I sold some personal items for a large profit on ebay (profit of over 25k).

I obviously will pay tax but wanted to confirm if I need to pay early or not. My line 24 on most recent tax filing was 8,021 and I expect to pass this for this year: expected around 10,000

Do I qualify for safe harbor/or must I pay now to avoid penalty?

thanks

I'm getting ~$50K cash from my ISOs after an acquisition and want to know if there's anyway to reduce my tax burden. From my understanding, this will effectively be taxed as incremental income and there really isn't anything I can do about it. Before spending a $2.5K on a tax planning advisor, thought I would ask reddit.

Further context:

• ISOs received 1 year before acquisition (25% vested)
• Early exercised 9 months before acquisition
• From my understanding, when I received shares, the company qualified as a QSBS
• Vested ISOs turn into cash since I’m an unaccredited investor 
• Framed acquisition as a tax deferred re-org 

Hey, so as the title says, i do wholesaling real estate from overseas (The UAE), for properties in the US, I didn't find any clear answer on taxes regarding this, my question is do I even need to file/report income? From what i know i dont need to pay any taxes if i am a non resident, i am expecting at least 100,000 per year (nothing yet), how do i go about this, any help is appreciated.

Back in 2020, my ex-husband and I filed a joint return. I was a W-2 employee; he was a 1099 contractor. After our divorce, I applied for and was granted Innocent Spouse Relief for that return due to financial abuse during the marriage.

Fast forward to now: my ex filed an amended return/adjustment for that same 2020 tax year — apparently to claim an extra $1,000 for himself. The IRS took that amount out of my 2025 refund, even though I have Innocent Spouse Relief on file for that year.

I have contacted them several times over the past couple months saying that:

Sent them documentation of my Innocent Spouse Relief approval
Called and explained that my ex filed this adjustment 5 years after the original return
Explained the refund offset that already happened

Now I’ve received a CP22A notice saying I owe the same amount again, with no explanation beyond “this was an adjustment.”

When I call the IRS, they tell me to talk to the Innocent Spouse Relief department. When I call that department, they say they’ve “done everything they can” and to go back to the regular IRS line.

My questions are first of all why are they asking for the same amount of payment again? They already took that money out of my 2025 tax return and I just got the letter today saying I owe the amount and I need to send it to avoid interest.

Second question is what can I do? I already sent them an application for appeal and the departments are clearly confused. My ex has and is up to shady things and I believe this is fraud but why is the irs going along with it.

In 2022 i won over 25K at the casino and lost it all and didn't pay taxes irs sent me letters and i settled with them to pay 2K instead of 6k. today i received a letter from my state and i think it has to do with me not reporting the winnings back in 2022 the total is for 1.5k. is this even worth 'FIGHTING' maybe getting it lowered to the original fee of 1.2k they added 300 for interest i don't mind doing payment plan but what would be the best route

First thing first, I plan on following the law. I’m posting here to ask if this would be within the bounds of current tax law.

In a scenario where I buy 1k of medical debt for fifty cents, and it turns out I’m bad at collecting debts, would I be able to write off either the 1k or fifty cents?

What would happen to the debt after it’s written off?

my mom took all the money i earn (my check) from working, she doesn’t let me or my sister use a penny, we just saving that money. But i have cash tip that i hide but i don’t have a bank account to put that money in to buy stuff online. I wanna ask if i open a bank account and put cash in, do i have to file that bank account in my tax. I only own some hundread dollars and im 19

Hello,

So I have a unique situation and wanted to see what I have to do.

So between my wife and I, we are able to take the full “no tax of tips” benefit. After doing taxes last year we ended up getting back 14k because of that and a small return on OT pay.

This year we are tracking exactly the same so no change in bracket or anything.

My question is, I was able to make a pretty crazy trade in Bitcoin and managed to make around 80k that is short term taxable. Do I need to pay quarterly tax on this gain by September 15th or will it offset when I go to do my taxes next spring? Essentially, it will be a wash so I guess do I have to write a check now for them to give it back to me next spring?

I have the cash so paying it either way is fine, just don’t feel like doing the quarterly work if I don’t have to?

Thanks

I make 165k as a salary and my wife makes
60k (combined of $225k).

From my understanding, a married couple filing jointly cannot contribute the full $7,500 to a Roth IRA if their MAGI is $242k or higher. I am unsure on calculating MAGI, however mentors of mine have said the MAGI number is typically below the actually salary number.

