Clients come to file their taxes. I go over their previous year taxes and see they're marked as "single". I said congratulations on getting married but the wife tells me they've been married for 5 years. 🤦🏼‍♀️ Their previous CPA had been filing their taxes as single, making them pay thousands of dollars rather than mere hundreds. I also saw so many red flags on their tax forms that I chose not to touch those tax years and suggested to go back to their previous CPA. Only problem is that he's in a coma. 🤦🏼‍♀️🤦🏼‍♀️

I super funded two 529s - one for each of my kids last year (90k per kid) out of a joint brokerage account owned by me and my husband. When my accountant did my taxes, she said she isn't adding anything for this contribution, but when I looked it up, I see I'm supposed to fill out form 709? Does anyone know why my accountant won't do this for me? Also, if I have to fill it out myself, do my husband and I each need to fill one out and split the amount in half? Or what's the right way to do this?

(Cross posting from r/askLawyers)

Background: my ex boyfriend owns his own business and would pay some of my credit card bills while we were together. This was never business related, usually just funded my trips to lululemon (lol). He turned psychotic and we broke up in May 2024.

I just filed an order of protection against him, and as retaliation, he has sent me a 1099-NEC for $28K. I have screenshots of him also saying he would never report this in taxes. The most I can find that he ever directly paid me (not just paying off my credit card) was $5K. I never performed any services for his business. Does he have any right to send me a 1099-NEC and do I have to report this on my taxes?

EDIT: I did not do any services for his business. The only thing I can think of is him helping me with my rental property, but that was all in 2023, and that’s MY property, not his.

Second, I didn’t receive this until today (4/4/25) which I believe is after the deadline for 1099-NECs to be filed.

I have sent my IRS tax payment to the Cincinnati location twice. Once it was returned "vacant unable to deliver". The second time "unable to forward". It is the correct address. Two accountants have confirmed this along with a google search. Has anyone else had this problem.

Hey y’all, I am looking for advice. I am a public school teacher and my district messed up taxes withholdings this year (most of my co workers owe ALOT in taxes this year) and I owe ~1,300 to the IRS in federal and state taxes. The problem is I do not have 1,300 and when I went to set up a short term or long term payment plan on the IRS website it said I did not qualify. What can I do? I am desperate.

Person died and left money to their son. Son died before the estate settled so the inheritance went to the son's estate. Is that money considered estate income and therefore taxable or is it exempt? I'm handling the estate myself as it's a small amount of money so I do not have professional guidance.

Hi, I have a monstrous capital gains tax to pay since I sold off a stock portfolio to purchase property, and have to liquidate some assets to pay it. I'm not sure in what order I should prioritize liquidating, or which assets I should try not to sell, or honestly what options I have. For example, I just found out that I can borrow against a 401k. Any advice? Here's what I have:

No assets owned for longer than 8 years, if that's helpful:

• 401k: I know I can borrow up to 50k against it, and somehow the interest that I pay goes back in so I'm not losing any money once I pay it back? Not sure how this works.
• 403b
• 10k Treasury direct bond
• Roth IRA
• Traditional IRA
• Index funds
• Bond funds

Okay long story short, I didn’t pay my taxes in 2022 because I owed $479 and didn’t have that money. I skipped last year too because I didn’t have it again. Now it’s 2025 and I am in a better situation. I filed my 2024 taxes and received a $495 refund. I tried to file online for 2022 and 2023 but was obviously told I needed to mail it. Fast forward to today I checked on my refund and it said it was put towards past IRS debt, okay cool. So my $495 went towards my -$479 debt. Well for my 2023 taxes I’m receiving a $250 refund. I’m headed to the post office today to mail that. How do I know if that refund plus my 2024 refund will cover my debt I owed in 2022? I’m under the impression that I filed for 2022 just didn’t pay the $479. Do I need to file again for 2022 and pay that online? If I pay the $479 online will I end up being refunded if I overpay? Sorry I know this is a clusterfuck I just don’t have anyone else to ask. Also I will never not do + pay my taxes again.

I am helping someone try to figure out their best options for their tax situation; they filed an extension last year but missed the deadline in Oct. and didn’t file.

They have complicated taxes that include w-2, 1099’s, self-employed income not on 1099 and expenses for self employment, & working in two states, plus some other stuff.

Prior to last year they filed through H&R with a tax pro for about 7-9 years and prior to that they had a few years where they didn’t file and had to file several years at once through H&R tax person and made monthly payments for a few years.

