Just wanted to throw this out there - if you're getting a refund of around $1k on $35k income, that's pretty average. But if you really want to change it, the easiest thing is to use the IRS Tax Withholding Estimator on their website. It's free and will tell you exactly what to put on your W-4. https://www.irs.gov/individuals/tax-withholding-estimator It's designed specifically for this situation and walks you through everything step by step. I use it every January to make sure I'm on track.

Keep in mind that if you adjust your W-4 to get close to zero refund, you're walking a fine line. If you miscalculate or your income changes, you might end up owing money at tax time. Some people prefer getting a refund as a forced savings mechanism. That said, $1000 on $35,000 income isn't crazy high for a refund. If you really want to reduce it, try changing your W-4 to claim an additional $4000 in deductions (not the full $5-6k recommended above) and see how that affects your paychecks. You can always adjust again mid-year if needed.

I'm surprised nobody mentioned getting professional help for Form 886-A responses. These are essentially audit inquiries and responding incorrectly can lead to bigger problems. When I received one questioning my home office deduction and some Schedule C expenses, I tried handling it myself first and made things worse. A tax professional who specializes in audit representation knows exactly what documentation the IRS is looking for and how to present it effectively. They typically charge $300-500 for Form 886-A assistance, but that's tiny compared to the potential additional taxes, interest and penalties if your deductions are disallowed.

I just wanted to add some perspective as someone who's been through multiple Form 886-A responses over the years. The key thing to remember is that this is NOT an audit - it's a documentation request. The IRS is essentially saying "prove what you claimed on your return." For your mortgage interest issue, the IRS wants to establish two things: (1) that the payments were actually mortgage interest (not principal, fees, or other costs), and (2) that YOU were legally obligated to pay and actually did pay them. If you have a joint mortgage but file separately, this becomes more complex. For inherited stocks, the stepped-up basis rule is in your favor - you get the fair market value on the date of death as your basis, not what the deceased originally paid. But you need to document that value. Even if you can't find estate documents, you can often reconstruct this using historical stock prices from financial websites like Yahoo Finance or requesting records from the company's transfer agent. The most important advice: respond within the deadline (usually 30 days), be thorough but concise, and organize everything clearly. Label each document and explain how it addresses their specific concern. If you need more time, call the contact number on the form to request an extension - they're usually reasonable about this. Don't panic - Form 886-A responses have a high success rate when you provide proper documentation. The IRS isn't trying to "get you" - they just need to verify the information on your return.

Adding to all the great advice here! I've been working in federal HR for the past decade and have helped place hundreds of people into IRS positions. A few things that might help with your decision: The IRS Counsel offices are often overlooked but offer incredible growth potential. Even without a law degree, you can work as a paralegal specialist or case technician supporting tax litigation. These roles often have faster promotion tracks because they're harder to fill, and the work is intellectually challenging - you're dealing with complex tax law cases that go to Tax Court. For someone with your finance background who wants something different, consider the Treasury Inspector General for Tax Administration (TIGTA). Technically separate from IRS but works closely with them investigating fraud, waste, and abuse. It's like being an internal affairs detective for the tax system. Great pay progression and really meaningful work. One practical tip: when you apply through USAJobs, don't just apply to one location. IRS has offices everywhere and some smaller locations have much less competition. You can always transfer later once you're in the system. The pension system (FERS) combined with TSP matching is honestly better than most private sector retirement packages, especially if you start young. Even if you only stay 10-15 years, you'll be much better positioned for retirement than your private sector peers.

As someone who's been considering a career transition into federal service, this thread has been incredibly eye-opening! I had no idea there were so many diverse opportunities within the IRS beyond the traditional revenue agent role that most people think of. The mention of Criminal Investigation as Special Agents particularly caught my attention - I never would have imagined the IRS had positions that involve carrying badges and investigating financial crimes. That sounds like it could be genuinely exciting work that combines financial expertise with law enforcement. I'm also really intrigued by what several people mentioned about the current hiring surge. It sounds like this might actually be an ideal time to apply given the expanded funding and growing divisions. The work-life balance and benefits package seem significantly better than what I'm seeing in private sector accounting firms right now. One question for those with IRS experience - how important is it to have a specific preference for which division you'd want to work in when applying? Or is it better to cast a wide net initially and then try to transfer internally once you understand the organization better? I'm torn between wanting to seem focused versus keeping my options open given all these interesting possibilities I'm just learning about. Thanks to everyone who's shared their experiences and insights - this has been more helpful than any official career guidance I've found!

Pro tip: Instead of constantly refreshing the SBTPG site, set up text alerts with your bank for deposits. Way less stressful! I've been through this rodeo a few times and learned the hard way that watching those trackers will drive you insane. 🤪 Also, if you're really concerned, try calling your bank directly and ask if they see any pending ACH deposits. Sometimes they can see it in their system before it posts to your account. Much more reliable than the SBTPG website!

This is such a relief to read! I'm in almost the exact same situation - filed 2/16 with DDD of 3/5, and I've been going crazy checking both the SBTPG website and my bank account multiple times a day. The SBTPG site still shows nothing, but now I'm definitely going to try calling their phone line to see if I get different information. As someone who's also navigating the US tax system for the first time, it's really helpful to know that this kind of system lag is normal and not a sign that something went wrong with my refund. Thanks for sharing your experience - it's made me feel so much less anxious about the whole process!

I just want to thank everyone who contributed to this thread - it's been incredibly valuable for those of us dealing with the Withholding Compliance Program. As someone who was also thrown into this program recently, I can relate to that initial panic and feeling of being overwhelmed by the IRS notice. What really stands out from reading all these responses is that this situation is much more manageable than it initially appears. The combination of strategies people have shared - from adjusting W-4 withholding and increasing estimated quarterly payments, to using tools like taxr.ai for planning, to even services like Claimyr for getting through to actual IRS agents - shows there are multiple paths forward. The psychological shift that Luis mentioned is so important too - viewing this as the IRS helping you stay compliant rather than punishing you. It's still stressful, but it's a temporary situation that you can definitely work through with the right approach. For anyone just finding this thread who's dealing with the Withholding Compliance Program: you're not alone, it's not permanent, and there are concrete steps you can take to resolve it. The advice shared here covers pretty much every angle from practical tax planning to navigating IRS communications. Take a deep breath and start with whatever approach feels most manageable for your situation!

As someone who's been through the Withholding Compliance Program myself, I wanted to add one more perspective that might help. The program can actually be a blessing in disguise for people with irregular income like freelancers and contractors. Before I got into the program, I was constantly stressed about whether I was setting aside enough for taxes. The forced structure of having to calculate and make proper payments actually helped me develop much better financial habits. Now, even though I'm out of the program, I still use the same systematic approach to tax planning. One thing I didn't see mentioned much in this thread is the importance of keeping your estimated payment vouchers and confirmation numbers organized. I created a simple spreadsheet tracking each quarterly payment with dates, amounts, and confirmation numbers. This saved me so much time when filing my return and proving compliance. Also, don't be afraid to make slightly higher estimated payments if you're unsure. Getting a small refund is infinitely better than owing again and staying in the program another year. I learned this the hard way - tried to calculate my payments down to the penny my first year and ended up $200 short, which kept me in the program longer than necessary. The silver lining is that once you're out, you'll have developed solid tax planning skills that will serve you well for years to come. Hang in there - it really does get easier!