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A heads up from someone who just went through this - make sure you're using the correct tax forms for the specific years you're filing! The 1099-NEC didn't exist before 2020, so for 2019 and earlier, non-employee compensation was reported on the 1099-MISC (Box 7). Also, don't forget to file state taxes too if your state has income tax. Those deadlines for claiming refunds might be different from federal.
I went through something very similar when I was catching up on 5 years of unfiled returns. The good news is that you're overthinking the EIN issue - as others have mentioned, you don't need those employer identification numbers when filing your personal tax returns. Since you have your tax transcripts with the income amounts, you're actually in a pretty good position. Focus on accurately reporting all the income shown on those transcripts using Schedule C for your self-employment years (2018-2019). The partially redacted EINs won't affect your ability to file. One thing I learned the hard way: start with the most recent years first if you're owed refunds, since there's typically a 3-year window to claim them. For 2018, you might be running out of time to get that refund if you're owed one. Also, don't forget about estimated tax penalties - you'll likely owe those for the self-employment years, but filing late is still much better than not filing at all. The IRS is actually pretty understanding when people are making a genuine effort to get compliant. You've got this!
This is really helpful advice, especially about prioritizing the most recent years first! I had no idea about the 3-year window for refunds. Since I'm dealing with 2018-2019 self-employment income, does that mean I've already missed the deadline to claim any refunds from 2018? And when you mention estimated tax penalties, are those calculated automatically by the tax software, or do I need to figure those out separately?
I'm in a very similar boat with multiple jobs and just discovered this issue myself! Working two part-time positions plus some gig work, and I was shocked to see I might owe around $3,500 this year. Reading through everyone's explanations really helped me understand what's happening - each employer is basically pretending they're my only source of income when calculating withholdings. It's like each job thinks I'm making $30k instead of recognizing I'm actually making $85k total across all sources. I had no idea about the W-4 multiple jobs section or the IRS withholding estimator tool. Definitely going to tackle both of those this week before I get in even deeper. It's frustrating that this isn't explained better when you start additional jobs - I wish HR departments would warn people about this! Has anyone found that employers are helpful when you need to update your W-4 mid-year for this reason? I'm a bit nervous about explaining to my bosses why I suddenly need to change my tax withholdings.
Don't worry about explaining anything detailed to your employers! You have the right to update your W-4 at any time, and HR departments process these requests routinely. You can simply say you're adjusting your withholdings for personal tax planning - no need to go into specifics about multiple jobs or owing money. Most HR departments are actually pretty familiar with mid-year W-4 changes, especially from employees who realize they need to adjust their withholdings. They won't ask for detailed explanations, and it's completely normal. Just fill out the form, submit it, and they'll process it with your next payroll cycle. The $3,500 you might owe definitely sounds manageable compared to some of the horror stories here! Getting those W-4s updated now should help you avoid a similar surprise next year. The IRS withholding estimator will give you a much clearer picture of exactly how much extra to withhold from each job.
This is such a valuable thread! I'm just starting my journey with multiple jobs (picked up a second part-time position last month) and had no idea this withholding issue even existed. Reading about everyone's experiences with owing thousands in taxes is honestly terrifying, but I'm grateful to learn about it now rather than next April. It sounds like the consensus is to use the IRS Tax Withholding Estimator and update W-4s ASAP. I'm definitely doing that this weekend before I get too deep into the year with incorrect withholdings. The explanation about how each employer calculates taxes in isolation really clicked for me - no wonder the math doesn't work when everything gets combined at tax time. For those who've successfully navigated this, roughly how long did it take after submitting updated W-4s to see the changes reflected in your paychecks? I want to make sure I'm monitoring this correctly going forward.
Great question about timing! In my experience, W-4 changes usually take effect within 1-2 pay periods after you submit them. Most payroll systems process these updates pretty quickly, but it can depend on when in their payroll cycle you submit the form. I'd recommend checking your next paystub carefully to make sure the withholding amounts changed as expected. If you don't see the changes by your second paycheck after submitting, definitely follow up with HR to make sure they processed it correctly. Also, keep in mind that the IRS withholding estimator will give you the total extra amount you need withheld annually, so you'll need to divide that by your remaining paychecks for the year to get the right per-paycheck amount. Since you're starting this in January, you have the full year to spread out any adjustments, which is much better than trying to catch up mid-year!
11 One thing nobody mentioned - if your 1099 income is below $400 for the year, you don't need to file Schedule SE because you won't owe self-employment tax. Saved me some paperwork last year!
2 That's good to know! Is there a similar threshold for Schedule C? Or do you still need to report all 1099 income on Schedule C regardless of the amount?
You still need to report all 1099 income on Schedule C regardless of the amount, even if it's just $1. The $400 threshold only applies to self-employment tax (Schedule SE). So you'd file Schedule C to report the income, but if your net self-employment earnings are under $400, you can skip Schedule SE. The income still gets added to your total income on Form 1040 though, so it could still affect your regular income tax liability.
Great question! I went through this exact same confusion last year. You definitely need to mail all the schedule forms along with your 1040 and W-2. The schedules aren't just supporting documents - they're integral parts of your tax return that show how you calculated the numbers on your main form. Make sure to arrange them in the correct order: Form 1040 on top, then your schedules (typically Schedule 1, then C, then SE), and attach your W-2 Copy B where indicated. Use one staple in the upper left corner and send everything via certified mail so you have proof of delivery. Don't worry about messing up - you're asking the right questions! The IRS processing centers are used to handling returns with multiple income sources. Just double-check that you've signed and dated everything before mailing.
