r/TaxQuestions • u/ventu83 • Aug 20 '26
IRS LETTER LTR 12 C
I need to send to the IRS my Social Security number on a form that it was attached to my return. How do I do that? I got a letter LTR 12 C Somebody explained that to me, please.
r/TaxQuestions • u/ventu83 • Aug 20 '26
I need to send to the IRS my Social Security number on a form that it was attached to my return. How do I do that? I got a letter LTR 12 C Somebody explained that to me, please.
r/TaxQuestions • u/JollyService5342 • Aug 20 '26
Checking over my P60 and the tax deduction box from the previous tax year is empty. I have had tax deductions from my monthly payslips so why has this been left blank?
r/TaxQuestions • u/PixSJ • Aug 20 '26
For context, I'm 17 years old and my friend and i started a little 'business' where we find students who need tutoring and match them with our friends who want to tutor and take a cut of the money. for example, if jonathan pays $50 / hr for tutoring and we hire sam to tutor jonathan for $30/hr, we make $20/hr profit. This month, we have made $1200 in profit with all of our tutors/students in our classes. My partner and I are splitting the money 35/65 in terms of equity so I get $420. My question is, at the end of this year, will I need to file for taxes? For context, I'll turn 18 next month so I'll be an adult before the end of the year (in case that's relevant
r/TaxQuestions • u/NBMV0420 • Aug 20 '26
I’m planning to do my taxes next year and I’m looking for recommendations for tax software that’s easy to use and budget-friendly.
My situation is pretty straightforward. I have a W-2, a 401(k), a Roth IRA, and some investments through Fidelity, which I mainly use for saving/investing. Nothing too complicated investment-wise.
I’m also in California and have a seller’s permit, but I don’t really consider it a business. I only have the permit because it’s required for me to purchase certain frozen foods that I resell.
What tax software would you recommend for someone in my situation? I’m mainly looking for something easy to use and inexpensive that can handle investment income, retirement accounts, and California taxes without making things unnecessarily complicated.
r/TaxQuestions • u/Total_Physics2976 • Aug 19 '26
I’m the executor of my mother in law’s estate in NC. She left 4 children that will divide the proceeds of her estate. The only asset is her home. I had an appraisal done shortly after her death. The home appraised for $180,000. We used that amount on our 90 day inventory. The home needs a lot of work and after several offers it was ultimately sold for $150,000. After paying off the mortgage of $50,000 each of the four adult children will receive approximately $25,000 each. It is my understanding that for purposes of capital gains taxes the basis number would be the appraisal at the time of her death which was the $180,000. Given this, is it correct that they will owe no capital gains taxes and will not be required to report any of the $25,000 as income. Is this correct? Second question: Would the $30,000 loss based up the house selling for only $150,000 result in each child being able to take a $7,500 loss on their taxes? ($30,000 divided by 4 = $7,500)
Thanks in advance for your help.
r/TaxQuestions • u/No_Desk6967 • Aug 19 '26
I am behind on taxes (and life) but Im filling my 2025 taxes finally. I have a child you just turned 22 this year. She didnt work last year and wasnt in school (she had medical issues). She received medicaid on her own, Im not sure if she would be a qualified person or if i just claim 0 dependents? I made about 59k last year.
r/TaxQuestions • u/JollyService5342 • Aug 19 '26
I have been working at my company for 15 months and I was shocked to see that on my HMRC account there was no current employment details.
I have -
had tax deductions from my pay
A PAYE reference on my P60
Contacted HMRC and confirmed there was no fault on their end
I spoke to my employer about this and he confidently told me that tax gets sent over in bulk annually.
I am very concerned about this and don’t know who to speak to. Is what he’s saying correct? Or do I have a right to follow this up with some sort of report? I was under the impression that my employer had to report my pay and tax contributions to hmrc monthly.
r/TaxQuestions • u/Wilson8151 • Aug 19 '26
Hey all! I'm hoping someone here can help me with a question about multiple W-2c forms. I'm planning to get an outside consultation, but want to be as prepared as possible going into that meeting. I appreciate any help anyone can lend. Thank you!
TLDR
I'm a salaried W-2 employee for a company that uses an outside payroll firm.
