r/taxhelp

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I paid a certified tax professional to prepare and file my 2018 tax return. Unbeknownst to me my employer provided an incorrect W-2 (shared first name with another employee) which was used to file said return. Based on the incorrect w-2 my return showed an overpayment of 4,239.00 The 4,239.00 was applied towards a tax debt from 2010.

 

The IRS caught the W-2 error and sent a letter informing an amended return was required. I contacted the same tax preparer and filed the amended return within 10 days of receiving notice. Important to note the amended return showed an overpayment of 1258.00

 

Instead of “reversing” the 4,239.00 error and then applying the amended 1,258.00 towards the 2010 tax dept. The IRS deducted it , creating a deficit of 2981.00 on my 2018 account. Failure to pay + interest my tax debt was over 5,000.00

 

I was acting in good faith by relying on the documentation from my employer and hiring a certified tax professional to prepare my taxes. Given the error was due to incorrect documentation from a Third party rather than intentional disregard for tax laws I request relief from any related balance , penalties, and interest for the 2018 tax period under reasonable cause”

do i Have a chance? My current remaing balance is 1800

Let me know what do you guys think, tax bracket illustration, full detail breakdown. paycheque progression. comparison. All in one page.

I have my own EC2 instance and other AWS services ready to scale or add more features.

Hey all, essentially the situation is my sister was working a job and decided to give all of her income to my mom as a gift, but just wants my mom to cover her tax liability. She is married filing jointly in the 22% tax bracket and made 36899 (so this would be box 1 on the W2). She had 2169 withheld.

In 2025 mom has been giving her 600 a month so 7200 a year. When I did the math, I figured that she owed 36899 * 0.22 = 8118 in tax from that job, and my mom gave her 7200 in cash so the only tax liability left over is $917. My sister had 2169 withheld from her checks so my mom shouldn't owe her anything now for taxes.

My sister figures differently she figures that her pretax income was 36899 so my mom should do (36899 - 7200) and then pay taxes on that. It doesn't make sense to me. It feels wrong but why is it wrong?

I’m in IL, this was my 9th year filing here. I filed on time before the deadline, both state and federal were approved.

Started the waiting game to get my return and in the last week of April I received a letter from the IRS saying I’d need to verify my identity before they could finish processing my return.

I did this, everything was verified. I guess my question is how long should I wait to call and check on my return? The site said it could take up to 9 weeks to finish processing which would mean I’m not seeing my return till late June/July, which is annoying to say the least.

Has anyone else ever had to do this? How long did it take for you to receive your return after? Anything I Can do to expedite?

So, back in January, I really got into perfumes and colognes. I have been dieting and exercising like crazy and have gone from around 550 Ibs to 350 Ibs over the last year. I've basically been experimenting with things that affect my appearance so I'll look good when I finally reach my ideal weight. Basically, I've been experimenting with clothes, watches, and fragrances.

Anyway, like I said, I started trying a lot of different colognes and perfumes. I got so involved in it that I've spent maybe $15,000 on scents in the last 5 months. Back in March, I transitioned from just wearing fragrances to actually learning how to make them. The chemistry is fascinating.

From that point, I looked to see if there was any decent fragrance-making/tracking software on the market. There was some, but it was about 10 years old and not very good. I have a background in computer development, and I build software in my spare time to update what was already out there.

That went extremely well, and now I am about 60% through the second draft of an enterprise-level perfume-making app/website/desktop software. I'm meeting with a lawyer to register an LLC next week, and I plan to finish coding/testing/penetration testing and start the rollout in Late August or September.

Long explanation, I know, for a fairly simple question. Can I deduct those $ 15,000-ish worth of perfume I bought, even before I started this project, on my taxes next year?

I recently went to Hand and Stone Massage in Frederick, and after my service, I paid for the appointment at the front desk. The receptionist then asked if I wanted to add a tip, and I said yes. Apparently, they use a separate iPad where you select the name and picture of the person who provided you service. The receptionist entered the service amount (which I have already paid on a separate device and been charged for) and then handed the iPad to me to enter the tip amount.

Everything was fine up to that point, but when I entered the tip amount - for example, $20 - it did not charge me just $20. It added taxes on top of the tip amount, which seemed very odd to me. I was not expecting a tip to be taxed like a service fee. I’m also not even sure if the full amount goes directly to the person who provided the service.

