can we just take a moment to laugh at how TERRIBLY the irs communicates with ordinary people?? like who the heck would know what "total credit amount" means without a payroll degree lol. every year its the same story, trying to decode these forms like they're written in ancient egyptian 🙄

Totally agree with what others have said - that $7,000 is almost certainly the total federal income tax that was withheld from your paychecks throughout your employment, not something you'll owe. It's actually a good sign that your employer withheld a decent amount! Just to put your mind at ease, when you file your return, this $7,000 (plus any withholding from your current job) will be credited against your total tax liability for the year. If your total tax owed is less than what was withheld, you'll get a refund. If it's more, you'll pay the difference. But that $7,000 represents money you've already paid toward your taxes, not an additional bill. You can double-check by looking at box 2 on your actual W-2 form - that's where federal income tax withheld is officially reported, and it should be close to that $7,000 figure you're seeing.

Has anyone used TurboTax to report this kind of situation? Does it have a good section for handling insurance payments on rental properties or should I use a different tax software?

I dealt with this exact situation last year when my rental unit had flood damage. The key thing to understand is that you need to separate the personal use portion from the rental portion of your property for tax purposes. For the rental portion: If you received $7,800 but only spent $4,600 on actual repairs (the $7,800 minus the $3,200 you used elsewhere), then that $3,200 difference is generally taxable income that should be reported on Schedule E. This is because you essentially converted insurance proceeds into cash for other purposes. For documentation, keep all your receipts for materials you bought for the DIY repairs. The IRS doesn't allow you to count your own labor, but material costs definitely count toward legitimate repair expenses. The insurance company will likely send you a 1099-MISC if the payout was over $600, but that doesn't mean the entire amount is taxable - just that they reported the payment to the IRS. My advice: Calculate what percentage of your property is used for rental, apply that percentage to both the insurance payout and your actual repair costs, then report any excess on Schedule E. Better to be conservative and report it than get caught in an audit later!

This has been such an incredibly helpful thread! I'm also working part-time at a small local business and was getting really anxious about the $0 federal withholding showing up on my paystubs. Making about $1,400 so far this year, I kept thinking I had filled out my W-4 incorrectly or that my employer was making some kind of mistake. Reading through all these explanations about how the withholding system accounts for the standard deduction has been such a relief. It's actually pretty clever that the system automatically calculates that we won't owe federal income tax when our annual earnings stay well below that $13,850 threshold. What really helped me was understanding that this is completely separate from FICA taxes - I was seeing Social Security and Medicare deductions on my paystub and getting confused about why some taxes were being taken out but not others. Now I know that the 7.65% FICA rate applies to every dollar earned regardless of income level, while federal income tax only applies once you exceed the standard deduction. I'm definitely going to implement some of the tracking strategies mentioned here, especially keeping better records of all my paystubs and maybe starting that spreadsheet to monitor my total earnings. And learning about the potential Earned Income Credit has me actually looking forward to filing my first tax return! Thanks to everyone who shared their experiences - this community has turned what felt like a scary tax situation into something I actually understand and feel confident about!

This thread has been absolutely fantastic! As someone who just started my first part-time job at a local café and was completely panicking about $0 federal withholding on my paystubs, reading through everyone's explanations has been such a huge relief. I'm earning about $1,900 so far this year working mostly weekends, and like so many others here, I was convinced something was wrong with my W-4 or that my employer was messing up my taxes somehow. Understanding that the withholding system actually looks at projected annual income and accounts for the standard deduction makes so much sense now! What really clicked for me was the distinction between federal income tax withholding and FICA taxes. I was seeing Social Security and Medicare deductions (about 7.65% total) and getting confused about why some taxes were coming out but not others. Now I understand that FICA applies to every dollar earned while federal income tax only kicks in above the standard deduction threshold. I'm definitely going to start tracking my earnings in a spreadsheet like several people mentioned - it seems like such a smart way to monitor where I stand relative to that $13,850 standard deduction throughout the year. Plus, learning about potentially qualifying for the Earned Income Credit when I file has me actually excited about tax season instead of dreading it! Thanks to everyone who shared their experiences and knowledge. This community has turned what felt like a terrifying tax situation into something I actually understand and feel confident about. It's amazing how many of us part-time workers were dealing with the exact same anxiety!

