Another thing to consider - are they still expecting you to use your own equipment with this change? If so, the wear and tear on your personal computer, printer, etc. will now effectively be coming out of your taxed income rather than being covered by a tax-free reimbursement. My company did something similar last year and I negotiated for them to provide an equipment stipend every 3 years for computer replacement separately from the salary adjustment. Might be worth asking about!

This happened at my company in 2023 and it was a total mess! They only increased salaries by the exact amount of the previous reimbursement and everyone effectively took a pay cut of about 22-30% of that amount (depending on tax bracket). After massive complaints, they ended up increasing the salary adjustment by 25% to partially offset the tax impact. It still wasn't a perfect solution, but it was better than the initial offer. My advice: get together with your coworkers and bring this up collectively. Individual negotiations had little impact, but when 30+ people raised the issue together, management took it seriously.

One thing to consider beyond just the refund amount - a CPA might help you with planning for next year too. I sold my house last year and used TurboTax, but when I had a CPA review it this year, they found some errors in how I handled the depreciation from when I briefly rented out a room. Now I'm facing a potential amendment situation which is a headache. Definitely going with a CPA from now on for anything involving property sales.

Don't forget that a CPA might save you money in ways you haven't even considered. TurboTax basically asks you questions and you answer them, but it doesn't know what questions you SHOULD be asking. I had a similar situation with a property sale and ended up going with a CPA. She found that I could deduct some moving expenses related to the sale that I would have never known about through TurboTax. Saved about $1,700 in taxes!

Everyone's discussing the tax implications, but don't forget the mortgage angle! I'm a mortgage underwriter, and this W-2 vs 1099 switch can seriously impact your home buying process. Lenders view W-2 income as more stable than 1099 income. With 1099, most lenders want to see a 2-year history of self-employment income, and they average your income after business expenses. If you're planning to buy soon, getting this fixed quickly is important. For mortgage purposes, proper W-2 classification can make approval easier and potentially get you better rates. Document everything during this process as your lender will want to understand the situation.

Besides the SS-8 form everyone's mentioning, don't forget you may be eligible for significant employment benefits you've been missing out on. Depending on your state, these might include: - Unemployment insurance if you're laid off - Workers' compensation if injured on the job - Employer contributions to Social Security/Medicare - Potentially overtime pay if applicable - Employment protections against discrimination Your employer is saving roughly 7.65% on payroll taxes, plus unemployment insurance costs, possible benefits, etc. This isn't just a tax issue - it's about your rights and compensation as a worker.

Don't forget that besides filing a federal tax return, you may also need to file a state tax return depending on where you live! Some states have different minimum thresholds than the federal government. Also, since you're doing graphic design work, make sure you track ALL your expenses. Things like: - Software subscriptions (Adobe etc) - Computer equipment - Art supplies - Website hosting - Training/courses related to your design work - Portion of internet/phone bills used for business This can significantly reduce your taxable income and therefore how much you actually pay in taxes!

Just to add one more piece to this - even tho ur required to file with over $400 in self employment income, you might not actually owe income tax if your total income is under the standard deduction ($12,950 for 2022). BUT you'll still owe self-employment tax of 15.3% on your net profit (revenue minus expenses). That's why tracking all your business expenses is SUPER important - every dollar of legitimate business expense reduces your taxable profit.

Don't forget about education-related deductions! As a full-time student, you might qualify for the American Opportunity Credit which gives you up to $2,500 back. The great thing is it's partially refundable - meaning up to $1,000 comes back to you even if you don't owe taxes. You need Form 8863. Also, college textbooks and required course materials count toward the education credits! Keep all those receipts. I missed out on claiming these for two years before my tax preparer caught it.

I agree with Profile 12's advice on the vehicle! One thing to add - you mentioned you bought the car mainly for work. Keep track of your business mileage percentage. If you use the car 80% for business, you can deduct 80% of the interest on your car loan, as well as 80% of things like parking fees, tolls, and garaging costs. Also, since you're working as both W-2 and self-employed, make sure you're clear on which miles are for which job. You can't deduct mileage for your W-2 jobs (that deduction was eliminated), but you CAN deduct it for your self-employment.