This did not seem normal to me, and I have never experienced this anywhere else. Was this weird or I’ve just been living under the rock?

Lets say I bought a house.
I pay 1200 / mo in property taxes
I pay 3000 / mo in interest on the loan

Can i go exempt on my income taxes at work and then use the property taxes and interest as a write off to cover the taxes owed next year on income taxes?

Based in Texas.

Thanks for your help!

I needed to get my taxes done so I found a local company. It's been 35 days since I submitted my documents to them and this company has been a disaster. I noticed they made two mistakes regarding information I told them about when they asked for it at first (regarding non-deductible IRA distribution and non-payroll hsa contribution). After I first submitted documents, I didn't hear a word back until I reached out 2 weeks later. As for the time, they say they have a week long review process after the preparer finishes. But how are two people checking the accuracy and I'm still finding mistakes? They're blaming it on being busy due to the "Kwong vs USA" case results. I politely asked if they still expect me to pay them full price and they said yes. They are still not done.

Can I report this company and the people working there to someone? Can I just ghost them and not pay and find someone else that I can trust? I feel like I'm being scammed or something.

Hi experts, I own an insurance agency as an S-Corp, and my taxes are confusing to me. I filed Business taxes with HR Block but somehow my K-1 is only showing $10k in income with the rest in distributions. This is raising some red flags about personal taxes. Should I file Schedule C to show income? And how to I avoid this happening in the future?

okay! I am working a summer seasonal job where I will make 10k. I work in my state of residence the rest of the year.

Altogether my total income for year will be around 30k.

How to fill out the out of state w4 so it doesn’t think I make 60k a year since they annualize your paycheck. (it’ll just be 1250 a week for 8 weeks)

Trying to figure out where to put the amount on form that will show the database I only make 30k..

thank you!!

My entire tax return this year almost 1400 went to pay off $5000 I apparently owe. I have no idea why I even owe money I was barely making 15 an hour back then and was working part time I was 17 years old. Should I talk to a tax attorney? Or call the irs? After they stole my 1400 they it says I still owe 1200 in interest and penalties and 2400 from the original balance.

Ok tax mavens, I need some help.

Question: do I qualify for capital gains exclusion on the sale of my home?

Details:

1. Married filing jointly
2. I lived in a house from January 2018 through July 2020. I was on active duty.
3. Left the house in July 2020 at which point I rented it out. My orders were still in this location but I moved out to get the property ready for rental.
4. I moved abroad on military orders September 2020 and was at least 50 miles from this house until July 2024.
5. I left military service in July 2024. I moved somewhere far from the house and do not plan to live in it again. I’ve been a civilian since this time.
6. The house was rented continuously from 2020 until now, and still is.
7. I’m considering selling in July or August of 2026

My research seems to indicate that I qualify for an exclusion of capital gains tax based upon the following rule: Section 121(d)(9). I understand I’m still on the hook for depreciation recapture.

My CPA had not heard of this and is not optimistic that I meet the requirements.

Can someone help?! Thank you. This is a major tax decision point for me.

Long post but I want to give full context because this situation has been a saga.

Background

I've been with the same tax prep firm for nearly 10 years. They're primarily a business-oriented firm that has kept me on as a personal filer out of loyalty. This year my return was handled by someone I've never worked with before.

The OBBBA Overtime Deduction

My original 2025 return was filed and signed in mid-March. A week later I discovered, through a family member in accounting, that the One Big Beautiful Bill Act introduced a deduction for the FLSA premium portion of overtime pay for 2025-2028. I had a meaningful amount of overtime on my W2. The deductible premium portion is approximately 1/3 of total overtime, worth a few hundred dollars in federal savings.

My tax preparer never asked about overtime. Never mentioned the OBBBA in their planning opportunities summary. I had to bring it to them myself.

The Documentation Battle

My preparer initially said they needed a formal employer breakout of the FLSA premium portion, not just my pay stub. I went back to my employer's payroll department, who called their payroll provider directly. The response was that there was "no qualified OT to report for 2025" because the reporting infrastructure wasn't in place yet.

I then found IRS Notice 2025-69, which explicitly states that when an employer cannot provide a separate accounting, the employee may use pay statements and apply a reasonable method to calculate the premium. I sent this to my preparer and they finally agreed to proceed using my pay stub.

