r/tax

On my work, I get to meet a lot of business owners. I’m fairly new in my work, but I see owners casually mentioning how they use their $200 family meals as a business expense and a trip to a theme park of $600 as a business expense.

That sounds like a not right thing to do. However, it seems like very common. I have seen people put thousands of dollars of sports tickets being included in business expense.

Do they not fear the audit?

I am a grad student in MA, but my “permanent residence” is in NJ at my parent’s address. My stipend has federal and MA tax withholding. I figure that I need to still pay NJ taxes, but how do I figure out how much? Do I get a credit so I’m not paying double? How do I do this?

Any help would be appreciated! Thank you!

Mailed in an 2025 original return back in May after getting notice from IRS requesting an original 1040 (after amended taxes was screwed up) and currently the processing time is for May for mailed returns.

If this whole process drags out obviously we just still file 2026 taxes next year as normal? Or if this 2025 isn’t processed by then (hopefully will be) then does that cause backup when filing for 2026 returns?

The return was mailed with certified mail and we got a text stating it was handed off to someone with a signature but since the amended return issue was messed up the online tracking tool doesn’t work for us. I keep always checking the irs account and transcript but would they reach back out if they still somehow misplaced it or lost it? I have no way of knowing if they actually are working on it or not.

Still no word. When should I expect a response? I check the portal weekly. It was for 2023 and 2024. I had omitted EDIL interest expense for both years in error. The amendments ads in the missed deduction.

Basically I was terminated from an employer in 2024 however I filed those taxes from that job in 2025 and later withdrew a small amount of the 401k savings from Principal late 2025 because of a letter I received from them telling me my options. I later received the 1099r with box1, 2a, and 4 filled and box 7 with 1 in the box. Since I did not receive a w2 or tax return document, i’m unsure how to report this or file if need be. Any help is appreciated. Thank you.

*edit. Solved. Thanks for everyones help.

I was unaware until this tax season that I had not properly filed my 2024 taxes. I filed back taxes via certified mail early April . My state return came about 2 weeks ago but I am still waiting on my federal return. State return was about $350 and my federal return is expected to be about $1000. Is this normal? The IRS website still states it has not been received.

I currently run a landscaping business as a sole-proprietor. I’ve been sending all of the checks to my mom, who offered to handle the taxes for me. I’m beginning to wonder if this is a mistake. We have a tax guy, and I feel like “25% flat fee” isn’t how taxes work. I try to ask for the exact amounts, and what’s going to taxes, but she gets angry at me for asking despite offering to “go over all of it with me”. I feel like if I’m doing that, then keeping records of taxes paid can help me know how much my returns should be. When I asked today she got very defensive and sent me a text with the numbers, which, going by the text, would mean only about 7% was paid to taxes. What concerns me the most is that I’m just trying to learn, and keep track of what I’m contributing to what, but she instead started spiraling, bringing up every dollar she’s ever spent on me, talking about how ungrateful I am, refusing to tell me where the other 17% went, and threatened to cancel the entire thing on the grounds of me having been supposed to set aside “at least $20 per week” but yet supposedly she’s handling where my money is going. She immediately acted like I was accusing her of theft the moment I asked her to start going over the checks with me and teaching me how it’s supposed to be handled. I’m guessing that I need to start having the checks sent to my account and talking to the tax guy myself. At first, I was happy to accept help from somebody more experienced than me, but her reaction to wanting her to do what she said she would do honestly concerns me. What should I do? I love my mom, but I don’t want money causing a rift if asking for copies is “challenging her” in her eyes.

I’m just trying to sell my collection and have been using PayPal’s goods and services and I’m not sure if I would have to report that when the time comes since I’m making a good chunk of change if I sell everything

The IRS has no clear guidelines on how to report these trades and robinhood does not issue a 1099 for them either. This tax year so far I have $10000 in losses and $11000 in gains. I am planning on reporting the $1000 net gain on a Form 6781 based on what I am seeing online. Has anyone been through this in a previous year?

My sister and brother in law filed, were super excited about the amount they were getting and... crickets from the IRS. I got a copy of the actual return and spent most of today picking it apart. Sharing because I guarantee they did this to other people.

Regular family, three W-2 jobs between them totaling about $73k, three kids. Husband delivered for DoorDash for a few weeks and made about $1,000 That's the whole story of his "business." They were split up for part of that year, so there's some W2 from Nebraska, some from Texas, but that's not really the issue.

The real issue is Integrity filed a Schedule C claiming more than $30K in expenses against that $1,000. I'm not exaggerating, here's the actual breakdown from the return:

- 20K business miles ($14K+) on a car that, per their own form, went into service in March. So supposedly 2,000 delivery miles a month to earn about $130 a month.
- Nearly $3,000 in "deductible meals." He delivered food. He didn't take clients to dinner.
- $3,500 in rent for "other business property." There is no business property.
- $3,000+ on repairs, $2,500 in insurance, and nearly $7,000 for a cellphone, internet, and a computer.

They also coded the business *as a taxi and limousine service*, which makes me think they're recycling the same template on everyone and use it for Uber, Lyft, and anything else.

Refund claimed: $15K. Real refund if the return were honest: maybe $6,500.

We're amending and filing the IRS preparer complaint (Form 14157 if you're in the same boat). If you used this place, get a copy of your return, which they're legally required to give you, flip to Schedule C, and see if you suddenly own a limousine company too.

