Hey quick question - has anyone used CreditKarma Tax (now Cash App Taxes) for a situation like this with multiple W2s from the same employer? I'm having the exact same issue but with Arizona and Texas.

I've been a tax preparer for over 15 years and this is actually a very common situation that confuses a lot of people. You absolutely need to file both W-2s, but here's the key: they represent your wages earned in two different states, not duplicate income. The reason Box 1 (federal wages) is identical on both forms is because that represents your total annual wages from that employer - it's the same number because it's your complete yearly income. The difference you're seeing in Box 16 (state wages) shows how much you earned in each specific state. When entering these into tax software, make sure you select an option that indicates "same employer, multiple states" or "transferred locations during the year." Most good tax software will recognize this and won't double-count your federal income. The $4,000 tax bill you're seeing suggests the software is treating these as income from two separate employers. If 1040.com doesn't have clear multi-state options, I'd recommend switching to TurboTax, FreeTaxUSA, or H&R Block - they all handle this situation much better. You'll likely need to file state returns for both Nevada and Oregon, but your federal return will show your income correctly (once, not twice).

Something no one mentioned - if you're married and your spouse has a W-2 job with withholding, you can sometimes avoid quarterly payments entirely by increasing their withholding to cover your self-employment tax too. My husband just fills out a new W-4 with his employer asking for additional withholding each paycheck. Way easier than dealing with quarterly payments!

Great question! You're absolutely right to think about this strategically. The key thing to understand is that estimated quarterly payments are based on your projected annual income, not just that specific quarter's earnings. You have a few options: 1. **Safe Harbor Method**: Pay 100% of last year's total tax liability (or 110% if your AGI was over $150k) divided into 4 equal payments. This completely avoids penalties regardless of when you earn the money during the year. 2. **Annualized Income Method**: This is perfect for your situation! You calculate each quarterly payment based on your actual year-to-date income at that point. So for Q2, you'd base it on your total Q1+Q2 income, Q3 on Q1+Q2+Q3, etc. This prevents you from overpaying early in the year when you had that great quarter. 3. **90% of Current Year**: Pay 90% of what you expect to owe for the entire current year, divided into 4 payments. Given your income pattern (strong Q1, expecting slower Q2-Q4), the annualized income method using Form 2210 is probably your best bet. It lets you pay more when you earn more and less when you earn less, which matches your actual cash flow. The IRS cares about avoiding underpayment for the full year, not matching each quarter's payment to that quarter's specific earnings.

Just to add a practical tip - I keep a specific "FHL booking log" spreadsheet that tracks all stays including days between bookings. This makes it easy to demonstrate to HMRC that I'm meeting all the FHL criteria. For repeat guests, I make a point of having them sign a specific checkout form confirming they're fully vacating the property at the end of each stay. When they return later, they sign a completely new booking form. I've been doing FHL rentals for 5 years and have had repeat guests do multiple 30-day stays within the same tax year without problems. As long as your documentation clearly shows these are separate holiday bookings, you should be fine.

This is really helpful information from everyone! I've been dealing with a similar situation with my holiday cottage in the Cotswolds. What I've learned from my accountant is that the key is demonstrating genuine commercial availability between stays. One thing I do that might help others - I make sure to update my property listing on booking platforms immediately after each guest checks out, showing it's available for the gap period between their stays. Even if the same guest has already booked the next period, having that evidence of commercial availability helps demonstrate it's not just a disguised long-term let. Also worth noting - I've found that having a minimum 7-day gap between stays by the same guest gives you a much stronger position if HMRC ever questions it. It shows the property was genuinely available to other holidaymakers and that you're not just trying to game the 31-day rule. The checkout documentation suggestions here are spot on too - I wish I'd started doing that from the beginning!

Don't stress too much! I work in tax compliance and can tell you that state audits don't automatically trigger federal ones. The IRS has their own selection criteria and timeline. That said, if your state finds significant issues (especially underreported income), they might share that info with the feds. My advice: cooperate fully with the state audit, keep meticulous records, and if anything major comes up, consider hiring a tax pro who can represent you with both agencies. Most state audits are routine and result in minor adjustments or no changes at all.

I'm going through something similar right now and it's definitely nerve-wracking! From what I've researched and heard from others, state and federal audits operate independently. The IRS has its own selection algorithms and risk assessment criteria. While there can be information sharing between agencies, it's not automatic. Focus on handling your state audit properly - gather all your documentation, respond to their requests promptly, and be transparent. Most state audits are resolved without major issues, and even if they find something, it doesn't guarantee the IRS will take action. Try not to let the anxiety consume you - just be prepared and professional in your responses.

Ohio usually processes pretty quickly! I filed my state return there last month and got my direct deposit in exactly 7 business days. The Ohio Department of Taxation has a "Check My Refund Status" tool on their website that's super helpful - you just need your SSN and refund amount. Since you just got accepted today, I'd expect to see movement within the next week or so. Direct deposit is definitely the way to go compared to waiting for a paper check!

Ohio is actually one of the better states for refund processing! I've been doing taxes for clients there for years and typically see direct deposits hitting accounts within 7-10 business days after acceptance. Since yours was just accepted today, you're looking at probably next week sometime. The nice thing about Ohio is they're pretty consistent - not like some states where it can vary wildly. Just keep an eye on your bank account and maybe check the Ohio tax website's refund tracker in a few days if you want peace of mind!