I've been following this thread closely since I'm dealing with a very similar situation - missed capital loss carryovers from 2019-2021 that I need to correct before filing my 2024 return. Based on all the advice here, it sounds like the consensus is to file separate 1040X forms for each affected year rather than trying to shortcut it by just adjusting the carryover amount on this year's return. I appreciate everyone sharing their experiences, especially those who mentioned specific resources like Publication 550. One question I haven't seen addressed: if I'm correcting multiple years of carryovers and some of those corrections result in slightly different AGI amounts (due to the $3,000 annual limitation), could that potentially affect other deductions or credits that were calculated based on AGI in those years? I'm thinking things like student loan interest deduction phase-outs or retirement contribution limits. Should I be recalculating those as well when I file the amendments? I want to make sure I'm being thorough and not creating additional issues down the road by only fixing the capital loss portion without considering ripple effects on other parts of those returns.

I've been dealing with a similar capital loss carryover correction situation, and after reading through all these helpful responses, I want to add one important consideration that hasn't been fully addressed yet. If you're correcting multiple years of carryovers like Kevin's situation (2018-2020), make sure you understand the statute of limitations for amendments. Generally, you have 3 years from the original filing date or 2 years from when you paid the tax (whichever is later) to file a 1040X for refund purposes. However, if you're not seeking a refund but just correcting the carryover amount for future use, this timeline is less critical. That said, I'd recommend getting these amendments filed sooner rather than later. The IRS is more likely to accept and process corrections that are filed within a reasonable timeframe of discovering the error, and you'll have better documentation and records while the tax years are still relatively recent. Also, one thing that really helped me was creating a simple spreadsheet tracking my capital loss carryover from year to year before filing any amendments. This helped me visualize exactly what needed to be corrected in each year and served as supporting documentation for my explanation letters to the IRS. The process seems daunting at first, but breaking it down year by year and being methodical about it makes it much more manageable!

One more thing to consider - if you're planning to stay with the same employer for a while, it might be worth setting up a quick annual review of your withholding situation. I learned this the hard way after going through the same frustration you're experiencing. What I do now is every January, I take a few minutes to run through the IRS withholding calculator again with my final pay stub from the previous year and my tax return. Even if nothing major changed, sometimes small adjustments in tax brackets or standard deduction amounts can affect your withholding needs. It's become a 15-minute routine that saves me from tax-time surprises. Plus, if you do get another raise during the year, you'll already be familiar with the process for adjusting your W-4 accordingly. The fact that you went from owing $30 to $80 suggests the trend might continue if left unchecked, so getting ahead of it now is smart. Once you get that new W-4 submitted with the extra withholding, you should be in much better shape!

I went through this exact same situation a couple years ago! The frustration is real when you think you're doing everything right with your withholding but still end up owing. One thing that really helped me understand what was happening was looking at my actual tax liability versus what was withheld. Sometimes we focus so much on the W-4 settings that we forget the withholding tables are just estimates based on projecting your paycheck out for the full year. In your case, that $4 raise might seem small, but if it pushed you into a slightly higher effective tax rate or changed how the withholding calculations work, it could easily account for that extra $50 you're owing this year compared to last year. The advice others have given about filling out a new W-4 with additional withholding is spot on. But also consider that owing a small amount like $80 means you're actually pretty close to optimal withholding - much better than getting a huge refund and essentially lending the government your money interest-free all year. Don't beat yourself up about not understanding this stuff perfectly. The tax system is genuinely complex, and the W-4 changes made it even more confusing for people who thought they had their withholding figured out!

Has anyone actually had the IRS come back and question these kinds of errors? I had something similar on my W-2 last year (wrong code in box 12) and just filed anyway because I was in a hurry to get my refund. Nothing bad happened...

This is definitely a payroll error that needs to be corrected. As someone who's dealt with similar W-2 discrepancies before, I'd strongly recommend not filing with these incorrect codes even if everything else looks right. The IRS matching system can flag returns where reported tip income doesn't align with typical patterns for your industry. Manufacturing workers aren't expected to have uncollected tip taxes, so this could trigger automated review processes down the line. Here's what I'd do: Contact your HR department immediately and request a corrected W-2c. If they're slow to respond, mention that incorrect tax codes can create compliance issues for both you and the company. Most payroll departments will prioritize fixing these errors once they understand the potential implications. While waiting for the correction, don't let the filing deadline stress you out. You can request an extension if needed. It's much better to file correctly with a slight delay than to deal with IRS correspondence later asking you to explain tip income you never received.

Just to add another perspective - I'm a tax preparer and see this confusion all the time! The presence of Schedule A is actually a good sign that your software did its job properly. Think of it like this: the software calculated both methods (standard vs itemized) and kept the paperwork for both to show the IRS that it made the correct choice on your behalf. You can also double-check by looking at line 12 on your Form 1040. If there's a checkmark in box 12a and it shows $13,850, you definitely took the standard deduction. The Schedule A in your packet is just documentation of the comparison calculation - it's not actually being used for your tax liability. Your instinct was right that the standard deduction would be better for you with only $9,400 in potential itemized expenses. The software saved you about $4,450 in additional deductions by choosing the standard route!

Adding to what everyone else has said - this is actually a really common source of confusion! I work in tax compliance and we see this question constantly during filing season. The key thing to remember is that Schedule A being included in your tax package is basically like getting a receipt that shows "we checked both options for you." What's really helpful is that most tax software will actually show you a side-by-side comparison somewhere in your account or final documents. In your case, it probably showed something like "Itemized deductions: $9,400" vs "Standard deduction: $13,850" and then highlighted that the standard deduction was selected because it was $4,450 better for you. You definitely didn't mess up your refund - in fact, you maximized it by going with the standard deduction! No amended return needed. The software did exactly what it should have done, even if the presence of Schedule A made it confusing after the fact.

I'm dealing with a very similar situation right now! My W-2 also shows "TOTAL" in Box 20, and I was completely confused until I read through this thread. I had a job change in August and moved states, so I'm guessing that's why my employer used the consolidated format. Reading everyone's responses here has been incredibly helpful - especially learning that this is just a formatting issue rather than an actual error. I was about to panic-call my old employer's HR department, but now I feel confident I can handle this myself using my pay stubs. One quick question for those who have been through this: when you filed local returns for multiple jurisdictions, did you run into any issues with double taxation or credits? I'm worried about accidentally paying the same tax twice since I had withholding in two different states.

Just wanted to share my experience since I went through this exact same thing last year! I had "TOTAL" in Box 20 and was completely freaking out about it. Turns out it was because I had worked remotely for part of the year in a different state, so my employer had withheld local taxes for two different jurisdictions. Here's what I learned that might help you: 1. **Don't stress about the "TOTAL" label** - it's just how some payroll systems handle multiple localities rather than trying to cram multiple city names into that tiny box 2. **Your pay stubs are your best friend** - they'll show the exact breakdown by locality that you need for filing 3. **Most tax software can handle this** - when you get to the local tax section, you can manually enter each locality and split the Box 19 amount based on your pay stub details 4. **Keep detailed records** - save those pay stubs showing the locality breakdown in case you ever get questioned about it I was able to file successfully without ever getting a corrected W-2 from my employer. The IRS and local tax authorities care more about the dollar amounts being accurate than the specific formatting of Box 20. Since you moved mid-year, this is probably exactly what happened - you just had withholding for both your old and new cities. Don't let your slow HR department hold up your filing if you're running close to the deadline!