As someone who's dealt with this exact issue multiple times, I can confirm that a $140+ fraction of cents adjustment is definitely not normal and indicates a systematic error somewhere in your calculations. The good news is that you've already identified the root cause by finding the discrepancy in your February deposit ($58,435 vs $58,294.81). Here's what I'd recommend as your next steps: First, go through every single deposit on Schedule B and compare it to your actual EFTPS payment history - don't just spot check. Second, verify that your Schedule B is reporting tax LIABILITY by pay date, not deposit amounts or deposit dates. These are often confused. Third, if you have employees hitting the Social Security wage base ($160,200 for 2023), double-check that withholding stopped at exactly the right amount mid-quarter. The fraction of cents line should only account for rounding differences when you calculate tax liability per employee vs. the aggregate. Once you fix the Schedule B errors, that $140 should disappear almost entirely. Don't submit until you've tracked down every significant discrepancy - the IRS computers will flag unusual adjustments and it's much easier to fix now than deal with correspondence later.

I've been following this thread and wanted to add another potential cause I've encountered - check if your payroll system is handling state unemployment insurance (SUI) wage bases correctly. Some payroll systems incorrectly include SUI adjustments in federal tax calculations, especially when employees hit state-specific wage base limits that differ from federal limits. Also, if you're using a third-party payroll processor, they sometimes make "correcting" entries that don't get properly reflected in your 941 calculations. I'd recommend requesting a detailed payroll tax reconciliation report from them that shows exactly how they calculated each tax component for the quarter. One more thing - make sure you're not double-counting any year-end adjustments or corrections that might have carried over from Q4 of last year. Sometimes accounting departments make manual adjustments that create phantom discrepancies in subsequent quarters.

This thread has been absolutely invaluable! As someone who's been dealing with capital loss carryovers for the first time, I had the exact same misconception as so many others here. I've been carrying forward about $10,500 in losses from some disastrous crypto investments in 2022, and I was completely baffled when TurboTax started applying way more than $3,000 of them this year. Like everyone else, I was convinced there was a software error because I thought the $3,000 limit was a hard cap on ALL capital loss usage each year. I actually spent hours on tax forums trying to figure out if TurboTax was broken! The explanations in this thread - especially understanding that losses first offset capital gains dollar-for-dollar with NO limit, and the $3,000 restriction only applies to losses against ordinary income - have completely revolutionized my understanding. I realize now that I have about $7,500 in capital gains this year from some stocks that finally recovered, so TurboTax is correctly using $7,500 of my carryover losses against those gains, plus allowing the full $3,000 against my regular income. This means I'm using $10,500 of my carryover in just one year - essentially wiping out my entire loss carryover instead of the 3-4 years I was expecting! I had been so worried about "wasting" these losses by having gains, when actually the gains are helping me use them much more efficiently. Thank you to everyone who shared their experiences and knowledge. This community discussion has been better than any tax guide I've read. It's amazing how much clearer these rules become when explained through real examples by people dealing with the same confusion!

This entire discussion has been absolutely fantastic! As someone new to both investing and this community, I can't believe how many of us had the exact same misconception about capital loss carryovers. I'm dealing with about $7,200 in losses from some really poor investment timing in 2023, and like everyone else here, I was completely confused when my tax software applied way more than $3,000 of them. I actually called my brother (who's an accountant) in a panic thinking my TurboTax was glitched, and he had to explain the same thing everyone here has been saying - that losses first offset capital gains with no annual limit, and the $3,000 restriction only applies to the portion used against ordinary income like wages. What makes this thread so valuable is seeing so many real examples with actual numbers. It really drives home how this system works in practice. I have about $5,800 in capital gains this year from some tech stocks that finally recovered, so my software is correctly using $5,800 of my loss carryover against those gains, plus the remaining $1,400 against my ordinary income. That completely exhausts my entire carryover in one year! I had been avoiding taking any profits because I thought it would somehow interfere with my loss carryovers, but now I understand that having gains actually helps you use up those carryovers more efficiently. This community is amazing for helping newcomers like me navigate these confusing tax situations. Thank you all for sharing your knowledge so generously!

