Has anyone here used TurboTax when they had a year with workers comp? Did it handle the situation correctly or did you need to make adjustments?

I went through this exact same situation two years ago and it was really confusing at first! The negative W2 wages are completely normal - it's just how payroll systems handle the transition from regular taxable wages to non-taxable workers comp benefits. What probably happened is your employer initially processed some payments as regular wages early in the year, then had to "reverse" or correct those entries once your workers comp status was finalized. The negative numbers you're seeing are essentially the system's way of backing out those wages so they don't incorrectly appear as taxable income on your final W2. Your actual W2 at year-end will show the correct amount of taxable wages you earned (which sounds like it would be zero if you've been on workers comp the entire year). Don't worry about having to explain negative numbers to the IRS - they'll never see those paystub details, just the final corrected totals on your W2 form.

I've been following this thread closely because I'm dealing with the exact same CP32A situation. What really strikes me is how many of us are in this boat - it seems like the IRS sent out a massive batch of these notices all at once for stimulus payments that were issued months or even over a year ago. One thing I wanted to add that hasn't been mentioned yet - if you're planning to use Form 3911, make sure you select the correct reason code. There's a specific box for "Economic Impact Payment" that's different from regular tax refunds. I initially filled it out wrong and had to resubmit, which cost me an extra few weeks. Also, for anyone considering the third-party services mentioned in this thread, I'd suggest trying the free options first (Form 3911, TAS, persistent phone calling) before paying for help. The IRS will eventually sort this out, it's just a matter of patience and persistence. The most frustrating part about all this is that we're essentially being penalized for the IRS's own system failures. We did everything right by claiming the Recovery Rebate Credit when we didn't receive our payments, and now we're stuck in bureaucratic limbo trying to prove we never got money that was supposedly sent to us. Thanks to everyone who's shared their experiences - it's been really helpful to know what to expect!

I'm in the exact same situation and this thread has been incredibly helpful! I received my CP32A notice two weeks ago for the first stimulus payment that I never received and already claimed as a Recovery Rebate Credit on my tax return. After reading everyone's experiences, I've decided to pursue multiple strategies simultaneously. I'm doing the early morning phone calls (thanks for the 7:01am tip, Oliver!), and I've also prepared Form 3911 with the correct "Economic Impact Payment" reason code as Mikayla mentioned. One thing I wanted to add - I called my local IRS office directly instead of the national number, and while they couldn't handle the CP32A issue specifically, they were able to confirm that my tax return is currently on hold pending resolution of this stimulus payment discrepancy. At least now I know why my refund status hasn't updated in weeks. The representative suggested that I might also be able to visit a local Taxpayer Assistance Center in person if the phone and mail routes don't work out. They require appointments, but she said they can sometimes resolve these payment trace issues more quickly than the mail-in process. Thanks to everyone for sharing your experiences and strategies. It's reassuring to know this is resolvable, even if it requires persistence and patience!

Has anyone used one of the Big 4 accounting firms for PE analysis? We're considering hiring one but the fees they quoted were outrageous ($25k+ for an initial assessment).

This is such a timely discussion! I'm dealing with a similar situation for a UK-based fintech company. One thing I'd add is to be very careful about the "service PE" rules that can apply even without a physical office or dependent agents. If your European company is providing services in the US (like consulting, technical support, or software implementation) and those services are performed for more than 183 days in a 12-month period, you could trigger a service PE under many tax treaties. This is separate from the physical presence or dependent agent tests. Also, be aware that some activities that seem "preparatory or auxiliary" might not qualify for treaty protection if they're core to your business model. For a tech company, activities like customer onboarding, technical support, or customization services could be considered core business functions even if performed by contractors. The key is documenting everything - keep detailed records of what activities your US contractors are performing, their authority levels, and duration of services. This documentation will be crucial if you ever need to defend your position to tax authorities.

I went through a similar situation last year with I-Bonds and education planning. One thing that wasn't mentioned yet is the timing strategy for bonds approaching final maturity. If any of your I-Bonds are getting close to their 30-year final maturity date, you'll be forced to recognize all the interest income in that tax year regardless of your plans. Also, don't overlook the potential benefits of keeping some I-Bonds as part of your overall financial strategy. Even though you can't roll them tax-free into a 529, I-Bonds still offer inflation protection and tax deferral that you lose once you cash them out. For your daughter's college timeline (she's 12 now, so college in about 6 years), you might want to calculate whether the guaranteed returns and tax deferral of keeping the bonds outweigh the potential growth in a 529 plan, especially given current market conditions. Sometimes the "tax-efficient" move isn't always the most financially beneficial move overall.

One strategy you might want to consider is a phased approach rather than cashing out all your I-Bonds at once. Since you have bonds in multiple names and presumably different purchase dates, you could strategically redeem them over several years to manage the tax impact. For the bonds in your and your husband's names, you could cash out the older ones first (assuming they have lower interest rates) and reinvest in a 529 plan to start getting tax-free growth on future earnings. For your daughter's bonds, as others mentioned, those need to be used for her benefit, but a 529 with her as beneficiary would qualify. Also consider your state's 529 plan benefits - many states offer tax deductions for contributions that could partially offset the federal tax hit from cashing out the I-Bonds. The state tax savings might make the overall strategy more attractive than it appears at first glance. Since you're in a higher income bracket, you might also want to look at whether spreading the bond redemptions across multiple tax years could help avoid pushing you into an even higher tax bracket in any single year. The tax software or professional advice mentioned by others could help you model different scenarios to find the optimal timing.

As someone who went through this exact same situation two years ago, I can confirm what everyone else is saying - you're actually in great shape! My husband and I both forgot to update our W-4s after getting married and were withholding as single all year. We were terrified we'd owe a huge amount. Turns out we got back almost $4,000! Our tax preparer explained that the single withholding rate is much more aggressive than married withholding, so we had essentially been overpaying taxes all year long. When we filed married filing jointly, we qualified for better tax brackets and a higher standard deduction, which made our refund even larger. The key thing to remember is that your actual tax liability is based on your marital status on December 31st, not what your W-4 said during the year. The W-4 just determines how much gets taken out of each paycheck - it's basically just an estimate. Your actual taxes are calculated when you file your return. Make sure to update your W-4s now for 2025 so you don't overpay again this year, but for 2024 you should be expecting money back rather than owing. Congratulations on your marriage, and don't stress about this - it's one of the most common "mistakes" that actually works out in your favor!

Just wanted to chime in as another data point - my partner and I made this exact same "mistake" when we got married in 2022! We were both withholding as single the entire year and were absolutely panicking when tax season rolled around. Ended up getting a refund of over $3,500 when we filed married filing jointly. Our CPA laughed and said this is probably the most common "happy accident" she sees with newlyweds. The single withholding tables are designed to take out more tax because single filers don't get the benefit of the wider married tax brackets. With your combined income around $145k, you're in the perfect sweet spot where married filing jointly will give you significant advantages over what you would have paid as two single filers. Plus you've been overpaying all year through your withholding! The only downside is you've essentially given the government an interest-free loan, but hey - at least it's better than owing! Definitely update those W-4s for 2025 though so you can keep more of your money in your own pockets throughout the year rather than waiting for a big refund.