r/tax

Hi, I am trying to quickly file a return for the year 2024. We used an accountant for previous years but not for 2024. So my husband is a trucker and is gone A LOT and is considered a 1099 driver.

We did not receive a 1099 for 2024 and past employer says he doesn’t have a record of it either.

So I go to look up our irs transcript for 2024 and his employer didn’t send in his 1099 to the irs either!

So how do I figure our income? I looked up and added up all the deposits for 2024 that I think were from this ex employer and was our only income.

Is there some form I fill out using that info? I’m so lost but we really don’t have the money to hire this done. And I need to get it done by end of month.

Please help

So I moved out of US last year. I filled a resident tax return this year because I meet the substantial presence test for last year.

I mailed it to IRS from India using DHL. I used my Indian address in the return.

A week ago, I saw this banner on the IRS refund status page that says:

>Action Required

>Please read the following information related to your tax situation. You may need to provide additional information to receive your full refund.

Now I don't see anything in the Notices page. Nor do I see anything in the transcript page for 2025 as well. It just says "No return filled yet". I filled an extension, so I have till October to figure this out anyways. I have two questions about this:

1. Will they send me the notice to my US address? Since I used my US address in my 2024 taxes. It was a rented apartment and I no longer live there nor do I have access to any mail sent to that address.
2. Will they send me the notice to my Indian address? But that is the last address that IRS has on file for me.
3. I am 99.99% sure that if the IRS sent me any mail to my Indian address, the Indian postal department will lose it. Not once in my life did I managed to successfully receive any international mail sent through USPS/India post to my Indian address successfully. I used to write letters to my mom in India from the US to try to surprise her. None of those letters reached her. What happens if the IRS mail never reaches me?

I am expecting about 4K in refunds. I used FreeTaxUSA to prepare my tax file. I had US wages, Capital gains and losses from the sale of stock, I rolled multiple 401K accounts into a IRA account before leaving, I received dividends on the stock I held. What can be in the notice? I filled US taxes for 10 years, I never had any problem.

I am losing my sleep over this. What do I need to do now.

I got a letter this week from what seems to be the IRS (Addresses and Numbers look legit) claiming they noticed they owe me some money from December of 2020, and to expect the check for it in the next ~7 weeks. I was suspicious, especially since they usually direct deposit my stuff, and went to check, and saw a very legitimate looking (matches previous information from the IRS) deposit in my account for a few hundred more than the letter claimed they owed. I plan on calling them when I get off work, but I’d like to know if there’s a precedent for a scam like this, or if they really make mistakes like this?

Update: ID’s expired so ID.me is on hold, but I checked my tax documents from that year, and the amounts match, so I’m listing towards Real.

I (28F) withdrew $7700 from my 401k this year because it was my only option. I understand how bad of an idea that was, but it was my only option to survive. I have now found a new job and would like to start putting aside what I will owe in taxes next year.

It seems Vanguard already withheld the 20% federal tax because my 3 withdrawals were a requested total of $7,700, but the deposits in my bank account were only $5,562 total.

I live in Maryland. I believe in April 2027 I will owe an additional 17.8% on the 401k withdrawals? 10% early distribution penalty and 7.8% Maryland state tax? I calculated that 17.8% of $7,700 is $1370.60. Can someone confirm that putting aside $1370.60 prior to next April will be sufficient for what I will owe?

The withdrawals were made while I was living in Maryland and my new job is based in Maryland. Prior to first week of January I was living and working in Virginia and have been receiving unemployment via Virginia while living in Maryland. Small window between first week of January and end of January where I was on payroll from the company that laid me off but living in Maryland. Not sure if this info is relevant.

Would greatly appreciate as I have a learning disability and struggle with numbers.

ETA: Looking back at statements and looks like Vanguard may have also withheld state taxes for me.

Confused because $5562 is 72% of $7700 so it seems like 28% has already been withheld by Vanguard? Tried to access specific transaction documents, but had to put in a request so cannot access instantly.

What day of the week does the IRS website update transcripts for Amended returns? Today is officially 5 weeks and I still have no codes reflecting they've received it. There is also no update on the WMAR tracker.

(I know it is 16 weeks from start to finish)

I was reviewing my W2s from 2 years ago and realized I overcontributed the $23k max in my 401ks by $2.5K due to changing jobs and bonuses. I understand there’ll be penalties and fees but how I do fix this? The IRS has not sent me a notice on this.

I am looking at a year where I potentially make considerably less (50%) than prior years and a potential move back to FTE.

I had elected a reasonable salary/dist ratio that was about 55/45 in all prior years.

In a year like this, am I allowed to adjust the elected salary and distributions percentages to match the realized revenue my s-corp generated?

