Has anyone tried just using the IRS Tax Withholding Estimator online? It's supposed to handle all these complicated situations but when I input our info (very similar to yours - W2 income plus self-employment), it gave me a completely different number than what the worksheet method showed. Now I don't know which one to trust!

I went through this exact same situation last year and it was such a headache! After trying multiple approaches, here's what ended up working best for us: The key thing I learned is that you need to be really careful about which "income" number you're using. Don't just put his gross $145k on line 4(a) - you need his NET self-employment income (after business deductions) MINUS the self-employment tax deduction. Here's the process that worked for me: 1. Estimate his net profit after business expenses 2. Calculate SE tax (net profit × 0.9235 × 0.153) 3. The deductible portion is half of that SE tax 4. Subtract that deduction from his net profit 5. THAT number goes on line 4(a) Also, don't forget about the child tax credit on Step 3 - with three qualifying kids, that's $6,000 in credits that will reduce your tax liability significantly. I'd recommend running your numbers through the IRS Withholding Estimator AND doing the manual worksheet calculation to double-check. If they're close, you're probably on the right track. If they're way different, dig deeper into which estimates might be off. The peace of mind is worth the extra effort to get it right!

In my experience working for a payroll company (not Paychex), this sounds like Paychex is following standard protocol for closed businesses. They likely need specific authorization from the former business owners to release anything. Have you tried asking your former employer if they would be willing to provide you with a signed authorization letter that you could then forward to Paychex? Sometimes a direct request from the employee with proper authorization can break through the bureaucracy.

I went through this exact situation last year with a different payroll company. Here's what finally worked for me: Contact the IRS Taxpayer Advocate Service - they're specifically designed to help when you're stuck between third parties like this. You can reach them at 1-877-777-4778 or file Form 911. They have the authority to intervene directly with payroll companies on behalf of taxpayers. In my case, the Taxpayer Advocate contacted the payroll company within 48 hours and had my W-2 released within a week. They told me that payroll companies are legally required to provide W-2s to employees regardless of business ownership changes - Paychex is just being difficult because they want to avoid any potential liability. The key is explaining that you've made reasonable efforts to get the document through normal channels and that the deadline is approaching. The Taxpayer Advocate Service is free and they're really good at cutting through this kind of bureaucratic nonsense. Don't wait too long though - if you're close to the deadline and this doesn't work quickly, go with the Form 4852 substitute approach others mentioned. You can always amend later when you get the actual W-2.

As a newcomer to this community, I want to thank everyone for such a thorough and reassuring discussion! I was dealing with the exact same worry as the original poster - my partner and I regularly send money back and forth through Apple Pay for our shared household expenses, probably around $2,200-2,800 monthly for rent, groceries, utilities, and other costs. I was genuinely stressed about whether we'd somehow trigger tax issues with these new reporting rules. Reading through all the expert responses here has been incredibly helpful. The consistent message from CPAs, tax preparers, and people who've actually spoken with IRS agents is clear: the $600 reporting threshold is specifically designed to catch unreported business income from people selling goods or services, not normal expense sharing between couples. What really helped me understand is the distinction between reimbursements vs. actual taxable income. When my partner sends me $900 for groceries I bought for our household, that's not $900 of new income for me - I'm just being reimbursed for expenses I covered with money they already earned and paid taxes on. We're simply managing our existing household funds efficiently, not creating any new taxable income. The key takeaways I'm getting from this discussion are: 1) Make sure to use "friends/family" options rather than "goods & services" when transferring, 2) Keep basic records of what larger transfers are for, and 3) Don't stress about normal spousal/partner expense sharing because that's not what the IRS is targeting. It's such a relief to know that our regular way of managing household finances is completely normal and not something we need to worry about from a tax perspective. Thanks to everyone for sharing their expertise - this is exactly the kind of informed, helpful discussion I was hoping to find here!

