Just wanted to add - if you're using ADP, you should be able to log into their employee portal online and see a much more detailed breakdown of your taxes. They usually have a year-to-date summary that shows exactly how much you've paid in each category (federal, state, FICA, etc.) which can help you understand where that 24% is going. Also, something to keep in mind is that your withholding might be slightly different from your actual tax liability. The withholding tables are designed to be close, but factors like dependents, deductions, credits, etc. can affect your final tax bill. You might end up with a small refund or owe a small amount when you file, even with proper withholding. If you want to optimize your take-home pay, consider running your numbers through the IRS withholding calculator once a year to make sure you're not having too much or too little withheld. It's better to get your money throughout the year rather than a big refund!

The 24% total tax rate you're seeing is absolutely normal for your income level! A lot of people get confused because they focus only on the federal income tax brackets (10%, 12%, 22%), but those percentages don't include all the other taxes that come out of your paycheck. Here's what's likely making up your 24%: - Federal income tax: probably around 10-12% effective rate for your income - Social Security tax: 6.2% (this is a flat rate on wages up to ~$168K) - Medicare tax: 1.45% (flat rate on all wages) - State income tax: varies by state, could be anywhere from 0-6%+ - Possibly local/city taxes depending on where you work So when you add federal income tax + Social Security (6.2%) + Medicare (1.45%) + state taxes, you easily get to that 24% range. To see exactly where your money is going, look at your ADP paystub - it should have separate line items for each type of tax. You can also log into your ADP employee portal online to see year-to-date totals for each tax category, which gives you an even clearer picture of your overall tax burden. The good news is your 6% 401k contribution is actually helping reduce your taxable income, so you're saving on taxes there!

MetLife handles a lot of employer benefits like stock purchase plans, restricted stock units, and even some pension stuff. Call their customer service at the number on the 1099-B and ask them exactly what this is for. They can usually tell you specifically what account or benefit generated this form. Don't ignore it tho - the IRS gets a copy of this form too!

Definitely don't ignore that 1099-B! Even though $1,200 might not seem like a lot, the IRS will eventually send you a CP2000 notice if you don't report it properly. I learned this the hard way with a small 1099-B I thought wasn't worth dealing with - ended up owing penalties and interest on top of the original tax. When you call MetLife tomorrow, have the 1099-B in front of you and ask them specifically what type of account or transaction this relates to. They should be able to tell you if it was from employer stock, a life insurance policy with investment features, or some other benefit program. Also ask if they have the cost basis information - if it's not on the form, you'll need to get that from them to calculate your actual gain or loss. The good news is that once you know what it is, reporting it on Schedule D isn't too complicated. Most tax software will walk you through entering the 1099-B information step by step.

Slightly different situation - I inherited my mom's house that had a $450k mortgage but was only worth $420k at death (underwater). I sold it for $435k but after paying off the mortgage had negative proceeds. Any tax implications I should be aware of?

I went through a very similar situation with my father's house last year. The key thing to understand is that even though you can't deduct the loss directly, you can still maximize your tax position by properly documenting all allowable selling expenses. Make sure you're including everything in your basis calculation: realtor commissions, title insurance, transfer taxes, attorney fees, inspection costs, and any repairs that were necessary to make the property marketable. These all reduce your "gain" (or in your case, increase your "loss" even though you can't claim it). Also, if you paid any property taxes, insurance, or utilities during the 8 months you held it, those might be deductible as rental expenses if you can show you were actively marketing it for sale during that time - though this is a gray area you'd want to verify with a tax professional. The stepped-up basis rule is designed to help heirs, but unfortunately the personal residence loss limitation works against you in situations like this. It's one of those frustrating tax code inconsistencies that doesn't always make practical sense.

Another thing to consider - make sure you understand the difference between a "qualifying child" and "qualifying relative" for tax purposes. Since your daughter is 6 and lived with you both all year, she'd likely be considered a qualifying child if your boyfriend provided more than half her support. But as others mentioned, you as the biological parent have the first right to claim her. The Form 8332 is definitely the way to go if you want to release that claim. Also worth noting that whoever claims her can potentially get the Child Tax Credit too, which could be significant depending on income levels.

I'd also recommend checking if your boyfriend qualifies for Head of Household filing status if he claims your daughter. Since he's been supporting both of you and your daughter lived there all year, he might be eligible which could lower his tax rate significantly. Just make sure he understands that claiming a dependent is a serious responsibility - the IRS can audit and request proof of support, so keep all those receipts for rent, food, medical expenses, etc. Also worth mentioning that if you're receiving any government benefits based on being a single parent, releasing your claim to him could potentially affect those benefits, so double check that too.

I see a lot of people mentioning the tax deduction benefits, but there's another huge advantage to having your home office qualify as your primary place of business - it affects how you calculate your business mileage! If your home is your principal place of business, then every trip to a client site becomes a deductible business trip. If your home isn't your principal place of business, then driving from home to your first client would be considered non-deductible commuting. This distinction literally doubled my mileage deduction last year. Make sure you understand the difference!

Great point about the mileage implications! I'm actually dealing with this exact scenario and want to make sure I understand correctly. If my home office qualifies as my principal place of business, can I deduct mileage for trips like: 1) Home → Client A → Client B → Home (multiple clients in one day) 2) Home → Office supply store → Client → Home 3) Client A → Client B (driving between clients without going home first) I'm tracking everything in a mileage app but want to make sure I'm not missing any deductible trips or accidentally claiming something I shouldn't. The difference between "commuting" and "business travel" seems to hinge entirely on whether my home office truly qualifies as my principal place of business. Also, does anyone know if there are specific IRS guidelines on how to document this properly? I want to make sure my records would hold up if questioned.