E.g. If we brought in 100k instead of 180k, would it be allowable to claim an adjusted salary on that year as 55k and distributions at 45k? If so, could I still fund the employee/employer 401k match accordingly?

For example, let's say I receive paychecks bi-weekly. I earn $639.63, with $63.96 contributed towards an employer sponsored Simple IRA. My take home pay is $501.63 after taxes (FICA, city, etc.). For Ohio Medicaid, MAGI, student loan repayment purposes, what amount must be factored into the $1,836 monthly income limit (for Medicaid) - the $639.63 or $501.63?

I apologize if this is common sense I just want to make sure I am reporting the correct amount to Medicaid.

Hello, I filed my taxes through a different tax system this year, and instead of paying for my taxes through my return, for the first time, I had to get my refund and then pay separately. I filed my taxes on 4/13, and prepaid the state of CT $500. I thought I read you could pay in 4 installments over the course of X months. I was estimated to owe $1900. I did not realize you have to pay taxes by 4/15, I thought you only had to file. Tough lesson learned. Fast forward to a move to a new apartment & life events, I just realized I never fully paid. I went to the CT portal and paid $2044, and read that late fee interest compounds daily. Again, tough lesson learned. Wondering if there’s any other fallout I’ll experience from paying taxes this late? Hit on the credit score? Ring from the IRS? Anything besides extreme guilt and the late fee financial loss?

This is the first time this has happened to me, I usually pay all bills in full ahead of the due date. Feeling extremely bad and anxious.

Hello r/tax,

I recently accepted a management job that will see me lose my OT earnings ability. When I started this job 13 years ago I was fine with my status being “married but withholding at the single rate” and claiming zero deductions even though I have 2 kids (10 & 11yrs old if it matters). My wife works so I know to click the “higher withholdings box” and add her pay info as an additional W2 when filling the form out as well as multiplying my 2 dependents by the $2k in the appropriate section.

I took a management job which will reduce my income a fairly significant amount as of 5/11/26 due to losing my ability to work OT (I made quite a lot with OT from 1/1/26-5/10/26). I would like to file a W4 and correct my withholdings so I am no longer giving the government an approximately $10-12k interest free loan every year.

Going forward I’d would still like to see a $3k return each year so I can have a small chunk of change put aside as I adjust to this new income (I’m aware the majority of people may disagree with this but it’s what I would prefer).

Does the mid-year income change have an affect on what I put in my W4 at all or do I just wait to receive my first paycheck of the new earnings then fill out a W4 based on those numbers? Am I correct to assume my former withholding status will still result in me overpaying taxes for 2026 and I’ll still need to fill out a new W4 at the end of December? If I’d prefer to receive an approximate refund of $3k is it as easy as dividing $3k by 26 pay periods and inputting $115 in the additional withholding box?

Sorry if any of this is hard to follow or doesn’t make sense, I’m worried I’ll somehow screw this up and end up owing the IRS somehow. Thank you for any help anyone is able to give!

I’m in Pennsylvania and trying to understand the risk surrounding a quitclaim deed, an IRS lien tied to my ex, and a hypothetical future bankruptcy.

Facts:
House was originally jointly owned by me and my ex purchased during marriage.

There is a mortgage still in place and foreclosure was filed recently, but no sheriff sale date yet. Because he was living there he agreed to pay the mortgage. He stopped paying and quit claimed the deed to me for nominal value and my plan is now to move in and pay the mortgage.

My ex signed a quitclaim deed transferring their interest to me, and it was recorded. I am in the process of paying the reinstatement fee to have the loan active again.

My ex still remains on the mortgage/note and we have no plans on removing them.

There is an IRS lien of about $65k tied to my ex that the IRS put a lien on the property. There is also a small judgment (~$4k) against him personally (relevant for hypothetical bankruptcy.)
The IRS lien have existed before the quitclaim deed filed this year.
I’m trying to reinstate the mortgage and keep the property
My questions:
If my ex hypothetically filed Chapter 7 bankruptcy in the future, how likely is it that a trustee would try to avoid/set aside the quitclaim deed as a fraudulent transfer?

Does the existence of the mortgage + IRS lien reduce the chance of a trustee pursuing the property if there isn’t much equity?

If a trustee did challenge the transfer, are settlements/payment plans with the trustee common instead of actually forcing a sale?

If I work out an installment agreement or settlement with the IRS, does that generally reduce the likelihood of the IRS caring about the quitclaim transfer? How can I workout a plan with the irs when debt it’s not under my name. I realize the lien is on the property but what are my options regarding that.

