Has anybody here used the IRS withholding calculator on their website? Is it actually accurate? I'm trying to figure out how much to put in box 4(c) like mentioned above.

I went through almost the exact same thing last year - totally missed section 1c and ended up owing $900 when I was expecting a refund. It's such a gut punch when you're counting on that money! Here's what I learned: the IRS doesn't really negotiate on mistakes like this. You pretty much have to pay what you owe, but you do have options for HOW you pay. If $1,400 is a lot for you to come up with at once (it definitely was for me), you can set up a payment plan online through the IRS website. The fees are pretty reasonable - I think I paid like $30 to set up a 6-month plan. The most important thing is to fix your W-4 ASAP so this doesn't happen again. I actually had my HR department help me fill out a new one to make sure I got it right this time. Don't feel bad about asking for help - they see this stuff all the time. One silver lining: now that you know about this, you'll never make the same mistake again. And honestly, owing taxes isn't the worst thing - it means you had more money in your paycheck throughout the year instead of giving the government an interest-free loan. Try to think of it that way!

Have you tried contacting your local Taxpayer Assistance Center instead of the national number? Sometimes you can get an in-person appointment and avoid the phone system entirely. I had a similar issue with my first tax return after college.

As someone who just went through this nightmare last month, I feel your pain! Here's what actually worked for me after trying everything else: Call 800-829-1040 at exactly 7:00 AM EST on a Wednesday or Thursday. When you get to the automated menu, press 1 for English, then immediately press 2-1-3-2. Don't enter your SSN when prompted - just wait through the silence. This usually gets you to a human in about 45-60 minutes instead of the usual 2+ hours. Pro tip: Use speaker phone and do something else while you wait. I cleaned my entire apartment during one call lol. Also, since you filed in February and it's now been over 2 months, you might want to check your tax transcript online first at irs.gov. There could be a processing code that explains the delay. Sometimes they need additional verification for first-time filers, especially recent graduates. Good luck! The adult tax world is definitely a learning curve but you've got this! 💪

The community consensus on this issue is that it's almost always one of three things: 1) A math error on your return that the IRS automatically corrected, 2) A verification hold that requires additional documentation, or 3) An income phase-out that affected your eligibility. Compared to the old stimulus payment issues from 2020-2021, today's Child Tax Credit problems are usually resolved much faster. Most members here report resolution within 60 days versus the 6+ months we saw during the pandemic processing backlog.

As someone new to the US tax system, I'd recommend starting with the basics before jumping into complex procedures. First, download your tax transcript from the IRS website (irs.gov/individuals/get-transcript) - this will show exactly what payments the IRS has on record for you. The $1400 you're missing could be related to the Child Tax Credit, not the Recovery Rebate Credit, since those stimulus payments ended in 2021. Check if you have qualifying children and verify your income falls within the phase-out limits. If your transcript shows discrepancies, then you can determine whether you need Form 1040X or if there's a simpler resolution. Don't rush into filing amendments until you understand what the IRS actually processed vs. what you expected!

I'm confused about one thing - does the military exemption just apply to the 2-year ownership rule or does it also extend the capital gains exclusion amount? My friend told me military gets a higher exclusion than $500k but that seems too good to be true??

Just wanted to jump in here as someone who went through this exact scenario! Your buddy is definitely mixing up the old rules - there's no 6-month requirement to buy another house to avoid capital gains tax. Since you owned and lived in your home as your primary residence for over 2 years and you're married filing jointly, you qualify for the full $500,000 capital gains exclusion. Your $125k profit is well under that threshold, so you won't owe any capital gains tax regardless of when (or if) you buy your next home. The military connection actually works in your favor here too. If you hadn't quite hit the 2-year mark due to PCS moves, there are special provisions that could still help you qualify. But since you're already over 2 years, you're in great shape. One thing to keep in mind - while your home sale profit won't be taxed, any interest you earn on that $125k in your high-yield savings account will be taxable as regular income. So just factor that into your planning when you're setting money aside for next year's taxes. You can breathe easy on this one - no surprise tax bill coming your way from the home sale!

Does anyone know if forming the holding company in a different state than where you live would make sense from a tax perspective? I've heard Wyoming and Nevada mentioned a lot for holding companies because they have no state income tax.

I went through a similar situation about 18 months ago with roughly the same income level as you. Here's what I learned that might help: First, don't get too caught up in the complexity right away. With $150K in business income plus rental properties, you're definitely at a level where this could make sense, but the structure needs to match your specific goals. One thing I wish someone had told me earlier: the "tax savings" from holding companies often come more from better expense management and strategic timing rather than just the entity structure itself. For example, being able to reimburse yourself for health insurance, home office expenses, and business travel through the holding company can add up to significant deductions. For your rental properties specifically, having them in separate LLCs under a holding company does create nice liability separation, but make sure you understand the ongoing costs. Each LLC typically needs its own tax return (even if it's a simple one), and depending on your state, there might be annual fees for each entity. My accountant had me run the numbers on three scenarios: staying as sole proprietor, setting up just the business as an S-Corp, and doing the full holding company structure. The holding company only made sense once we factored in my plans to acquire more properties over the next few years. The income flow question you asked is key - with an S-Corp holding company, everything flows through to your personal return, so you're not dealing with corporate-level taxation plus personal taxation. Much cleaner than I initially expected.