I don’t wanna make mention of what company just yet…. But a company I’ve done a ton of business with was charging me “taxes and fees” based upon amount before coupon used. For example…. Let’s say my total was $1000 but I used a coupon that took $100 OFF…. Thus making the total amount I paid the company equal to $900. They were charging me the taxes and fees off of the $1000 and NOT the actual amount I paid which was $900.

Is this kosher? That’s got to be illegal right? Please advise asap I’m so pissed off

I'm having to early withdrawal my 401(k) from my previous employer because I cannot rollover to my current employer's retirement plan. I know, I could have done a roth IRA, but i've already decided to do the early withdrawal. It says I should sign a W-4R, but i honestly don't know what to do with it. Do i keep it for when i file taxes? or send it to the IRS? Is it required if it defaulted to taxing the amount 20%?

I've been having a difficult time getting a straight answer regarding this. Basically, I'm kinda priced out of Maryland right now due to taxes, but if I were able to deduct mortgage interest (the same as on my federal return) that would be a gamechanger.

It seems like a lot of higher income tax states allow you to do this, i.e. "deduct the same as you do on federal, except add back in the state income tax you claimed for SALT"). But I haven't seen clear language from Maryland one way or the other.

EDIT:

If I can indeed deduct mortgage interest, my next question is does this apply towards county taxes, or only the state taxes?

Hi guys so I’ve made an extremely stupid life altering mistake and need help regarding taxes. I worked as a nurses aid during Covid when they were giving insane bonuses since there was an increased workload. I decided not to pay my taxes during that time and was tax exempt for most of that time, about 3 years total.

I managed to accrue about $80,000 at some point and turned that into $250,000 using stock options and leveraged etfs. I got greedy and thought I was the best trader ever and lost everything over the period of a few weeks to months. All my bonuses or most of my checks were tax exempt so I could funnel more money into the market.

For maybe two of the three years I worked 65 hours a week nonstop because of the insane bonuses l. have not paid any taxes since 2020 and know I probably owe 15-30k. I’m a 29 year old male who is still working healthcare like 70 to 80 hours a week at a new job that pays much less to make ends meet. I also recently got a union laborer job but have been laid off due to lack of work and election. Should I hire a tax professional to get these fees down somehow? I’m not really sure how any of this works but I’ve heard paying tax pros like 4-5k to get my total amount down but a lot of them I’ve heard can be a sham.

I have not contacted the IRS yet and have filed maybe a year or two of my taxes. I know I will have to hire a tax pro probably from H&R to file my taxes to see how much I owe. I know it’ll be in the tens of thousands, or maybe somebody else who’s more expensive to get my overall money owed down? I know I have to contact the IRS soon so fees don’t keep accruing. I believe whatever you owe can only go by 25% per year, someone correct me if I’m wrong. Is hiring a tax pro for thousands worth it or do I need to just set up a payment plan with the IRS? Sorry for the long post but I’ve been so depressed ever since.

Sorry if I made any mistakes or have some redundant information posted about my situation. I’m currently working nights and on lunch break so I’ll have to come back and proof read what I typed as to not confuse anyone. I know I’m an idiot and ruined my foreseeable future so no need to bash me on that part just looking for solid advice and what the best plan of action would be so I can get my life back on track. I’m working 6 12 hour shifts at night so I’ll have to schedule a few day break to meet with a tax professional and get everything sorted out. Any and all advice is welcome. I can post a picture with proof of my account being at $250,000 later if I can figure it out later as I must get back to work. God. Bless!

If I claimed "exempt" all year and just paid the full tax when I filed, what type of penalty would I have? Assuming I got a refund the previous year.

Thanks!!

I’m about to get a salary of 150k, I live in Massachusetts and so 50k of that would be gone just from taxes….12.5k a month reduced to 8k. Is there anyway to get taxes by a non state income tax state like Florida? By the way, this job is remote.

