This is such a helpful thread! I'm dealing with the exact same confusion as a first-time filer. My Box 19 shows $1,234 with "TX" next to it, but Texas doesn't have state income tax, so I was completely baffled about what this amount could be for. After reading through all these responses, I'm realizing this might be an error on my W-2. Has anyone else encountered a situation where Box 19 shows withholding for a state that doesn't collect income tax? Should I contact my employer's payroll department about this, or could this be some other type of withholding that I'm not understanding? I'm using TurboTax and it keeps asking me about the Box 19 amount, but when I enter Texas as my state, it says there should be no state tax withholding. Really don't want to mess this up!

This is exactly the kind of W-2 confusion that trips up so many first-time filers! Box 19 is specifically for state income tax withholding - think of it as a credit for state taxes you've already paid throughout the year. Since you're in California and Box 14 is empty, you likely didn't have traditional SDI contributions withheld, but California's system can be tricky. Some employers include CA SDI in the regular state withholding or report it differently. When your tax software asks about SDI/FLI, check your final paystub from 2024 - it often breaks down deductions more clearly than the W-2. If you see any SDI deductions listed there, you can enter that amount even if it's not explicitly shown in Box 14. The $758.42 in Box 19 should go toward your California state tax return as withholding, not toward any disability insurance questions. This amount will help reduce what you owe (or increase your refund) on your CA state return.

I just went through this exact same process last month! The confusion is totally understandable because the rules aren't super clear until you dig into the specifics. Here's what I learned: since you're going from sole prop to LLC, you need to figure out how your LLC will be taxed. If you're staying as a single-member LLC and NOT electing corporate taxation, you can actually keep using your existing sole prop EIN. The IRS treats single-member LLCs as "disregarded entities" by default, which means for tax purposes, you're still essentially a sole proprietorship. However, if you're adding partners (making it multi-member) or electing S-Corp or C-Corp taxation, then yes, you need a new EIN. The good news is there's no formal process to "cancel" your old EIN if you do need a new one - you just stop using it and start using the new one. I'd recommend calling the IRS Business Tax Line to confirm your specific situation, though fair warning - it can take a while to get through! Also, make sure to update your EIN with your bank, any business accounts, and vendors once you figure out what you need to do. That was the part I almost forgot!

This is such a common source of confusion! I went through the same thing when I converted my consulting business from sole prop to LLC last year. The deciding factor really comes down to your tax election. Since you mentioned you're doing this for liability protection (smart move!), you're probably planning to stay as a single-member LLC with disregarded entity status - which means you can absolutely keep your existing EIN. One thing I wish someone had told me earlier: even though you can keep the same EIN, make sure to update your business name with your bank and any vendors to reflect the LLC. I kept getting confused looks when my checks said "ABC Consulting LLC" but my EIN paperwork still showed my personal name from the sole prop days. Also, definitely keep good records of when you made the transition. I created a simple folder with my LLC formation date, operating agreement, and a note about continuing to use my sole prop EIN. Makes things much cleaner if the IRS ever has questions down the road. The liability protection alone makes the LLC worth it - you're making a smart business decision even if the tax side stays exactly the same!

Don't forget that when you have two jobs, neither employer knows about the other one when calculating your withholding! That's usually why people with multiple jobs end up owing - the withholding tables assume each job is your only income.

Just to add to what others have said - yes, you absolutely need to report ALL income, including that $6.5k from your second job. The IRS gets copies of your W-2s/1099s so they'll know about it anyway. One thing I'd suggest is using the IRS Tax Withholding Estimator right now (it's free on their website) to see if you need to adjust your W-4s for the rest of the year. Since you owed last year at $78k and now you're making $88.5k total, you'll definitely want to increase your withholding to avoid a bigger surprise come tax time. For the dependent situation with your mom - make sure she meets all the requirements (income under $4,700 for 2024, you provide more than half her support, etc.). If she qualifies, that should help reduce your tax liability. As for tax prep, if TurboTax has worked well for you in the past and your situation isn't too complex, there's no shame in sticking with it. Your situation (two W-2s + dependent) is pretty straightforward for most tax software to handle correctly.

I made the mistake of throwing away a W-2 from a job where I only worked for like 3 weeks thinking it wasn't important since I barely made any money there. HUGE mistake!! The IRS sent me a letter about underreporting income and I had to pay additional taxes plus interest. Even if you only made a little money at one job, you need to include ALL W-2s when you file!!!!

Great question! Yes, you absolutely need separate W-2 forms from each employer. Since you worked at two different places during 2024, each employer is legally required to send you their own W-2 form by January 31st. So you should expect: - One W-2 from the cafe showing your $3,800 in wages - One W-2 from the retail store showing your $8,600 in wages When you file your taxes, you'll enter the information from both W-2s on your tax return. The IRS will see your total income of $12,400 ($3,800 + $8,600) but each employer reports their portion separately. If you haven't received the W-2 from the cafe yet, definitely reach out to them soon since the deadline is approaching. Sometimes smaller businesses are less organized with their payroll, so a friendly reminder call might be needed. Good luck with your first tax filing!

This is a common issue. Prepaid cards aren't designed for large deposits. They're for unbanked people. Most cap at $10k. Some lower. Read your cardholder agreement. Check the fine print. Consider Form 8888. Split your refund. Use multiple accounts. Don't risk delays. Tax season is stressful enough.

I appreciate everyone's detailed responses here. As someone who's been dealing with similar banking transitions, I'd like to add that you should also consider the customer service quality of your chosen prepaid card provider. Beyond just the deposit limits, some cards have terrible dispute resolution processes if something goes wrong with your refund deposit. I learned this the hard way when my prepaid card froze my account for "suspicious activity" after receiving a $8,000 refund - it took 3 weeks to resolve. For what it's worth, I've found that credit union accounts often provide a good middle ground between traditional banks and prepaid options, with higher deposit limits and better customer protection than most prepaid cards.