Can someone explain how bonuses work with taxes? I got a $3000 bonus last year and they took out like $1200 for taxes! Is there any way to get some of that back or have less taken out next time?

Great post! One thing I'd add is about timing - if you're making W-4 adjustments based on this year's return, try to do it sooner rather than later in the year. I made the mistake of waiting until October to adjust mine after getting a huge refund, so I only got a few months of corrected withholding. Also, for anyone who's married, don't forget that both spouses' W-4s need to work together. If one spouse claims all the credits and deductions on their W-4 while the other claims none, it can mess up your withholding calculations. The IRS withholding calculator actually has an option for married couples filing jointly that takes both incomes into account - definitely worth using if your situation is more complex than just one W-2.

Don't overthink this! Just split the difference by claiming "single, 0 dependents" on both jobs and adding extra withholding on the higher paying job. I did this for years and it worked fine. The tax brackets jump pretty significantly around 100k so having both jobs pushes you into higher rates that neither job accounts for alone.

I went through this exact same situation last year with two jobs totaling around $140k, and I can definitely relate to the stress! Here's what worked for me: The key thing to understand is that each employer calculates withholding as if their job is your only income. So with $73k + $64k, you're actually in a much higher tax bracket than either employer realizes. I ended up using the IRS Tax Withholding Estimator (it's free on irs.gov) and it was actually pretty accurate despite seeming complicated at first. For your income level, you'll likely need to have additional withholding from one job - probably around $400-500 per month based on my experience. In ADP and Workday, look for these sections: - Step 2(c): Check the "Multiple Jobs" box on BOTH forms - Step 4(c): Add the extra withholding amount on your HIGHER paying job only Don't add extra withholding to both jobs or you'll way overwithhold. I made that mistake initially and got a huge refund, which isn't ideal either. If the online tools are still confusing, honestly your HR departments should be able to help you navigate their specific systems. Most have dealt with this before since multiple jobs are pretty common now. You've got this! Better to figure it out now than get surprised at tax time.

I'm dealing with a similar situation right now! Our 28-unit condo association has been mailing checks for our 1120-H payments for the past few years without any issues. We typically owe around $150-200 annually on our reserve fund interest. Reading through all these responses, I'm now thinking we should probably set up EFTPS for next year just to be safe. The conflicting experiences people are having with penalties is making me nervous - it seems like there might be some inconsistency in how the IRS is applying the electronic payment requirements to small associations. @Owen Jenkins - definitely contest that penalty! Based on what others have shared here, it doesn't sound like that penalty should apply to your situation. The fact that you've been successfully paying by check in previous years should work in your favor. One question for the group: has anyone had success using IRS Direct Pay instead of EFTPS? I've heard it might be simpler for one-time annual payments, but I'm not sure if it works for business tax payments or just individual returns.

As someone who's been through this exact confusion with our 24-unit association, I can share what we learned after extensive research and consultation with our CPA. The key distinction is between "federal tax deposits" (which require EFTPS) and annual tax payments. Small condo associations filing 1120-H typically fall into a gray area because we're not making regular quarterly deposits like larger entities. Here's what we discovered: If your association owes less than $1,000 in taxes annually and doesn't have employees (no payroll taxes), you technically have more flexibility. However, the IRS has been moving toward requiring electronic payments across the board, and their enforcement seems inconsistent for small associations. Our solution was to set up EFTPS despite not being strictly required. The registration took about 10 days to receive the PIN by mail, but now we have peace of mind knowing our payments are immediately confirmed and properly credited. For your immediate situation, if you're close to your filing deadline and haven't set up EFTPS yet, you can still send a check with Form 8109-B to the address specified in the 1120-H instructions. Just make sure your EIN and "Form 1120-H" are clearly written on the check. But definitely consider setting up EFTPS for next year - it's worth the one-time hassle to avoid any potential issues down the road.

This has been such an informative discussion! I'm a new small business owner and was completely overwhelmed by 1099 requirements until I found this thread. One question I haven't seen addressed yet - what about timing? I know the general deadline for filing 1099s is January 31st, but when should I be requesting W-9s from new vendors? Should I get them before I make any payments, or is it okay to request them later in the year as long as I have them before the filing deadline? Also, for those who mentioned getting W-9s as part of vendor onboarding - do you have any tips for vendors who are reluctant to provide them? I've had a couple small contractors push back saying they don't want to give out their SSN or tax information upfront.

As a tax professional, I want to emphasize that everyone here has provided excellent guidance! The corporate exemption rule is indeed the key factor, and 501(c)(3) nonprofit corporations are absolutely exempt from 1099 reporting requirements for rent payments. One additional point I'd like to add: if you're ever unsure about a vendor's status, the IRS has a specific test for determining corporate exemption. The organization must be incorporated under state law AND have corporate characteristics (limited liability, centralized management, etc.). All properly formed 501(c)(3) nonprofit corporations meet this test. Also, while we're discussing documentation, I recommend keeping a simple spreadsheet tracking all your vendors with their classification status and whether 1099s are required. This makes year-end reporting much smoother and provides a clear audit trail if questions arise later. The $23,400 you mentioned definitely would have triggered the 1099 requirement if this were an unincorporated entity, but since it's a nonprofit corporation, you're all set - no 1099 needed!

One thing I didn't see mentioned that really helped me was getting proper accounting software right from the start. I use QuickBooks Self-Employed and it makes categorizing expenses and tracking mileage so much easier. Connects to your bank accounts and credit cards to automatically import transactions. At tax time, it generates reports that make filing so much simpler, especially for Schedule C. It also helps calculate quarterly estimated taxes based on your actual income and expenses.

Don't forget about business insurance as a tax deduction! As a sole proprietor, having general liability insurance and professional liability/E&O insurance is not only smart protection, but also fully deductible. Same with health insurance premiums. Also, if you use your cell phone for business, you can deduct the business percentage. Same with internet. And if you pay for any continuing education related to your field, that's deductible too.