Since my ex no longer owns the property, would future IRS tax liens for new tax debt normally still attach to the house?
In practice, do IRS liens on primary residences usually just sit there until refinance/sale, or do people actually see forced sales often?

P.s. the reinstatement is 30k and the lien is 65k, which is much more than my exes equity. My point is the deed transfer wasn’t really nominal since I’m planning on paying 95k to keep the property.

I was recently laid off from my W2 where I already maxed my 2026 401k at the W2.

The same company hired me as a 1099 for 3 days a week.

Can I contribute to a Solo 401k somehow for 2026 as the now business owner of my LLC?

I’m looking at options for financing a business that will an LLC in January of next year.

One idea that we have floated is withdrawing 100k from a 401k. I know that there will be a 10% penalty and that you pay income tax in that amount.

However, what I’m confused about is how that balances with then spending money on the business. Because it seems like it would cancel out and that can’t be right.

Basically we would take the 100k out this year and spend the money on the initial equipment and setup that we need. And then we would officially open in January so wouldn’t be bringing in any income until then.

So that means that for this tax year the business would be showing a 100k loss, right? And then when we file our taxes because it’s an LLC that loss would deduct from my taxable income. So if I otherwise make 100k. And then take out 100k, that adds to my taxable income which becomes 200k. But then the business loss subtracts and makes it 100k again.

But I feel like that can’t possibly be true. Because that would be so easy to play the system right. So then I’m concerned that if I do take that money from my 401k and then invest it in the LLC I’m going to be flagged for something.

Am I overthinking this?

On the software it says I must have an ip pin to file a previous year return, I have NEVER experienced this.

The taxpayer does not currently have one, they just want to catch up on their 2024 filing…

What software do you use and do they require an IP-Pin for previous returns ONLY?

I'm confused about what can be recorded as business expenses. If on a performing tour, where I'm being put in hotels overnight, can my food be a business expense? only have a kettle and no place to prepare the usual kinds of food I'd eat. Any other UK travellers/touring people have any insight into this?

I know some people who say yes, and some who say no. And im quite frankly a bit sick of hearing the 'wholly and exclusively' phrase because there are so many differing interpretations of that haha!

Please help me I am not sure to fill W8 BEN or any other form since I have been in the US for 2.5 years and started working as an independent contractor(given they provide me 1099).

If I received a notice of deficiency (waiver), they included business income from 1099 I didn't claim because they were lost. There were business deductions I didn't claim since I didn't claim any 1099 income, can I now file an amendment to claim the proper deductions? It is about $5k of expenses on $19k of income. I understand I owe the taxes on the non deductible income and the penalty/interest but saving about $1k in federal taxes would be huge. Thank you!

I am officially on the warpath. Thomson Reuters bought SafeSend and tinkered with the ONE thing that worked almost flawlessly - TIC TIE Calculate. Now nothing is as efficient or effective as it was. This company is a bank account masquerading as a software company. The fact that their support lines are overwhelmed is all the proof you need but I’ll provide the receipts.

For starters, I can’t even get it to install on one of our computers despite hours with their support team. The update process is a disaster as well. I had to completely uninstall and reinstall instead of just running an update utility. If this wasn’t my first experience with one of their screwups (Onvio 2019 - if you know you know), that would be one thing. They have a history of messing stuff up and for some reason, never learn to have a retrograde plan. But now that they have destroyed my favorite tool, I’ll be canceling my Ultratax subscription as well. Kiss my butt Thomson. I’m demanding my money back.

Trying to understand whether I missed the boat on an S-corp and whether it could still be worth it.

I’m a healthcare professional with W-2 income around $210k (combined with my husband's W-2) plus my 1099 income that is roughly ~$125k/year gross. In 2024, I got hit with a huge tax bill (around $50k owed) which made me realize I may not be structuring my income in the smartest way.

After talking to a colleague, it seems like an S-corp might make sense for the 1099 portion due to self-employment tax savings, but I’m confused about timing and whether it’s too late.

Main questions:

I filed an extension for my 2025 taxes - Can I retroactively elect S-corp status for 2025 (with late election relief, reasonable cause, etc?), or is that realistically off the table?

If it's possible, could it still be worth doing financially at around ~$125k gross 1099 income, even if there are penalties/payroll costs for filing late?

Just trying to understand if I completely missed the opportunity or if there’s still a path forward. Thank you!

I am curious how the IRS enforces this in real life. So from what I understand if you are a s corp then you are required to use a business credit card. My question is what if the owner unknowingly of this reg used a personal credit card exclusively for business expanse how would the irs actually handle this in the event of an audit?

To be clear the card was exclusively used for business and the business checking account paid the balance for the card.

can anyone share first hand how the irs might handle this?