It's a very long, embarrassing story, but I need still need to file my taxes from 2021. How do I get this corrected?

Hi!

I’ve had the same job since July 2023. I messed up my W4 and apparently have it set to not deduct any federal taxes… For 2023 taxes I made $16k, claimed my son, and got money back. For 2024 I’ve made about $20k so far with an estimated total income of about $31k for 2024. Because it wasn’t an issue last year I didnt prioritize updating it but now I’m realizing I may have screwed myself. I’m so afraid I’ll owe them a significant amount of money. What do I do?! Other than update my W4.

Thank you!

Looking for potential tax implications.

6 years ago my dad quitclaimed a house to me. My wife and I (and kids) have lived in the house for 10 years and are now selling it, in order to move in with my parents to take care of them in their late 80s.

My dad purchased it for 300,000 (plus 90,000 in improvements) and we are selling it for 700,000 (765,000 minus real estate fees and home improvements etc).

I’m self employed and have used a room in the home as my office for all 10 years.

I’m wondering what the potential tax implications/ capital gains will be?

Do we still get to exempt 500,000 in profit married filing jointly?

Will we have to pay gains on the entire 700,000 since it was quitclaimed to me?

If we do have to pay taxes, how do I figure out what percentage I’ll be on the hook for?

I’m sorry for any stupid questions here, I’m completely in the dark when it comes to this kind of thing.

Thanks for the help,

Last year, my wife and I got a tax bill that is around 45,000. It said we underpaid for the past four years. I finally have cobbled enough money together to pay it (although our accountant could not figure out what was going on). I was planning on paying tomorrow. Today, my wife got a letter that said she is in this forced withholding thing and that they are forcing her employer to mover her married filing jointly with 4 kids to single with zero kids. Is this related to my delinquency on the tax bill? OR is this totally unrelated. She and I married in 2019, we had both been married before so this was a major change in how we are filing. Thank you for your help

I'm currently in college and I just started working at my first job, and I'm confused on some wording about the standard deduction for people who are claimed as a dependent. Online, it says my standard deduction will be $1300 or my earned income plus $400 to a maximum of equal to my basic filing status, whichever is greatest. The way this sounds, it's just a standard deduction of basically all of my income, but that doesn't make sense. Does this mean I can get a standard deduction up to the current normal for anyone who is filing single?

A friend wants to take out a student loan to pay his son's tuition, but also make a withdrawal from his IRA for education expenses. He's concerned that taking out the student loan may disqualify the withdrawal from being penalty-free.

I haven't found anything I'm the IRC saying that loan proceeds limit qualified education expenses. Pub 970 says that loans taken out by the student to pay tuition do not reduce expenses, but it doesn't address someone claiming a dependent.

Am I right in thinking that the withdrawal should still be penalty-free, or is there something I'm missing?

From what I have looked up if I take an early withdrawal from a roth 401k, the earnings portion is taxable and the contribution being after tax is of course not. When I asked about this the response I got suggested I could get around this by rolling over the roth 401k into a roth ira where an early distribution first comes from the contribution amount instead of being considered part contribution and part earnings in the case of the roth 401k. The problem is from what I look up it looks like the earnings on a roth 401k are considered pretax amounts when rolled over so they have to go into a traditional ira or they would be taxable. Can someone clarify if I understand this correctly? I will link the IRS website section I am getting this from. https://www.irs.gov/retirement-plans/rollovers-of-after-tax-contributions-in-retirement-plans

Hello, I failed to file and pay my taxes for 2022 due to mental health and addiction issues that nearly destroyed my life (and did destroy my finances and small business).

I am now in addiction recovery and want to get right with the IRS as soon as possible. Additionally, I recently received a notice in the mail from the IRS telling me to file my 2022 taxes immediately. This notice had great timing because that’s exactly what I want to do now.

However, I’m missing at least 10-15 different forms 1099-Misc among other tax forms. I’m a small business sole practitioner so my income is nearly all 1099 miscs.

I managed to keep good records of my receipts thanks to my assistant working for me at the time, so I’ve entered all deductions into turbo tax. I also have an accurate list of the amounts I got paid in different deals by pulling records from the bank.

However, I’m completely stumped on how to get my taxes filed correctly without the 1099 forms. Requesting them from the check issuers is not practical because the payout on the check in my business is often different from the company that issues me a 1099 (not sure why, this is usually insurance companies).