Situation at hand is living in Pennsylvania, mother is married, she was disabled but they took away her healthcare/income when she married. Her husband gets disability from a work accident that happened shortly after. I’m pretty sure they file separately and she has no income.

I currently have a mother in law suite under my house that they’ve been living at to try to help them with things and don’t charge them anything for rent.

Recently my mother has fell ill but has no health insurance to get to the doctors and they simply cannot afford it to begin with and won’t let me help them anymore. Is there anyway I can put her on my taxes as a dependent and also put her on my healthcare since she would be a dependent of mine? If possible, would this hurt me tax wise? Pros/Cons? Ideas? Does she have to be on my taxes as a dependent to get on my healthcare?

TIA!!!

Asking for a friend: Hi, I am Canadian business and loan out money/make investments through my canadian corp to US corpo/persons. These loans/investments are interest free, do I still have exposure even though I am a foreign corp and I need to calculate imputed interest on such loans? Any guidance will be of great help!

I have recently become unemployed (by choice), and have been spending some of my newly free schedule to run errands for a local animal rescue.

Transporting animals, picking up meds and delivering them to fosters, that kind of thing.

I am happy that I have the time to do this now, since I’m not really in a position to be a foster myself right now.

Can I track this mileage and deduct it as a charitable contribution? It is a legitimate charitable organization, I have made monetary contributions before and gotten receipts to deduct them.

I’m going to keep doing it either way, but I am unemployed, and spending a lot more on gas doing this than I was commuting.

Thanks for your help!

ETA: I itemize

My father owned rental properties with 4 being in a S corp. When he passed, I inherited the S corp. At the direction of a CPA, these properties were transferred to our LLC and the S corp closed. This triggered a large tax bill. The CPA who filed reports that this was due to the deemed sale of the properties from S Corp to LLC and based on Section 1239.

I had a consultant CPA review the taxes and they believe that Section 1239 does not apply given that this was not a sale or exchange, rather a distribution from the S corp to the estate of my father.

Any insight on which of these opinions is correct?

Hello!

I hope I phrased the title correctly but I'm trying to do some digging on my girlfriend's behalf. I also hope I'm asking this question in the right sub reddit.

She had 2 kids with her former partner. Both her and her ex claim 1 child each as a dependent on their employment tax forms per a court order, and the order also states that both her and her ex are supposed to be splitting the end of year tax credits. 1 child per person. She however hasn't gotten her child tax credit on her previous tax returns and her ex has been receiving the credit for both kids. This year her plan was to push for getting her taxes right and making sure one of her kids will be listed on her return forms.

She has confirmed that she has 1 dependent listed on her W2.

I suggested that she goes and sees a CPA this year to make sure everything is above water but it's a tough financial pill to swallow given her current financial situation.

I tried googling some scenarios and word combinations but aside from calling the IRS I haven't been able to find any resolutions to this online.

Should she see a CPA this year or do anything different when filing her W2 at the end of year?

Again sorry if this is in the wrong sub or it's a large word salad. I'm not tax savy myself so there's a good chance I'm phrasing this question incorrectly.

Thanks in advance!

Hi, I own two LLC's, each one has commercial property under them and I rent out my commercial property to tenants who run their own business.

A few quick questions:

1.) Is there an advantage of paying myself as an employee for my LLC as I manage these properties? Advantage in terms of taxes, SEP IRA, or health insurance? 2.) Related to #1, how do I setup an SEP IRA for my LLC? Can I do that without paying myself as an employee? Can I get different kind of health insurance?

I'm just wondering how I can leverage my LLC to my advantage. I currently don't have a W-2 as most of my work is simply managing these properties.

Edit: It is a multi-member LLC and distributes K-1's to its members. The other members are family members but I'm majority owner.

So I gave this guy my FanDuel account and we had winnings of $150,000 and losses of $130,000 on my FanDuel. But I also gave him my offshore sportsbook account and had winnings of $80,000 and losses of $90,000. We split the $10,000 net gain 50/50. He said he will give me a 1099-nec that'll show $5000 income. Can I put the 1099-nec in gambling winnings of 1040 line 8 b and that's it. Or do I have $230,000 in winnings and itemize $220,000 and add his $5000 payment as a gambling loss?

