2 Has anyone ever had an employer just totally mess up their W-2? Last year I had to request a corrected W-2 because they put my bonus in Box 14 instead of including it in Box 1 wages. Took them forever to fix it and delayed my filing.

I see a lot of helpful advice here, but I want to add something that might save you headaches down the road. Make sure you keep copies of all your W-2s and any documentation about pre-tax deductions from each of your 5 employers. Since you mentioned this is the first time you've seen a W-2 formatted this way, it's worth noting that different payroll companies (ADP, Paychex, etc.) can make W-2s look quite different even though they contain the same IRS-required information. The key is always to focus on the actual box numbers rather than how the form is laid out. Also, with multiple part-time jobs, double-check that your total Social Security and Medicare taxes withheld across all W-2s don't exceed the annual limits. If they do, you can claim a credit for the excess when you file. This happens more often than you'd think with multiple employers.

Has anyone used TurboTax for a situation like this? I'm in the exact same boat (switched jobs in August with a $22k raise) and wondering if TurboTax handles this well or if I should go to a CPA this year?

Hey Anderson! I totally get the anxiety about this - I went through something similar when I switched jobs mid-year with a $20k bump. The key thing to remember is that while you might owe some money, it's rarely as catastrophic as those horror stories make it sound. Here's what likely happened: your old job withheld taxes assuming that lower salary for the full year, and your new job is withholding assuming the higher salary for the full year. But your actual tax liability is based on your combined income from both jobs, which puts more of your income in higher tax brackets than either employer accounted for. A few quick tips for filing: - Make sure you have both W-2s and enter them exactly as shown - Double-check that your 401k contributions are properly reflected (that $6,500 you mentioned helps!) - Look into any work-related expenses from your job change - Consider if you qualify for any education credits or other deductions you might have missed The good news is you're still getting regular withholding, so even if you owe something, it's probably manageable. And now you know for next year to potentially adjust your W-4 to withhold a bit extra to avoid surprises!

I went through this exact same confusion last year! The key thing that helped me understand it was thinking about it from the IRS perspective - they want to see the full economic activity of your business, not just what hits your bank account after third parties take their cuts. So yes, report the gross amount customers pay as income, then deduct PayPal fees as a business expense. This is actually beneficial for you because it gives you a larger deduction and more accurately reflects your business activity. One practical tip: PayPal's monthly statements make this pretty easy to track. They show both your gross sales and total fees for each month, so you don't have to calculate transaction by transaction. I just download the monthly summaries and use those numbers for my tax prep. Also worth noting - if you're using PayPal Goods & Services, those fees are definitely deductible business expenses. But if you ever use Friends & Family for business (which you shouldn't), those transactions get murkier from a tax perspective since that's technically not a business payment method.

Great question! I had the same confusion when I started my business. You definitely want to report the FULL amount customers pay as income and deduct the PayPal fees separately as business expenses on Schedule C. Here's why this matters: If you only report the net amount, you're essentially letting PayPal reduce your income without getting the tax benefit of those fees as deductions. By reporting gross income and deducting fees, you get the full business expense deduction you're entitled to. Also, keep in mind that if you receive a 1099-K from PayPal (which reports the gross amounts to the IRS), your tax return needs to match what they've already told the IRS you received. If you only report the net amounts, there will be a discrepancy that could trigger questions. The fees typically go under "Commissions and fees" or "Payment processing fees" on your Schedule C. Make sure to keep good records - I save my PayPal monthly statements which clearly show both gross receipts and total fees charged. This makes tax prep much easier and gives you solid documentation if the IRS ever has questions. One last tip: set up a separate PayPal account just for business if you haven't already. Mixing personal and business transactions makes everything more complicated come tax time!

I had a friend who didn't report about $1200 in side income from these apps. The IRS sent him a letter 18 months later asking about it! Turns out the person who paid him filed it as a business expense, which created a mismatch. Not worth the stress IMO.

Thanks for asking this question - I was wondering the same thing! Based on all the responses here, it's clear that even small amounts like your $650 need to be reported. I appreciate everyone sharing their experiences with the various tools and services mentioned. One thing I'd add is to make sure you keep good records of what the payments were for. If it was truly income from work/services, you'll need to report it. But if any of those CashApp payments were reimbursements from friends (like splitting dinner bills) or gifts, those might not be taxable income. The key is being able to document the nature of each payment. It sounds like the safest approach is to report everything and let the IRS sort it out rather than risk getting a letter later asking questions you can't easily answer.

Has anyone tried the W-2 import feature in TurboTax for a situation like this? I'm curious if it would pull in both W-2s or just one, and if it would handle the differences automatically.

I just went through this exact situation last month! When you have two W-2s like this from the same employer, it's usually because of a mid-year change in tax jurisdictions (which matches your husband's office move). Here's what worked for me: Use the Federal/State W-2 as your primary form in TurboTax. This has all your complete federal wage and tax information. The City/Local W-2 is supplementary and should only be used for the local tax sections. For Box 12 specifically, the differences you're seeing make sense: - The lower Code C amount ($390 vs $1,350) on the City/Local form reflects the reduced life insurance benefit calculation after the move - The Code D difference ($10,900 vs $11,800) shows 401k contributions were slightly different between the two periods - Code AA only appears on the Federal/State form because that's where the complete annual Roth 401k contribution total is reported TurboTax's import feature will likely only grab the Federal/State W-2, so you'll need to manually enter the city tax amounts in the local tax section. Don't worry about "double reporting" - the software keeps federal and local separate. Just make sure you're using the right form for each section!