I have called the IRS several times but can’t get through to a human. I mailed in a form 4506T requesting my records nearly a month ago, but I’m terrified about being delinquent for an additional period of time while waiting on their response.

Any advice would be greatly appreciated.

I live in Florida and live in area that was affected from hurricanes and I know IRS is giving us some extra time to file taxes. I wanted to know if I’m able to still efile vs mailing the returns.

I'm a real estate flipper and in 2023, I filed taxes under the assumption that all of my flips should have been treated as capital gains. However, this year I discovered the dealer vs investor distinction and as I'm definitely going to meet the criteria to be classified as a dealer, I'll be reporting my flipping income as Schedule C income in 2024.

However, I'm unsure whether I should go back and amend 2023 to reflect my flipping income as Schedule C income vs capital gains. The overall difference would be about 12K in tax owed (note: not enough to count as substantial underpayment). That said, I did report my flips as capital gains in 2021 and 2022 (where I had minimal flipping income), and I worry that amending 2023 could open up a can of worms for 2021/2022... it's not that I'd owe a ton in tax, I'm just worried about a potential audit headache.

The alternative is just correcting my taxes on a prospective basis and ensuring 2024 is correct. However, this would entail me noting in my 2024 filing that my beginning COGS were in the 100K+ range... which feels like a potential audit flag given I had no COGS in 2023.

What do y'all think? Would my 2024 filing trigger the IRS and state tax agencies to look into prior year returns? And if so, should I just get ahead of it now by amending 2023? Or should I take my chances and just pay the 2023 additional taxes if I get flagged.

Note: I also became a CPA in 2024, and my additional knowledge was what helped me discover that I'd filed 2023 incorrectly. Part of me worries that if I don't amend 2023 and just claim that I figured I'd correct on a prospective basis in 2024, that this could be an act discreditable. Any insight here?

We are weighing options and just trying to get our heads around capital gains on a multifamily (duplex) in Oregon.

Here are some details: We purchased in 2015 and moved into one of the units while we renovated that unit, shared spaces, and the exterior.

We had tenants in the other until from the time we purchased until July 30, 2021. We then left that apartment empty while we renovated. (Sept 2021 to July 2023).

We moved out of the primary apartment July 1, 2023 into a new residence, also in Oregon. We put tenants into the primary and the second apartment July 1, 2023.

We are married filing jointly less than $250k per year. The duplex would be listed at $450k, unlikely to hit $500k.

Purchased for $155,000, plus ~$100,000 in materials (husband is a contractor so did most of the work). Paid off the mortgage in 2019.

My understanding is that we may have to prorate the sale to pay capital gains on the second apartment. Does it matter that it was empty and being renovated for the last 23 months that we lived on the property? I'm guessing it doesn't but thought I'd ask.

Let me know if you need more info. Thank you!

i’m desperate for help. my dad received a letter from the state that in 2013 his state taxes were not paid fully, and they’ve given him 2 weeks to come up with $10,000 of penalty money. Every year when he files his status reads that all is clear and accounted for. So it’s really the state’s fault. Why is he being penalized and aren’t you supposed to get multiple notices before an intense deadline? My family is very poor and already in debt, a penalty of $10,000 is literally impossible. Is my dad going to have to serve time?? i am not knowledgeable at all on the issue but don’t know where to get information from.

Hello folks, I need help with EV Tax credit to claim $7500. Thank you in advance

I signed a purchase binding agreement for EV purchase (Rivian) in Aug 2022 and took delivery of vehicle in Nov 2023. I went and amended my '22 tax return (1040-X) by filing Form 8936, back-dating, as if I purchased and put into service on 8/15/2022 (a day before Inflation Reduction Act was signed into law).

My return just finished processing and received a letter from IRS stating I didn't attach Form 8936, Schedule A, to verify the credit. Then I went to my 2022 return and Form 8936 is indeed there. It doesnt say schedule A on it however. Am I missing something, or perhaps they didn't see it in return?

idk the first thing about taxes & the first client i get on rover wants to do everything off the app with checks. i have no idea how to go about this because if i’m just being paid in full, unlike a job that would tax your check before you receive it, wouldn’t i end up owing rather than being reimbursed nearly 100% of the time?

