A little tip from someone who's dealt with this Gusto W4 issue before - take a screenshot or document the changes you make to your W4 settings and the date you made them. I've had issues where changes I made didn't actually get processed correctly, and having that documentation made it much easier to get it fixed and even get a payroll correction when necessary. Also worth noting that depending on when in the pay period you make the change, it might not take effect until the next paycheck. Gusto typically has a cutoff date for payroll processing where changes made after that date roll to the next cycle.

Just wanted to add another perspective for anyone dealing with variable income like you mentioned. I'm also hourly with fluctuating pay, and what's worked well for me is using a combination approach: 1. I use the IRS calculator quarterly like Miguel suggested, but I also keep a simple spreadsheet tracking my year-to-date income and taxes withheld after each paycheck 2. For Gusto specifically, I've found their customer service is much better if you call during off-peak hours (early morning or late afternoon) - you're more likely to get someone who actually understands tax withholding One thing that caught my attention in your post - you mentioned not seeing any difference in withholding after updating Step 3. Double-check that you're looking at the right line on your paystub. Sometimes the change shows up in "Federal Income Tax" but not necessarily in the total withholding if other deductions changed too. Also, since you're trying to get close to zero refund, consider that with variable income, it's often better to err slightly on the side of overwithholding rather than underwithholding to avoid potential underpayment penalties. The quarterly approach really helps with this!

The NJ Division of Taxation officially states that e-filed returns take approximately 4 weeks to process, while paper returns take a minimum of 12 weeks. However, these are best-case scenarios. If your return was selected for additional review or if you claimed certain credits like the Earned Income Tax Credit, processing can take significantly longer. The 'in process' status on their Where's My Refund tool simply means they've received your return and it's in the queue for processing - it doesn't indicate where in the process your return actually is.

I'm going through the exact same thing! Filed my NJ return in early February and still waiting. The frustrating part is that their "Where's My Refund" tool hasn't been updated in weeks - just shows "processing" with no timeline. I've heard from other people that NJ really struggles with their outdated systems. At this point I'm just trying to be patient, but it's tough when you're counting on that money. Hang in there - sounds like we're all in the same boat this year!

Just a thought - have you looked into whether any of your father in law's $4700 income might be non-taxable? Things like certain VA benefits, some Social Security benefits depending on total income, and certain disability payments don't count toward the gross income test for dependency. If enough of his income is non-taxable, he might actually fall under the threshold and could potentially qualify as a dependent, which would solve your head of household problem.

This is a complex situation that highlights how tricky the head of household rules can be! I'd recommend double-checking a few things that might help your case: First, as others mentioned, carefully review what types of income your father-in-law receives. If any portion of that $4,700 comes from non-taxable sources (like certain Social Security benefits, VA disability, or other exempt income), it wouldn't count toward the gross income test. Even reducing his taxable income by a few hundred dollars could make him qualify as your dependent. Second, the special parent rule mentioned by Ryan Andre could be really important here. Since your partner is supporting his own father and paying more than half the household expenses, this might be the path to head of household status even if the father can't be claimed as a dependent due to income. I'd also suggest getting professional help given the complexity - either through one of the AI tools mentioned, calling the IRS directly, or consulting with a tax professional who specializes in family support situations. The potential tax savings from head of household status versus single filing could be significant enough to justify the cost of getting expert guidance. Keep detailed records of all expenses your partner pays for the household - this documentation will be crucial regardless of which filing approach you end up taking.

The simplest solution might be to just have your business pay you additional compensation (bonus, distribution, etc.) and then you pay for the remodel personally. This keeps everything clean - your business isn't directly paying for potentially personal expenses, and you can still claim the legitimate home office deduction on your personal taxes. Just make sure your business accountant helps you structure the compensation properly based on your business entity type (S-corp, LLC, etc.) since different rules apply. This approach also helps you avoid the "corporate veil" issues someone mentioned.

Great discussion here! As someone who went through a similar situation recently, I want to emphasize how important it is to get this right from the start. I made the mistake of mixing business and personal funds for a home renovation and it created a nightmare during tax season. What really helped me was documenting everything meticulously - I created a detailed spreadsheet showing square footage calculations, took photos of my dedicated office space, and kept all contractor invoices organized by business vs. personal portions. The IRS loves documentation, especially for home office deductions. One thing I learned the hard way: if you're planning to sell your home within the next few years, make sure you understand the depreciation recapture rules before claiming any home office deductions. I almost got blindsided by this when I was considering a move. Connor, given that you're in a high-tax area, the savings might be significant, but don't let that cloud your judgment on proper compliance. The cleanest approach really is separate payments for separate purposes, even if it means more paperwork upfront.

been waiting since February... welcome to the party 😭

I feel your pain! Been there myself and the waiting is brutal. Just to confirm what others said - you definitely won't get your refund before the 846 code shows up. That code literally means "refund issued" so it has to appear first. 3 weeks isn't too bad yet though - the IRS says to allow 21 days for e-filed returns. If you hit the 21 day mark and still nothing, then you can start digging deeper into what might be causing the delay. Hang in there!