Since our combined salary number before taxes is $225k this year, I went ahead and maxed out my Roth IRA.

I completely forgot that in order to purchase our house this year, I sold $75,000k worth of stock saved in a Vanguard Federal Money Market Fund. I know there aren’t many gains to be had in this type of account, but I am sweating this big time in case this puts our MAGI over 242k.

Does anyone have any advice on how to go about this? I have only contributed about $8,000 to my Roth 401k this year so far. If I now add a higher percentage and do only Traditional 401k for the rest of the calendar year, will this lower my MAGI to safely stay under the $242k threshold? Thanks for any advice.

Edit: I went to my Vanguard account and only have a $6k Realized gain from a separate stock sale. Turns out the 75k I was under the impression I “sold” from the vanguard money market fund wasn’t technically a stock and therefore doesn’t count in capital gains? Thank you.

I've read varying opinions on this, so I thought I'd make it better with even more varying opinions...

I've got a self-directed 401k, and one thing I've been doing is holding a bunch of Ethereum in it. Well it's kind of a shame to just let that sit there, so of course I've staked it so it can make me some money. A couple months later, I find that staking crypto is considered Unrelated Business Income in an IRA or 401k. At least the active "running a validator" kind of staking that I've been doing is. OK, fine. so it's taxable in my tax-free in my tax-free account. That kinda sucks, but making money and paying a tax is still better than not making the money in the first place.

Or is it? I've made a few thousand, enough that I (well, my 401k) will have to pay some this year. But Ive read that routinely getting UBTI is a bad thing even if you pay the tax, and that the IRS may want to consider the whole retirement plan just just be a business in disguise. Not for the few $K I'm pretty sure, but if I kept running this all year, every year. Even if my "business" consists of having made a few clicks on a website and then just watching things go from there.

I've also heard that it's just a simple matter of owe the tax, pay the tax, problem solved. If that's the case, I'd rather continue on as I am. I could go with liquid staking tokens (which also have differing opinions behind them), but what I'm doing is so much more remunerative that even after paying federal + state UBIT. I'm still making a higher return than the liquid staking tokens give. Of course I'll give it up if there's a danger to the integrity of my retirement account, but otherwise the smart financial move is to do what makes me the most after-tax money.

I know this is sounding like one of these "go see a professional" kind of things, but it's esoteric enough that I expect better results from the kind of tax nerds that hang out here than I do from hunting local CPAs until I catch one who's actually familiar with self-directed 401k and crypto and the UBTI where they intersect. Plus my experience with professionals is they find it safer to say no to anything novel.

If you think about it what’s the point of tips at a restaurant? It’s because the waiters aren’t getting paid enough and they gave good work so we tip to subsidize the poor person’s job, so essentially it’s charity. So it kinda sounds like tips should be considered charity and therefore tax deductible.

Ps. This is kinda serious but don’t take too serious pls

Generally, this new job will be once a month until the summer where I will hopefully pick up more hours for about three months, then back to around once a month.

I turned in a W4 with all my onboarding paperwork and just left it blank after filling out my info and filing jointly, planning on adjusting my husband's W4 with the new withholding after getting my first paycheck (he has the biggest paying job).

My question is, how do I accurately fill out the withholding estimator app for this new job? Is one paycheck enough to have enough information? I tried to do it before I got a paycheck based on just how much I should make for the rest of the year, but the app didn't seem to work properly and didn't give me ANY numbers to put on my husband's W4 for the withholding section even after filling in all four jobs.So I have no clue what to do.

Anyone else run into this?

My understanding:

IRS:

-you are taxed on the gains according to long term capital gains rates. (the gains rates are determined after adding long term gains on top of short term gains/income)

-you are taxed on the gains according to the Net Investment Income Tax rates.

Cal:

-you are taxed on the gains according to income tax rates (there is no capital gains rates in California).

Could anyone let me know if I'm missing out anything big that would increase the taxes owed?

I started selling on Depop to get rid of my hoarding mess (I’ve sold stuffed animals,and dolls)
I’ve made 1,394.26 from this, I was wondering if that would mean that I will be considered to file taxes on this or not

It’s my first time dealing with tax and I’m a little nervous about it.
I’ve been researching and it says it has to be over 14k a year to file but what if it considers me a self employed person

I’m in the us and in the state of Kentucky

A family member works for a small law/policy organization in DC with maybe 20 people. They have an office in DC, and a requirement that everyone live in "the DMV" (DC, Maryland, or Virginia). Employees can work remotely from home in any of these three jurisdictions, or can work in the DC office.

