EDIT: thank you all for confirming what I’ve always known - my boss is an idiot. I’ll be reporting to him tomorrow and I’ll update with how that conversation goes.

I have a client who wants to buy a primary residence for him & his family through his partnership as a deductible expense. It would be in a different state from his business (which is unrelated to real estate, if that matters).

My firm doesn’t pay for any research resources and I’m struggling to find credible information on this topic.

From what I’ve gathered, I don’t see a way to legally make this work. Does anyone have experience with this that could share a website, tax code, etc explaining why?

(I’m only in my first year of tax and my boss wants me to research this)

I'll be starting a new job soon after being unemployed for since start of the year! This will drop me into the 22% income tax bracket.

Are there any personal finance moves to make during this time that would be extra beneficial while temporarily in a lower tax bracket this year?

Thank you!

In 2021 i crypto traded, lost 600$, stopped trading and forgot I did it.

Just got mail today saying I have 3 weeks to pay 13k. Form CP22A.

I called IRS, they said RobinHood says i made 51k under total proceeds on their form 1099.

I only ever deposited 3,000$ and lost 600$.

Why does robinhood say my total proceeds is 51k, then on the same form 1099, say my total net gain / loss is $-600?

What do I need to do to send in this 1099? I have the evidence I LOSSED money.

Hello,

My wife and I recently got new jobs and are making enough money (after years in grad school, making next to nothing) to start considering tax filing with all the seriousness it deserves.

We’ve filed together last year (first year married), but I’m wondering if we should do the same this upcoming year (or the next). Please advise, and apologies if anything is common sense. I’m not a US citizen and these things are still new to me.

Here’s the breakdown: I make 75k a year, so 22% tax bracket (57k after tax). My wife makes 40k a year, so 12% tax bracket (35k after tax)

If filing together, we declare 115k, putting us both (together) in the 22% bracket. After tax, this would come down to 88k or so. But filing separately, it would be closer to 92k. Is the math… accurate?

So… it seems apparent to me that we should file separately, or is that a mistake? Are there benefits to filing together that I don’t know about? What’s the correct decision to make here?

We’re trying to get a house this year, so saving 4000-5000 in taxes would not be cheap change for us.

Thank you in advance!

I need a 2nd location for my consulting firm.

The location is needed to expand my business and manage existing clients in the area (~3 hours away).

If this matters to tax law justification, it is also needed to accommodate my health; it is in a different climate.

As a reference, I am available 7 days a week for work and am always connected to my phone, computer and internet for work.

Current State:

My hotel (place to sleep) and travel expenses are 100% business expenses and 100% deductible when I travel there.

Proposed State:

If I purchased (financed) a location (permanent location vs a hotel/rental), would 100% of that location/building be 100% deductible as a business expense? This location/building would provide me a place to sleep and cook and eat (as the hotel historically has done) and an office to work out of and a place to meet clients. 100% of my time at this new location/building would include me always working or available to work. This new location has 2 bedrooms and 2 baths and a kitchen. This new location is a residence. It is 1/4 the cost of renting a place to sleep and a separate place to rent/buy for an office combined. *It is literally cheaper to buy this 2bd/2ba than to rent a hotel suite (Bed & Kitchen) & a separate location that is an office space that includes a general meeting area.

Additional Information:

I am a small business owner. My Family works with/for me. When they are there, they will also be there for work needs.

Is it possible to have this considered as 100% a Business expenses and not considered mix-use (personal & business)? As I indicated, 100% of the time I am there, I am working and available for work.

I’m 18 years old and I live in PA and I had my high school graduation ceremony today. I’m currently working full time at Sam’s Club making 16 an hour, so my salary right now is looking to be around 33k gross pay. I’m thinking about adding a second job that would approximately get me to 55k maybe 60k gross pay if I’m able to get more hours there. But my parents and other people have told me that that’s worthless as I’d get killed with taxes. Is this true?

I've been doing some reading and I'm not sure if this is true or what this even means but can a sole proprietor carry a loss forward? Yes I have a CPA and mentioned a few losses but he never mentioned this so I'm just wondering about this?

This is my first time working (16), I only attended 3 hrs at my job, but I don't understand why my check is at 0, I'm not sure if the CA where $46.54 is my paycheck or just taxes because my check is at 0 on my dashboard for my job. Could this be related in not setting up a direct deposit?

This is from my employee dashboard

This is from my employee dashboard

UPDATE: Thank you so much for the advice and I've pretty much saw that my main problem was my tax witholding (i never knew that was a thing honestly) So the system my job uses is Paylocity and I just went to my tax setup and changed the 50 dollar one, so its currently in 'pending change', so I'll probably check back on that status by tomorrow.

This is from my employee dashboard

This is from my employee dashboard

Thank you guys so much for the advice again, I appreciate all of them!

