Just wanted to add one more consideration that hasn't been mentioned yet - make sure you're aware of the quarterly payment due dates if you decide to go that route instead of adjusting your W4. Since your wife made $22K last year and will likely make similar this year, and you're starting your job in July, you'll want to be strategic about timing. The Q3 estimated payment (due September 15) might be a good starting point for your wife if you decide on quarterly payments rather than W4 adjustments. Also, keep in mind that if your wife's business has any seasonal fluctuations, you might want to use the annualized income installment method rather than paying equal quarterly amounts. This can help if her income varies significantly throughout the year. One last tip: whatever approach you choose (W4 adjustment vs quarterly payments), make sure to revisit your calculations in the fall once you have a better sense of both your actual income and your wife's year-end business expenses. You can always make adjustments for Q4 or change your W4 withholding if needed. The key is just getting started with something reasonable rather than trying to get it perfect from day one!

I'm dealing with a very similar situation right now! My husband is a 1099 contractor making about $25K annually, and I just started a new W2 job making $78K. One thing that really helped me was breaking down the calculation into two parts: the self-employment tax (which is pretty straightforward at 15.3% of net income) and the additional income tax from the combined income pushing us into a higher bracket. For your wife's $22K income, you're looking at roughly $3,370 in self-employment tax. Then for the income tax portion, you'll need to figure out what tax bracket your combined income puts you in. With your $85K plus her $22K, you'll likely be in the 22% bracket, so that's another $4,840 in income tax on her income. The tricky part is that your wife can reduce her taxable income significantly with business deductions - home office, supplies, mileage, phone/internet if used for business, etc. This could easily reduce her taxable income by $3-5K, which would lower the overall tax burden. I ended up using a combination approach: I increased my W4 withholding by about $400/month to cover most of it, and my husband makes a small quarterly payment to cover any difference. This way we're not over-withholding too much from my paychecks, but we're still staying current with the taxes. The IRS withholding calculator is definitely your best bet for getting the exact numbers, but hopefully this gives you a ballpark to work with!

I totally get your frustration - I went through this exact same nightmare last year! The ID.me/IRS verification process is incredibly confusing and poorly explained. What's happening is that you have an ID.me account, but you haven't completed the IRS-specific verification link yet. Here's what finally worked for me: 1. Start at IRS.gov (this is crucial - don't go to ID.me first) 2. Click "Sign in to your Online Account" 3. It will redirect you to ID.me - log in with your existing credentials 4. Here's the key step most people miss: after logging in, there will be an authorization screen asking if you want to allow the IRS to access your verified ID.me information 5. Click "Allow" or "Authorize" - this creates the connection between your ID.me account and the IRS system The whole thing is like having a key but not knowing which door it opens. Once you complete that authorization step, you should be able to access your account and track your refund status. I know how stressful it is waiting for that money, especially when working remotely. The process took me about 15 minutes once I figured out the right sequence. Hope this helps you get through it quickly!

I completely understand your frustration - I just went through this exact same ordeal two weeks ago! The key issue is that having an ID.me account is different from being verified specifically for IRS purposes. Here's what finally worked for me: 1. Go to IRS.gov first (not ID.me directly) 2. Click "Sign in to your Online Account" 3. When it redirects to ID.me, log in with your existing credentials 4. Look for the authorization step - this is where you give the IRS permission to access your ID.me verification 5. Complete that authorization to link the systems I was in the same boat waiting for my refund while working from home, and the stress was real. The whole process took about 15 minutes once I figured out the right sequence. The IRS really needs to explain this better - it's like they designed it to be as confusing as possible! Once you get through it though, you'll finally be able to track your refund status online. Hope this helps you get your money faster!

Has anyone here dealt with the "partial business use" angle successfully? I had a dedicated home office (about 10% of square footage) in a house I sold at a loss last year, and my tax preparer said the loss for that portion might be deductible as a business loss rather than a personal residence loss.