This is really helpful, thank you! I was getting nervous about potentially missing something important. Quick follow-up question - when you say "attach your W-2 Copy B where indicated," is there a specific spot on the 1040 where it should be attached, or does it just go with the packet? I want to make sure I'm not putting it in the wrong place and causing processing delays.
This is such a common confusion! I went through the exact same thing when I first started working. Here's what helped me understand it: Think of the tax year like a school year - it's a complete 12-month period that gets "graded" (filed) after it's over. So your 2024 tax year (Jan 1 - Dec 31, 2024) gets filed during the 2025 filing season (Jan - April 2025). For your March 2024 job situation, that income definitely goes on your 2024 tax return that you'll file in early 2025. Your employer should send you a W-2 by January 31, 2025 showing all the income and taxes withheld from that job. The key thing that clicked for me: we always file taxes for a COMPLETED year, never for the year we're currently living in. That's why when you file in April 2025, you're not including any 2025 income - that year isn't complete yet! And yes, the system is unnecessarily complicated. Most other countries make it much simpler, but we're stuck with this backwards-looking annual system.
The school year analogy is brilliant! That finally makes it click for me. I've been overthinking this whole thing. So basically I just need to wait for my W-2 from my old job and include that when I file in 2025, even though I haven't worked there for almost a year by then. And any new job I start this year won't matter until I file in 2026. Thanks for breaking it down so simply - sometimes the most obvious explanations are the ones that actually stick!
This thread has been incredibly helpful! I've been working for the IRS for 8 years and I still see this confusion constantly. The "school year" analogy is perfect - I'm definitely going to start using that with taxpayers who call in confused. One thing I'd add that might help: when you get your W-2 or 1099 forms in January, they'll clearly show the tax year (like "2024") right on the form. That's your confirmation of which year's tax return those documents belong on. Also, for anyone worried about missing deadlines or filing for the wrong year - the IRS computer systems are pretty good at catching these mistakes. If you accidentally file income for the wrong tax year, you'll usually get a notice explaining the error rather than being penalized immediately. The system IS overly complicated, but once you get the basic timeline down (earn money in Year X, file taxes for Year X in Year X+1), it becomes much more manageable. Don't be too hard on yourselves for being confused - this trips up way more people than you'd think!
Thanks so much for the insider perspective! It's really reassuring to hear that the IRS systems catch these mistakes rather than immediately penalizing people. I've been so worried about accidentally filing something for the wrong tax year and getting in trouble. Quick question since you work there - if someone does get a notice about filing income for the wrong tax year, is it usually a simple fix? Like can you just file an amended return, or does it become this huge complicated process? I'm always nervous about making any mistakes with taxes since it feels like the consequences could be severe.
Ava Johnson
Has anyone ever successfully challenged their W-2 when it included unvested RSUs? My company seems to be reporting the full grant value upfront, and HR keeps insisting it's correct but everything I've read says that's wrong??
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AstroExplorer
β’If your W-2 truly includes unvested RSUs as current income, that's definitely incorrect and should be challenged. RSUs should only be reported as income in the year they vest, not when they're granted. To verify this is actually happening, check your pay statements carefully. Sometimes what appears to be reporting of unvested RSUs is actually something else (like imputed income from benefits). If you've confirmed the error, request a corrected W-2 (Form W-2c) from your employer with documentation showing the unvested RSUs shouldn't be included. If they refuse, you can contact the IRS for help resolving the dispute.
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Jean Claude
I had a very similar situation last year and it drove me crazy until I figured out what was happening! The key is to understand that there are multiple ways income gets reported and timing differences that can make things confusing. First, make sure you're comparing the right numbers. Your W-2 Box 1 should match your year-end paystub's "YTD Federal Taxable Wages" - not your gross pay. Pre-tax deductions like 401(k) contributions, health insurance premiums, and HSA contributions reduce Box 1 but are still part of your total compensation. For RSUs, you're absolutely right that unvested shares shouldn't be taxed. Only RSUs that actually vest during 2023 should appear as income. However, when they do vest, they're taxed at their fair market value on the vesting date, which might be different from the grant value if your stock price has changed. The imputed income items you mentioned (Imp GTL, Imp Legal, Imputed Ben) are benefits your company provides that the IRS considers taxable income even though you don't receive cash. These can add up to more than you'd expect over a full year. I'd recommend pulling your final 2023 paystub and your RSU vesting schedule to do a line-by-line comparison with your W-2. That should help you identify exactly where the discrepancy is coming from before reaching out to HR or a tax professional.
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StarStrider
β’This is really helpful advice! I'm actually dealing with something similar right now where my W-2 numbers don't match what I calculated from my paystubs. The point about comparing W-2 Box 1 to "YTD Federal Taxable Wages" rather than gross pay is something I hadn't considered - I was definitely looking at the wrong numbers. I have a question about the RSU vesting schedule comparison you mentioned. When I look at my RSU account, it shows vesting dates throughout the year, but some of the amounts seem to have been automatically sold right away. Should I be looking at the gross value that vested or the net amount I actually received after the automatic tax withholding sales? Also, do you know if there's typically a delay between when RSUs vest and when they show up on your paystub? I'm wondering if some December vesting events might have been included in my W-2 but not my last paystub of the year.
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