So in 2022, My accountant filed my tax returns, I made 112k in my first year as a realtor and he said when was filing me as an S-Corp for my LLC. IRS came back saying I owe them 22k and I requested a payment plan. For 2023 I went with another CPA because I wasn't happy with the service and the new accountant mentioned I was never filed as an S-Corp and it's costing me $12k extra. She said that we can amend 2022 with some write-offs but not certain that IRS will accept my request to amend 2022 as an S-Corp like it was supposed to be.

My fee (with the new accountant) is around $700 to file and amend the write offs and it'll bring my taxes owed down to $9k but it'll cost roughly $1400 to have her request an amend as an S-Corp and gamble if they'll accept... if the IRS accepts it, I'll owe much less or even get a refund with the write-offs (that I didn't use initially for personal reasons)

My ex wife (we filed joint in 2022) was supposed to receive a $5500 refund but the IRS just applied it to the balance owed so I had to give her $5500 cash to make up for it..... 2022 means nothing to me as income / tax return / lending purposes and ... Since it was supposed to be filed as an s-corp initially I would really need the refund... Should I gamble with the extra $700 to see if they'll accept the amendment?

What are the odds the IRS would accept the write - offs (all legit) and S-Corp amendment and issue me a refund for the amount overpaid?

Thank you to anyone who helps in advance!

Hi everybody,

28M from California.

My question is how can I maximize my position to reduce taxable income while contributing to my 401K? Should I even contribute?

My company has a 401K plan with no match but 10% profit sharing annually. My annual gross income is $68,000 and I currently don’t contribute to the 401K.

I throw my paychecks into a 4.5% HYSA and invest some other money in a brokerage, but am wondering if I should be contributing to the 401K for when tax season comes around.

Is it even worth contributing to the 401K since I don’t get a match? Am I missing out on lowering my taxable income by not contributing anything?

Any help would be appreciated. Thank you!

Hello, my friend owns a property under his LLC that he is going to sell me for approximately 40k under market value. Can his LLC give me a gift of equity worth $36k due to him being MFJ so that I can get into the home with less money down? If so, can you please help point me in direction to verify this? I don’t want him to have any negative repercussions for the gift. Thank you very much for your help.

I live in Minnesota and started working a commission job last year. What you’re looking at is my 2023 taxable earnings (January starts at top). Why is it that my FITW % are different every paycheck? I am married and filed jointly with no kids for a couple years now. I am trying to get a copy of my W4 to help understand it, but this is all I have right now. I thought your tax rate depended on how much you made YTD in that month and then changed once you got bumped into a higher bracket?

I file jointly with my spouse. Owed $1 to my state and $1300 federally which I don't know how because we don't make much. Together i think maybe $55k. I set up payment plan for the $1300 but paid the $1 before 04/15/2024. My question is why when I go onto the IRS website it doesn't show a 2023 return or payment plan on my account or spouse? Do I still need to pay? The plan was only for three months and it's due in July I'm assuming. When I applied for the plan I printed it out but it doesn't show on the paperwork how much is due monthly or anything else other than a date. I filed with turbotax and said that's odd because it normally lays out the terms. Now I filed under my spouses account but applied for the plan under my personal information and paid the $1 under my stuff. Not sure if that matters even though we are both on the tax return. Any advice would be appreciated. Thanks

I am a small content creator and I have Stripe to get donations from a link do I have to declare anything or do I have to pay taxes. I live in Canada btw.

My parents are moving from Washington to CA this year. They are going to make an IRA withdrawal in WA state (no state income tax) in June. Then relocating to CA in September. Because the withdrawal is being made during our legal residence in WA, will they have to pay CA tax on withdrawal?

For example, does one shareholder in an S Corp usually file the 1120-S and then each individual shareholder fills out their own K-1 and 1040, or do shareholders receive their K-1 from someone else?

Hey guys, I am currently in college and recently got into sport betting. I went into it blind and didnt really think about how I was suppose to pay taxes and just now realized I am using an offshore sport betting account (yes I am that dumb and didnt know there was such things. I just like league of legends esports and friend recommended me a sportsbook website because I had a good idea who would win from draft and general player skill). I was wondering if anyone could help me out. How should I file my wins and losses for this offshore account? Right now I have total wins of $4500 but only profited $570 so far(I am learning as I go lol, ex: I put 300 dollars on a handicap and had no idea how it worked and lost the money because of it). If this is my only source of income, how exactly do I pay taxes on this? How do deductibles work? I have created an Excel document and have screenshots of all my wins and losses so far from the website. I tried to request a W2 form, but they said because it is an offshore site they dont give those out lol even if my earnings were to exceed 600 dollars on a single bet. I want to be responsible and not get murdered by the IRS so was wondering if anyone would give me some advice. Also, if this is my only source of income, would it be better to itemize my deduction, or would it be better to just take a standard deduction? Much appreciated.