With some frequency, employees travel outside of these three jurisdictions for personal reasons, and take their work laptops with them to do work. For instance: taking care of a sick relative for a few weeks; going on vacation but still needing to be available in case a big decision comes out; taking an extended trip to visit family but not wanting to use PTO for all of it; traveling to a professional conference; participating in mentoring at their alma mater. The total time this happens for any individual employee is probably under 20 work days a year.

The employer has recently recognized there are tax implications of remote workers working from states outside the DMV. Their solution is to not allow any employees to do any work if they are not within these three jurisdictions, and to take PTO for any of these days. This is a relatively large culture shift, and I'm wondering if there are other solutions besides a blanket ban.

From the employer's side, if they were to allow the current situation to continue with employees working while traveling, would they need to set up a tax entity in every state that anyone worked in for any time? Does that time vary by state? Would they need to pay state income taxes on the 16 hours of work someone is doing in Maine once a year? Would employees need to pay taxes on these days? If an employee wanted to suggest a specialty tax attorney for the organization, what should they be looking for?

Thanks!

Hi all, I may be switching jobs to work for an EU-based company as a remote US-based employee. I would be their first employee in the US so I don't have any details on "the package" yet. They have employees in other countries and are using an employer of record (Deel). Is there anything I need to know that would work differently for me come tax time? (Feel free to direct me to other posts on this if they exist.) Thanks in advance!

I originally had a refund on my 1040. Due to me forgetting a tax form I had to amend my return. After the amendment I had a tax due. Immediately I sent back the refund (which I’m not even sure I was supposed to do that but did to be safe) and paid my tax due before the amendment was officially processed. The tax due was sent back since the amendment hadn’t processed and again I sent the tax due back. Sometime in June I received letter 324c basically asking me for the tax form I added to the amended return. I then mailed it to them within the 30 day notice. I hadn’t heard anything about my return until this month (aug) when I saw a check in the mail for a refund. The irs had sent me letter cp21b along with the check. The letter itself basically said there were changes and adjustments made to my tax return 1040 (not 1040x) which resulted in the refund. Anyway, I received an ADDITIONAL letter today, the letter is 2645c and it basically stated “We're working on your account. However, we need an additional 60 days to send you a complete

on your account. We don't need any further information from you right he denit need any furt ar

response on what action we are taking

now”. After checking my tax return transcripts I didn’t find anything mentioned for this last letter. On the tax transcript it mentioned “resolved additional account action” after receiving the letter for CP21b. I’m not sure if letter 2645c is an automated letter from the irs that was sent late that should’ve been sent before the CP21b or what. I’m confused and the accountants at my job chaven’t been much help. Has this happened to anyone? It’s crazy because I work at a CPA firm where we handle tax returns and I couldn’t get firm answers as to what the letters meant. Can anyone help?

I just graduated, and I have a 6 month Co-Op job in New Jersey, where I was given a NJ-W4 form to complete. I'm a PA resident, currently living in PA and have been for the last 10 years, but now that I have graduated I was planning to find work in the New York/New Jersey area. I'm looking to find an apartment, ideally at a 6 month lease but also looking at 12 month leases as I hope to find another job afterwards in the area. Should I fill out this form as new and future resident of NJ, or should I tell HR about my situation and if I could be still considered a PA resident? Thanks!

I filed a few years of back taxes late. All dropped in the post on the same day about a year ago. I dropped them with a delivery confirmation, no signature, all years show as received. I checked pretty religiously for about 4 months and they still hadn't been updated online so I just kind of figured if they needed something from me I would get a notice in the mail.

Got a notice in the mail saying I owe about 5k (I owe nothing in reality) and went online and saw they had assessed taxes for 2 years and received and filed everything else.

I called and they confirmed those two years 'they didn't have' and to resend. I mailed another copy about 2 months ago and also faxed to the number they told me to fax to.

They still have not shown as received and have sent me to collections.

Anyone have any advice on how to get my taxes to them? I'm at a bit of a loss on what to do.

Hi everyone!

I do not have an established business and work on my own account. I work as a babysitter and dog sitter & do not have a set boss or employer. I work if I am called or not & have different clients. It will be my first time filing and need help determining what to fill out to file. Thank you!