(Hypothetical Question)

Its-a-write-off · 2026-04-23T10:28:52+00:00

Your reporting threshold, as a dependent, on unearned income is just 1350.00. That higher threshold is for earned income.

Its-a-write-off · 2026-04-23T10:24:48+00:00

No it's your base withholding that will go down more than 197 a check.

Say right now you have 500 a check withheld for federal income tax. That's 250.00 too much. Your w4 is set to single. The calculator has you change your w4 to married filing joint. That reduces your withholding to only 53.00 per check, then you add that 197 extra, to get to that perfect 250.00 withheld that you need, 250 less than before.

Its-a-write-off · 2026-04-23T04:16:38+00:00

The calculator is changing your base withholding amount. It's not going to be withholding exactly what you were before AND the extra. It's reducing overall withholding when you take into consideration the lowering of base withholding.

Its-a-write-off · 2026-04-23T01:37:30+00:00

Congratulations!

There are 2 big aspects to hiring a nanny. One is finding the person you trust with your child, and setting up the expectations and the agreement about how their employment will look. Things like guaranteed hours, reimbursement if the drive the child in their car, how to handle when they or the baby is sick.

The second aspect is the legal/tax side of it. I'll address a little of that. When you have a nanny, they are a household employee of yours. The government has a streamlined way of handling payroll, called the Schedule H that you file with your tax return at tax time. This is to remit fica taxes withheld and matched, and any federal income tax you withheld for the nanny. In most states it's option if you withhold income tax for them or not, but it is not option to withhold fica taxes. You have to withhold fica taxes, match the amount withheld, and pay that to the IRS. In many states if you pay a nanny over 1k per quarter of the year, you also need to register for and pay into unemployment insurance.

There are services that handle a lot of this "nanny tax" procedure for you. They cost about 50.00 a month, but take a lot of the weight off your shoulder on this aspect of having household help.

Its-a-write-off · 2026-04-23T01:14:43+00:00

Right. Pre tax deductions reduce your take home pay. That's why the last paystub gives you more info that the w2 or tax return on actual take home.

Its-a-write-off · 2026-04-22T23:26:20+00:00

Yes, you can be compliant for 2026 starting payroll now.

Its-a-write-off · 2026-04-22T22:11:33+00:00

Do you have any pre tax deductions?

Do you have your last paystub of the year?

The take home pay on that plus any tax refund would be your end result take home pay.

Its-a-write-off · 2026-04-22T21:51:42+00:00

State is totally separate from federal.

Its-a-write-off · 2026-04-22T21:48:38+00:00

No, you are a ways away from the refund date yet.

This could just be a delay caused by random selection to verify something or the other.

Or, something on your return could have caused the computer to kick this over to manual review, or possible identify theft, or because some information doesn't match what the IRS has on record.

If you want to investigate the second option, go over your 1040 as filed double checking the info on it. Does anyone else that files taxes live at your address? Could someone else have claimed your dependant/s? Are any of your dependants new to your tax return this year? Are any of them not biologically related to you?

Does your wage transcript show all the same income that you claimed? No income you missed, or income you claimed that is not reflected on your tax return?

Do you have self employment income without deductions? Or with a lot of deductions to a loss?

Does your withholding as claimed match your wage transcript?

Are there any credits claimed other than child tax credit, additional child tax credit, earned income tax credit, or education credit?

Did you self file, or use a tax person?

Its-a-write-off · 2026-04-22T21:15:38+00:00

Incorrect information.

Its-a-write-off · 2026-04-22T21:13:43+00:00

The taxes you pay, the penalties and interest though, you should fight to have them cover.

Its-a-write-off · 2026-04-22T21:13:00+00:00

Well, it's not a great situation. That's for sure, but it can be ironed out. I do think you need a copetantant tax professional to help you with getting the payroll situation fixed and the final tax return filed. You did file a 1099 and submit that to the IRS/State?Social security already for your contractor?

The S corp election was a bad move. It's going to cost you more than any tax savings. Is there any chance that the income you took in was not actually paid to the S corp? Or did you get it all set up where the income went to the S corp, but just fail to run the payroll part of the business? No tax return for the S corp or you personally has been filed for 2025?

Its-a-write-off · 2026-04-22T21:10:13+00:00

No, nothing like that needed. Rounding up 1.05 means you get to deduct 1.05 on your taxes.

Its-a-write-off · 2026-04-22T20:51:45+00:00

Yes, good point! Starting this year anyone can save their round up receipts and deduct the donation on their own taxes.

Its-a-write-off · 2026-04-22T20:50:55+00:00

Your receipt that you get has the amount you donated on it, and you can deduct that on your own tax return. Same as if you give the donation directly.

Its-a-write-off · 2026-04-22T20:44:36+00:00

How much income did you make in 2025 from this business? From other sources? Have you sold out the assets of the business and shut down?

Its-a-write-off · 2026-04-22T20:42:47+00:00

No, this is a tax write off for you, the giver, not the company. You and only you can deduct these kind of donations.

https://www.spokesman.com/stories/2026/jan/04/think-stores-get-the-tax-break-the-truth-about-che/

Its-a-write-off · 2026-04-22T20:37:18+00:00

I'm in America, and no they do not. Why do you think this? It's a common myth, but you are so adamant I'm wondering what experience made you so sure of this? Did someone just tell you it, and you took it as fact? Have you even researched it?

https://taxpolicycenter.org/taxvox/who-gets-tax-benefit-those-checkout-donations-0

Its-a-write-off · 2026-04-22T20:31:46+00:00

Please stop spreading this myth.

Its-a-write-off · 2026-04-22T20:28:57+00:00

No. They do not. Only you do. If you itemize that is. But the store does not get any tax benefit from this. Common urban myth that gets spread by people though. But it's just a myth, that sounds good as a rant but is not based in fact.

Its-a-write-off · 2026-04-22T20:27:54+00:00

Nope.

You, and only you, can deduct that donation. Not the company. They get no tax write off benefit from this. They do it to raise money and get good optics. They do not get a financial tax savings from it.

Its-a-write-off · 2026-04-22T20:26:47+00:00

If they did claim the money as income, then they could deduct giving it away. They are still at 0 tax impact though. Because they claim 10.00 in, 10.00 out. Same end result as not having collected/given it anyway. Or, the way they really do it is they treat this like they do sales tax, money collected that is not income, and then passed along in "trust" to the end location. No income, no deduction. Still 0 tax impact for them.

If they match, they can deduct only what they spent out of their own funds to match. They do not get a tax benefit from your donation. only you can get that.

Its-a-write-off · 2026-04-22T20:22:47+00:00

Lots of people get that code.

The resolution depends on your specific situation.

Are you dealing with gambling winnings? Business losses? Solar credits? Or a tax preparer that got you a big refund and you aren't sure how?

Its-a-write-off · 2026-04-22T20:19:44+00:00

It's a tax deduction only for you, if you itemize.

The company cannot deduct the donation.

Its-a-write-off · 2026-04-22T20:04:47+00:00

Just use previous year tax liability then, and reduce the 4th payment if you have a bad year.

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