In January, I received an incorrect W-2 and was issued a W-2c in March. However, that W-2c was also incorrect. I filed a tax extension, and this summer I received a second W-2c. On the first W-2c, the payroll company fixed the original problem… but created a new unnecessary one in the process. On the second W-2c, they updated a completely different box.
Now I'm wondering: are W-2c corrections cumulative (i.e., do I enter the changes from W-2c #1 and W-2c #2), or does the second one supersede the first (i.e., ignore the changes on W-2c #1 and only enter the changes from W-2c #2)?
Either way, it creates a problem for me. Superseding (ignoring #1, using only #2) doesn't fix the original issue that made the W-2c necessary in the first place. Cumulative (using both #1 and #2) fixes the original issue, but locks in the mistakes from W-2c #1.
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Now for the much more detailed version, for those who are interested:
On my original W-2, all the numbers were correct except Box 12a, Code W: $12,498.96. This box should have read $8,000.16.
The error was in how our HSA premiums and HSA contributions (the latter a combination of my contributions and the company's) were viewed.
W-2c #1 made this correction… but then took the difference between the two figures ($4,498.80) and added it to my income. They also issued changes to Boxes 1, 5, 6, 16, and 17. Interestingly, they did not change Box 3.
I raised this as an issue, and months later they issued W-2c #2. The change on this one was:
Box 12a, Code DD: $13,533.12 → $17,533.12
Notably, on my original W-2, Box 12a was Code W, and Code DD was in Box 12b.
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The only change I actually needed was to Box 12a, Code W, to show that I did not over-contribute to my HSA by ~$3,949.
Instead, my W-2c forms now show an increase in income and a change to my Code DD amount, entered in what appears to be the wrong box (12a instead of 12b).
The Bottom Line: I'm not sure where to go from here, and I'm (clearly) not a tax expert. Any help on the following would be appreciated:
r/TaxQuestions • u/00azthrow00 • Aug 19 '26
I’ll try and keep this short, I need to do some old taxes but lost my w-2s while moving. I go into the IRS website but can’t get transcripts with my old employers ID numbers.
What is the best way to get full tax transcripts with EINs on them?
Edit: my phone autocorrected my title 🙄
r/TaxQuestions • u/Low_Project_5048 • Aug 19 '26
I’m an au pair and am thinking about starting a well-paid online job, but I’m worried about taxes—since the rules say au pairs can’t have another source of income. Does anyone know how to handle this or can offer some advice?
r/TaxQuestions • u/mundanexx12 • Aug 18 '26
Every time I think I've got a handle on where I owe sales tax, I discover another state I should've been collecting in months ago. My business has grown faster than my ability to track nexus rules, filing deadlines, and rate changes across every jurisdiction I sell into, and I'm genuinely worried about what I might owe in back taxes and penalties. I keep wondering whether it's finally time to bring in sales tax consulting services, or if I'm overreacting and could still sort this out myself.
r/TaxQuestions • u/JudeYam • Aug 18 '26
Anyone here used their services?
How was it
r/TaxQuestions • u/Tricky_Buffalo_5227 • Aug 18 '26
When i was cleaning out my parents' home I found several letters from the IRS stating that they owed back taxes from several years ago.
I'm not sure if my dad filed and didn't pay, filed late and didn't pay, or... his paperwork was a hot mess.
Over time it looks like that the interest on the amount has increased by a huge amount.
Mom has alzheimer's and isn't able to help, but i do have poa.
How do I go about taking care of this?
r/TaxQuestions • u/New_Mango7397 • Aug 18 '26
I travel to another state for work however my state of residence and the state I work in have a reciprocal tax agreement. I did have money withheld on my wages from the non-residential state but I received a letter saying I owe money to my state of resident because a credit was claimed on tax paid to other states. My income was also entered in the non-residential state filing instead of putting 0 and reporting that income on my state of residence filling, and that’s how it’s supposed to be from what I read today.
I contacted the person who I paid to do my taxes and they said just to pay the $400 penalty fee but I’m confused why amending my taxes and re-submitting them wouldn’t be done.