Based on your situation, you're handling this correctly with the sessions method. You should report the $815k in winning sessions as gambling income and deduct the $246k in losing sessions on Schedule A - not your total individual transaction losses of $3.1m. The sessions method requires consistency throughout your entire approach. Since you've calculated your gambling activity using daily sessions (which is the standard approach for online platforms like FanDuel), you must stick with those session totals for both income reporting and loss deductions. A few important considerations for your specific case: 1. **Documentation is critical** - Keep your FanDuel transaction exports, your session calculation spreadsheets, and clear notes on your methodology. Define exactly how you determined each session (likely by calendar day) and apply it consistently. 2. **Tax software limitations** - H&R Block may try to default to reporting your full W-2G amounts. You'll likely need to override this and manually enter your session-calculated figures with proper documentation. 3. **State tax implications** - Double-check how your state handles gambling income. Some states don't recognize the sessions method and may require you to report the full W-2G amounts, which could significantly impact your state tax bill. 4. **Professional review recommended** - Given the substantial amounts involved ($290k federal tax liability), consider having a tax professional who specializes in gambling taxes review your calculations before filing. The upfront cost could save you significant problems if the IRS has questions later. The sessions method is well-established in tax court precedent and is designed to reflect the economic reality of continuous gambling activity. Just ensure your documentation clearly supports your methodology and calculations.

The sessions method approach you're using is definitely the correct way to handle this situation. Your calculation of $815k in winning sessions as reportable income and $246k in losing sessions as your deductible losses is spot-on. What many people miss is that the sessions method isn't just about reducing taxes - it's about accurately reflecting the economic reality of your gambling activity. When you're making continuous bets on FanDuel throughout a day, each individual transaction doesn't represent a complete gambling event. The session as a whole does. A few key points for your situation: **Federal reporting**: Report the $815k as "Other Income" on Schedule 1 and deduct the $246k as gambling losses on Schedule A (subject to itemizing). You cannot mix methodologies by using session income but total transaction losses. **Record keeping**: Make sure you have clear documentation of how you defined each session (most likely by calendar day for online betting) and that you applied this consistently throughout 2023. Keep your FanDuel transaction exports and any spreadsheets showing your calculations. **Software considerations**: Tax software often defaults to W-2G amounts, so you may need to override these entries manually. Include a statement explaining your sessions methodology and reference supporting tax court cases like Mayo v. Commissioner. The $290k federal tax bill you're seeing is based on legitimate gambling income under an accepted methodology. While painful, it's much better than the alternative of reporting the full $2.3m in W-2Gs without proper session accounting. Consider having a tax professional who specializes in gambling taxes review everything before filing, especially given the substantial amounts involved.

I'm in a similar situation - just finished my EMT-B certification last month and was really hoping to deduct those costs too. One thing I discovered is that some volunteer fire departments will cover certification costs if you commit to volunteering for a certain period. Might be worth looking into if you're open to volunteer work while job hunting. Also, keep all your receipts organized anyway - tax laws can change and you never know if there might be future opportunities to claim these expenses retroactively.

This is frustrating but unfortunately accurate info from Javier. I went through something similar when I got my nursing certifications a few years back - had to pay out of pocket for everything and couldn't deduct any of it. One thing that might help is looking into whether your state offers any tax credits specifically for first responders or healthcare workers. Some states have been adding these in recent years. Also, if you end up working for a municipality or government agency, they sometimes have tuition reimbursement programs that could help with future training costs. Keep pushing forward though - the investment will pay off in the long run even without the tax break!

Wait I'm confused about something. If I'm a substitute teacher working directly for a school district, wouldn't I be a W-2 employee not a 1099 contractor? I subbed last year and got a W-2.

Great question! As others have mentioned, you should receive a 1099-NEC from the learning center if they paid you $600 or more. But here's something important to keep in mind - the classification itself matters a lot. If the learning center was controlling your schedule, providing lesson plans, telling you exactly how to teach, or treating you like other employees, you might have been misclassified. True independent contractors have more control over how they do their work. This is especially common in education where companies try to avoid paying employment taxes and benefits. If you believe you were misclassified, you can file Form SS-8 with the IRS to get an official determination, or Form 8919 when you file your taxes to pay only the employee portion of Social Security and Medicare taxes instead of the full self-employment tax. This could save you money since self-employment tax is about 15.3% versus 7.65% for employees (the employer pays the other half). Just something to consider as you're navigating this for the first time!