Your employer is probably using the "aggregate method" for supplemental wages. There are two ways employers can calculate withholding on overtime/bonuses: 1. Flat rate method: A simple 22% flat withholding on supplemental wages 2. Aggregate method: They add the supplemental wages to your regular wages and calculate withholding as if the total was your regular paycheck, then subtract what was already withheld from your regular check The aggregate method almost always results in higher withholding because it makes the system think you're in a higher tax bracket. It's perfectly legal but super annoying. You'll get the extra money back when you file your taxes, but in the meantime, your employer is basically giving the government an interest-free loan with YOUR money. I'd talk to your payroll department and ask if they can use the flat rate method instead!

Isnt this a tax bracket thing? When u earn more in a pay period it gets taxed higher? My boss always said "don't work overtime cuz they take it all in taxes anyway" lol

Just wanted to point out - technically you can file your taxes without a corrected W-2. Use Form 8889 for your HSA and report the correct contribution amounts there. When e-filing, enter the W-2 exactly as received, then make the adjustments on Form 8889. Include an explanation statement explaining the discrepancy.

I'm dealing with a very similar HSA mess right now! My former employer is also dragging their feet on issuing a corrected W-2 after I had to remove excess contributions. One thing that helped me was getting everything in writing. When you call CompanyFirst, ask them to email you their response about why they won't issue a W-2c. Often when companies have to put their reasoning in writing, they realize they don't actually have a good reason to refuse. Also, make sure you have the distribution statement from HealthSavings that shows the excess contribution removal - this document should clearly state that it's for tax year 2025 contributions, not 2026. If HealthSavings is saying they sent CompanyFirst notification about the removal, ask them to provide you with a copy of that communication. If all else fails, you can absolutely file using Form 8889 with the correct amounts and attach an explanation. The IRS deals with W-2/HSA discrepancies all the time. Just keep detailed records of all your attempts to get the W-2 corrected in case you need them later.

My tax preparer told me that if your businesses are in the same "general field" you can file them together, but if they're completely different, you should file separately. She gave the example that her client who has a therapy practice and also does public speaking about mental health files on one Schedule C because they're in the same field. But her client who is both a dentist and owns a car wash files two separate Schedule Cs because those are totally unrelated businesses.

The "general field" rule that Emily mentioned is a good way to think about it. Your guitar performance and repair work definitely fall into the same general field of music/instruments, so you're absolutely fine continuing with one Schedule C. I'm a tax preparer and see this situation a lot. The IRS isn't going to split hairs over whether playing guitar and fixing guitars are "different enough" to require separate filings - they're clearly related activities that complement each other. One thing to consider is keeping internal records that separate the income and expenses for each activity, even if you're filing them together. This makes it easier if you ever need to analyze the profitability of each service or if the IRS has questions during an audit. You can do this with something as simple as different categories in your accounting software. The fact that you've been filing this way for years without any issues from the IRS is a good sign that your approach is reasonable and defensible.

Do any of the standard tax software packages handle oil and gas interests properly? I've been using TurboTax Self-Employed and it seems completely clueless about depletion allowances and proper treatment of different types of oil and gas income.

Great discussion everyone. As someone who's dealt with this exact scenario, I'd add that the choice between S Corp vs LLC/Partnership for oil and gas royalties often comes down to your specific circumstances and long-term plans. One angle I haven't seen mentioned is the impact on estate planning. LLCs/partnerships generally offer more flexibility for gifting interests to family members and implementing valuation discounts, which can be significant for substantial mineral portfolios. S Corps have stricter ownership transfer rules that can complicate succession planning. Also worth considering: if you're dealing with multiple states, partnerships/LLCs typically have simpler multi-state filing requirements. Some states impose franchise taxes or minimum fees on S Corps that don't apply to LLCs, which can add up quickly when you have interests across several producing regions. The competing preparer might be focused on a specific client situation where S Corp benefits outweigh these considerations, but for most oil and gas royalty scenarios, the LLC/partnership structure remains the more flexible choice in my experience.

This is exactly why I stopped sports betting last year. I had a similar experience where I was actually down money overall but still owed taxes on my winnings. The math just doesn't work for casual bettors. What really frustrated me was that other forms of entertainment spending don't get this treatment. If I buy $500 worth of concert tickets or video games, I'm not reporting that as a loss that can potentially offset other income. But with gambling, you're essentially being taxed on money you don't even have if you're a net loser. I think more people need to understand this before they start betting. The sportsbooks certainly aren't advertising the tax implications when they're trying to get you to sign up with their bonuses and promotions.

This is such an important warning that more people need to hear. I learned this lesson the hard way too, but not from sports betting - from playing poker at the casino. Had a few decent nights that put me up about $2,800 for the year, but I was actually down around $400 overall after all my losses. Come tax time, I had to report that $2,800 as income but couldn't deduct my losses because I take the standard deduction. Ended up paying about $680 in additional taxes on money I didn't actually keep. It felt like getting robbed twice - once by my bad poker luck and again by the tax code. The worst part is that this creates a perverse incentive where you're better off losing consistently rather than having any winning sessions at all. At least if you just lose everything, you don't owe taxes on money you no longer have. The whole system seems designed to discourage casual gambling through punitive tax treatment rather than addressing it directly.