Just want to add - be careful about expectations with hardship claims. I filed one on January 17th this year and while it was eventually approved, the money took until March 2nd to actually arrive. The process varies dramatically by state. Some states like California have clear hardship guidelines while others make it nearly impossible. Document EVERYTHING and be prepared for multiple follow-ups. These agencies don't make it easy, but persistence pays off if you have legitimate hardship circumstances.

I'm dealing with a similar offset situation right now - had $2,100 taken from my refund last week. What I've learned from calling around is that you need to act quickly because most states have strict deadlines for hardship appeals. One thing that helped me was requesting a "detailed accounting" of the overpayment from the state unemployment office - turns out they had miscalculated my benefit period and I wasn't actually overpaid. Also, if your mother qualifies as your dependent for tax purposes, that strengthens your hardship case significantly. Document her medical expenses with dates and amounts - this creates a paper trail showing immediate financial need. The key is proving that losing this refund creates "undue hardship" beyond normal financial inconvenience.

I've been following this discussion with great interest since I'm dealing with the exact same overwithholding problem! After years of getting huge refunds (last year was $3,600), I finally realized I need to stop giving the IRS an interest-free loan. Based on all the excellent advice shared here, I'm planning to make two key changes: uncheck the "multiple jobs" box on my primary W4 since my freelance work is much smaller than my main job, and use Step 4(b) to add deductions using the calculation method several people mentioned (refund ÷ pay periods × 10). One question I have - for those who've made these changes, how long did it take for your employer to process the new W4 and reflect the changes in your paycheck? I'm eager to start seeing that extra money in my paychecks rather than waiting around for the government to return my own money next year! It's been so helpful reading everyone's real-world experiences and success stories. Sometimes you need to hear from actual people who've been through the same situation to feel confident about making these kinds of adjustments.

I've been dealing with this exact same frustration! After getting a $3,200 refund last year, I finally realized I was essentially giving the government a free loan while I could have been earning interest on that money myself. The breakthrough came when I understood that the "multiple jobs" checkbox is really meant for people with several jobs of similar income levels. Since my side work is only about 15% of my main job income, checking that box was causing massive overwithholding on my primary W4. Here's what I did based on similar advice: I unchecked "multiple jobs" on my main job W4 and used Step 4(b) to add about $1,200 in additional deductions (calculated by taking my $3,200 refund, dividing by 26 pay periods, then multiplying by 10). My very first paycheck after the change had an extra $123 that used to go straight to overwithholding! That's over $3,000 per year I now have access to instead of waiting for the IRS to return my own money. I was initially nervous about owing at tax time, but I figure even if I owe a few hundred dollars (as long as it's under $1,000 to avoid penalties), I'm still way better off having my money work for me throughout the year. Plus I can always fine-tune the adjustment if needed after seeing how this year plays out.

Fyi - I tried doing this with TurboTax last year and their software didn't properly support Form 8919. Ended up having to switch to TaxAct at the last minute. Glad to hear FreeTax USA supports it better!

I went through this exact situation two years ago and can confirm FreeTax USA does support Form 8919. Here's what worked for me: Log into FreeTax USA, go to the "Income" section, then look for "Other Income" or "Miscellaneous Income." There should be an option for "Uncollected Social Security and Medicare Tax" or you can search for "8919" directly in their help search. One important tip - make sure you have your employer's EIN handy when filling out the form. You'll also need to calculate the Social Security and Medicare taxes that should have been withheld (7.65% of your wages). The form will walk you through this calculation. For Form SS-8, as others mentioned, that's filed separately. You can download it directly from IRS.gov and mail it in. Don't wait on the SS-8 determination to file your taxes though - you can still file with Form 8919 using Code G while the determination is pending. Document everything now while it's fresh in your memory - work schedule requirements, equipment provided, training received, etc. This will be crucial for your SS-8 submission.

I just called FreeTaxUSA support about this exact issue. They told me there's a way to handle multiple localities even though the interface makes it seem impossible. After you enter your W-2 with the first locality, save it and go back to your W-2 list. Then click on "Edit" for that W-2, and you should see an option at the bottom for "Add another local tax withholding." It's super easy to miss, but it's there!

Great to see this got resolved! For anyone else dealing with similar multi-city tax situations, I'd also recommend double-checking your final tax calculations before submitting. Even when you enter multiple localities correctly in FreeTaxUSA, sometimes the software doesn't automatically apply available credits for taxes paid to multiple jurisdictions. I learned this the hard way last year - I was entitled to a credit for paying duplicate local taxes but had to manually add it in the "Other Credits" section. Your city tax departments (if you can reach them) or a local tax preparer can help verify if you qualify for any credits to avoid overpaying. The multiple locality feature in FreeTaxUSA works well once you find it, but it's definitely one of those hidden features that should be more prominent in the interface!

One thing that might help clarify the confusion here is understanding exactly where to look for your RSU income on your W-2. Many people miss this because it's not always obvious. Check Box 14 on your W-2 first - that's where many employers report RSU income separately with labels like "RSU", "STOCK", or "EQUITY COMP". If it's not there, the RSU income might be included in your regular wages in Box 1, which makes it harder to identify. The $56,150.60 from your RSU vesting should appear somewhere on your W-2 as ordinary income. This is crucial because when you report the sale of those 83 shares on your tax return, you need to make sure you're not paying tax on that income again. For the 83 shares that were sold to cover taxes, you'll report a small capital loss (about $204 as someone mentioned earlier). For your 137 remaining shares, your cost basis is $255.23 per share, and you won't owe any additional tax until you sell them. If you're still having trouble reconciling everything, consider using tax software that specifically handles equity compensation, or work with a tax professional who understands stock-based compensation. These situations are tricky enough that it's often worth getting expert help to make sure everything is reported correctly.

Based on everyone's helpful responses, it sounds like you've got the right understanding now! Just to add one more perspective from someone who went through this exact situation: The confusion with RSU taxation is super common because most people (including me initially) assume that if shares are sold, that's when you get taxed. But with RSUs, the taxation happens at vesting regardless of whether you keep or sell the shares. Think of it this way: on your vesting date, it's as if your employer handed you $56,150.60 in cash (which gets taxed as regular income), and then you immediately used that cash to buy 220 shares at $255.23 each. The fact that 83 shares were automatically sold to pay taxes doesn't change that fundamental transaction. One practical tip: when you do eventually sell those 137 shares you're holding, make sure to note on your tax return (or tell your tax preparer) that these are RSU shares where the compensation income was already reported in a prior year. This helps avoid any confusion if you ever get audited. Also, keep that release confirmation document you mentioned - it's great documentation showing the vesting details and will be helpful for your records. Good luck with the rest of your tax prep!