This thread has been such a goldmine of information! I'm dealing with this exact same Box 18/19 situation right now and was completely panicking when TurboTax flagged it. Reading through everyone's experiences has really put my mind at ease. What I found most helpful was learning that this is actually a common occurrence and doesn't necessarily mean there's an error. The explanation about Box 19 showing local wages subject to tax while Box 18 shows what was actually withheld makes perfect sense now that I understand it. I'm definitely going to follow the advice here and check my municipality's website to see if we have local income tax requirements. Better to be proactive about it now than get surprised later! Thanks to everyone who shared their stories and solutions - this community is incredibly helpful for those of us navigating tax season for the first time or dealing with unusual situations like this.

I've been following this thread and wanted to add my experience for anyone else dealing with this Box 18/19 situation. I had the exact same issue last year - Box 19 filled in with local wages but Box 18 completely empty for local tax withheld. After some research, I discovered that I live in a municipality that has a local earned income tax, but my employer is based in a different state and wasn't set up to withhold our local taxes. This meant I was responsible for paying the local tax directly to my city's tax collector. The good news is that most local tax authorities are pretty understanding about this situation since it's common with remote work and multi-state employers. I ended up owing about $400 in local taxes but was able to set up a payment plan with no penalties since it was my first year dealing with this. My advice: Don't ignore it, but don't panic either. Contact your local tax authority directly - they can usually tell you exactly what you owe and your payment options. Many have online calculators where you can input your Box 19 amount and get an estimate immediately. Also, make sure to adjust your withholdings or set aside money for next year if this is an ongoing situation with your employer!

I've been helping students navigate these exact tax situations for years, and I want to address the most important points clearly: **You MUST report this income** - Period. The $600 threshold only determines when payment apps send 1099-K forms, but you're legally required to report all income regardless of amount or source. **Privacy solution**: File your own complete tax return including both your W-2 and Schedule C (self-employment) income. Use "Digital Content Creation" as your business category - it's legitimate and appropriately vague. Check the box indicating someone else can claim you as a dependent so your parents keep their deduction while you maintain complete privacy. **Immediate action items**: - Start tracking every payment NOW (date, amount, platform) - Set aside 30% of each payment for taxes (you'll owe both income tax and self-employment tax) - Consider opening a separate account for this income - Track business expenses (phone, internet, equipment, props) **The good news**: You can deduct legitimate business expenses against this income, and filing independently doesn't affect your parents' ability to claim you as a dependent or education credits. Don't let anxiety about taxes keep you from being compliant. The IRS doesn't care what you're selling - they just want their share. Handle this properly now and you'll avoid much bigger problems later.

I'm a tax professional who works with a lot of college students in similar situations, so I wanted to jump in with some practical advice. First, yes - you absolutely need to report this income. The good news is that handling this properly while maintaining privacy from your parents is totally doable. Here's my recommended approach: 1. **File your own complete tax return** - Include both your W-2 from your barista job AND your self-employment income on Schedule C. Use "Digital Content Creation" or "Online Content Sales" as your business category - completely legitimate and appropriately discrete. 2. **Coordinate with your parents correctly** - Check the box on your return that says "Someone else can claim me as a dependent." This lets them keep their dependent deduction while you maintain complete control over your tax information. 3. **Track everything starting now** - Every Venmo/PayPal payment, every business expense (props, lighting, phone upgrade, etc.). I recommend a simple spreadsheet or even just a dedicated folder for screenshots and receipts. 4. **Set aside taxes immediately** - At your income level, plan on about 25-30% going to taxes (income tax + self-employment tax). Open a separate savings account if possible and transfer this percentage after every payment. The key thing to remember: the IRS doesn't care what you're selling, just that you report the income correctly. You're being smart by wanting to handle this properly from the start rather than trying to fix problems later. Feel free to ask if you need clarification on any of these steps!