Current tax attorney with 9 years experience here, and I wanted to address something that might be particularly relevant given your situation with two young kids - the seasonal nature of tax work can actually be a hidden advantage for family life if you plan around it strategically. Yes, January through April is intense (I typically work 60-65 hours those months), but here's what I've learned: those predictable crunch periods allow you to be MORE present during the rest of the year, not less. I coach my daughter's soccer team from May through October because I know my schedule is reliable then. I take real vacations in summer without checking emails constantly because there genuinely aren't urgent deadlines. Compare this to my friends in other practice areas who might randomly get pulled into a deal or litigation that destroys their summer vacation plans with 48 hours notice. The seasonality that seems like a downside is actually what creates the predictability everyone talks about. Regarding that $250k salary expectation - it's achievable but usually requires either Big Law tax (with corresponding lifestyle sacrifices) or 10+ years building a solid client base. More realistic targets for good work-life balance are $120-180k depending on market and experience level. One practical tip: if you do make the switch, negotiate your start date to begin right after busy season (May/June) so you have months to learn before jumping into the fire. Most firms are happy to do this since they're usually exhausted and not actively hiring during busy season anyway.

Tax attorney with 15+ years experience here, and I want to give you the most honest perspective possible since you specifically mentioned having two young kids. The work-life balance in tax law is definitely better than most other legal specialties, but it requires being very strategic about your choices. Here's what I wish someone had told me when I started: the "40-hour week with $250k salary" is largely a myth unless you're in very specific situations (senior government roles, established solo practice, or certain in-house positions after significant experience). Most tax attorneys work 45-55 hours regularly, spiking to 60-70 during busy season. That said, the predictability is real and valuable with kids. I missed fewer school events than my litigation colleagues because I could plan around known busy periods. My kids learned early that "tax season" meant dad would be less available, but they could count on summer vacations and consistent bedtime routines most of the year. Career path recommendations for your situation: 1. Start at a regional firm or mid-size practice (not Big Law) to build skills while maintaining some semblance of balance 2. Target specialties like estate planning, state/local tax, or tax controversy for more predictable hours 3. Plan a 5-year trajectory toward in-house or government roles where true work-life balance exists The money follows experience and relationships. I started at $85k, now make $210k as senior tax counsel at a Fortune 500 company working genuinely reasonable hours. The path exists, but it's a marathon, not a sprint. One final thought: if your primary goal is family time, seriously consider whether any legal specialty will give you what you want. Sometimes the answer is leaving law entirely rather than switching practice areas.

Hey guys, wanted to share what worked for me as a 6th-year student from Canada. My statement for Form 8843 was actually pretty simple and got accepted without issues. I basically wrote 2 paragraphs: Paragraph 1: Stated my permanent address in Canada, mentioned my family there, noted that I maintain my Canadian health insurance, bank accounts, driver's license, and voter registration. Paragraph 2: Explicitly stated my plans to return to Canada immediately after finishing my program (with specific date), mentioned the job sector I plan to work in back home, and stated clearly "I do not intend to permanently reside in the United States." I signed and dated it, attached it to Form 8843, and had zero issues. No need to overthink it!

As someone who just went through this process successfully, I want to emphasize that the key is being specific and genuine in your statement. Don't overthink it, but make sure you cover the essential elements the IRS is looking for. Here's what I included in my statement that got accepted without any issues: 1. **Clear statement of intent**: "I do not intend to permanently reside in the United States and plan to return to [country] upon completion of my studies in [specific month/year]." 2. **Permanent residence details**: Address where you maintain your permanent home, who lives there (family members), and how long you've maintained that residence. 3. **Financial ties**: Bank accounts, investments, property, or other financial commitments in your home country. 4. **Personal/family ties**: Immediate family members, dependents, or close relatives who rely on you or whom you support financially. 5. **Professional plans**: Specific career plans, job applications, or professional licensing you're pursuing in your home country. 6. **Cultural/civic ties**: Things like voter registration, professional memberships, religious affiliations, or community involvement that demonstrate ongoing connection to your home country. The statement doesn't need to be lengthy - mine was about 1.5 pages, typed, signed, and dated. Keep it professional but personal. The IRS wants to see that your presence in the US is genuinely temporary and that you have compelling reasons to return home. Remember, this exception exists specifically for students like us, so don't be afraid to use it if you legitimately qualify!