important limitation to be aware of. For state withholding information, you'll need to contact your state tax agency directly to see if they offer a similar transcript service. Some states do have their own wage reporting systems, but it varies widely. You might need to use your federal transcript plus your bank records to make a reasonable estimate for your state withholding if you can't get the actual W-2.
18 My advice? Don't mess around with estimates if you can avoid it. Filing Form 4852 as others suggested is fine, but have you tried reaching out to your company's payroll provider directly? Often smaller companies outsource their payroll, and the provider can often give you access to your W-2 even if the employer is unresponsive. Ask coworkers where they got their W-2s from - was it ADP, Paychex, Gusto, etc? Those services usually have employee portals where you can download your tax documents directly, bypassing your employer completely.
1 I hadn't thought about contacting the payroll company directly! That's a great idea. I think they use some service called Payday or something similar... I'll have to ask my coworker. Would I need specific login information or can they look me up by SSN?
Watch out for another complication - shipping charges! Some platforms include the shipping you charged customers on the 1099-K too. If you're deducting your actual shipping expenses on Schedule C, make sure you're accounting for the shipping revenue properly. This tripped me up my first year.
So true! My 1099-K was about $4,200 higher than my actual product sales because it included both sales tax AND shipping charges. I almost missed this until my tax preparer caught it.
Make sure you're also keeping VERY careful records when dealing with sales tax and 1099-K issues. I got audited last year specifically on this issue because the amounts didn't match up exactly. Had to provide all my sales tax returns from each state along with payment confirmations to prove I'd actually remitted the taxes. The auditor told me this is becoming a common audit trigger because so many online sellers are handling it incorrectly. Document everything!
Don't overlook state-specific requirements! I'm in California, and the $800 annual franchise tax for LLCs was a huge shock when I formed mine. The DBA route has no annual fee besides the initial registration and renewal every 5 years. Some states are much cheaper for LLCs, while others have similar fees to CA. Research your specific state's requirements before deciding.
Do you think the liability protection is worth that extra $800 per year? I'm also in CA and trying to decide if I should make the jump from my photography DBA to an LLC.
It really depends on your specific situation and risk exposure. For my consulting business where I could potentially face lawsuits if clients lose money based on my advice, I feel the $800 is worth it for the peace of mind. For a photography business, you might consider the types of shoots you do (weddings carry more liability than portraits), the value of your contracts, and whether you ever have employees or assistants who could create additional liability. Also factor in your personal assets that would be at risk - if you own a home or have significant savings, the protection becomes more valuable.
Has anyone actually formed an LLC themselves without using a service? I've been operating with a DBA for my handmade jewelry business but want more protection. LegalZoom wants like $300+ but the actual state filing fee is only $50 in my state.
Yep, did it myself in NC. Super easy. Just downloaded the Articles of Organization form from the Secretary of State website, filled it out (it's basically just your business name, address, and registered agent info), paid the filing fee online, and received confirmation in about a week. Also wrote my own operating agreement using a template I found online. Saved hundreds compared to using a service. Just make sure you research your state's specific requirements.
Here's what I learned after dealing with this exact issue: SBTPG (Santa Barbara Tax Products Group) is Intuit/TurboTax's bank partner. When you choose to pay TurboTax fees from your refund, they basically set up a temporary bank account with SBTPG, your refund goes there first, they take their cut, then send the rest to you. The fee breakdown is usually: - Your TurboTax package fee (sounds like Premium was $89) - Refund processing fee ($39-$45 depending on options) - Sometimes a state refund processing fee if you also paid state taxes For future reference, if you pay TurboTax directly when filing (with a credit card), your full refund comes straight from the IRS to your bank account with no middleman and no extra fees.
Do other tax filing services do this too? Or is this just a TurboTax thing? I'm trying to decide which service to use next year.
Most of the major tax filing services do something similar if you choose to pay your filing fees from your refund. H&R Block, TaxAct, and TaxSlayer all use a similar bank transfer system and charge an additional fee ($35-$45 range). The only way to avoid these fees completely is to pay for the tax software upfront when you file. Some completely free options like FreeTaxUSA charge much less for their premium versions ($15-$20), so even paying upfront is more affordable than those refund transfer fees. Credit Karma Tax (now called Cash App Taxes) is completely free for federal and state, but it doesn't offer the option to pay from your refund since there's no fee to begin with.
Whaaaat? TurboTax charges me extra to take their money from MY refund?? That's insane! I've been using them for years and always picked that option without realizing there was an additional fee. So lemme get this straight: I pay $89 for Premium + $39 for them to take the $89 from my refund, so actually $128 total? That's almost 50% more than advertised!!! This feels super shady, like they're hiding the true cost.
KylieRose
Another option is to use the IRS Withholding Estimator directly: https://www.irs.gov/individuals/tax-withholding-estimator Just make sure you have your most recent paystubs handy to enter accurate year-to-date information. And remember that as a dependent student, your standard deduction might be limited compared to someone who can't be claimed as a dependent.
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Miguel HernΓ‘ndez
β’I tried using the IRS estimator but kept getting errors every time I entered my capital gains info. Has anyone else had this problem?
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KylieRose
β’The IRS estimator can definitely be finicky with capital gains. Make sure you're entering them as "other income" rather than earned income. Also, try using a different browser if you're getting technical errors - sometimes it works better in Chrome than Firefox or vice versa. If you're still having trouble, you might want to try a different calculator or just focus on your W2 income for the W4 calculations. Since your LTCG are in the 0% bracket anyway, they won't affect your withholding needs as much.
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Sasha Ivanov
Does anyone know if you can just use the W4 estimator and then add a flat additional amount on line 4(c)? Like if I know I need to have $500 more withheld total before the end of the year, and I have 10 paychecks left, can I just put $50 per check?
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Liam Murphy
β’Yes that's exactly what line 4(c) is for! I did this last year. Just divide the total additional amount you need withheld by your remaining paychecks and put that number on line 4(c). Super easy way to fine-tune your withholding.
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Sasha Ivanov
β’Perfect, that's exactly what I needed to know. Thanks for confirming! I'm going to do the math and adjust my withholding tomorrow.
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