One thing nobody's mentioned - with your income level, you might benefit from bunching deductions in certain years if you're close to being able to itemize. We're also W2 employees around $400k combined, and we've saved by planning charitable contributions strategically. Our CPA helped us set up a donor-advised fund that lets us bunch multiple years of charitable giving into a single tax year to exceed the standard deduction threshold, then take the standard deduction in off years.

Haven't seen anyone address the new baby situation specifically. With your income level, you won't qualify for the child tax credit (phases out for married couples filing jointly with income over $400k), but you might qualify for the dependent care credit if you pay for childcare. That's something software should catch, but a professional might help optimize. Also worth checking if your employers offer dependent care FSAs - with two W2s you could potentially each set aside $5k for a total of $10k pre-tax for childcare expenses.

Your employer royally messed up here. Don't let them off the hook. They took your money without consent and that's not ok. Make them refund every cent plus any tax implications. This happened to my sister and she ended up getting almost $2000 back.

This is a frustrating situation that unfortunately happens more often than it should. Here's what I'd recommend based on similar cases I've seen: **Immediate steps:** 1. Document everything - save all your pay stubs, the 1095-C form, and any communication with HR 2. Request a meeting with HR in writing and ask for copies of ANY enrollment forms with your signature 3. If they can't produce signed enrollment documents, you have a strong case for getting your money back **Tax implications:** Since the 1095-C shows you had coverage and premiums were deducted pre-tax, this affects your taxable income. You'll need corrected forms (W-2 and 1095-C) if they reverse the enrollment, which could impact your tax return. **Legal considerations:** Most states require explicit written consent for payroll deductions beyond taxes and court-ordered garnishments. Auto-enrollment policies must be clearly communicated with opt-out procedures. If you can prove you never consented and they didn't follow proper procedures, this could be considered unauthorized wage deduction. Don't let them brush this off - $1,700 is significant money and you're entitled to every penny back if you never authorized the deductions.

I'm new here and going through this exact same situation! My refund went from about $2,400 last year to just $1,700 this year, and I was convinced I had made some terrible mistake on my tax return. Reading through everyone's experiences has been such a relief - I had no idea the IRS updated their withholding tables for 2025. Following the advice from several commenters, I dug out my pay stubs from both years and compared them. Sure enough, I was taking home roughly $58 more per paycheck this year without even realizing it. That adds up to about $696 over the year, which explains most of the difference in my refund size. The whole "interest-free loan to the government" concept has completely changed how I think about tax refunds. I always looked forward to that big check in April as if it was found money, but now I understand it's literally just my own money being returned to me after the government held onto it all year without paying me any interest. I think I'm going to take the smart approach several people mentioned and set up an automatic transfer for that extra monthly take-home pay into a separate savings account. That way I can still have that satisfying lump sum feeling come spring, but at least it'll be earning interest for me instead of the IRS. Thanks to everyone who shared their stories - this community has turned what felt like a stressful tax mystery into a valuable lesson about personal finance!

I'm new to this community and experiencing this exact same frustrating situation! My refund dropped from around $3,200 last year to just $2,100 this year, and I was absolutely panicking thinking I had somehow filed my taxes incorrectly or missed claiming something important. After reading through all these incredibly helpful responses, I finally understand what's been happening with the withholding table changes for 2025. I went back and compared my pay stubs like so many of you suggested, and it turns out I was taking home about $85 more per paycheck this year without even noticing it. That adds up to roughly $1,020 over the year, which explains almost exactly why my refund was smaller. The "interest-free loan to the government" concept that several people mentioned has completely shifted my perspective on tax refunds. I always treated that April check like bonus money for vacation planning, but now I realize it was literally just my own money being held by the IRS all year without earning any interest. I'm definitely going to implement the automatic transfer strategy that multiple commenters recommended - setting aside that extra monthly take-home pay into a high-yield savings account so I can still get that satisfying lump sum feeling in spring while actually earning interest on my own money throughout the year. Thanks to everyone who shared their experiences and explanations - this community has transformed what felt like a stressful tax mystery into a valuable lesson about personal finance and how withholding actually works!