The Amendment

The amended return was signed April 1, well before the April 15 deadline. My preparer filed a 1040-X. On April 15, three payments hit my checking account exceeding my amended balance due by roughly $800. Two payments were labeled "Amended Return Payment" for the same amount, and a third was labeled "Balance Payment." The duplicate is clear.

My Questions

After researching, I came across guidance indicating that when a correction is caught before the filing deadline, the correct approach is to file a superseding 1040, not a 1040-X. A superseding return replaces the original entirely and is treated as the controlling document. A 1040-X filed before the deadline can create confusion and processing delays.

My preparer pushed back on this, saying superseding returns are "edge case" and the 1040-X was appropriate, and that the duplicate payment was an IRS processing issue unrelated to the form type used.

The IRS transcripts show the overpayment is on record but the amendment has not fully processed yet. I'm being told to wait and keep calling the IRS myself, which so far has meant two hours on hold ending in a disconnection.

1. Was a superseding 1040 the correct approach given the amendment was filed before the deadline?
2. Could the 1040-X filing method have contributed to the duplicate payment?
3. Is my preparer responsible for resolving this, or is this truly on me to chase with the IRS?
4. The IRS website states amended returns take up to 16 weeks to process. Does that apply to overpayment refunds as well, even when the overpayment is already showing on the transcript?

Thanks in advance.

I am in a position to potentially get a salary offer of around 80000 and I’m wondering how I would be taxed on that in Oregon and if it would be smart to ask for less or more depending on the bracket I fall into. Any advice or help would be greatly welcomed. Thanks yall!

Hello all. I have a relative that owes me money. They have suggested buying me a car.They have the cash to pay me back. Wouldn’t that look like income? Even depositing the check would look suspicious no? But it was my money originally. There was no loan contract paperwork. What is the best, fair and legal way to solve this? Any ideas? TIA.

Hey all,

Freelance designer/dev based in Montreal. Every year around March I'd sit down with a stack of receipts, a CSV from my bank, and lose a full weekend (sometimes two) trying to figure out what counted as a deduction, which clients I needed to charge GST/HST for, and whether I'd crossed the $30K registration threshold.

QuickBooks felt like overkill for a solo shop. Wave was free but didn't really get Canadian stuff like the 50% meals rule, QST in Quebec, or instalment dates. So I started building my own thing on the side and it slowly turned into an actual product.

It's called Sorbet (https://sorbet.tax/). You drop in a bank CSV or take a photo of a receipt, it categorizes everything automatically, watches your sales tax thresholds so you know when you actually have to register, and gives you a running estimate of what you'll owe. Nothing fancy, just the stuff a freelancer actually needs.

Currently in private beta with about 30 people. Not pitching, just curious:

1. Anyone else here doing their own books? What are you using right now?
2. What's the worst part of tax season for you? Receipts, categorization, sales tax, instalments, something else?
3. If you've tried the big tools, what made you stay or leave?

Trying to make sure I'm building for real problems and not just my own annoyances. Open to brutal feedback.

Hi everyone,

I received multiple CP161 notices from the IRS related to Form 941 and Form 940 (payroll taxes).

The issue is that the taxes were paid on time through EFTPS, but the returns were filed late. This happened because my previous accountant was making the payments but was not filing the payroll tax returns.

Now the IRS is charging failure to file and failure to pay penalties, plus interest, even though the taxes themselves were already paid.

I have tried calling the IRS multiple times (more than 4 times) and nothing.

At this point, I’m planning to submit a written request for penalty abatement based on reasonable cause (reliance on a prior accountant), but I’m not sure if I should:

- Send Form 843, or

- Just send a written letter with supporting documentation

Has anyone dealt with a similar situation?

- Any tips to improve the chances of getting penalties removed?

- Is it worth continuing to try calling, or should I just proceed in writing?

I do have full proof of all payments through EFTPS.

Thanks in advance for any guidance.

Finally got around to reviewing our firm's WISP situation and honestly it's a mess. We have something from a couple years back but it's basically a template we filled in once and never touched. No real risk assessment, no evidence of controls, nothing documented about annual reviews.

How are other small firms handling this in practice? Using a service, doing it yourself, or is it mostly a document that lives in a folder and nobody looks at?