Whoa I had no idea about the 183 days thing! Is that calendar days or business days? And what counts as a "permanent place of abode"? Like if I'm renting a room would that count?

It's 184 calendar days (not just business days) - and partial days usually count as full days in NY. So if you cross into NY for lunch, that potentially counts as a full NY day. A "permanent place of abode" is usually any place you have regular access to that's suitable for year-round use - so yes, a rented room would typically count. It doesn't need to be owned by you or even paid for by you. If you have a key and regular access, it could qualify. NY is particularly aggressive about auditing people who claim to live elsewhere but work in NY. They've even been known to check your E-ZPass records, cell phone records, and credit card statements to verify your whereabouts! If you're close to that 183-day threshold, document everything.

Good point! This is why state-specific advice is so important. I'm in Illinois but work in Wisconsin, and they have a reciprocal agreement so I only pay IL taxes despite earning income in WI. Saves me from filing two state returns.

Do you know if staking rewards count as a "yes" for the new question wording? I've been staking some ADA and getting small amounts every few days.

Yes, staking rewards absolutely count as a "yes" answer on the virtual currency question. The IRS treats staking rewards similar to interest income - you're receiving new cryptocurrency as a reward, which is considered taxable income when received. You'll need to track the fair market value of each staking reward at the time you received it and report the total as income. Most people report staking rewards either as "Other Income" on Schedule 1 or as business income on Schedule C if you're doing it as part of a business activity.

Those Coinbase Learn rewards are definitely NOT purchases! They count as income and you would need to mark "yes" on the virtual currency question. Basically anything where you RECEIVE crypto without directly buying it with USD (mining, staking, airdrops, rewards, etc.) is taxable income.

Would that mean the grandfathering would apply to existing 401k balances or to existing participants? Like if i already have a 401k would all my future contributions be grandfathered or just the current balance?

Great question - typically grandfathering can be structured in different ways, but most commonly it would apply to existing balances as of a certain date, not to future contributions. So your existing 401k balance might be protected under the old rules, but new contributions after the law changes would fall under the new system. There's also sometimes a phase-in period where the changes are implemented gradually over several years to avoid sudden shocks to people's financial plans. Without seeing the actual legislation it's impossible to know exactly how it would be structured, but these types of accommodations are standard practice for major retirement tax changes.

I read something about this! The proposal might include income thresholds where the full impact only hits higher earners, with partial or no changes for lower/middle incomes. Would make sense if they're trying to keep the "no new taxes under 400k" promise.

13 Oh crap, I totally forgot about this! We both have marketplace insurance with subsidies. How quickly do you need to report the marriage? Is there a grace period?

4 You should report your marriage to the marketplace within 30 days to qualify for the Special Enrollment Period. This allows you to either combine your insurance plans or choose a new one based on your combined household. There's no formal "grace period" for reporting income or household changes, but the sooner you do it, the better. If you wait too long, the subsidy adjustment only happens from the date you report the change, not retroactively from your marriage date. This means you could still end up owing back some subsidy at tax time.

16 The marriage penalty still exists in 2023 for higher-income couples. It's not really something they "fix" because it's built into the tax bracket structure. For couples where both spouses earn similar high incomes, filing separately sometimes helps but usually not completely. Look at the bright side though - at least you're not in my situation where my spouse had a bunch of old tax debt I didn't know about, and now my refunds get intercepted to pay for it thanks to filing jointly! 🤦‍♀️

Thanks for all the advice everyone! Quick question - if I put that extra amount on line 4(c), will that just reduce my paycheck by exactly that amount? Or does it calculate differently?

Exactly right - whatever dollar amount you put on line 4(c) will be withheld from each paycheck as an additional amount. So if you put $50, your paycheck will be $50 less each time, and that money goes straight toward your federal tax.

This is actually really smart. I never thought of doing a mid-year correction. Do you just submit a new W4 to your HR department?