I made $112k last year and my effective tax rate was only about 18% after deductions, nowhere near the 24% bracket rate. Don't get too hung up on the bracket percentage - your actual tax rate will be much lower than that highest bracket percentage. Plus, definitely negotiate for more! Your new employer expects it, and the worst they can say is no. I always ask for 10-15% more than their initial offer and have usually gotten at least part of that.

Congratulations on the job offer! I went through a similar situation when I jumped from $85k to $115k about two years ago. I was terrified about the tax implications but it turned out to be much less scary than I thought. Everyone here is absolutely right about marginal tax rates - you only pay the higher percentage on the income above each threshold. In your case, going from $89k to $110k means only about $14,700 of your income will be taxed at 24% instead of 22%. That's literally just an extra $294 per year in federal taxes (2% of $14,700). When you factor in that you're getting a $21,000 raise, paying an extra $294 in taxes is pretty insignificant. You'll still be taking home significantly more money each month. One thing I wish I had done earlier was updating my W-4 with the new employer to account for the higher income. I ended up owing a bit at tax time because my withholdings weren't quite right for the new bracket. Definitely worth filling out a new W-4 accurately when you start! Take the job - the financial benefits far outweigh the modest tax increase!

Don't forget that how you treat your scholarship/grant money affects other things too! If you choose to report some of your scholarship as taxable income to qualify for AOTC, you might also have to file a state return and it could affect other credits/deductions. In my experience, excess scholarship money reported as income is considered "unearned income" which doesn't count for Earned Income Credit purposes. But it DOES count toward your total income which could affect things like health insurance subsidies if you're getting those. Run the numbers carefully before deciding!

As someone who went through this exact same situation last year, I can confirm that the excess scholarship situation is super confusing but definitely manageable once you understand your options. The key thing to remember is that you have flexibility in how you report scholarship income. Since your scholarships ($46k) exceed your qualified tuition and fees ($31k), you're getting what's essentially "free money" that could be taxable depending on how you choose to report it. Your laptop definitely counts as a qualified education expense, but like others mentioned, you need to have remaining qualified expenses after subtracting tax-free scholarships to claim AOTC. Here's what I'd suggest: Calculate whether making $4,000 of your scholarship taxable (which would allow you to claim the maximum $2,500 AOTC) results in a net benefit after paying taxes on that $4,000. At your income level, you're probably in the 12% tax bracket, so you'd pay about $480 in taxes on $4,000 but get back $2,500 in AOTC - a net gain of over $2,000. Since you're being claimed as a dependent, your parents would actually claim the AOTC on their return if they paid for any of your expenses (like that laptop). Make sure you coordinate with them on this! The math usually works out favorably, but definitely run both scenarios in your tax software to be sure.

I'd like to share some additional information about the trace process that might help you understand what's happening: Step 1: When you initiate a trace, the IRS first verifies whether your refund was already issued. Step 2: If it was issued but not received, they start an actual trace through the Treasury. Step 3: If the refund was never issued, they investigate why (which could be an unrelated review). Step 4: Once they determine the status, they either reissue the refund or send you a notice explaining the hold. Are you certain your refund was actually issued and not just approved? These are different statuses, and many business owners confuse them. If your WMR status never said "Refund Sent," then you might be waiting for an initial issuance rather than a trace resolution.

I'm experiencing something very similar with my business refund! Filed early February, got acceptance confirmation, but my refund has been missing for weeks now. I also use Navy Federal and they're usually lightning-fast with deposits, so I know the issue is definitely on the IRS side. What's really frustrating is that I initiated a trace about 2.5 weeks ago and got a confirmation number, but absolutely nothing has happened since then. Like you, I need these funds for upcoming business expenses and the uncertainty is stressful. One thing I'm wondering - when you check "Where's My Refund," does it still show the original status or has it changed since you started the trace? Mine still shows "refund approved" with the original deposit date, which makes me think the money was never actually sent out in the first place despite what the system says. Have you tried checking your tax transcript to see if there are any additional codes or holds that might explain the delay? I'm planning to do that next if I don't hear something soon.

anyone else notice how the where's my refund tool shows different info than the transcript? super annoying

Don't stress about the wording! The IRS uses "Accepted" and "Return Accepted" interchangeably - they both mean your return passed their initial screening and is in the system. The different dates (01/21 for federal, 01/23 for state) are totally normal since federal and state returns get processed separately. Maryland probably just took an extra day or two to process yours. As long as both show accepted status, you're good to go!

Has anyone used the dependency exemption release form (Form 8332) successfully? My understanding is that if the custodial parent (parent with more custody nights) signs this form, it allows the non-custodial parent to claim the child tax credit. But does this also transfer all tax benefits like the earned income credit or head of household status?

I went through almost the exact same situation with my ex-husband three years ago. The communication issues and the "we'll see" responses sound so familiar! Here's what I learned from my experience and working with a tax professional: Since your parenting plan doesn't specify who claims your son, you're right that the IRS tiebreaker rules apply. With true 50/50 custody, it typically goes to the parent with higher AGI (your ex). However, there are a few strategies that worked for me: 1. **Document everything**: Keep a detailed calendar of overnight stays, not just the planned schedule. Sometimes the actual nights differ from what's written. If you can prove you had more nights, that trumps the income rule. 2. **Track all expenses**: Save receipts for healthcare, clothes, activities, school supplies, etc. While this doesn't change the legal right to claim, it's valuable evidence if disputes arise. 3. **Consider negotiation**: Even though your ex makes more, the Child Tax Credit might be worth more to you at your income level. You could offer to handle more expenses in exchange for alternating years or her signing Form 8332. 4. **Get legal help if needed**: If this becomes a pattern, modifying your parenting plan to include tax provisions might be worth the cost to avoid annual conflicts. The "first to file" approach creates more problems than it solves, so I'd avoid that route. Focus on documentation and see if you can work out an agreement for future years.