Another factor that could explain the difference is if you have student loan interest deductions. If you're paying student loans and she isn't, you can deduct up to $2,500 in student loan interest, which would reduce your taxable income and potentially explain part of that $1,350 refund difference. Also worth checking if either of you contributed to a traditional IRA during the tax year - that's another above-the-line deduction that reduces taxable income. Even a $1,000 IRA contribution could create a meaningful difference in your final tax liability compared to someone who didn't contribute.

This is a really common situation that confuses a lot of people! The key thing to understand is that a refund isn't necessarily "good" - it just means you overpaid your taxes throughout the year. Your coworker who owes $15 actually had her withholding dialed in almost perfectly. Looking at all the responses here, it's likely a combination of factors: your 401k contributions (which reduce taxable income), different health insurance situations, student loan interest deductions, and possibly different W-4 setups. The 8% 401k contribution you mentioned is probably the biggest factor - that's over $5,000 less in taxable income compared to your coworker. If you want to get more money in your paychecks instead of waiting for a big refund, consider updating your W-4 to account for these deductions. The IRS withholding calculator can help you figure out the right amount to have withheld so you break even (or close to it) next year.

Just a heads up - don't forget to consider state filing requirements too! Depending on your state, you might need to file additional self-employment forms at the state level. I learned this the hard way last year 😭

I'm in almost the exact same boat - W-2 from my day job plus a 1099-NEC from some freelance work I picked up. After reading through all these responses, I'm definitely leaning toward checking out FreeTaxUSA instead of paying the premium for TurboTax Self-Employed. One thing I'd add is to make sure you track any business expenses related to your 1099 work - things like equipment, supplies, mileage, or even a portion of your internet bill if you worked from home. These can really help offset the self-employment tax burden. I wish I had been better about tracking expenses throughout the year instead of scrambling to remember everything now at filing time. Thanks everyone for sharing your experiences - this thread has been super helpful!

Anyone have experience with the IRS payment plan options? If I've already missed two quarters, should I just pay a big chunk now or try to set up some kind of plan?

Great advice in this thread! Just to add - if you're already behind on quarters like the OP, don't panic but definitely act fast. I was in a similar spot with about $180k in 1099 income and no quarterly payments made. What saved me was calculating my total tax liability for the year and making one large estimated payment immediately to cover what I should have paid in Q1 and Q2, then getting on a proper quarterly schedule for the rest of the year. The key is using Form 1040-ES to calculate what you actually owe. For $270k in income, you're probably looking at around $60-70k in total tax liability (including self-employment tax), so you'd want to pay roughly $15-17k per quarter. The sooner you catch up, the less the penalties will accumulate. The IRS Direct Pay system makes it pretty straightforward once you know your numbers.

Just wanted to add another perspective - I'm a Canadian freelance developer and I've been working with EU clients for years. My accountant advised me to get VAT numbers for my high-volume EU countries through a fiscal representative service. It was expensive but worth it for me because I have many B2C clients in those countries. If you're mainly dealing with B2B clients though, the reverse charge mechanism means you don't need to register or collect VAT. One practical tip: always ask new EU clients for their VAT registration number upfront and include it on your invoice. This documents that they're a business client subject to reverse charge.

This thread has been incredibly helpful! I'm also a Canadian freelancer and had been worrying about this exact issue with my growing EU client base. One thing I'd add for other Canadians reading this - make sure you're also considering the impact on your Canadian tax obligations. Even though you might not need to collect EU VAT, you still need to report all international income to CRA. I learned this the hard way during my first audit. Also, for invoice templates, I found that including a clear statement about the reverse charge helps avoid confusion with EU business clients. Something like "VAT reverse charged - Customer to account for VAT according to local regulations" seems to work well. Thanks everyone for sharing your experiences and the tool recommendations. It's so reassuring to know other Canadian freelancers have navigated this successfully!

I'm really sorry for your loss, Dmitri. This is such a difficult situation to navigate while you're grieving. From my experience as a tax preparer, you're absolutely right that you can file married filing jointly for their final return since they were married at the time of death. Here are a few additional things to keep in mind: 1. Make sure to get a federal tax ID number (EIN) for each estate if you haven't already - you'll need these for any estate tax returns or if the estates generate income after death. 2. Check if they had any estimated tax payments due for 2024. As executor, you'll need to make those payments to avoid penalties on their final return. 3. Don't forget about state taxes - you'll likely need to file final state returns as well, and some states have different rules for deceased taxpayers. 4. If they had any joint bank accounts or investment accounts, make sure you understand which income gets reported on their final personal return versus potential estate returns. The IRS Publication 559 has detailed guidance on tax issues for survivors, decedents, and estates. It's dense reading but covers scenarios exactly like yours. You're doing the right thing by being thorough about this.

I'm sorry for your loss, Dmitri. This is definitely a complex situation, but you're on the right track asking these questions. One important detail I haven't seen mentioned yet - since your sister passed in March and her husband in October, you'll need to be careful about how you handle any income or deductions that occurred between those dates. Income that your brother-in-law received between March (when your sister died) and October (when he passed) should still be included on their joint final return, but you'll want to make sure you're not double-counting anything. Also, if either of them had health insurance premiums or medical expenses that were paid after your sister's March death but before your brother-in-law's October death, those can still be deducted on the joint return since they were still married filing jointly for the full tax year. The IRS Form 1041 instructions have a helpful section on "Income in Respect of a Decedent" that might be relevant if they had any retirement accounts or other assets that generated income after death. It's worth reviewing even if you end up not needing to file estate returns. You're doing a great job handling this responsibility during such a difficult time.