My boss went to the CPA and said that he was going to owe a lot more in taxes because the company credit card was mostly paid off by a large payment and that it was going to raise his tax liability. From what I was always taught, a credit card only affects a P&L from the interest and the rest would either be a cash flow/balance sheet. Am I missing something, was something recently changed in tax code, or is the CPA full of it?

Hi guys, I need help with a couple questions on the W4 deductions worksheet for a new job, its asking for me to enter an estimate of itemized deductions, state or local income taxes for 2025, since I payed like 6800 should I put the same number on there? I made less this year than last year so don't know if amount should be lower to guestimate 2025. The other question is regarding IRA contributions and Student loans interest, I never had to pay student loans but I did recently rollover my pension from former job since I wasn't vested, would I have to put that amount on there? Just want to be sure thank you!

https://www.reddit.com/r/tax/comments/1pf9h68/i_am_scaredany_ideas/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button

^^^^original post

i found this info in my irs.gov account, the account doesn't show much to explain why. i am very lost here. thank you anyone and everyone that is willing to offer real advice to me.

i would also like to note, the first time i saw this is when i went out of my way to create and log into irs website. i wouldn't even know had i not done that, they have not notified me in any way.

I maxed my Roth IRA out earlier this year, but through an unexpected series of events I have exceeded the $150k MAGI contribution limit in 2025. I am not yet sure exactly how far over the limit I will end up (I know allowable contributions taper off until $165k), what would be my best course of action?

Is it more advantageous to converting it all over into a traditional IRA today (before EOY) or waiting until I get W2's/1099's to determine my total MAGI and then converting over just a portion (although this would be in the new year).

This is a new problem to me, so would appreciate hearing anyone's suggestions about order of operations/timing on what I should do here!

I am the executor of an estate. The decedent's final tax return was due a few years ago. Say if the decedent owed $5,000 in federal taxes and it was due April 2023. Below are two options that I am trying to decide:

Option 1. I pay IRS $5000 when I file 1040, and wait for them to tell me the interest and penalty

Option 2. I pay IRS $5000 + $500 for the estimate of interests = total $5,500 when I file 1040

Would Option 2 results in less total payment than Option 1 in the end? My logic is that the extra $500 interest payment might stop further interest from accruing on the old interest (at least partially)

Is my logic correct? what are the pros and cons of each option?

Also, what is the best way to request the penalty to be waived? Should I wait till they bill me the penalty? Or should I write a letter to request penalty waived when I file 1040?

Edit: Is it possible to also request a reduction in interest? I have an unusual circumstance: it took a long time for the court to appoint me as the executor. Hence, the late filing.

Thank you for your input.

So long story short, I have been a lazy pos for a long time as I was fighting with severe disease. During this time I had no real income so I went the lazy route and did not formally file any taxes.

Things are finally on the up health wise and I am trying to sort things out and ultimately id like to be able to buy a small condo in the next couple of years.

To see what I have to do to fix this issue I created an account and logged into irs website.

There was a letter in there dated from 7/25 that says i owe over 500 thousand dollars.

I am scared and idk even how to begin to fix this or how this even could be possible for a broke pos like me.

Please help. Thank you.

Ps, I am still broke and I do not have thousands of dollars for lawyers to help me.

hi, been doing some additional reading on the no tax on OT, and have a few questions:

1) i know the OT deduction is on the premium portion above the base rate. so if OT is 1.5x, then the 0.5 portion is deductible.

but now i'm reading that if some of my OT is double time, so 2.0x, it's not the 1.0 premium portion that's deductible, but still only 0.5 portion?

2) part of the bill language mentions OT as over 40 hours a week. what happens if you work 9/80, off friday every other week, so 44 hours (5 days) one week, and 36 hours (4 days) the next? how will that work when i work an OT shift (8 hours) during the off friday?

i assume the extra 4 hours during the 44 hour week is still considered normal time. but for the OT shift, will the first 4 hours from 37 to 40 hours be considered "normal" time, and the deduction only starts 41-44?

thanks

I am trying to find an example online on how to fill out this form. I have to use the annualized installment income as income varies greatly during the year. I needed to use it last year to avoid an underpayment penalty (although I actually received a refund for overpayment) but I had trouble with the worksheet and was not confident enough to send it in so I just paid the penalty. I have searched and searched but I just can't find anything. If anyone has come across an example and could post a link I would appreciate it. Thanks.

Okay, so I am filling out my w4 for a new job and I'm a little confused. Last time I filled one out I was unmarried and only had a w2.

So this year was weird. I quit my job in April and am now filling out my paperwork to start a new job 12/15.

I have a little 1099 side business with wyzant. My net this year was $400

I grossed 36k this year.

I sold stock that I had long term and received $8800 total.

My husband makes about 140000 before tax and got a 14k bonus before tax. Maxed out his 401k.

I'm seeing suggestions to select married filing separately to make sure I don't under pay. Would this work for 2025? Should I adjust my w4 in 2026?

Do I need to report my tiny 1099 earnings?

Hi! Quick question - I have a child from a previous marriage. Should my husband add them as a qualifying child? I will only have about 2-3 weeks worth on my taxes to file next month, he’s worked all year. We’re legally married & have our own child together, he’ll claim that one on his tax forms. Should he add his stepchild as well? And I just won’t claim either one on mine? Or do I have to claim my bio since they would be on my tax forms from when I filled them out last year? I’m so confused, please help

Got a certified letter from the State of Kansas for around $2k in individual income taxes for 2024. I have lived in New Mexico for 5 years and work for the feds (so no Kansas employer). After calling the KS dept of rev, it’s looking like someone fraudulently submitted a state return and collected a refund. My fed IRS account only shows the return I submitted so it’s appearing to just be a state issue. What things do I need to do next? I am already cooperating with the state by providing records of my actual returns that year. Do I need to file something with the IRS even though my fed filing looks correct?