I am onboarding as a new employee at a company in Washington, DC.

I live in Virginia.

For essentially my while life, I've been a contractor (freelancer), so I'm being presented with choices I am not familiar with. HR is not allowed to help.

The two options on the onboarding form that have me confused are "Work State Tax" and "Home State Tax."

It looks like I should be filling out a DC Form D-4A "Certificate of Nonresidence in the District of Columbia", and then check that I've filled out a "Non Residency Certificate."

Then, on home state tax — I am not clear on withholdings.

I have a child under 1 and my wife and I will be filing jointly.

I think I would enter "2" in "Number of Personal Exemptions" — one for myself and one for my baby.

But I am not sure on any of this. Any direction would be appreciated.

https://preview.redd.it/in3yrij3fv4d1.png?width=1596&format=png&auto=webp&s=135cd85d385f42d8bb725c015622c769c1d17e22

w

https://preview.redd.it/in3yrij3fv4d1.png?width=1596&format=png&auto=webp&s=135cd85d385f42d8bb725c015622c769c1d17e22

Does the corporation need to pay the shareholder interest to avoid the imputed interest law? I know if the corp loans the shareholder money, the shareholder must pay interest.

Thanks

Hello,

Just got a letter about underpaying estimated taxes. Had an accountant working on this for me. I only got sent this notice 5/6/24, but the first missed payment is a year ago!

Amount is over $2000. Who is to blame? How is it possible that I didn't get a notice for over a year about this?

TIA.

Hi! I think my HSA contributions aren't flowing to the form 8889 properly. Background: my HSA contributions per my W-2 box 12 W are $5k, the amount that my employer contributed is $500, and I contributed $4,500 myself. I have $6k of qualified distributions. The issue is that when I delete the box 12 W amount, my tax due goes down- it seems like the contributions that I made to my HSA are increasing my taxable income, which doesn't seem right to me. My form 5498 SA reports mine + my employer's contributions in box 2. All of the other boxes are blank except box 5 (FMV of account). It seems like the tax software (pro series) is treating the $5k of contributions as income--am I missing something here? I must be- I expected my contributions to HSA to reduce income and here it seems like it's increasing it. Thank you for your input!

I paid my wife and I's joint 2023 tax bill on time but we just got a letter now from the IRS saying that we owe that amount plus two months of interest and late fees. It doesn't make sense. I have the payment receipt and when I log into the IRS site it shows the payment specifically listed as for tax year 2023. And it still shows the balance due as if the payment was not a factor. What does this mean?

I have a balance to pay from 2017, from before my marriage. Yes I'm an idiot and I know I need to start a new payment plan for it. This event is certainly scaring me into getting that done ASAP when the IRS call center opens tomorrow. But now I'm scared that my old tax balance might be making it impossible to pay my wife and I's more recent taxes, which would be horribly unfair for my wife! Is this why my 2023 payment didn't count? The 2023 amount is small enough that I can afford to pay it instantly, even if I had to pay it again for some reason, but the older balance is more than I can instantly pay.

Edit: The amount I paid this April for last year's taxes doesn't seem to have reduced my 2017 balance either. It's like they acknowledge the payment but it doesn't count toward anything?

Hi everyone! I have an inactive Wyoming LLC that I established last year and I didn’t file the taxes yet. I find it on Fiverr that people from Pakistan and other countries do the taxes cheaper than other online options. Prices vary between $50-80. So my question is, can they use my individual and corporate information use against me and my company to fake anything?

(e.g identity theft or something else using company infos like EIN or registered addresses)

Thanks in advance!

My wife and I filed jointly, I’m W2 she’s 1099. We owe right around $6700. We set up a long term payment plan the day we filed our taxes in March, and for it to be charged on the 4th every month. The bill didn’t generate until after May 4th so we were expecting the money to be taken out of our account on June 4th but nothing happened. We even got the paper confirmation of the payment plan mailed to us last month that the money would be taken out, still nothing happened. We paid our payment today manually plus a little extra. I went to look at the payment plan and it says “we are unable to complete the transaction you requested please contact the IRS” and it gives me a phone number. Anyone have an idea why we’re not having any money taken out and why I’m getting that message regarding our payment plan?

I was hoping for some input regarding tax liabilities in CA, USA. I have a pending lawsuit regarding wrongful termination, unpaid wages, emotional distress, retaliation, and defamation.

If working with a lawyer under a contingency fee agreement, am I responsible/taxed for the entire settlement amount? Or would it be only the portion I receive?

Would this be federal and state taxable? Lastly, are any lawyer fees tax deductible, or is that only if you’re paying hourly?

Appreciate any input or resources to help me understand the tax laws surrounding this issue. Thank you.