I am trying to figure out what this means. Received a letter from the IRS reflecting changes are being made on our W-4. I’m just confused as to what an annual withholding reduction is, in conjunction with the standard withholding rate.

I have a new client at the ~200k revenue mark, requiring a 1099 filing. I’d like your help to assess if this is fixable or to drop this, Nov 15 deadline.

I’ve just looked at the P&L and BS and have a few concerns.

1. Paid contractors but no 1099-NEC issued

2. They operate a housing refuge and the nonprofit owns the houses, but the assets are not on their books and weren’t reported on prior returns

3. They have a “unreconciled difference” account that’s hitting expenses on the P&L

I have never filled out these kinds of forms before.

Which one below do I fill out if I have self-employed income (50 dollars)?

1a. Number of Regular Withholding Allowances (Worksheet A)

1b. Number of allowances from the Estimated Deductions (Worksheet B, if applicable.)

1c. Total Number of Allowances

2024 has been a year of learning, but I have just finished with the client from actual Hell. It took me 4 months to get payment for July and 3 months to get payment for August. I applied a $50 late fee to the Client's last bill last month. The total earned from this client was $1, 800 from the contract, and $50 from the late fee for a total of $1, 850. This was basically earned as $600 in each month of June, July and August, and a $50 late fee the client incurred as of October $15th.

After finally receiving my last check, and a 2nd check to cover the late fee, I deposited them together last week, and made sure the checks cleared. I waited a week, then I completed my W-9 for the client via Intuit Services | Quickbooks. I understand this W-9 was generated because we did business for more than $600, and I expected this.

However, I have never, EVER had a client who didn't promptly pay, and I am unclear of three things:

1. When I receive the W-9, should the total amount listed be for $1, 800 or $1, 850?

2. What do I do if the W-9 I receive from the client is incorrect from what it should be?

3. When I complete my Schedule C on my taxes, is there anything I need to do with this income from this client to denote the difference in the amount that was contracted and the late fee the client was charged?

I just want to make sure there are no issues because I just want nothing to do with this client ever again, and the last thing I want is an issue with taxes that requires me to connect with them in 2025! Thank you so very much!

I work at a mid size company that gives employees stock options as part of their compensation package.

I currently hold my options personally. Is there a better way to hold the shares? In a trust? Give some to my kids? LLC? Something else?

I know its a stupid question. Say i won 15,000 over a 6 month period and gave it back. Do I still have to pay taxes on the initial winnings or does it become a wash(15k win - 15k loss = 0) Im confused. Thank you

Edit: i make $55000 ! Year

Hi, I have about $80000 of private student loans that have been forgiven by Discover. I filed bankrupcy shortly before they were forgiven and was looking into fighting them at the time they were forgiven. I'm trying to figure out how this would impact my taxes (I'm really terrified). I only make about $5500/year and usually get about $800 back a year. I live in california. I know Federal student loans are not taxed right now, but I have no idea how these will factor when i get a 1099-C. Can someone help me understand what to expect? Should I still file an adversary proceeding to have them eliminated in bankrupcy? They were included in the original filing, but when I spoke to discover they told me I would get a 1099-C, so it sounds like that amount would be considered income. Help! Im terrified of the implications! Thank you!

How to file taxes and consideration for health premium tax credit

Hello everyone, I just wanna ask a couple of questions regarding how I should file my taxes. Married to my spouse from a foreign country, who is currently going through the CR-1 visa/I-130 process.

I’ve been reading and there are two tax status that I can file under married filing jointly and married filing separately.

My main concern is her foreign income would also be taxed, but she doesn’t have SSN # if I were to file married jointly.

On the other hand, if I file married filing separately, I would lose my tax premium credit for my health insurance, which is very costly to me. (Correct me if I’m wrong)

I’m unsure what to do is there a ways to still file married filing separately and still keep my health insurance premium credit?