And of course, they haven't communicated since the notice was filed, and the phone numbers on the business card go straight to a full voice mailbox.

Hi all, I’ve tried googling this but cannot find a direct answer. I have a cash side gig that I plan to file schedule c taxes for. I am setting aside 30% of my pay for taxes but I don’t know if that is too low or too high. I estimate I’ll make ~$5,000 total this year. I have a regular 9-5 job that I file as a regular W2 jointly. Does 30% seem like a good percentage to withhold?

I plan to file my quarterly taxes from Q2 soon so I know I’ll have a more exact answer, but want to plan things out. Thank you!

Edit to add: combined with my husband our W2 income is just shy of $300k. I’m in Illinois and I don’t have any expenses related to the job!

I am retiring before 65 y/o. I will need health insurance until I enroll in Medicare. Everything I have read says that the health insurance premiums that I will pay between 60 and 65 are not tax deductible unless I am self-employed and even then I can not deduct more than I make self-employed. If I pull money from my 401k to pay health insurance premiums I will pay full income tax on that money so I actually have to pull out additional $$ to pay the taxes and I will also pay taxes on the money I withdraw to pay taxes. Do I understand correctly? I am looking at my pay stub and currently the money taken from my check for health insurance premiums is deducted from my taxable income. If drawing from 401k is taxes as regular income why do am I not allowed the same pre-tax deduction of health insurance premiums? Thank you in advance for responses.

I’m looking to start a career in tax. Should I start out with VITA and go from there or start with H&R Block and go from there and why? Or should I start out trying to get my EA license? I’m not sure what to do.

For the last few years I have been using the IRS direct deposit tool to make quarterly payments. Beginning in Jan 2026 which was a 4q2025 payment the tool is not working. Everything looked fine but in May I got a notice that I didn't make that payment and that a fine and interest would be applied. I also noticed that my 1q payment for 2026 did not work either so I"m back to mailing checks. I've tried different things even directing it to come from a different bank and that didn't work either. Something is wrong. I sent in a protest with copies of all the direct deposit actions that I took. So far no feedback. Made phone calls where they promised to call back but no call was ever received.

I work a job in Alaska at a day rate of $600 per day. i find it odd and curious why they dont include the days paid or the rate... but the math checks out for the days in each pay period so im good there for $600 X the days in each period.

is this some tax loophole for the employers benefit? also my very first paystub and 2nd is a total of about 26% withheld and 19.8% federal withholding.

this is a 4 month seasonal job, i dont understand why im being taxed at such a high rate of %26 overal.

there is no longer the form filling out the 0 or 1 etc to determine how much is witheld. that never happened for this job.

14 days at $600 my net is $6131 ($8400 before tax)

really appreciate any info and sorry im so naive on all this.

thanks!

I'm trying to submit my return using the IRS's free fillable forms. However, my return keeps getting rejected for an error that I can't figure out, and I haven't found any useful information on the IRS website, third party websites, or elsewhere.

The error is: Issue : Business Rule F8962-316-01 - If Form 8962, Line 10 `FullYrCoverage1095AInd` has a choice of "No" indicated, then `MonthlyPTCCalculationGrp` must have a value

On form 8962, line 10, I checked "no" because I lost my previous healthcare in January 2025, and so was only eligible for subsidies/ACA plan for 11 months. The error seems to say that some line is missing a value. But in the table that follows (lines 11-26) and part 3 of the form (lines 27-29), every box has a value.

What value is missing that my return is being rejected for? It would be annoying to have to paper file.

If someone earns money from different side hustles, like dropshipping, affiliate marketing, and selling digital art, how does filing taxes work for all of that? Do they file everything together or separately?

My permanent transfer from USA to Canada was already in progress. Due to personal reasons I moved before and stayed on US payroll. I have always held SOWP so was legally eligible. The process completed after 4 months. My managers knew about it informally. Now I am on canadian payroll and employed with their canadian entity. I am an indian citizen. How will this impact my pr prospects. I do not plan on using these 4 months for CRS points.

I live in Maryland but work in Delaware (both American states, for those unfamiliar). I have lived in the same place with the same job for a couple of years. Anyway, I recently got a tax bill from Maryland for about $1100. Near as I can tell from my memory and going through my bank account and credit card activity, I did not owe any money to the state last year. Why would I owe such a large increase? My income only increased by like $1000, and it did not take me into a new tax bracket. Otherwise, nothing really changed. Is there anything that can explain this? Is it worth going to a professional to see if I can pay less?

Hi all, just looking for some reassurance about something.

Filing 1120-S for client. Past books and returns were messy so cleaning up. In review, noticed at time of acquisition, part of allocation was 40k in supplies added to assets. Client does NOT keep inventory. Small dental clinic that expenses supplies when bought so cash basis. However, the supplies stayed on the books and subsequent returns for last 8 years and were never expensed. Am i correct in my understanding below? ⬇️

File form 3115, citing section 11.08 of the permissable changes where it explicitly states: "A change to deducting amounts paid or incurred to acquire or produce non-incidental materials and supplies in the taxable year in which they are first used...or consumed..."

Since the materials were incorrectly treated as inventory and carried as assets on the balance sheet, this would be an appropriate course of action correct?

I appreciate the assurance. Im a newer EA so I want to do my due diligence and make sure im thorough and ask those with more experience where I can 🙇‍♀️