I'm really sorry to hear about your situation - losing $340k on a home sale is devastating, especially when it was due to circumstances beyond your control. From what I understand about your case, the core issue is that losses on personal residences aren't deductible, even when the sale is forced by job relocation. However, there are a few angles worth exploring that others have touched on: 1. **Home office deduction**: If you used any part of your home exclusively for business purposes and claimed home office deductions in previous years, that portion of the loss might be treated as a business loss rather than personal. 2. **Energy-efficient improvements**: Some of your $800k in renovations might qualify for separate tax credits if they included energy-efficient upgrades (solar, HVAC, windows, etc.). 3. **Documentation review**: Make sure all renovation costs are properly included in your cost basis calculation. While this won't help with the loss deduction, it ensures your loss calculation is accurate. Given the complexity and the substantial amount involved, I'd strongly recommend getting professional guidance - either from a CPA who specializes in real estate transactions or directly from the IRS. Some of the tools and services mentioned in this thread might help you identify overlooked opportunities or get clearer answers about your specific situation. The financial hit is painful enough without wondering if you missed any legitimate tax relief options.

Has anyone tried Cash App Taxes? I heard they're completely free for both federal AND state. My friend said they got a bigger refund there than TurboTax too?

Just to add another perspective - I've been doing this comparison shopping for years and it's definitely worth it! One thing I learned the hard way is to make sure you're entering your information exactly the same way across all platforms. Sometimes a small difference in how you categorize something (like whether certain expenses go in one field vs another) can create artificial differences in your refund calculation. Also, if you do find significant differences between platforms, don't just go with the highest refund automatically. Take a closer look at what's different - sometimes the higher refund comes from a more aggressive interpretation of tax rules that might not hold up if you ever get audited. The sweet spot is finding legitimate deductions you missed, not wishful thinking about what might qualify. Good luck with your comparison shopping! With just W2 income and no major complications, you should have plenty of good free options to choose from.

I see you're getting some great explanations here, but I wanted to add one more perspective that might help with your specific situation. Since you're at $139k with MFS filing, you're definitely paying that Additional Medicare Tax on $14k of income (the amount over $125k threshold). One strategy I used when I was in a similar spot was to see if I could defer some income to the next tax year if possible - things like year-end bonuses, stock option exercises, or even asking to delay invoicing if you do any freelance work. Obviously this only works if you have flexibility with timing, but it might help you stay closer to that $125k threshold. The other thing worth considering is whether your student loan payment calculation under income-driven repayment is based on your AGI (Adjusted Gross Income) from your tax return. If so, your 401k contributions ARE helping reduce your student loan payments even though they don't help with Medicare tax. So you're still getting value from those retirement contributions, just not in the way you originally thought. Have you calculated what your monthly student loan payment difference would be between MFS vs MFJ filing? Sometimes the student loan savings are so significant that it's worth paying the extra Medicare tax, but it's definitely worth running those numbers to make sure the math still works out in your favor.

I'm glad to see this thread has been so helpful for understanding the Medicare tax situation! As someone who works in tax preparation, I see this confusion a lot with clients who are maximizing retirement contributions and don't understand why they're still hitting payroll tax thresholds. One additional point that might be useful - if you're planning to continue with MFS filing in future years for your student loan strategy, consider setting up quarterly estimated tax payments specifically for that Additional Medicare Tax. Since it's calculated on your Medicare wages (which include your 401k contributions), your employer's withholding might not cover the full amount, especially if your income fluctuates throughout the year. You can use Form 1040ES to calculate and pay estimated taxes quarterly. This way you won't get hit with a surprise tax bill next April, and you'll avoid any potential underpayment penalties. The Additional Medicare Tax doesn't have the same "safe harbor" rules as regular income tax, so it's worth being proactive about it. Also, keep detailed records of your student loan payment savings vs. additional tax costs each year. The income thresholds and payment calculations can change, so what makes sense financially this year might not be optimal in future years as your income grows or your loan balance decreases.