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One thing to consider is that getting a big refund isn't actually the best financial move. When you overpay throughout the year, you're basically giving the government an interest-free loan instead of having that money in your pocket each month. I adjusted my W-4 to get very close to zero (either owing a tiny bit or getting a tiny refund) and then set up an automatic transfer of $100 per paycheck to a high-yield savings account. By tax time, I have a nice chunk of money saved PLUS interest earned. Maybe think about trying to get your withholding more accurate rather than deliberately overpaying just to get a refund?
I get what you're saying about the interest-free loan thing, but honestly, for me it's psychological. If I get that money in small amounts in my regular paychecks, I'll just spend it. Having a forced "savings" that comes back as a lump sum helps me actually save for bigger purchases or goals. Plus, I sleep better knowing I won't owe a surprise tax bill!
That's a totally fair point! Personal finance is personal for a reason - if the "forced savings" approach works better for your habits and gives you peace of mind, then it's worth the small amount of interest you might miss out on. If you do decide to go that route, you might want to put a specific dollar amount in Box 4(c) of your W-4 rather than adjusting the other settings. That way you're deliberately setting aside a fixed amount rather than trying to guess at the other settings.
Make sure you're also accounting for any tax credits you might qualify for! Things like the Child Tax Credit, American Opportunity Credit (if you're in school), or Earned Income Credit can make a huge difference in your refund amount. The W-4 calculator often doesn't fully account for these, so you might want to adjust your withholding to compensate. When I had a kid, I actually reduced my withholding a bit because I knew the child tax credit would offset it.
I made the same mistake last year - my TurboTax didn't import all my crypto transactions. One thing I learned is that you MUST double-check what TurboTax is importing. For me, it pulled in some transactions but completely missed others. Pro tip: before submitting your 2022 or future returns, go to the capital gains section in TurboTax and manually review what got imported. I found that connecting Robinhood directly still missed some transactions, especially if you did any transfers between wallets or exchanges. For responding to your CP2000, definitely include Form 8949 with all your transactions listed properly. The IRS actually processed my correction pretty quickly once I sent them the complete information.
Thanks for the advice! I never thought to manually check what TurboTax was importing - I just assumed the connection to Robinhood would pull everything correctly. Do you think I should just use a tax professional for crypto stuff going forward? Seems like the software isn't reliable enough.
For simple crypto investing, TurboTax or other tax software can still work fine, but you definitely need to manually review what's imported. I actually switched to using a crypto-specific tax preparation tool first (like CoinTracker or Koinly) that generates the proper 8949 forms, then I import those results into TurboTax. If you're doing more complex crypto activities like DeFi, staking, or mining, then yes, a tax professional with crypto experience is probably worth the money. The tax rules are still evolving in this area, and it's easy to make mistakes with the automated tools.
Don't forget that if you do have a net capital loss, you can deduct up to $3,000 against your ordinary income in a tax year. So that $675 loss can actually lower your taxable income! Also, make sure to check if any of your crypto transactions would be considered wash sales. The IRS hasn't explicitly stated crypto is subject to wash sale rules yet, but it's safer to track them just in case.
Actually, crypto isn't subject to wash sale rules currently! That's one advantage of crypto - you can sell at a loss and rebuy immediately to harvest the tax loss. This is a big difference from stocks where you have to wait 30 days. But there's talk about changing this soon, so enjoy it while it lasts...
2 Monaco specifically has tax treaties with France but not with the US. So someone like Djokovic would definitely pay US taxes on US tournament winnings. The no-income-tax benefit of Monaco only helps them with worldwide income that isn't specifically sourced to a country with territorial taxation like the US. Tennis players have it rough tax-wise because they compete in so many different countries. Each tournament's prize money is usually taxed by that country. Some players end up filing tax returns in 15-20 countries each year!
18 How do they even manage all those tax filings? Do they just have a team of accountants? And what happens if they make a mistake on one of them? Seems like a nightmare.
2 Most top tennis players have specialized accountants who focus exclusively on international athlete taxation. These firms typically have partners in each major country where tournaments are held, allowing them to file all necessary returns correctly. If they make a mistake, it's typically handled like any other tax error - they may need to file an amended return and potentially pay penalties or interest if it results in underpayment. The bigger challenge is actually keeping track of exactly how many days they spend in each country, as this can affect their tax residency status and reporting obligations.
6 Does anyone know if players can deduct expenses against their tournament earnings? Like if Djokovic flies private to the US Open, stays in expensive hotels, brings his coach and physical therapist - can all those costs offset the taxable prize money?
For a first-time Federal 1040 filer, I highly recommend using the IRS Free File program if your income is under $73,000. It gives you access to guided tax software for free. I've used it for the past three years and it makes filing the 1040 pretty straightforward. The software asks simple questions about your situation and fills out all the correct forms behind the scenes. It'll also tell you whether the standard deduction or itemizing is better based on your answers. The link is on the IRS website under "File Your Taxes for Free.
Does the free version still try to upsell you every five minutes like TurboTax does? I started using their "free" version last year and ended up paying $89 because of some "required upgrade" halfway through.
The IRS Free File options are genuinely free if you meet the income requirements. They're different from going directly to TurboTax or H&R Block's websites, where they often use the word "free" but then upsell you. You need to start through the IRS Free File portal (search "IRS Free File") rather than going directly to the tax software sites. This ensures you get the truly free version that's part of their agreement with the IRS. I've completed my 1040 filing three years in a row without paying a penny using this method.
Don't overlook checking if you're eligible for the Earned Income Tax Credit on your Federal 1040! With an income of $32,000, you might qualify especially if you're single. It's worth looking into because it could potentially get you a bigger refund.
The EITC income limit for single filers with no qualifying children is way lower than $32k though - I think it's around $17k. So they probably wouldn't qualify unless they have kids?
Connor O'Brien
I've been using TurboTax for 10+ years now. It's fine for basic taxes but definitely has some annoying aspects: PROS: - Very user friendly interface - Imports last year's info if you've used it before - Good for simple tax situations - The live help is actually helpful when you need it CONS: - Constant upselling throughout the process - Price has increased every year - Sometimes pushes you to premium versions unnecessarily - Their free file option is deliberately hard to find If you're doing simple taxes and are comfortable with basic tax concepts, it works well. Just be ready to repeatedly decline extras you don't need.
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Fatima Al-Hashimi
β’Thanks for breaking that down! Have you ever caught it missing deductions you should have gotten? That's my biggest worry tbh
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Connor O'Brien
β’I have actually caught it missing things a few times over the years. It's generally good at finding common deductions, but it misses some of the more obscure ones unless you know to look for them. For example, last year I realized it didn't prompt me about the student loan interest deduction until I specifically searched for it, even though I had entered student loan information. It's not perfect, which is why it helps to have at least a basic understanding of what deductions you might qualify for.
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Yara Sabbagh
Has anyone tried both TurboTax and H&R Block? Wondering which one is better for someone with a small business (just started an Etsy shop last year). TurboTax seems more popular but is it actually better?
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Keisha Johnson
β’I've used both. For small business stuff like an Etsy shop, I actually preferred H&R Block. Their self-employment version seemed to ask more relevant questions about business expenses and gave better guidance on what qualifies. TurboTax was more confusing for the business portion in my experience.
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Paolo Rizzo
β’Honestly they're pretty similar but I found TurboTax had a slightly better interface. For Etsy specifically though, make sure whichever one you choose can import your Etsy 1099-K directly. Saves a ton of time vs. entering everything manually.
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