As a newcomer to this community, I can't express how helpful this entire discussion has been! My husband and I have been dealing with the exact same concern - we transfer around $2,500-3,000 monthly through Apple Pay for all our shared household expenses like mortgage, groceries, utilities, and childcare. I was genuinely panicking about whether these transfers would create tax problems under the new $600 reporting rule. What's been incredibly reassuring is seeing the consistent advice from multiple CPAs, tax preparers, and people who've actually gotten answers directly from the IRS. The key message that keeps coming through is that these reporting requirements specifically target unreported business income from goods and services sales, not normal household expense management between spouses. The distinction between reimbursements and actual income has been the most valuable insight for me. When my husband sends me $1,200 for his share of the mortgage, he's not creating $1,200 of new taxable income for me - he's just reimbursing me for an expense I covered with money he already earned and paid taxes on. We're simply moving existing funds around to manage our household efficiently. Based on everything I've read here, I'm going to make sure we consistently use the "friends/family" transfer options rather than "goods & services," and start keeping better records of what our larger payments are for. But the biggest relief is understanding that our regular financial management is completely normal and not something the IRS is interested in taxing. Thanks to everyone for such a thorough and expert discussion - this is exactly the kind of knowledgeable community guidance I was hoping to find here!

I'm dealing with a similar situation right now after my mother passed away last month. One thing I learned from the estate attorney is that you should also check if your state has any specific inheritance tax rules that might apply, even if there's no federal estate tax liability. Some states tax inherited property differently than others. Also, if any of the items are particularly unique or rare (like one-of-a-kind artwork or historical pieces), you might want to get a formal appraisal before the auction. The IRS can challenge your basis if they think your valuation was unreasonably low, especially for items that sell for significantly more than you claimed they were worth at inheritance. Another tip - keep all the documentation from the estate settlement process, including any informal valuations done for probate court. Courts often require rough inventories of estate assets, and those valuations can serve as additional support for your stepped-up basis calculations. My probate attorney said this kind of contemporaneous documentation is gold if you ever get questioned by the IRS later. Good luck with everything - settling an estate is emotionally difficult enough without worrying about tax complications!

I'm going through a similar situation with my late father's estate and wanted to share a few additional considerations that might be helpful. One thing that caught me off guard was the timing of when you establish the "date of death" value versus when you actually receive the inherited items. If there was a delay between your grandmother's passing and when you actually took possession of the items (due to probate, family disputes, etc.), you might need to use the actual date of death for the stepped-up basis calculation, not when you physically received them. This became relevant for me because some of my father's collectibles appreciated significantly during the 6-month probate process. Also, if you're working with multiple family members who inherited portions of the collection, make sure you're all using consistent valuation methods. The IRS could flag discrepancies if different heirs report vastly different basis values for similar items from the same estate. One practical tip: consider creating a simple spreadsheet tracking each item with columns for description, estimated date-of-death value, actual sale price, and net proceeds after auction fees. This makes tax preparation much easier and provides clear documentation if you're ever questioned. I wish I had done this from the start instead of trying to reconstruct everything later! The auction house route is definitely the way to go for valuable collections - just make sure to factor in both their buyer's premium and seller's commission when calculating your net proceeds.

I went through this EXACT same thing last week! I was literally checking my Credit Karma account every hour after seeing the fees taken out. It took exactly one full business day for mine to show up - fees were taken Tuesday morning and the deposit hit Wednesday around 10am. I was so worried because I had bills scheduled to auto-pay! The waiting is seriously the worst part, especially when you can see that they've already taken their cut but you're still waiting for yours. Hang in there!

I'm dealing with this same situation right now! Filed with TurboTax, got the refund advance in February, and just saw the fees come out this morning. It's reassuring to see so many people going through the exact same process. Based on what everyone's sharing, it sounds like 1-2 business days is pretty standard for the remaining balance to hit Credit Karma. I'm going to try to be patient and check again tomorrow evening. Thanks for asking this question - I was starting to worry something was wrong with my deposit!