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has anyone considered just using a personal loan from a credit union? i took one out last year for about 10k, got a decent rate around 7% without any of the risks of the 401k loan or cd penalties. might be worth looking into as a third option????
That's a good point. I just checked my credit union and they're offering personal loans at 6.5% right now. Might actually be better than either of the other options!
One thing I haven't seen mentioned yet is the timing aspect of your CD maturity. Since your CD is set to mature in March and you need cash now, you might want to calculate exactly how much time you're losing. If it's only a few months until maturity, the early withdrawal penalty might be less painful than it initially appears. Also, regarding the 401k loan "double taxation" - I went through this analysis recently and found that the math really depends on your current tax bracket vs your expected retirement tax bracket. If you're in a higher bracket now than you expect to be in retirement, the double taxation effect on the interest portion is actually minimal. For a short-term need like yours (3-4 months), I'd lean toward the CD early withdrawal simply because it's a clean transaction with no ongoing obligations or job-related risks. The penalty is a one-time hit, and you know exactly what it costs upfront.
Filed mine Feb 15th and still waiting too. Called the GA DOR yesterday and they said they're experiencing "unprecedented volume" this year. The rep told me to expect at least 10-12 weeks from filing date. Apparently they're doing extra verification on a lot of returns. Hang in there!
Filed my GA return on Feb 12th and still waiting too. Been checking the "Where's My Refund" tool daily like it's going to magically change overnight š At this point I'm just hoping it arrives before I need to file next year's taxes. The extra verification makes sense given all the fraud issues, but man it's frustrating when you're counting on that money!
Does anyone know how to find a legitimate tax preparer who won't charge an arm and a leg for amendment help? The fact that their original preparer refuses to help fix their mistake is making my blood boil!
Try contacting your local Low Income Taxpayer Clinic (LITC) - they often provide free or low-cost help for tax issues. Also check if the family qualifies for the IRS's Volunteer Income Tax Assistance (VITA) program. You can find locations at irs.gov/vita.
Thanks for those suggestions! I'll look into both. The family is definitely not high income, so maybe they'll qualify for one of these programs. Hoping we can find something faster than the 8-week wait we were quoted elsewhere.
As someone who works in financial aid administration, I want to emphasize how critical timing is here. While the amendment process can take several weeks to fully complete with the IRS, most financial aid offices will accept proof that you've submitted the amendment (like a copy of the 1040-X forms or certified mail receipt) to move forward with FAFSA processing. Make sure to contact your student's college financial aid office immediately once you submit the amendments - don't wait for IRS processing to complete. Explain the situation and ask what documentation they need to verify the corrected filing status. Many schools have procedures for exactly this type of situation since HOH filing errors are unfortunately common. Also, keep detailed records of everything - the original incorrect returns, all amendment paperwork, submission confirmations, and any correspondence with the IRS. This documentation trail will be invaluable if there are any questions down the road from either the IRS or the school's financial aid office.
Evelyn Martinez
17 Has anyone tried the IRS Tax Withholding Estimator on their website? I heard it's pretty accurate for figuring out how to fill out your W-4.
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Evelyn Martinez
ā¢9 I tried it but found it super confusing. They ask for so much information that I didn't have handy, like exact YTD withholding amounts and projected income for the rest of the year. It's good if you have all that info ready, but for a simple situation, it felt like overkill.
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Luca Bianchi
22 As someone who works in tax preparation, I'd recommend starting simple since you're single with no dependents. The new W-4 is actually designed to be more accurate than the old allowance system once you understand it. For your situation: - Step 1: Check "Single or Married filing separately" - Step 2: Leave blank (only applies if you have multiple jobs or your spouse works) - Step 3: Leave blank (no dependents) - Step 4: This is where you fine-tune The key is Step 4(c) - if you consistently get large refunds, you can reduce withholding here by entering a negative amount (like -$50 per paycheck). If you usually owe, add extra withholding with a positive amount. One tip: Look at last year's tax return to see if you got a big refund or owed money. If you got back more than $500, you might want to reduce withholding slightly. The goal is to get within a few hundred dollars either way. The IRS withholding calculator is free and official, but honestly it can be overwhelming for straightforward situations like yours. Start with the basic approach above and adjust after your first few paychecks if needed.
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