This sounds incredibly frustrating! I had a very similar experience when my company switched payroll systems earlier this year. The jump from 12% to 18% federal withholding is definitely not normal and almost certainly indicates a data migration error. Based on what you've described and the great advice already shared here, I'd prioritize these steps: 1. **Verify your W-4 information immediately** - Log into the new system and check that your filing status, dependents, and any additional withholding amounts are correct. System migrations often reset these to default "single, no dependents" which would cause exactly the withholding increase you're seeing. 2. **Check your pay frequency** - If they switched from semi-monthly to bi-weekly (or vice versa), this affects how withholding is calculated even with the same annual salary. 3. **Document everything** - Take screenshots of both your old and new paystubs, especially the tax withholding sections. This will be crucial when you contact payroll. 4. **Contact payroll ASAP** - Don't let this drag on for multiple pay periods. The longer you wait, the more you'll overwithhold. Most payroll teams can fix W-4 data errors quickly and may be able to adjust future paychecks to account for the over-withholding. Given that you worked more hours but took home less money, this is definitely a system error that needs immediate attention. You shouldn't have to give the government an interest-free loan while your company figures out their new system!

This is definitely a payroll system migration issue, and you're right to be concerned about the significant jump in withholding! I've seen this happen countless times when companies switch systems. The most likely culprit is that your W-4 information didn't transfer correctly to the new system. During migrations, personal tax information often gets reset to default values - typically "Single" filing status with zero dependents, which would cause exactly the kind of withholding increase you're experiencing (from 12% to 18%). Here's what I'd do immediately: **Check Your W-4 Data**: Log into the new payroll app and verify your filing status, number of dependents, and any additional withholding amounts are correct. Even small changes here can cause dramatic differences in withholding. **Compare Pay Frequencies**: Make sure they didn't change from semi-monthly to bi-weekly or vice versa. This affects how the system calculates your annual income for withholding purposes. **Document Everything**: Take screenshots of both your old and new pay stubs, focusing on the tax withholding breakdown. You'll need this when you contact payroll. **Act Fast**: Don't wait for it to "sort itself out" - contact your payroll department immediately with your documentation. Most can fix W-4 errors quickly and may even adjust your next paycheck to account for the over-withholding. The good news is that this type of issue is usually resolved quickly once payroll knows about it. But the longer you wait, the more you'll be giving the government an interest-free loan until tax season!

Just be careful when adjusting your W4 this way. I did this last year expecting our baby in May, but then had complications and needed extended leave from work. My income ended up being lower than expected which threw off all my careful tax planning. Make sure you account for any unpaid leave you might take after the birth! If you're planning to take unpaid FMLA or other leave, your annual income will be lower than you might be calculating now.

Congratulations on the pregnancy! You're absolutely right that you can update your W4 in January for a baby expected in June. The IRS looks at your tax situation as of December 31st, so as long as your child is born in 2025, you'll qualify for the full child tax credit. One thing I'd suggest is using the IRS W4 calculator on their website to help you figure out the exact adjustment. It's free and walks you through all the scenarios. Just make sure to account for any unpaid parental leave you might take - that reduced income could affect your overall tax situation. Also, don't forget you'll need to get a Social Security number for your baby pretty quickly after birth to claim them on your taxes. The hospital usually provides the paperwork, but it can take a few weeks to process. Good luck with everything!

The whole prize tax system is weird. My brother won a "free" trip to Hawaii valued at $8,500 on a radio show, then got hit with a $2,800 tax bill. He almost couldn't go because he didn't have the cash to pay the taxes. The radio station wouldn't adjust the value even though it was clearly inflated compared to what the trip would actually cost if you booked it yourself.

For anyone wondering, the prize tax rules are in IRS Publication 525. Contest winnings are considered "Other Income" and fully taxable at your normal income tax rate. This includes cash, goods, services, trips, cars, etc. You'll get a 1099-MISC if the value is $600+.

This thread has been incredibly helpful! I'm in a similar situation to the original poster - did my first backdoor Roth in 2023 and another in 2024, but I've been stressing about whether I'm tracking everything correctly. One thing I'm still not 100% clear on: when the tax software asks for "total Traditional IRA basis from previous years," should I be looking at line 14 from last year's Form 8606? And if I did complete conversions both years (which I did), that line should show $0, right? I think I've been making this way more complicated than it needs to be. It sounds like the key is just making sure I file Form 8606 each year to document the non-deductible contribution and conversion, and as long as I'm converting everything, my basis should reset to zero each time. The IRS just wants to see that paper trail showing I already paid tax on this money. Thanks to everyone who's shared their experiences - especially those who mentioned the timing issue with earnings. I've been converting within a week of contributing, so hopefully I'm avoiding that complication!

This whole thread has been a lifesaver! I'm doing my first backdoor Roth this year and was getting completely overwhelmed by all the Form 8606 documentation requirements. One quick follow-up question: if I'm contributing $7,000 for 2025 but my income puts me right at the edge of the Roth IRA phase-out limits, should I still go the backdoor route? I'm worried about accidentally ending up in some weird partial-eligibility situation where I mess up the tax treatment. Also, for anyone else who's been struggling with the IRS phone system - I can confirm that Claimyr thing actually works. Used it last month for an unrelated issue and got through in about an hour. Definitely beats the endless busy signals! The key takeaway I'm getting from all these responses is: contribute to Traditional IRA (non-deductible), convert everything to Roth ASAP, file Form 8606 to document both steps, and your basis should be $0 at year-end. Rinse and repeat each year. Does that sound right to everyone?

Just want to add my experience for anyone else in a similar situation - I actually went through this exact scenario with my 2021 return last year. I found some forgotten investment documents (a 1099-DIV that got lost in the mail chaos) and was similarly stressed about timing. The good news is that you definitely have time! As others mentioned, you have until April 18, 2025 to file your amendment. I ended up using the extra time to my advantage - instead of rushing, I took a few weeks to carefully review ALL my 2021 documents to make sure I wasn't missing anything else. One tip that really helped me: when you do file the amendment, send it via certified mail with a return receipt. It gives you proof of when the IRS received it, which can be important for meeting deadlines and tracking purposes. The peace of mind was worth the extra few dollars. Also, don't forget to keep copies of everything! I made the mistake of not copying my supporting documents the first time I filed an amendment (different year), and when the IRS had questions, I had to scramble to recreate everything. You've got plenty of time to get this right - no need to stress!

I'm in almost the exact same situation! Just found some 1099-INT forms from 2021 that I completely missed. Reading through everyone's responses has been so helpful - especially the clarification about having until April 18, 2025 rather than rushing to meet this year's deadline. One thing I'm wondering about that I haven't seen mentioned yet - if I file the amendment and it results in a larger refund, does that affect my eligibility for any programs that are income-based? I'm thinking specifically about things like healthcare subsidies or student loan payments that were calculated based on my 2021 AGI. Should I be prepared to potentially have adjustments made to other things, or do those programs typically not go back and recalculate based on amended returns? Also, for those who have successfully filed amendments - did you get any kind of confirmation from the IRS beyond just the processing of your refund? I'm a bit paranoid about making sure everything was accepted correctly, especially since it sounds like the paper process can be pretty slow. Thanks for all the great information everyone has shared! This community has been way more helpful than trying to navigate the IRS website on my own.