I’ve made the mistake of purchasing index calls (40 SPY DEC 31 calls) rather aggressively the past week. They’re up 150% so far. I see a further aggressive move up in the indices. My question is, should I take the 10% penalty as a mental “cost of doing businesses”, and withdrawal the proceeds from the trade by end of year?

Related to tax from couple of years ago. My former employer contacted me recently saying that I need to give them back the money ("overpayment ") because they reported the withholding to IRS and did not actually withhold it from my paycheck. This is significant chunk of money obviously that I don't have at hand, so I was trying to work out a payment plan with them. Then I changed jobs and they sent me a letter detailing how much was the overpayment and wrote that I owe them $0. Happy surprise, but entirely unsure on what exactly does this mean, are they going to send me a corrected W2, showing $0 withheld and then I will be on the hook with IRS? Are they going to send me some document for the extra income that I essentially had by them paying my taxes for me? If they do nothing (lord knows they have demonstrated clear incompetence in this area).. what am I supposed to do to stay good on my taxes?

This is such a unique situation that I couldn't get anything on google. Help me please.

The title is a bit incomplete because that answer is "it goes away unless there's a carve out to keep it, dummy".

My specific concern is that we're in the process of having a solar set up installed. The work isn't likely to be completed until early next year, though. It was already a bummer that we wouldn't be able to claim the credit in this year's taxes, but now I'm uncertain what the impact would be if the IRA is repealed next year.

Are we grandfathered in because the 2025 tax laws are already in place or because the work was done while the credit was in effect? Or are we potentially SOL if the IRA is repealed?

So I've been back and forth with this multiple times and get different answers from each accountant, so I figured I may as well get multiple answers here.

Three of us have a C-Corp incorporated in WY last year. One is in Canada, one in AZ, one in GA. Each owns 500 shares.

The one in Canada probably shouldn't have owned the shares directly. Looks like it means witholding on every dividend round, problems when he exits, etc.

The other two may have been better off if it was an LLC from a tax perspective, but it seems that the Canadian would likely get double taxed by Canada and the US because they recognize LLCs differently, but the Canadian could have owned a US C corp that in turn was owned by a Canadian corp.

This is looking to become pretty lucrative so I want to get it all sorted before that happens. From a simplicity standpoint having the C-Corp continue to exist seems the best, because some contracts are already in place.

At a bare minimum should we record that the Canadian's corporation now owns his shares?

How much should all this cost to get sorted by a CPA? I'm getting the feeling some of these Accounting firms are giving us quite the runaround.

I contributed the full $7000 to my Roth IRA account for 2024 (first year of contribution) and actively traded throughout the year. It seems like my income will be above the income limit this year (above $161,000), which means I am not eligible to contribute to a Roth IRA account.

I've been researching and it seems like my best course of action for the current tax year is to recharacterize the full $7000 and the earnings to a traditional IRA (need to open an account; do not have any other IRA account other than Roth IRA), and then convert the $7000 and earnings back to Roth IRA in 2025. However, I would have to pay taxes on the earnings during the conversion even though the earnings occurred when the funds were in the Roth IRA account. I was able to grow my $7000 to $25,000 in Roth IRA, so it seems like I would need to pay taxes on $18,000 after the conversion (assuming no additional earning in the traditional IRA after the recharacterization).

Is there a better alternative solution to this? Having to pay ordinary income taxes on the $18,000 (without "realizing" or having the gains in hand) would be rough since it's going to be all out of pocket. Please share your thoughts. Thank you.

My dependent child filed their taxes on paper. They just got a notice that they were claimed as a dependent on somebody's taxes (True, mine), but did not check the check the box indication dependent status on their return (Not true and I pulled the file copy to check). I assume this was a transcription error on the IRS end. Should I have them file a 1040-X as the IRS requests (the exact same return) or is there an easier way to handle this?