Does this calculator work well for people with both W-2 and 1099 income? I do some contract work where taxes aren't withheld at all.

Yes, the IRS Withholding Calculator handles both W-2 and 1099 income. For your 1099 contract work, it will help determine if you need to make estimated quarterly tax payments or if you can increase withholding from your W-2 jobs to cover the taxes on your contract income. It asks for detailed information about all income sources, which makes its recommendations much more accurate for complex situations like yours with mixed income types. Just be sure to update your information whenever your income situation changes throughout the year.

This is so helpful! So even if I change jobs mid-year, I should still check the multiple jobs box on the new employer's W-4, right? Does this mean I'll have less takehome pay each paycheck?

Yes, even if you change jobs mid-year, you should still check the multiple jobs box on your new employer's W-4 if you've had or expect to have other jobs during the same calendar year. And you're right - checking that box will result in more tax being withheld from each paycheck, which means your take-home pay will be lower. But this is actually a good thing because it means you're less likely to owe money when you file your taxes. Think of it as paying the correct amount gradually throughout the year instead of getting hit with a big bill at tax time.

20 Good point about the house allocation. How would you recommend splitting this up on tax forms? Should the house be completely separate from the business assets?

2 I'd recommend separating the house value from the business assets when determining what portion of expenses (like mortgage interest and property taxes) are deductible business expenses. One approach is to determine the house's value as a percentage of the total property value, then allocate that percentage as personal use. The house doesn't need to be completely separate - the LLC can still own the entire property. You just need to properly allocate expenses between business and personal use. If you're not paying market-rate rent to the LLC for your personal use, there could be imputed income or other tax consequences to consider, so that's something to discuss with a tax professional familiar with your specific situation.

19 Yes, cattle operations typically qualify as farming activities under IRS rules. This means you might be eligible for things like farm income averaging, which can help reduce your tax burden in profitable years. Even in loss years, farm activities have some specific rules that can be advantageous.

Thanks for the advice! Do you happen to know if there's a way to look up my state's laws about refund interest? I'm in Michigan if that helps.

For Michigan, you can check the Michigan Department of Treasury website for their "Revenue Administrative Bulletins" or RABs. They usually publish the interest rates for underpayments and overpayments there. Last I checked, Michigan does pay interest on refunds but only after a certain processing period has passed (I think it's 45 days after you file for a refund). The statutory reference should be in Michigan Compiled Laws (MCL) somewhere in the 205 section which covers revenue and tax laws. The exact interest rate changes periodically based on market rates, so you'll want to look up the current rate applicable to your situation.

This is seriously good advice. I made this mistake and regretted it. If you can afford to pay now, do it while simultaneously disputing. You can always get a refund later, but you can't get rid of penalties once they attach.

But don't you need to be really careful with home office deductions? I heard they're a big audit flag. Is it really worth claiming internet expenses if it might trigger extra scrutiny?

The "home office deduction is an audit flag" concern is mostly outdated advice. The IRS has simplified the home office deduction in recent years with the "simplified method" that lets you deduct $5 per square foot (up to 300 square feet) without extensive documentation. That said, you do need to be truthful - the space must be used regularly and exclusively for business. So if you're printing shipping labels at your kitchen table where you also eat dinner, that wouldn't qualify. But a dedicated room or space used only for your Etsy business absolutely qualifies. Internet expenses can be partially deducted based on business use percentage even if you don't take the home office deduction.

Does anyone know if the trips have to be dedicated post office trips only? Like if I drop packages off on my way to pick up my kids from school, can I still count that mileage?

Is there a deadline to file if you're just trying to get a refund but aren't required to file? Like if I didn't file for 2022 but had withholding, can I still get that money back?

Yes, there's definitely a deadline. You have 3 years from the original due date to file a return and claim a refund. For 2022 returns (which were due April 18, 2023), you have until April 18, 2026 to file and claim any refund you're owed. If you miss that 3-year window, you lose the refund completely - the money becomes property of the U.S. Treasury. So if you had withholding for 2022, you should definitely file before April 2026 to get that money back.

The IRS Free File is actually really good for simple tax situations. If you made under $73,000, you can use it. I used it last year for my W-2 income and it was straightforward. Just go to IRS.gov and search "Free File." Don't go directly to TurboTax's website if you want the free version - go through the IRS Free File portal to make sure you actually get the completely free version. TurboTax's website often upsells you to paid versions even if you qualify for free filing.