Has anyone here actually reported their GoFundMe on their taxes? I ran one last year and got about $12k, used it all for my medical bills, and honestly didn't report anything. Did I screw up??

This is a really thoughtful way to handle the excess funds, Sean! One additional consideration I'd mention is timing - if you're planning to redistribute the $9,000 before the end of this tax year, make sure to space out your donations if you're concerned about hitting the $18,000 annual exclusion limit per recipient. Also, since you mentioned tax season is coming up, keep detailed records of everything: your original GoFundMe description, all incoming donations with dates and amounts, your medical expenses, and then all outgoing transfers to other campaigns. The IRS loves documentation, and having a clear paper trail will make everything much smoother if you ever need to explain the transactions. One last tip - consider reaching out to the recipients of your donations to let them know the funds are coming from your redistributed GoFundMe rather than directly from you personally. This can help establish that you're fulfilling your original campaign promise rather than making independent personal gifts, which could support the "conduit" argument Carmen mentioned above.

Great question about temporary vs permanent differences! This is one of those concepts that really clicks once you understand it, but can be confusing at first. For temporary differences like depreciation, I recommend tracking them but not necessarily creating separate book accounts. Most businesses record book depreciation in their regular accounting system throughout the year, then handle the tax depreciation difference as an adjustment on the tax return. Your tax preparer will calculate the difference and make the appropriate book-to-tax adjustment. However, if you want to track these differences more closely (especially useful for larger businesses or those with significant timing differences), you can create a worksheet that tracks both book and tax basis for each asset. This helps you see the cumulative temporary difference that will eventually reverse. For permanent differences, definitely separate them from the start! Items like nondeductible penalties, nondeductible portions of meals and entertainment, and certain fines should go into clearly labeled accounts. This makes tax preparation much smoother since these items are easy to identify and will never be deductible. The key is finding the right balance - enough detail to make tax time efficient without overcomplicating your day-to-day bookkeeping. Start simple and add complexity only if you find you need it.

This is such a common struggle for small business owners! One thing I'd add to the great advice already given is to consider setting up separate GL accounts for items that commonly have different book vs. tax treatment right from the start. For example, create accounts like "Meals & Entertainment - 50% Deductible" and "Business Gifts - Limited Deductible" rather than generic expense accounts. This way you're already categorizing expenses according to their tax treatment as you record them. Regarding your sales tax questions - you're right to be confused because sales tax has a weird relationship with income tax! The sales tax you collect from customers is NOT income to your business (it goes in a liability account until you remit it to the state). But the sales tax you PAY on business purchases can often be deducted as a business expense, which DOES reduce your taxable income. One practical tip: consider adding account codes or tags in your system that flag accounts requiring book-to-tax adjustments. Even something as simple as adding "[BTD]" (book-tax difference) to account names can help you quickly identify what needs attention at tax time. The key is building these considerations into your daily workflow rather than trying to sort everything out at year-end when you're under deadline pressure!

This entire thread has been incredibly educational! As someone who's been working for a few years but never really understood the nuances of W-2 forms, I've learned so much from everyone's explanations. What really stands out to me is how this confusion seems to be universal - almost everyone here had the same initial panic about Box 14 codes not matching official IRS documentation. It makes me wonder if employers should do a better job explaining to new hires that Box 14 is just their internal tracking system, not official tax codes. The verification method that multiple people have shared (comparing final pay stub to W-2 using the formula: Gross wages - Pre-tax deductions = Box 1) seems to be the gold standard for confirming everything is correct. I just tried it myself and everything balances perfectly. For anyone else reading this thread, I'd also recommend keeping this discussion bookmarked. The distinction between standardized Box 12 codes and customizable Box 14 labels is something that seems to trip up a lot of people, especially those new to the workforce. Having this resource could save others hours of unnecessary stress and confusion!

This thread has been absolutely fantastic and so reassuring! As someone who recently started their career, I was having the exact same Box 14 code confusion that seems to affect everyone. My employer uses "MED-INS", "DENTAL", and "TRANSIT" in Box 14, and I spent way too long trying to find these in official IRS documentation. The key insight about Box 12 using standardized IRS codes while Box 14 is just employer-created labels has been a total game-changer. It explains why I couldn't find my company's codes anywhere official - they literally made them up for their own internal tracking! I just verified my numbers using the method everyone's recommending: took my December pay stub, calculated gross wages minus all pre-tax deductions (401k, health insurance, dental, transit pass), and it matches my Box 1 wages perfectly. Such a relief to know everything is actually correct. For anyone else struggling with this, the verification step really is worth doing. It takes just a few minutes but gives you complete confidence that your W-2 is accurate. This thread should be required reading for anyone getting their first W-2 or switching employers - it would save so many people from unnecessary panic and confusion!

Has anyone here used QuickBooks Self-Employed? My tax person recommended it for tracking expenses and estimating quarterly taxes. Wondering if its worth the monthly fee or if theres something better out there?

The shock you're experiencing is totally normal for first-time business owners! What's happening is that your freelance income is being added on top of your W-2 income, potentially pushing you into higher tax brackets. Plus, as others mentioned, you're paying both halves of Social Security and Medicare taxes (15.3% total) since you don't have an employer splitting that cost. Here's what I wish someone had told me my first year: track EVERY business expense religiously. Home office percentage, internet/phone bills, software subscriptions, equipment depreciation, professional development courses, even business meals. These deductions can significantly reduce your taxable business income. Also, consider making quarterly estimated payments for 2025 to avoid underpayment penalties. I learned that lesson the hard way! The IRS expects you to pay taxes throughout the year when you're self-employed, not just at filing time. One more tip - keep detailed records of everything. The IRS can be pretty strict about business expense documentation, so having receipts and clear business justification for each expense will save you headaches if you ever get audited.

Maybe check your company's benefits portal? Mine shows a detailed breakdown of all the fringe benefits they provide and which ones are taxable. Mine surprised me by taxing the "wellness benefit" they provide ($300/year for gym, massages, etc). Also worth asking coworkers if they noticed the same thing - might be a company-wide change that affects everyone but wasn't communicated well.

This is actually pretty common and you're not alone in being confused! Fringe benefit taxes can be tricky because they're different from your regular benefit deductions. The key thing to understand is that there are two separate things happening: 1) Your normal payroll deductions for benefits you contribute to (like health insurance premiums), and 2) Taxes on benefits that your employer provides to you that the IRS considers taxable income. Based on your mention of this being a "one time" tax, it sounds like you received some kind of taxable benefit recently - could be anything from a gift card, company event, personal use of company property, or even certain types of bonuses. These get added to your taxable income and then taxes are withheld on that amount. The timing suggests it's probably related to something specific that happened recently at work. I'd definitely check if your company had any holiday parties, gave out any gifts or prizes, or if you used any company resources for personal reasons. Even things that seem small (like a $50 gift card) can trigger fringe benefit taxes. Your instinct to check here first was smart - HR departments can be slow and sometimes don't even fully understand the tax implications themselves!