The FreeTaxUSA interface can be really confusing with QBI. I've found that TurboTax actually explains the QBI rules better and walks you through the calculations, but it's more expensive. H&R Block's software is somewhere in the middle.

This is exactly the kind of situation that trips up a lot of people! You're handling it correctly - when freelance work is substantially the same as what you did as an employee for the same company, it doesn't qualify for QBI. The IRS created this rule specifically to prevent people from just switching to contractor status to claim the deduction while doing identical work. One thing to keep in mind for future planning: if your wife continues freelancing, she might want to diversify her client base. Income from different clients (not former employers) doing similar work would qualify for QBI. Also, if she can expand her services to include substantially different work for her former employer, that portion might qualify. Don't feel bad about "losing" the QBI deduction - you're following the rules correctly, and she can still benefit from legitimate business expense deductions on Schedule C. It's better to be compliant than to incorrectly claim QBI and face potential penalties later.

Sorry to hijack, but this thread reminded me - did anyone else notice that they changed some of the 1098 form options for 2025? Box 10 specifically mentions "mortgage insurance premiums" now instead of just "insurance" like it used to. Makes it clearer what belongs there. I think the IRS finally realized people were confused!

Great observation about the 2025 form changes! That definitely makes things clearer. For anyone still confused about Box 10, here's a quick summary: if there's an amount there, it's your mortgage insurance premiums (PMI, MIP, etc.) that may be deductible. If it's blank, you either don't pay mortgage insurance or your lender determined it's not the deductible type. One thing to watch out for - some lenders split mortgage insurance between what they report in Box 10 versus what they include in your escrow. Always double-check your annual escrow statement against your 1098 to make sure you're not missing any deductible amounts. The income limits for this deduction are pretty generous, so most first-time homebuyers can take advantage of it. @Ryan Kim - definitely worth following up with your lender about that $89/month PMI not showing up in Box 10!

I've been lurking in this community for a while but finally decided to jump in with a question. Reading through this thread has been incredibly enlightening! I'm in a similar situation to the original poster - first time really diving into my own taxes after having them done professionally for years. One thing that's still confusing me: I see everyone mentioning the standard deduction of $13,850 for single filers, but I'm married filing jointly. My spouse and I have a combined gross income of about $145k, and we've been trying to figure out whether to itemize or take the standard deduction. We have about $19k in potential itemized deductions (mortgage interest, state taxes, charitable donations), but I keep seeing different numbers for what the standard deduction is for married couples. Can someone clarify what the standard deduction amount is for married filing jointly in 2025? And based on what everyone's shared here about using gross income as the starting point, would our calculation be: $145k gross - $27,700 standard deduction (if that's the right number) = $117,300 taxable income? Or should we itemize since our deductions are lower than what I think the standard deduction is? Also, this whole thread about gross vs. net income really opened my eyes to why our tax software always asks for W-2 box numbers instead of letting us just enter our take-home pay. It all makes so much more sense now!

This whole discussion has been a goldmine of information! As someone who's been doing their own taxes for a few years but still gets confused by some concepts, the explanations about gross vs. net income really clicked for me. I wanted to share something that might help other newcomers: I used to get frustrated when my calculated refund didn't match what I expected, and it was because I was mentally mixing up the concepts discussed here. I'd look at how much was withheld from my paychecks throughout the year and think "that's a lot of money, so my refund should be big" - but I wasn't considering that those withholdings were supposed to cover my actual tax liability. The key insight for me was understanding that withholdings are just prepayments. If your withholdings closely match what you actually owe in taxes, your refund will be small (which is actually good - it means you weren't giving the government an interest-free loan all year). A huge refund usually means you had way too much withheld. For anyone just starting out with taxes, I'd recommend focusing on getting these foundational concepts right before worrying about more advanced strategies. Understanding gross vs. net income, how deductions work, and why withholdings are separate from your tax calculation will make everything else much clearer.

I went through something very similar when I got promoted at Amazon last year! The key thing to understand is that your refund isn't actually "your money" - it's just the amount you overpaid in taxes throughout the year. When Amazon's payroll system calculated your withholding more accurately with your higher income, you ended up keeping more of your actual earnings in each paycheck instead of giving the IRS an interest-free loan. Here's what probably happened: at $36k, you were likely in the 12% tax bracket, and Amazon was withholding conservatively. At $49k, you're still mostly in the 12% bracket but closer to the 22% threshold, so the withholding algorithm got more precise. This is actually GOOD for your finances - you had access to more of your money throughout the year. To verify this, look at Box 2 (Federal income tax withheld) on both W-2s. I bet this year's withholding didn't increase proportionally to your income increase. You basically got your "refund" spread across 26 paychecks instead of one lump sum. If you prefer getting a bigger refund next year, you can submit a new W-4 and use line 4c to request additional withholding - maybe $30-40 per paycheck to get back to that $800 range you're used to.

I completely understand your frustration - this same thing happened to me when I transferred from a different fulfillment center and my income jumped! The shock of expecting one amount and getting something totally different is real. One thing I'd add to all the great advice here is to also check if Amazon changed how they're handling your shift differentials or peak season pay. When I moved from nights to days, I lost the shift differential but didn't realize how that affected my withholding calculations throughout the year. Same thing can happen if you were getting peak pay last year that you didn't get this year, or vice versa. Also, if you're like me and were really counting on that refund money, consider setting up a separate savings account and having Amazon direct deposit a small amount from each paycheck into it. I do $35 per check and it basically recreates that "windfall" feeling when I need it for big expenses, except I'm earning a tiny bit of interest on it instead of giving the government a free loan. The hardest part is adjusting your mental budgeting, but once you realize you've actually been getting more money all year long, it starts to feel less like you got ripped off and more like the system is finally working better for you!

Just wanted to add my perspective as someone who recently went through first-time filing! With your income level and age, you're definitely looking at a straightforward situation - expect to get back whatever federal tax was withheld (that $143 you mentioned). One thing I wish someone had told me when I was in your shoes: don't feel pressured by all the conflicting advice from family and friends. Everyone's tax situation is different, and what worked for them probably won't apply to you. Those big refunds people talk about usually come from specific credits you won't qualify for yet. The filing process itself is actually pretty simple for your situation. You'll just report your W-2 income, take the standard deduction, and get back whatever was withheld. Since you're well below the taxable income threshold, you won't owe anything. Also, filing your taxes is a good learning experience! Even though the refund might seem small, you're building important financial habits and getting familiar with the process for future years when your situation might be more complex. Plus, you definitely want that $143 back - it's your money that was taken from your paychecks!

Diego, you're getting some really great advice here! As a first-time filer myself, I can totally relate to the confusion and conflicting information from different people. The reality is pretty straightforward for your situation: with $2,200 in income, you're well below the standard deduction threshold, so you'll get back whatever federal tax was withheld from your paychecks - that $143 from Box 2 of your W-2 is exactly what you should expect. Those people telling you about $1.5k-$4k refunds are thinking of credits that don't apply to your situation. The big refunds usually come from things like the Child Tax Credit (need kids), Earned Income Tax Credit (need to be 25+ without children), or education credits (need qualifying school expenses). None of those apply to a 19-year-old with no dependents and no college expenses. Don't let this discourage you though! Getting that $143 back is still great - it's your money that was taken from your paychecks, and you definitely want it back. Plus, filing taxes for the first time is an important step in building good financial habits. Since your return is so simple (just one W-2, standard deduction, no complications), definitely use one of the free filing options. Your situation doesn't need expensive tax prep - you can handle this yourself in about 30 minutes. Good luck with your first filing!