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This happens to almost everyone with multiple jobs. Each employer calculates your withholding as if that's your ONLY job, so they're withholding at a lower rate than what you actually owe when everything is combined. Tips make it even worse because they're often under-withheld. Even requesting that extra 10% might not have been enough depending on your total income. Next year, consider filling out a new W-4 and checking the box for multiple jobs, or even request specific additional dollar amounts to be withheld from each paycheck.
Would it be better to just set aside money myself instead of having the employer withhold extra? I'm trying to figure out the best approach for next year so I don't get shocked again.
Having your employer withhold the correct amount is usually better than setting aside money yourself. When employers withhold, it's done systematically throughout the year, which helps you meet the IRS's requirement for paying taxes as you earn income. If you choose to set aside money yourself, you'd technically need to make quarterly estimated tax payments to avoid potential underpayment penalties. Many people find it simpler to just adjust their W-4 to have the right amount withheld automatically. The IRS Withholding Calculator can help you figure out the right amount to list on your W-4 forms for both jobs.
Has anyone else noticed that tax prep software kinda creates this problem? They show you that big refund after one W-2 which gets your hopes up, then it crashes when you add everything. Maybe they should warn you that the number isn't final until ALL income is entered!
My bank was asking for my TIN for some savings account paperwork and I gave them my social security number. They said that was correct but then started talking about backup withholding and I got confused. Are those things related??
Another tip: If you have a tax preparer or use tax software like TurboTax or H&R Block, all your tax ID info is usually saved in your account. Might be easier than digging through paper documents if you filed electronically in previous years.
Which tax software do you recommend that's actually affordable? I used FreeTaxUSA last year but wasn't super impressed with how they handled my 1099 income.
Have you checked your tax transcript? Sometimes that has more info than the Where's My Refund tool. You can access it through your IRS online account.
No I haven't checked that! How do I find my tax transcript? Is it different from the Where's My Refund tool?
Yes, it's completely different and often more helpful. Go to IRS.gov and create an account (or log in if you already have one). Then look for "Get Transcript Online" and select the account transcript for 2024. The transcript has a bunch of codes that show exactly what's happening with your return. Look for code 846 which means your refund has been issued. If you see code 570, that means there's a hold on your account. There are lots of guides online explaining what the different codes mean.
i filed february 22 with 3 kids and just got my refund yesterday. hang in there, its taking forever this year! my sister filed a week before me and still hasnt got hers so theres no real pattern to how they're processing them
Thanks for sharing your experience! That makes me feel a little better. Did you do anything special to finally get yours approved or did it just suddenly go through?
nothing special, just checked the app one day and it finally showed approved! honestly i had given up checking everyday and was just looking once a week. seems completely random how they're processing returns this year!
Have you considered that you might benefit from amending your return to use Married Filing Separately? In some cases, if one spouse has an issue that's pushing the joint return over a threshold, filing separately might preserve benefits for at least one spouse. I'm not saying it will definitely work better in your situation, but it's worth running the numbers both ways. Sometimes the EIC calculations work differently when split, especially if one spouse earned significantly more than the other.
Unfortunately, you cannot claim EIC if your filing status is Married Filing Separately. That's one of the basic requirements for the credit. So that strategy wouldn't help in this specific situation with the Earned Income Credit.
You're absolutely right, and I apologize for the misinformation. I was confusing EIC with some other credits that can sometimes be optimized with different filing statuses. The EIC specifically cannot be claimed by anyone using Married Filing Separately status. This is a good reminder for everyone to verify tax advice, even from well-meaning people online. Thanks for the correction!
This is why I always run my return through multiple tax software programs before filing. Last year I found a $1,700 difference between two major programs because one correctly identified my disaster payment as non-taxable while the other classified it as miscellaneous income. Also, don't forget to check if your state has any special provisions for assistance payments. Some states have different rules than the federal government for how these payments are treated for state tax purposes.
Which tax software programs do you recommend? I've been using TurboTax but I'm wondering if there are better options for handling these complex situations with unusual income types.
Omar Fawaz
Try checking if maybe you have special characters in your name fields or address. I had a similar transmission error and it turned out the apostrophe in my last name (O'Brien) was causing the issue. I removed it, resubmitted, and it went through fine!
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Chloe Anderson
ā¢Could line breaks or extra spaces in the address field cause this too? I noticed TurboTax sometimes adds weird formatting when you copy/paste addresses.
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Omar Fawaz
ā¢Absolutely! Any unexpected characters including extra spaces, line breaks, or even certain special characters like &, #, or / in address fields can cause transmission errors. The IRS system is pretty old and picky about formatting. If you copy/pasted any information, it's worth going back through and manually retyping it to make sure there aren't hidden characters causing problems.
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Diego Vargas
Has anyone tried using a different tax software instead? I gave up on TurboTax after having similar issues and switched to FreeTaxUSA. My return went through on the first try with no problems.
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Anastasia Fedorov
ā¢I second this! FreeTaxUSA is way less buggy and so much cheaper. TurboTax kept upselling me on features I didn't need, and still couldn't get my return to transmit properly.
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