I went through this exact situation two years ago and wanted to share a strategy that really helped streamline the process. After hitting the SS cap at my previous job in September and starting a new position in October, I created what I called a "SS overwithholding packet" for my new employer's HR team. This included: 1. My final paystub from the previous employer clearly highlighting the YTD SS wages exceeding $160,200 2. A one-page explanation of the Social Security cap and why overwithholding occurs with mid-year job changes 3. The results from the IRS Tax Withholding Estimator showing my recommended W-4 settings 4. A simple calculation showing exactly how much SS tax would be overwitheld each pay period Having everything organized in one packet made the conversation with HR incredibly smooth. They appreciated that I came prepared with solutions rather than just explaining the problem. My HR rep even mentioned they kept a copy of my explanation to help future employees in similar situations. One thing I'd emphasize - make sure your calculations account for the exact number of remaining pay periods, not just "the rest of the year." I initially miscalculated because I forgot about the holiday pay schedule affecting when my last paycheck would actually be issued. The overwithholding still happens (there's no way around that), but having everything properly documented and adjusted made the financial impact much more manageable. Plus, I felt confident that I'd get the maximum refund at tax time without any complications.

I'm currently in this exact situation and this thread has been a goldmine of practical advice! I hit the SS cap at my previous employer in mid-October and just started a new job yesterday. Already seeing those SS deductions on my first paystub. After reading through all these experiences, I'm planning to take a hybrid approach combining several of the strategies mentioned here: 1. **Documentation first**: Going to create that "SS overwithholding packet" that @Mateo Lopez suggested - brilliant idea to package everything professionally for HR 2. **IRS Withholding Estimator**: Multiple people have confirmed this is the gold standard, so I'll run this over the weekend with complete data from both employers 3. **Quick action**: The point about that $800 in just three weeks really hit home - I need to get this fixed immediately rather than procrastinating One question for the group: Has anyone dealt with this when their new employer has a waiting period before you can make W-4 changes? My company mentioned there might be a 30-day waiting period for payroll changes, which would be frustrating given how quickly the overwithholding adds up. Also want to echo what others have said about this thread being an incredible resource. The combination of technical tax knowledge and real-world implementation advice has made what seemed like an impossible situation feel completely manageable. Thank you to everyone who shared their experiences! For anyone else just starting to deal with this - you're not alone, and based on all these success stories, there's definitely a clear path to resolving it.

Protip: If you connect your Coinbase account to Koinly or CoinTracker, they can automatically import all your transactions and generate the tax forms you need. Much easier than trying to track everything manually. I think they both offer free plans if you have fewer than 100 transactions.

Just wanted to add some clarity here since I see people getting confused about what forms to expect. For 2023 tax year, Coinbase stopped sending 1099-B forms for most retail traders. They only send 1099-MISC if you earned over $600 in rewards/staking income. However, they still report your transaction data to the IRS behind the scenes, so you absolutely must report everything even without receiving a physical form. The key is using Coinbase's own tax reporting tool in your account settings - it's free and gives you all the data you need. Don't risk not reporting just because you didn't get a form in the mail. The IRS has been getting much more aggressive about crypto enforcement, and they have ways of matching unreported crypto income to your SSN. Better safe than sorry!

My employer did this to me a few years back and I just reported them to the IRS using the phone number someone else mentioned (800-829-1040). They didnt get in any trouble that I know of but it felt good to report them lol. also FYI the employer is supposed to pay for expedited processing if the w2 is sent late, but good luck getting them to do that!

I'm dealing with a similar situation right now! My former employer sent my W-2 postmarked February 15th, which is also way past the January 31st deadline. What really bothers me is that when I called them in early February asking about it, they insisted it had already been sent out weeks ago. From what I've learned, you should definitely keep that envelope with the February 21st postmark as evidence. That's proof positive that your employer violated the IRS deadline. Even though you have your W-2 now and can file your taxes, I'd still recommend documenting this violation somewhere - whether that's contacting their HR department directly or filing a report with the IRS. The frustrating part is that late W-2s can cause a domino effect of stress during tax season, even when it's completely out of your control. At least you know that any delays in your filing won't be held against you by the IRS since you have clear evidence the delay was your employer's fault. Good luck getting your taxes sorted out!

Quick tip from someone who went through this: make sure you're calculating your SPT days correctly! As a J1 research scholar, your first 2 years in the US are exempt from counting toward the SPT (that's why you were non-resident in 2022-2023). Starting in your third year (2024), those days start counting. The formula is: all days present in current year (2024) + 1/3 of days present in first preceding year (2023) + 1/6 of days present in second preceding year (2022). When this total exceeds 183, you've met the SPT. But wait! Since you were exempt from counting days in 2022-2023 due to your J1 research scholar status, you're essentially starting fresh in 2024. So you'd need to be physically present in the US for 183 days in 2024 to meet the SPT, which would be around early July if you've been here continuously.

I'm also a J1 research scholar and went through this exact transition last year! Your understanding is absolutely correct. Once you meet the SPT (which sounds like it'll happen around July 2024 for you), you can elect to be treated as a resident for the entire year using the First-year election. This is almost always the better choice since you'll get the standard deduction on Form 1040 instead of filing 1040NR with no standard deduction. The fact that your employer started withholding FICA taxes from January confirms they're treating you as a resident for the full year. One thing to double-check: make sure you meet all the requirements for the First-year election. You need to be physically present in the US for at least 31 consecutive days during 2024 (which you clearly do) and present for at least 75% of the days between your first day of the 31-day period and the end of the year. For Minnesota, yes, you can file as a resident if you're filing federal as a resident. The state standard deduction will definitely help your tax situation. Don't let colleagues confuse you - J1 research scholars have different rules than J1 students, and your tax status legitimately changes after your second year. You're handling this correctly!

Don't forget to look into college financial aid too! When my daughter started college, we discovered that how we claimed her on taxes affected her FAFSA application. Sometimes the tax benefits vs. financial aid benefits can be a tradeoff.

I'm going through this exact transition right now with my oldest! One thing that really helped me plan was creating a simple spreadsheet to compare the financial impact year by year. For 2024 taxes (filed in 2025): You'll still get the full Child Tax Credit since she's 17 at year-end. For 2025 taxes (filed in 2026): No more Child Tax Credit, but if she's in college full-time, you can still claim her as a dependent AND potentially get the American Opportunity Tax Credit (up to $2,500 for the first 4 years of college). The key thing is that "providing more than half her support" - keep track of what you spend on her (tuition, room/board, food, medical, etc.) vs. any income she earns. As long as your support exceeds 50% of her total support for the year, you can claim her. Also, don't forget that claiming her as a dependent might affect her eligibility for certain financial aid, so definitely talk to the college financial aid office before making decisions. Sometimes it's better for the student to file independently depending on the aid packages available. The transition definitely stings financially, but the education credits can help bridge some of that gap if she goes to college!