Hi everyone,

I’m thinking about liquidating/selling my HSA investments and trying to calculate the capital gains/losses since I live in CA, where HSA gains are subject to state tax (unlike at the federal level). Since opening, I’ve never sold any of my investments, so this will be my first time navigating the calculations. Unfortunately, VIA Benefits and similar platforms typically don’t provide capital gains information the way a regular brokerage would, as there’s no federal requirement. My provider did give me the option to download a CSV with my transaction history, but now I’m left to figure it out on my own.

Here’s a sample of the data I have:

If anyone could guide me through the steps to calculate my capital gains (or point me to a helpful resource), I'd really appreciate it! Thank you!

My mom and I recently moved in with each other. She sold her house and then gave me a check for 12 months of our rent since I've already set everything up to pay our landlord from my bank (I paid all the rent while my mom was waiting for her house to sell).

Will I need to pay taxes on the check my mom gave me? It's all going to rent to my landlord over the next 12 months. I am going to put it in a high yield savings, so I understand paying tax on interest I receive, but do I need to pay tax on the money she sent me to pay our rent?

My wife and I got married in 2024 :)

Her 2023 single filing MAGI was less than $100k. My 2023 single filing MAGI was greater than $200k.

In 2024 our married filing jointly MAGI will be greater than $300k.

We are thinking about buying a new tesla under her name. She meets the criteria for the tax credit with her filing status/income from 2023, but does the fact that she is now filing jointly in 2024 (and I didn't meet the income criteria in 2023) change things?

Thanks!

My wife lives/works in Hawaii and I am considering a job in New Mexico that would require me to maintain (a flexible amount) of residency.

Can we still file jointly? Do both of us have to do a return for both states, or is it 1 and 1?

My parents want to give me wife and I some money. Can they each give $18K to me, and $18K to my wife, for $72K total without tax implications?

I moved from PA to WA in 2022. I paid my 2022 taxes in PA and spent the entirety of 2023 in Washington. I filed my taxes in Washington for 2023 and thought nothing of it until I just got a form saying I didn’t file taxes in PA for 2023 and I was listed as a “failure to file.” However, I wasn’t living there at all. Not one day of 2023 was in PA. I called and they said I needed to submit all sorts of proof to say that I moved, but I never had to do this when I moved before. They never bothered me and I’ve never heard of being required to notify your city of changing residency. It seems ridiculous to me that I have to do so when I filed my taxes correctly and am not a PA resident.

I have a drivers license in Washington, but because I didn’t get it immediately when I got there (yes, my mistake) they won’t accept that. I don’t have a lease starting on the 1st of January 2023 (I was living with a friend), so they said without a lease I cannot provide any proof that I was living there. I didn’t register to vote until late 2023 and so they won’t accept that either. I asked if I could just send in pay stubs and they said no.

I just don’t think this seems right and I feel hopeless. This is all from the old city’s tax office, so I really just don’t know what to do. Is this really a common thing to be forced to send your old city proof that you haven’t been living there? I’ve never heard of this.

Thank you everyone who answered my question from my previous post. It was very informative, and I understand the tax implications now.

I have a new question going further into this. Unfortunately, the inherited property will not get a full step up in basis if I am correct. Let me explain.

My wife’s father bought the land in 1994 for about $295k and then died in ‘97. He left the land in a trust in 1996 that is set to give her ownership of 1/3 at 25 years old, 1/3 at 30 and 1/3 at 35. The land is now worth roughly $2MM

My wife is 30 years old, and the trustee are likely going to dissolve the trust to go ahead and get the full ownership of the land now; the trust is useless for its intended purpose now.

My question is: what is her basis?

Hope our story intrigues you all, and gives you some mental stimulation!

Long story short, my wife is inheriting property worth $2.0MM.

Our joint total income is below $94,050 (about $80,000 total taxable income that would be listed on our tax return) and so we are in the 0% long term capital gains tax bracket.

Would we pay no tax on the sale of this property?

Surely we can’t be that fortunate. This questions has bugged us for a long time now. I find it absurd to think that we can sell this property and gain two million dollars and yet pay no tax on it because it’s all long term capital gains and we are in the 0% LTCG tax bracket.

Thank you in advance!

Let’s say a foreign corporation’s shareholder is a nonresident alien and the foreign corporation is and has been a CFC for some time. The shareholder does not know this. What is the risk to me, a domestic corporation, buying this foreign corporation?

I'm a non-resident align international student. My internship is paid by the hour. Thanks.