Just a heads up - make sure your wife's W-2 correctly reports the retirement contributions. Box 12 with code D shows the 401k contributions, and this needs to match what actually stayed in the plan (not including the excess that was returned). I've seen W-2s where the amount includes the excess, which can cause confusion when you're also reporting the return of excess. Double-check this before filing!

I went through this exact same situation last year and it was such a nightmare! The key thing that saved me was being really persistent with the plan administrator about getting that breakdown between the excess contribution and earnings. One tip that might help - when you're entering this into H&R Block, make sure you're in the "Other Income" section, not trying to add it as a regular 1099-R. There's usually a specific place for "Retirement Plan Distributions Not Reported on 1099-R" or something similar. Also, don't forget that if your wife is under 59½, the earnings portion will be subject to the 10% early withdrawal penalty on top of regular income tax. That caught me off guard when I first did this. The excess contribution itself won't be penalized since it was never supposed to be in there in the first place. The whole process is frustrating but you're definitely on the right track by trying to document everything properly!

Lucky you! Filed mine in March and stil NOTHING. The IRS where's my refund tool still says processing. How did you even get your transcript? The verification system never works for me.

Congrats on getting your refund approved! That July 17th date is your direct deposit date (DDD). In my experience, most banks receive the funds on that exact date or sometimes 1-2 days early depending on how they process ACH transfers. Since you mentioned your bank usually processes deposits immediately, you'll likely see it hit your account on the 17th or possibly even the 16th. The transcript is actually pretty reliable for timing once you see that 846 code with the date - you're definitely in the final stretch now!

Anybody know if the new W4 form is different for 2025 taxes? I heard they were making changes to it this year and I want to make sure I'm filling out the right version.

I've been dealing with the exact same issue! After years of getting huge refunds, I finally figured out that the key is understanding how the "multiple jobs" checkbox works on the W4. When you check that box, the form assumes your side gigs are comparable in income to your main job, which causes massive overwithholding. Since you mentioned your side gigs are smaller, you might want to try unchecking that box on your main job's W4 and instead use Step 4(b) to add deductions. Here's what worked for me: I calculated my total refund from last year, divided it by the number of pay periods, then multiplied by about 10 to get an estimated deduction amount for Step 4(b). So if you got a $3,000 refund and are paid bi-weekly (26 pay periods), that's about $115 per paycheck you overpaid. Multiply by 10 and you could put around $1,150 in additional deductions on Step 4(b). The IRS withholding calculator on their website can help you get a more precise number, but this rough calculation should get you much closer to breaking even rather than giving the government that interest-free loan!

Just a quick tip from what I've learned filing taxes for 20+ years with investment accounts: if your margin interest is minimal (under $100 or so), it's probably not worth tracking for tax purposes. With the standard deduction at $13,850 for individuals in 2025, most people won't itemize anyway, making the deduction moot. I've found it's more efficient tax-wise to focus on tax-loss harvesting throughout the year rather than worrying about small margin interest deductions. That said, if you're already itemizing for other reasons and have significant margin interest, definitely include it!

Something important that hasn't been mentioned yet - if you're using margin to invest in tax-exempt securities like municipal bonds, the interest on that margin debt is NOT deductible at all. The IRS doesn't let you deduct expenses related to generating tax-exempt income. Also, make sure you're keeping good records of your margin interest. Brokerages will provide a year-end statement showing the total interest paid, but you should verify it matches what you've calculated throughout the year.

Have you considered tracking all your mileage and vehicle expenses anyway, even though you can't deduct them now? The tax law is set to change after 2025 when the current provisions expire. If Congress doesn't extend the current rules, the deduction for unreimbursed employee business expenses may come back. Having good records for 2025 might let you file an amended return later if the law changes retroactively.

As someone who's been through this exact situation, I feel your pain on those mileage costs! The advice here about accountable plans is spot-on - that's really your best bet. But if your employer won't budge on reimbursement, don't forget to check if your state offers any relief. I'm in New York and discovered we can still deduct unreimbursed employee business expenses on our state return (subject to the 2% AGI threshold). It's not as good as the federal deduction used to be, but every bit helps when you're putting 25k miles on your personal vehicle. Also, even though you can't deduct the mileage federally, make sure you're maximizing any other business-related deductions you might qualify for - like professional development, union dues, or required uniforms/equipment. And definitely keep tracking everything in case the tax law changes after 2025 as others mentioned. Good luck with your employer negotiations - the payroll tax savings angle really does work with many companies once they understand the math!