OP literally said they started the job in May. Reading comprehension ftw. That's obviously why the W2 shows less than the full salary amount.

You're right, I completely missed that part about starting in May. That perfectly explains the difference between the 62k salary and 55k on the W2 - it's just the prorated amount for the partial year worked.

That's actually a really good point I hadn't considered. I'll reach out to our HR department to verify they're using the current W4 calculation method. They're a fairly small company so it's possible they're using outdated processes. That could definitely explain the discrepancy. I'm realizing from all these comments that I probably did get the child tax credit benefit, just in my paychecks rather than as a lump sum at tax time. I think I need to decide whether I want more money throughout the year or a bigger refund, then adjust my W4 accordingly.

I had this exact issue with my company last year! They were using outdated software that wasn't correctly applying the Child Tax Credit on the new W4 form. Took them 3 months to fix it but they eventually had to give me back pay.

Can 529 plans only be used for college? My kids might want to do trade school or something non-traditional. Would a different savings vehicle be better in that case?

Great question! 529 plans have actually become much more flexible in recent years. They can be used for a wide range of education options beyond traditional four-year colleges, including vocational schools, trade programs, technical schools, and even apprenticeship programs registered with the Department of Labor. If you're still concerned about flexibility, another option to consider is a Coverdell Education Savings Account, which allows for more diverse qualified expenses including K-12 costs. However, Coverdells have much lower contribution limits ($2,000 annually) and income restrictions that 529s don't have. Some families also use UGMA/UTMA accounts which have no education restriction but do transfer to the child's control at age of majority (18-21 depending on state), and they don't have the tax advantages of education-specific accounts.

Kiddie tax typically doesn't apply to 529 plans since the earnings grow tax-free and aren't taxed when withdrawn for qualified education expenses. Are you thinking of UGMA/UTMA accounts maybe?

What exactly should I be writing down? Just the total amount or do I need to break it down by credit card vs cash tips?

Ideally you should record both your cash and credit card tips separately for each shift. Credit card tips are already tracked by the restaurant's system, but having your own record helps you verify everything's correct. For cash, just the total amount per shift is fine - you don't need to track each individual transaction. Also record the date, which shift you worked (lunch/dinner), and your total sales if possible. This helps establish the reasonableness of your reported tips if there's ever a question. Many servers use tip tracking apps now that make this super simple - just a quick entry at the end of each shift.

This is so true. I'm in New York and the state department of taxation came after me even though I'd settled things with the IRS. They have their own penalty structures too.

Thanks for this straightforward advice! Do you have to attach any special forms or documentation when you write "NRA" for your spouse? I'm worried about my return getting flagged for review if I just write that in.

No special forms needed when filing separately with an NRA spouse! The IRS is completely familiar with this situation. Just write "NRA" in the space for the SSN and proceed normally. I've been doing it for 7 years and never had a return flagged or questioned. The only time you need additional forms is if you're claiming your spouse as a dependent (which you generally can't), filing jointly (which requires an ITIN and a special election), or if your spouse had US income. For a simple MFS with an NRA spouse with no US ties, it's very straightforward.

This is really important advice! My friend got stuck with a huge tax bill because her estranged husband in Germany had unreported income when they filed jointly. The IRS came after her even though she had no idea about his finances!

This seems to be a common pattern. Was there anything in their contract about what happens in case of rejection? Did you sign something saying fees aren't refundable?

The contract had very fine print saying fees were "earned upon submission" regardless of outcome. They also claimed their "proprietary review process" determined we were eligible, which gave us false confidence. Looking back, there were red flags - they never asked for documentation of actual business impact or government orders affecting us. They just wanted payroll records and made big promises about getting "maximum credits.

We used them for our restaurant. They were thorough but incredibly slow. Took them 3 months just to prepare our claim after we provided all docs. Their fee was reasonable (15%) but they only collect after you get paid. Still waiting on our money 11 months later, but at least they check in monthly with updates.