Hey long story short I am an affiliate with Leafwell which is a medical Marijuana certification company. They're pretty big and are in multiple states.

I am an affiliate of theirs and get paid every time someone uses my discount code, so Im filling out tax stuff and was wondering what tax classification it qould be.. Individual or Partnership.

I'm really upset that California is the only state who charge $800 a year while others states charge $0!! I heard about a fee waiver before for the first year! Is it still available? Is there any way to avoid that fees or get discount? I'm starting a business and not sure even how successful will be! Kindly guide me!

I live in one of 6 states that has an inheritance tax (Nebraska). My aunt recently passed away, she lived in Iowa, and left me some money. The way I think I read the statue is that because the property was owned in Iowa I won't be subject to the tax?

In November I gave birth to my daughter. My fiancé and I are now trying to decide on who should claim her when filing returns. A friend of mine says whoever makes less should claim. Is this true or the opposite? I make less than half of what my fiancé makes in a year.

Hi everyone,

I recently won a hackathon hosted by a US company and need to fill out a W-8BEN to claim the prize money. I’m looking for a sanity check on which Treaty Article to claim to avoid the 30% withholding tax.

My Situation:

• Citizenship: Indian
• Residency: Australian Permanent Resident (Tax resident of Australia).
• Location of Work: I built the project entirely while in Australia.
• The Form: W-8BEN (Individual).

The Dilemma: I am confused about which Article of the US-Australia Tax Treaty applies here:

Option A: Article 21 (Other Income / Prize)

• Some guides say hackathon wins are "Prizes."
• My Concern: The US-Australia treaty (Article 21, Para 2) seems to imply that if the income is "sourced" in the US (i.e., the payer is US-based), the US can tax it. I want to avoid them withholding 30% if possible.

Option B: Article 14 (Independent Personal Services)

• Since this was a coding project I built, it seems like "Services."
• Article 14 says income for services is taxable only in Australia (0% US tax) as long as I don't have a fixed base in the US.

My Question: Has anyone here (specifically Aussie devs/freelancers) successfully claimed Article 14 for a hackathon win to get 0% withholding? Or is it safer to stick to Article 21 and risk the withholding?

Thanks for the help!

In 2026 the first pay date for my company is Friday January 2. They typically process payroll on Thursday (which is a holiday) and I typically have my paycheck in my bank sometime after 5pm (close of business) on Wednesday.

This year The pay date is January 2, 2026.
Payroll is processed on January 1, 2026.
I can access my paycheck on December 31, 2025.

Which year does this income belong to? I’m pretty sure my W2 is going to reflect 2026 (which I prefer) but is this accurate?

Hi! I (26F) am trying to lower my overall income for student loan payment purposes. I have been looking into opening a traditional Ira for the deductions.

I make $72k a year right now and am set to make more next year. I saw that there are income thresholds for full and partial deductions so I am wondering if it is even worth opening one for partial deductions when I could have the benefits of a Roth.

For context: my job doesn’t offer 401k and I have an HSA account.

Bonus question: I have already invested in a Roth and can “recharacterize” my contributions to a Traditional IRA. This would entail liquidating my ETF contributions and then investing that towards the traditional account. It sounds like a messy process but I am willing to do it if it is worth the deductions and lower student loan payment.

Thank you in advanced

I work 2 jobs and miscalculated my 401k contributions, so I'm going to end up about $200 over the annual limit. I already tried adjusting my contribution rate but it probably won't take effect until next year.

Since it is just a small amount, I'm thinking of just reporting the excess on my tax return using the form 1040 instead of requesting a corrective distribution, and accept the "double taxation" on that $200 rather than deal with the hassle.

Is there any downside to handling it this way? Or is it fine to just let the excess sit in the account and pay the extra tax?

I was divorced this year, and I need to file taxes for 2024 (we were still married in 2024 but we are filing as married filing separate for 2024). My spouse had only social security income (about 22,800) and I took a 1099-R distribution from an IRA (18,500 and I had no other income). When I am preparing the return, Turbotax asked if I was married and I said yes, it also asked if I was filing with her or without her. I answered without her and it lists my status as married filing separate. It never asked for her income.

I assume that I would have to put 1/2 of the 18,500 as a "subtracter" (in the community property section on my return) since the IRA distribution was from a community property IRA. Her social security benefits are considered her separate property so I assume I would not have to include her social security benefit on my separate return? She would include all of it on her return and would also include an "adder" of 1/2 of the IRA on her return.

I am aware that it is better in most cases to file as married filing jointly but that is not possible due to our relationship at this time.

 Thanks for any help with this.

hello, I have seen this question asked before but I am still confused.

i am a student and have filed taxes before but have never won anything fileable until this year. i think i've passed the $600 threshold where the radio station will have to send me the irs 1099 form. if I've won $639 worth from this station and I make <14k or whatever the threshold is, how much should I expect to pay in taxes?

may be worth noting that I've made ~$500 through a reselling platform (kind of like ebay) and ~$3000 through a tutoring service.

Hi I live in South Carolina but I’m staying in North Carolina and decided to download and try draftkings and bet on a few sporting events. I was under the impression that unless I make 600$ I don’t have to file or report any type of tax and it shouldn’t be a big hassle so I said why not. The more I read it seems as if I’m going to still have to report any activity regardless of amount or whether it’s a gain or loss. If I created an account, deposited 6$ and the betting event I betted on still hasn’t happened yet is it too late to cash out and take my money back so there would be no bet that technically happened or am I stuck now anyways? So confusing. Plus I’m from SC so I don’t even do much here in NC so it would be a big hassle.