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Has anyone had issues with the IRS withholding calculator when you have multiple jobs throughout the year? I started a new job in March, and I'm not sure how to account for the W-2 income from my previous employer in the calculator.
When I was in that situation, I entered the income and withholding from my previous job in the "already withheld" section. There should be fields for income already earned and tax already withheld this year. Then for your current job, you enter the expected income for the remainder of the year.
I found that the IRS withholding calculator isn't great at handling irregular income. My spouse's income varies a lot month to month (sales commissions) and we have rental income too. We ended up just estimating our total annual income, adding about 10% as a buffer, and then calculating what our quarterly estimated tax payments should be to cover the difference that regular withholding won't catch.
Have you tried using tax software to do a mid-year projection instead? I use TurboTax and just input our estimated full-year numbers around June to see if we're on track. It seems more accurate than the IRS calculator for complex situations.
This might seem obvious but have you checked the mail carefully? My employer sent my W2 in an envelope that looked like junk mail and I almost threw it away. Some employers also use third-party payroll services like ADP or Paychex, and those might come separately from company correspondence. Also check if they offer electronic W2s through a payroll portal. Sometimes companies don't clearly communicate that they've gone paperless with tax forms.
I've checked all my mail thoroughly and asked about electronic options too. They definitely haven't sent it either way. From what I've gathered talking to ex-coworkers, they're behind on their payroll administration for everyone, not just me. Just trying to figure out my options since they're being so difficult about it.
You can also try contacting your state's Department of Labor about the W-2 issue. Many states have laws about this and can put additional pressure on the employer. I had to do this once and the employer suddenly "found" my W-2 real quick when the state labor department called them.
This is good advice! I work in HR and employers definitely don't want the Department of Labor breathing down their necks. Mention the potential for penalties and they'll usually prioritize getting your W-2 out.
Has anyone used the IRS Business Tax hotline instead of the general number? I found it to be much more effective for Form 1125-A issues since those reps understand COGS and inventory methods better. The number is 800-829-4933. Also, make sure you're specifically requesting a "correction" rather than an "amendment" when you talk to them. In my experience, using the wrong terminology can send you down a much longer path.
What's the difference between asking for a "correction" vs an "amendment"? I always thought they were the same thing when it comes to tax returns.
There's actually a big difference! A "correction" is for when the IRS made an error in processing your return (like in this case where they entered data incorrectly). An "amendment" is when you need to change something that was incorrect on your original submission. Corrections are processed through their error resolution department and typically take weeks rather than months. Amendments require filing a new form (1040-X for individuals or 1120-X for corporations) and can take 6+ months to process. Since this is clearly an IRS data entry error, you want the faster correction process.
Quick tip from someone who's been through this exact issue: Take screenshots of your originally filed Form 1125-A from your tax software before sending anything! I had a similar problem last year and the IRS claimed they never received my original documentation.
Don't forget about state taxes too! Depending on your last state of residence in the US (California in your case), you might still have state filing requirements. California is particularly aggressive about claiming residents, even those living abroad. Since you left as an infant, you probably have a strong case for not being a CA resident, but you might need to formally break residency to be safe.
I hadn't even thought about state taxes! Do I need to file something specific with California to establish that I'm not a resident there? I literally haven't lived there since I was 11 months old.
Since you left as an infant, you should be fine without formally breaking residency - you never established it as an adult. California typically looks at factors like where you have a driver's license, voter registration, bank accounts, etc. Since you have none of these connections to California, you have a very strong case for non-residency. However, to be absolutely safe, you could include a brief statement with your federal returns explaining that you left California as an infant and have no connections to the state. In rare cases, people file Form 540NR (California Nonresident Return) with zero income to formally establish non-residency, but this is usually unnecessary for someone in your situation who never established California ties as an adult.
Has anyone in a similar situation considered renouncing US citizenship? I'm a dual UK/US citizen who's never lived in the States and the annual filing requirements are just so burdensome. Wondering if it's worth it for OP to just cut ties completely rather than dealing with this compliance nightmare forever.
Renouncing is definitely an option but costs $2,350 in government fees alone, plus you need to be tax compliant for 5 years before renouncing! And if your net worth is over $2 million or your average annual tax liability exceeds $168,000 over the last 5 years, you could face an exit tax. Definitely not a quick or cheap solution.
Declan Ramirez
One thing nobody's mentioned yet - check your pay stub carefully to see if you signed up for any benefits or deductions that might be taking money out. At my summer camp job, they automatically enrolled us in an employee meal plan that took like $50 out of each check unless you specifically opted out. Took me three paychecks to figure that out! Also some places do uniform deductions, parking fees, or even savings plans. Not saying that's what happened to you, but it's worth checking all the line items on your stub.
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Ruby Knight
ā¢I haven't seen my actual pay stub, just the direct deposit amount. How do I get a copy of the detailed stub?
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Declan Ramirez
ā¢Most companies either provide a paper pay stub with your check (if you get a physical check), or they have an online portal where you can view and download your pay information. Ask your manager or HR person how to access your pay stubs - they're required by law to provide this information to you. Some companies use payroll services like ADP, Paycom, or Gusto where you'd need to create an account to see your info. If they haven't told you about this, definitely ask! The stub will break down exactly where every dollar is going.
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Emma Morales
Make sure to double check your withholding allowances on your W-4 too! When I started my first job, I accidentally put "0" allowances which meant they withheld the maximum. Your best bet is to fill out a new W-4 and give it to your employer. Since your total income will be under the standard deduction, you can probably claim exemption from withholding for the rest of the summer.
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Katherine Hunter
ā¢The W-4 doesn't use allowances anymore. They completely changed the form in 2020. Now it's way more complicated with multiple steps and worksheets. š«
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