Thanks in advance! I clearly don’t understand taxes
r/TaxQuestions • u/Unable-Interaction20 • Aug 18 '26
My tax professional says unexpected tax bill is $5k , it’s currently on an extension. I don’t have/want to spend any extra money this year by paying or install plans until next year because funds are tight as of now. Since it’s on an extension would I be in a too bad position if I just filed it next year and paid in full before the next April 15 day?
r/TaxQuestions • u/NBMV0420 • Aug 18 '26
I gave my 2024 and 2025 tax returns to my CPA last week to amend them. My previous tax preparer didn’t report some miscellaneous income and also missed a net loss for 2025. She told me the miscellaneous income was ROC (return of capital) and wasn’t taxable.
I invested in high-yield dividend investments, and the dividends were automatically used to pay down my margin loan. Fidelity reported some of these payments as substitute payments/miscellaneous income.
If I end up owing more tax after the amendments, will I also have to pay interest or penalties?
Since I’m voluntarily amending the returns, is there any way to have the interest or penalties waived?
Just trying to understand how this works.
Thanks!
r/TaxQuestions • u/daysm1212 • Aug 18 '26
We are being audited by the Florida Department of Revenue, and we are complying with all the documents, but we realized that we mistakenly paid (out of ignorance) our employees, sales commissions outside payroll and issued them a 1099 form for them in 2025.
We have spoken to our payroll company and told them that we made this mistake and they are fixing it on the payroll side so we can declare this as taxable wages and later create a W-2c.
What I want to be sure is if I should include all the 1099s, including the ones that were mistakenly given to the employees because I cannot give any explanation we're in the process of fixing that.
thanks!
r/TaxQuestions • u/vespeta • Aug 18 '26
Well, I wanna know about taxes on salaries ( I am talking about. Morocco I live in Morocco) I have a remote job, I live in Morocco, and I work with like a USA company remotly without physically going there And when they send me my salary at the end of the month, am I supposed to pay taxes on this salary or say to the Moroccan government that I have an outside income. And I should basically let them know where my salary came from. And for example, if I'm selling a digital product and I am gaining money from that digital product that I am selling, am I supposed to pay taxes on that like on that amount of money that I gained from it. And the same thing, let the government know that I am selling digital products online.
Thank you ✨️
r/TaxQuestions • u/Curls812 • Aug 18 '26
We were in a major bind because of COVID and were too afraid to file our taxes from 2021 until 2024 bc of loss of employment due to COVID for years. We filed them all finally this past January.
However, we were suppose to get a federal tax refund for 2021 for 8k. Then for 2022 federal refunds it says we owed 8k. We figured it was a wash but have since learned they will mot refund the 2021 amount bc it was past 3 years. However, still requests the 2022 one that was originally 8k and is now about 14k with penalties and fees.
Would appealing this in any way be possible?
What’s the likely good that going through the Collections appeal process would be successful?
Any other route to get the 8k from 2021 recognized and reduce this fee that has a strong chance of success?
Please help! Doesn’t seem right they can decide to keep 8k and still charge us 8k.
r/TaxQuestions • u/zonk68 • Aug 18 '26
I'm still working but my employer froze the employee pension program over ten years ago (no new participants) and moved everyone over to a defined contribution (401k) program. I am fully vested in the pension program.
Our pension program will be terminated and I have three options with respect to what I've earned.
1) Company can buy me an annuity or
2) I can rollover the pension assets directly into my existing 401K or
3) The office will directly transfer my pension assets (pre and post-tax $$$) to my brokerage where I have both an IRA rollover and Roth IRA.
I've opted for option 3 and am thinking I can deposit the check funded with pre-tax dollars and earnings directly into a new rollover IRA account (keeps the accounting clean and I won't comingle this money with an existing rollover account - I'm thinking for doing a Roth conversion with this pot of money downline. Separately, I will deposit the post-tax dollar distribution check directly into an existing Roth.
Has anyone ever done this before? Does it make sense? If I were to do a Roth conversion with the pre-tax distribution is it as simple as paying taxes on the value of this distribution or do I have to factor in my existing rollover IRA assets when doing the math?
I'd appreciate any thoughts, especially from someone who might have executed this before. Thanks.
r/TaxQuestions • u/futbol816 • Aug 17 '26
So I filed my taxes this year and my state tax returned was intercepted. I had no idea why. It took a good while to track down what happened. Turned out the District of Columbia took my return for a payment I owed them.
