Don't forget about the timing of your divorce! If your divorce will be final early in 2025, it might be worth delaying it by a few weeks to have the option of filing jointly for 2024. My ex and I saved almost $3k by pushing our divorce finalization from December 28 to January 3. Totally awkward but worth it financially.

As someone who went through a messy divorce two years ago with kids involved, I feel your pain! Here's what I learned that might help: Since you're still legally married on December 31st, you have three filing options to consider - married filing jointly, married filing separately, or potentially head of household if you qualify. Given that your kids have been living primarily with you since June and you've been separated, you might actually qualify for head of household status, which often provides better tax benefits than married filing separately. To qualify, you need to be considered unmarried (living apart for the last 6 months of the year counts), pay more than half the household expenses, and have a qualifying dependent. Before making any decision, I'd strongly recommend running the numbers for all possible scenarios. With your income levels ($85k vs $63k), filing jointly might still save you both money even during the divorce mess - you could potentially split any tax savings as part of your separation agreement. But definitely consider the liability risks Connor mentioned if there's any chance your ex has unreported income or questionable deductions. Document everything about who's paying what expenses and where the kids are living - this will be crucial not just for taxes but for your divorce proceedings too.

I work at a tax prep office and see this ALL THE TIME. Let me tell you, the IRS is slower than molasses but they DO eventually catch up. Last month we had a client who hadn't filed in 8 years and suddenly got notices for ALL eight years at once demanding over $35k including penalties and interest. The worst part? If they had just filed on time they would have owed less than $10k total. The rest was all penalties and interest that could have been avoided.

Your friend is playing with fire. I've seen this exact scenario play out badly for so many people. The IRS has automated systems that cross-reference W-2s with filed returns, so they absolutely know about your friend's unreported income. What typically happens is the IRS works through cases based on dollar amounts and available resources. Your friend might seem like they're "getting away with it" but they're actually just accumulating a larger and larger problem. Each year adds failure-to-file penalties (up to 25% of what's owed), failure-to-pay penalties, and compound interest. I've seen people go 5-7 years thinking they're in the clear, then suddenly get hit with notices for ALL the missing years at once. By then, what might have been a few thousand in actual taxes becomes tens of thousands with penalties and interest. The absolute best thing your friend can do is file those back returns ASAP - preferably before the IRS contacts them. Voluntary compliance almost always results in better treatment than being caught. They should gather all their W-2s and 1099s and either use tax software for back years or find a tax professional who handles prior year returns. Time is not on their side here. Every month they wait just makes it worse.

I'm in the same boat. Filed with TT too and these fees are killing me but needed my refund asap so had no choice 😭

Just went through this exact same thing last month! The "Payment Completed" status definitely threw me off too. What it actually means is that TurboTax has confirmed your refund transfer setup, but they haven't collected the money yet. When your refund comes in from the IRS, it goes to their temporary account first, they take out the $317, then send you the rest. Usually takes an extra 1-2 days after the IRS releases your refund since it has to go through their system first. Hope that helps clear things up!

Tbh the IRS doesn't have the resources to audit everyone who got audited b4. They look for specific red flags like unusually high deductions, mismatched income reporting, or math errors. Def make sure ur 1099s match what you're reporting! Also, if ur in the same income bracket as last yr, the DIF score (what the IRS uses to flag returns) might be similar, so double-check everything that got flagged last time.

I understand your anxiety about this! As an independent contractor myself, I went through a similar situation. Here's what I learned from my tax attorney: The good news is that having a prior audit doesn't automatically flag you for another one. The IRS uses statistical models (DIF scores) that primarily look at your current year's return, not your audit history. However, you're right to be extra cautious. Here's what helped me avoid issues after my audit: • Switched to a CPA who specializes in contractor taxes • Keep meticulous records - I now photograph every receipt immediately • Match ALL 1099s exactly (even if they're wrong, report them as received and make adjustments properly) • Be conservative with deductions - only claim what you can fully document The fact that you had to amend suggests there were legitimate errors to fix. As long as your new preparer addresses whatever caused the original audit, you should be fine. Don't let fear prevent you from filing on time - that creates bigger problems! Consider getting a second opinion on your return before filing if you're still worried. Peace of mind is worth the extra cost.

Has anyone used the option on the W-4 where you check "Married but withhold at higher single rate" instead of just "Married"? My accountant told me this is easier than doing all the multiple jobs worksheet calculations for two-income households.

This is exactly why I always recommend dual-income couples be extra careful with their W-4 setup! The "married" filing status assumes your spouse either doesn't work or earns very little, which clearly isn't your situation. With your combined income of around $104,000, you're definitely going to owe taxes. The good news is you still have time to fix this before year-end. I'd suggest having your wife submit a new W-4 immediately using either the "Married but withhold at higher single rate" option (which is simpler) or completing the Two-Earners worksheet for a more precise calculation. You should also consider making an estimated tax payment for Q4 to cover what you'll likely owe, especially if you're concerned about underpayment penalties. The IRS generally requires you to pay 90% of your current year tax liability or 100% of last year's (110% if your prior year AGI was over $150K) to avoid penalties.