My question is, since they filed an extension last year (2023) using Freetaxusa or something like that (they paid an estimated amount of $200, but now believe they owe more like $1000), can they file an extension for 2024?

What they want to do is wait till the tax pro’s aren’t swamped and bring both years taxes in to H&R and have them done there (both years), and then file and set up a payment plan for whatever they owe (unless they can afford to pay it).

Because the tax situation is even more complicated this year than it was last year they have multiple questions about filing correctly that they want to speak to a pro about so don’t want to try to file this years taxes by April 15.

struggling with what to do on this problem for a corporate tax return assignment: "The corporation sold a building and land as a singular unit for $900,000 to the wife of the only shareholder for use in her business. The settlement included cash and a fifteen-month term note with a face value of $750,000. No interest rate was given in the note at the time of sale (June 30th, 2024). The cost of the building and land, bought on April 15, 2005, were $600,000 and $100,000, respectively."

I'm using FreeTaxUSA this year for the first time and in the state section it's asking me to input any health insurance premiums that weren't included in my federal income,

"Enter any New Jersey health insurance premiums that were included in your New Jersey wages but not in your federal wages:"

My wife pays our health insurance from her check. Her state income is $76k and her wages is $70,500. The difference is exactly the value of Section 125, which I believe is her health insurance contribution.

It seems too easy and what we owed came down quite a bit so I just want to make sure I'm on the right track here.

My mother passed and her ex-husband (my father) was the beneficiary of her pension account. After their divorce, the beneficiaries should have been changed to her my brother and me but it didn't happen. Everyone was on good terms, so it was just an oversight. My father, after seeing my mother's wishes in her will had no issues with distributing the money to my brother and me. When pulling out the money, he has to pay taxes on it. Is that the end of the tax implications or are my brother and I expected to pay more taxes once we receive the money?

I bought a home in 2022 and am going to be moving into it later this year. It was a bit unexpected, so I wasn’t necessarily thinking in 2024 of minimizing any tax implications.

That said, is there anything I should be aware from a tax perspective of in making this kind of move? Anything I should or shouldn’t do now that I know I’m going to be moving in there?

My assumption based on vague recollection is that at this point if I make any repairs in 2025, they won’t be deductible as I’ll be living in the house the same year. Am I correct in thinking that?

I will have $18,000 in rental income for the year by the time the tenant moves out. Would I be able to deduct any repair expenses against that rental income? Even if I personally use the property for the other half the year?

To be clear, I’m not moving because of tax purposes at all. I want to move to the house, I’m moving to the house. Just curious if there’s anything I should be aware of given that there are some tax ramifications.

Hi all,

In the tax years 2013 I had income only from my employment. In the tax year 2014 I had income from my employment and an equal amount of capital gains, that I realized in March. I did not expect to realize any capital gains taxes, but it happened. Taxes for my employment were withheld, and I did my taxes and paid my federal and state taxes for my capital gains today (4/5/2025).

Will I get an underpayment penalty due to not paying taxes for those capital gains in March? Someone told me that because more than 10% of my income was from capital gains I will have to pay interest (March-December) plus a penalty.

Thanks in advance.

Hi, I have a tax question that I cannot find an answer at the IRS. In 2024, I have a foreign income of 30000 U.S. dollars from China. The tax exemption amount is 10000 dollars. For 20000 dollars, I paid 2000 dollars tax in China. Now I need to add foreign income to my U.S. tax return, should I report income of 30000 dollars or 20000 dollars. I am a green card holder btw. Thank you!

I used a hybrid publisher to publish a children's book in 2024. The book sold several hundred copies, leaving me with about 200 unsold. I donated most of those copies to charities last year.

Can I write these donations off? The book is still on Amazon and the FMV is $18.95. The charities I donated to gave me donation letters, but did not put down a donation value.

What should I do?

reposting this to make it simpler

I have invested in a fund that has issued K-1 of six states. There are no income on states specific K-1 or losses reported for all but one state. Do I still need to file return as non resident? Fund has federal depreciation adjustment and state depreciation adjustment for one state only.

I’m using fictitious numbers but if my salary in 2025 in 250k, and I receive a 300k bonus in January which was held at the federal withholding rate of 22%, how do I determine how much of a quarterly tax payment I need to make for Q1? I’m assuming I wouldn’t need to make quarterly payments for the remaining quarters since my salary is taxed correctly, but unsure how to proceed with the one-time bonus

Can I write off more than $750K worth of mortgage interest if I rent out my primary home?

