Did you check if educational credits might be part of it? My wife and I had a similar situation where she took some classes and qualified for an education credit when filing separately, but when we filed jointly our combined income was too high to qualify. The difference was almost exactly $200 in our favor when filing separately. Check if either of you had any educational expenses!

This is actually pretty common for couples with similar incomes plus unemployment benefits! I work in tax preparation and see this scenario regularly. The key factors in your case are likely: 1) Both of you having similar ~$55k incomes creates what we call "bracket stacking" when filing jointly - your combined income can push you into higher tax brackets, 2) Unemployment benefits are fully taxable but often have minimal withholding, which affects your refund calculation differently when split vs. combined, and 3) Your state likely has tax brackets that favor separate filing for your income range. Federal employees also have unique retirement contribution scenarios (FERS/TSP) that can interact oddly with unemployment income calculations. When you file separately, these pre-tax contributions reduce each person's individual taxable income more effectively than the combined reduction on a joint return. The $199 difference ($689 vs $490) you're seeing is totally reasonable for this situation. For future years without unemployment income, you'll probably find joint filing becomes more beneficial again, but it's always worth running both scenarios to check!

You can also file a complaint with your state's labor board. Most states take this pretty seriously.

This is so frustrating! I went through something similar and here's what worked for me: First, send your employer a certified letter requesting your W-2 - this creates a paper trail. Then call the IRS at 800-829-1040 like others mentioned. While you wait, gather ALL your pay stubs from 2024 to calculate your total wages and withholdings. If you don't have them, check if your employer has an online portal where you can download them. The IRS can issue a CP2000 notice to employers who don't comply, and they face penalties of $50-$280 per missing W-2. Don't let them push you around - you have rights!

Another security tip that's saved me from sketchy tax sites: always check if they have a physical address and legitimate contact information. I've seen too many "discount" e-file sites that only list a P.O. box or have customer service numbers that go straight to voicemail. Legitimate tax preparation companies should have clear contact info, including a real business address you can verify. You can often cross-check this with state business registration databases to make sure the company is actually registered where they claim to be located. Also, be wary of sites that pressure you with "limited time offers" or countdown timers for their pricing. Tax season deadlines are real, but legitimate companies don't need artificial urgency tactics to get your business. If they're using high-pressure sales tactics, that's usually a sign to look elsewhere. One more thing - before committing to any service, try calling their customer support line during business hours. If you can't reach a real person or get transferred around endlessly, imagine how frustrating it'll be if you have issues with your actual tax filing!

I've been using FreeTaxUSA for the past three years after switching from TurboTax, and it's been great! They're definitely IRS-authorized and I've never had any security issues. The interface isn't as flashy as the big names, but it gets the job done for a fraction of the cost. One tip that hasn't been mentioned yet: if you're unsure about a tax site's legitimacy, you can actually call the IRS Practitioner Priority Service line and ask them to confirm if a specific company is an authorized e-file provider. The number is on their website under "Tax Professionals." They maintain the official database and can tell you definitively if a company is registered properly. Also, legitimate sites will always give you a confirmation number when your return is accepted by the IRS. If a site claims they've filed your taxes but can't provide an IRS confirmation number within 24-48 hours, that's a major red flag that something isn't right. For anyone still nervous about trying smaller companies - start by checking if they're listed on the IRS website's "Choose an E-file Provider" tool. If they're not listed there but claim to be IRS-authorized, that's an automatic no-go in my book.

I switched from TurboTax to FreeTaxUSA last year because I was tired of their price increases and it was fine. The interface isnt as fancy but it gets the job done and saved me like $70. just be aware that the state return does cost money but its way less than the competition. And the federal is truely free unless u need audit protection or something.

I've been using FreeTaxUSA for about 5 years now and can definitely vouch for its legitimacy. They're IRS-authorized and I've never had any issues with my returns being accepted or processed. Regarding the state return confusion - yes, FreeTaxUSA handles both federal and state, but the state portion typically costs around $14.99. When you're going through the filing process, you'll complete your federal return first, then it will automatically populate most of your state information and ask any state-specific questions. At the final step, you'll see options to e-file both returns together. One thing I really appreciate about FreeTaxUSA is their transparency - all fees are clearly shown before you pay, unlike some other services that hit you with surprise charges. The $15 state fee is still way cheaper than what I was paying with other major tax software, and the federal filing really is completely free for most tax situations. Don't worry about missing your state taxes - the software won't let you submit an incomplete return and will clearly show you what's being filed where before you finalize everything.

One thing to keep in mind that I haven't seen mentioned yet - if you do decide to start reimbursing your part-time employee's health premiums, make sure you establish clear written criteria for eligibility that you apply consistently. The IRS doesn't require you to offer this benefit, but if you do offer it, you need to avoid creating what could be seen as discriminatory practices. For example, you can't just say "owners get reimbursed but employees don't" - that would be problematic. But you could establish criteria like "employees working 20+ hours per week" or "employees with 6+ months tenure" as long as you apply those rules consistently to everyone, including owners who meet the criteria. Also worth noting that any reimbursements to your part-time employee would be taxable income to them (unlike the owner health insurance deduction you get), so factor that into your decision-making process.

You're exactly right, Ryan! This is a crucial distinction that many small business owners miss when considering health insurance reimbursements. The tax treatment is completely different: - **Owner-employees (>2% shareholders)**: Reimbursements go on their W-2 as wages, but they can then deduct 100% as self-employed health insurance on their personal return, making it essentially tax-free. - **Regular employees**: Reimbursements are taxable wages with no corresponding deduction, so they pay full income tax plus FICA on the benefit. This is actually where a QSEHRA becomes much more attractive for regular employees - those reimbursements ARE tax-free to the employee (as long as they have qualifying coverage). So if you want to help your part-time employee with health costs in a tax-advantaged way, a QSEHRA would be far better than simple reimbursements. The math matters a lot here. A $300/month taxable reimbursement might only net them $200-220 after taxes, while a $300/month QSEHRA reimbursement is the full $300 in their pocket.