I'm wondering how the whole concept of "buy term and invest the difference" works out when you actually calculate it? Like with actual numbers?

One scenario that hasn't been mentioned is using whole life insurance for business succession planning. I work with family businesses and see this strategy used effectively for buy-sell agreements. Here's how it works: Two business partners each own a $2M whole life policy on the other. When one partner dies, the surviving partner receives the $2M death benefit tax-free and uses it to buy out the deceased partner's share from their family. Meanwhile, the cash value that builds up over time can be used for business purposes through policy loans. This solves several problems at once: guarantees funding for the buyout regardless of market conditions, provides tax-free transfer of the business, and creates a forced savings mechanism that builds cash value the business can access if needed. The premiums are also typically tax-deductible as a business expense. For a traditional "buy term and invest the difference" approach, you'd need to ensure your investments perform well enough AND are liquid at exactly the right time. With whole life, the death benefit is guaranteed regardless of market performance when it's needed most. The math works especially well when the business partners are older (50+) since term life becomes very expensive at those ages, making the cost difference between term and whole life much smaller.

Just want to add that if you're caring for a disabled dependent (even if not blind), you might qualify for different tax benefits like the Credit for Other Dependents or potentially even the Child Tax Credit depending on the situation. Never assume that just because there's no specific checkbox, there aren't benefits available!

This is such a great question! I work as a tax preparer and see this confusion all the time. The blindness checkbox exists because it triggers a specific additional standard deduction that was written into the tax code decades ago. But you're absolutely right that it seems arbitrary compared to other disabilities. What many people don't realize is that there are actually tons of other disability-related tax benefits scattered throughout the code - they're just not as obvious as a simple checkbox. Things like the Disabled Access Credit for business owners, various medical expense deductions, and even some lesser-known credits for specific conditions. The problem is that these benefits are buried in different sections and forms, making them much harder to find and claim. I always tell my clients with disabilities (beyond blindness) to keep detailed records of all their disability-related expenses because there are often deductions available that aren't immediately obvious from the standard forms.

22 My cousin actually works for the IRS (not giving tax advice, just sharing what she's told me). She said they have internal thresholds for what they bother to pursue, and it's WAY higher than $45. They're looking for significant underreporting, not pocket change. Focus on bigger tax planning issues as your sister gets older and starts earning more substantial income!

Your sister is absolutely fine! As a 16-year-old dependent with only $45 in jury duty income, she's nowhere near the filing threshold. The standard deduction for 2024 is $13,850 for single filers, and even for dependents, the threshold for earned income is much higher than $45. You don't need to amend your parents' return or file anything for your sister. The IRS has much bigger fish to fry than pursuing a teenager over $45 in jury duty pay. This amount is so small it's considered administratively insignificant. Keep the documentation for your records, but don't stress about it. Focus your energy on teaching her good financial habits as she starts earning more substantial income in the future!

Just as a data point, I did a return of excess for 2023 in March 2024 because my income ended up too high. My 1099-R had code 8 (excess contributions) plus code J (distribution exception applies). One weird thing - even though I did the return of excess in March 2024, my financial institution didn't send the 1099-R until January 2025. So definitely expect a lag before getting the official form. If your earnings were only $250, your total tax bill might be $50-80 depending on your bracket. Since that's a relatively small amount, there's probably no harm in waiting for the official 1099-R before amending. If it were thousands in earnings, there might be underpayment penalty concerns.

I went through this exact situation two years ago - excess Roth contribution due to unexpected income bump, corrected before the deadline. Here's what I learned: You're absolutely right to wait for the official 1099-R. The timing mismatch with withholding is confusing but not uncommon. The earnings get taxed in 2024 (year of contribution), but your withholding credit applies to 2025 (year withheld). It's awkward but legal. When you do get the 1099-R, it will likely have code P (for the principal/contribution amount) and either J or 8J in Box 7. The "8" indicates excess contribution return, and "J" indicates early distribution exception applies (no 10% penalty). For Form 5329, you'll need Part I to claim the exception for the early distribution penalty (code 21), but you won't need Part IV since you corrected the excess before the deadline. This is important - many people think they don't need 5329 at all, but you do need it to avoid the 10% penalty on earnings. My advice: wait for the 1099-R, then amend with Form 1040X including the 1099-R and Form 5329. The small tax amount ($60-75 probably) isn't worth the hassle of estimating forms now. Your tax preparer will appreciate having the official documents to work with. The withholding timing is just one of those quirky tax situations - you'll essentially get a small refund in 2025 from the "overpayment" of withholding relative to the actual 2025 tax you owe.

What I did for my two jobs was just put an extra $50 per paycheck withholding on line 4(c) of the W-4 for my second job. My friend who does taxes said thats the easiest way to avoid under withholding without doing all the complicated worksheets. Been working fine for me!

Great advice from everyone here! As someone who recently went through this exact situation in Washington, I'll add that the IRS withholding calculator is definitely your best bet for accuracy. One thing I learned the hard way - if your restaurant job pays tips, make sure to account for those in your calculations too. Tips are taxable income but often have minimal withholding, which can throw off your entire withholding strategy if you don't plan for them. Also, since you mentioned you've always done "single, zero" in the past, you might want to double-check that you haven't been overwithholding on your main job all these years. With the new W-4, you could potentially increase your take-home pay while still withholding the right amount across both jobs. The calculator will show you different scenarios - I found it really helpful to run it a few times with conservative and optimistic estimates for my variable restaurant income to see the range of outcomes.