Getting exactly $0 tax refund every year since switching from 1099 to W-2 - is this normal?

When you say "final check adjustment," how does that work exactly? My company uses ADP for payroll if that matters. Also, would this be something I'd see on my final December paystub?

Some payroll systems like ADP offer year-end tax withholding adjustments. They can calculate if you're slightly under or over your estimated tax liability based on your earnings to date, then adjust your final paycheck of the year to get you closer to zero. This would appear on your December paystub, usually with a different withholding amount compared to your typical paychecks. You can easily check this by comparing your December federal withholding to previous months. If December's withholding is noticeably different (higher or lower), that's a strong indication they're performing this adjustment. Many employers activate this feature to help employees avoid owing small amounts or waiting for minor refunds.

Does this actually work with different tax software? I've been using TurboTax and always end up owing a few hundred bucks even though I claim 0 allowances. It's frustrating.

I'm skeptical about these tax analysis tools. Can it really figure out something that specific from just uploading documents? My situation is probably more complicated with rental income too.

Yes, it works regardless of what tax software you use for filing because it's analyzing your actual withholding patterns and tax documents, not the software itself. The tool can help identify why you're owing despite claiming 0 allowances - often it's because the W-4 changed in 2020 and doesn't use allowances anymore, so your withholding might need updating with the new form. For complicated situations with additional income sources like rentals, that's actually where I found it most helpful. It separated my W-2 withholding analysis from my other income sources and showed exactly how much additional quarterly estimated payments I should be making for my rental income to avoid underpayment penalties. It handles multi-source income situations really well.

Wait, you pay someone to call the IRS for you? How does that even work? Wouldn't they need all your personal tax info?

Sounds like a scam. No way they can get through when millions of people can't. The IRS phone system is deliberately designed to be impenetrable.

They don't call the IRS for you - they use technology to navigate the IRS phone tree and hold systems, then when they're about to connect, they call you and connect you directly to the IRS agent. You talk to the IRS yourself, so you don't share personal tax info with the service. The reason it works is because they have systems constantly dialing and navigating the phone trees across multiple lines, which is something individuals can't do. When I used it, I got connected in about 12 minutes when I had previously spent over 4 hours trying on my own across multiple days. The IRS agent I spoke with was actually really helpful once I explained my zero-refund situation.

I never thought to check that! We do use Workday actually. Is this something in the benefits section or somewhere else? I'll have to poke around tomorrow. If I could set preferences that would be awesome.

Check under the Payroll section in Workday. Look for something called "Tax Withholding" or "W-4 Elections." Most versions have a withholding calculator where you can play with different scenarios. Some even have a slider where you can choose between maximizing paychecks (0 refund) or getting a specific refund amount. It's usually in the same place where you would update your W-4 information. The calculator is pretty helpful because it shows how each change affects both your paycheck and your expected refund. If you don't see it, your HR department can tell you if this feature is enabled for your company.

This is actually a myth that needs to die. For most normal people, the "interest" you'd earn on the extra $20-40 per paycheck is minimal compared to the psychological benefit of getting a larger refund. Most people don't invest that small difference anyway.

You're missing the bigger financial picture. Even small amounts add up significantly over time, especially with compound interest. An extra $40 per paycheck is $1,040 annually that could be in your investment accounts growing instead of sitting with the IRS. But more importantly, having access to your full earnings gives you financial flexibility throughout the year. That money could go toward paying down high-interest debt, building an emergency fund, or investing in retirement accounts with tax advantages. It's about having control of your own money rather than voluntarily restricting access to it. For people struggling with cash flow issues, every dollar in their regular paycheck matters.