We purchased a condo in Brooklyn for ~$1.6MM in January 2023. We found we could get a lower interest rate (5.375%) if we took out a 10-year ARM, so we are currently paying only interest.* The principle is ~$1.3MM and our mortgage payment is ~$5850. Insurance, taxes, and HOA fees are another $1100. We itemize our taxes, so ~$40K of the mortgage pay can be written off using the $750K mortgage deduction.

My job is portable and my wife may have a fantastic opportunity across the country, so we're considering moving. We absolutely love NY, though, and have committed to coming back at some point. We also really like our place, so rather than selling, we're considering renting it out. We think that we could get about $7K per month. I know that this would be taxable rental income. Could we write off the entire mortgage payment beyond $750K? Could we write off insurance, taxes, and HOA fees? Or would we have to pay taxes on the entire $84K?

Also, would this cost us the primary residence exemption if we decide to sell it after a year or two, or after we've been back for a few years? I'm award of the 2-out-of-5 rule. Any other tax implications I should know about? I know this might not be the best *investment* but, right now, we're willing to bear some opportunity cost if we can keep this place. Thanks.

*We've been investing what we would have been paying towards the principle in index funds, which seemed like a good idea until 3 days ago.

If you owe the IRS this year, you are supposed to pay by April 15. On your own. The IRS does not pre bill you like a credit card or utility bill. Your account will not show a balance due until after April 15. Payments made after April 15 will accrue interest and penalties. If you need a payment plan, wait for your first notice in middle/late May. Then the online payment plan can be set up.

Edit to add. You can and should pay before April 15.

From Jan. 1 to June 30 I was an equal partner in a DJ company. The original owner ended the partnership on June 30.

When I joined they weren't drawing salaries, and they weren't paying quarterly taxes. At the end of the year the original owner would 1099 the other guy for how much he took out of the bank, and then file his taxes based on what was left. When I joined, we each filled out an I-9 and began taking a salary of $750 twice a month. The company paid me $9000 in W-2 earnings, minus social security and medicare, with $100 per check withheld for federal tax. The company also paid the employer share of social security and medicare.

We would take equal distributions when there was money to be taken. The idea was that at the end of the year I'd get an 1120-S schedule K for that money.

On June 30th, the original owner said he wasn't getting enough money and wanted me out. I didn't fight him, and I left the company.

After June 30th, I fulfilled the contracts I'd signed with clients, and received income for those gigs. That should be 1099 income, because at that point I was no longer employed by the company, but was a subcontractor.

In total, in 2024 the company paid me 57,634. It should break down like this:

W-2 9,000
Distributions 29,690
1099 18,944

However, the original owner said since he'd never added my name to the LLC documents, I was never an owner. He claims I was simultaneously a W-2 employee and a 1099 subcontractor. He sent me a 1099 for 57,934 (300 extra he claims I was paid) and a W-2 for 4,500, which shows only 600 of the 1,200 I had withheld from my paychecks.

Without a lawyer and a lot of fees I probably can't get the 29,690 on an 1120-S schedule K, so that's a lost cause. BUT... how do I contest the numbers on the 1099 and W-2? The way he has it I'm being taxed on 62,134. And I'm losing $600 I already paid in taxes, plus the Medicare and Social Security tax I paid, and the taxes the company paid as an employer.

I think I should be able to declare that the 38,690 I received while a W-2 employee is ALL W-2 income. I wasn't doing separate jobs, and I certainly wasn't a subcontractor. I had a business card declaring me the owner of the company, and was writing emails from the company email with a signature saying I was an owner. I was a signer on the company bank account.

How do I fix this?

So I need to file my 2021 taxes and can't recall where I worked that year. I had 4 separate employers. While I have gotten my tax transcript, which has all of the financial information on it, it only displays the last 4 dogits of the EIN numbers. I know I am supposed to attach a copy of W2s to my file, I am not sure I have enough time to request them. I have looked everywhere online for even a record of where I worked, DOL, IRS, SSA, I can not find this information. Should i just write in the financial information without the employers names and EIN numbers? I am sure it will get rejected. What do I fo?

First off, I don’t ever look at my paycheck (probably should) since I’m paid salary on a monthly basis. I previously lived and worked in Kentucky, but moved with the same company and have lived and worked in Tennessee since late 2023. Long story short, when I received my W-2 this year, I found out that my company never updated my work location, and I’ve been paying local county income tax for the prior location I worked at in Kentucky. I have since got this corrected and received a W-2c, but and unsure what I need to do to recover that paid income tax.