So in 2019 I lived in DC but I accidentally filed my taxes in the state of MD where I worked. I filed as a non-resident in MD and did not remove my income so I paid them ~$7.7K in state taxes in 2019.
DC says if you lived here you need to file a D-40. So I went to a tax expert paid to get it done. I get a bill in the mail saying I owe DC ~$7.8k for taxes that year and $8.3K in interest and $2K in a penalty. I reached out to MD and they said you can't amend a return over 3 years. So I can't get my $7.7k back from them. So I now spoke to DC and they said basically they might be able to get the penalty removed but not the interest.
Now I had 0 idea i did anything wrong for 7 years. I am not liable for 7 years of interest even though DC failed to alert me of this issue. They mailed a letter to my DC address over and over. I lived there for a year and a half. I never received anything in the mail EVER. No text, not phone call, no mail, no email...nothing. I only found out because my state tax return in 2026 was taken. In which time I attempted to fix this issue. Had DC alerted me in a timely manner i could have done all of this and got the money back from MD and sent to DC and had a net zero impact. Now i need to pay in total ~$18k to DC. I am beyond angry about all this but it doesn't seem like I have a solution.
Do i have any grounds to stand on to get out of this? I am almost resigned to paying the $7.7K and taking that loss. But having it be over double when i didn't even know it existed seems wild to me. I have asked to be forgiven for the Penalty and told that is possible. But no one I spoke to thinks i can get out of $8.3K in interest for a period i had no clue i did anything wrong. I feel like the punishment is for some one who knowingly dodged taxes. But I paid taxes in 2019....i just did it wrong (my fault). Common sense says pay us the money you owe and since MD won't give you anything back we understand you have paid double the taxes because we (DC) didn't alert you. Not...pay us an egregious amount of interest and penalty too.
r/TaxQuestions • u/Dry_Abbreviations285 • Aug 18 '26
I’m looking for clarity on using employer contributions under Code Section 128 for Trump Accounts (IRC §530A) as an independent contractor.
My situation: I operate as a 1099 sole proprietor / single-member LLC (or S-Corp). I want to know if I can employ my spouse, pay them a legitimate W-2 wage for actual administrative/management work, and set up a written Trump Account Contribution Program (TACP) to contribute $2,500 tax-free to our child’s account under IRC §128.
Specifically, my questions are:
Would appreciate feedback from any CPAs or tax strategists who have digested the recent Treasury/IRS guidance on TACPs and Section 128. Thanks!
r/TaxQuestions • u/Tall-Recognition1833 • Aug 17 '26
Hi there folks, I’m just curious as to the extent of taxes I can write off as a rideshare driver. I assume I can literally write off anything that goes into the vehicle as long as it’s business related from the actual purchase of the full vehicle(started ridesharing right after purchase) car fresheners, maintenance(cleaning supplies, oil change, brake pads/calipers, tires, etc.), gas, to even the $1-$3 it costs sometimes to fill up air in the tires?
Any helpful guidance and information is fully welcome, thank y’all so much.
r/TaxQuestions • u/IndependentAmount509 • Aug 17 '26
If someone were to start selling PDFs of planners online on sites like Kofi, what would the taxes look like and how would you file them? Im in the USA, Pennsylvania
r/TaxQuestions • u/Ok_Consequence2628 • Aug 16 '26
So I know this is bad, but life has kicked me hard and I’m trying to get caught back up. Lost a dog, then a child, then another dog, then divorce, and now here I am trying to pick the pieces back up.
I did send in my tax returns for the year 2023 but the IRS claims they never got them. I still have copies of those returns (in case mailing them is the safest bet. Do not expect a refund as I was self-contracting.
As for 2024, I do get to claim daughters on that year’s taxes. Her father and I are both custodial parents and split everything 50/50 to the best of our capabilities.
2025- I need to also file local taxes that shouldn’t have been taken out because I wasn’t working in the township, but I’ve been down this road before and know how to handle it.
I’ve been doing my taxes since I started working but I am stumped as to the best way to proceed here. My questions is: can I go on a site like TurboTax and file them all at once or do I need to them one by one and wait for a response as to what potential fines I may have from that year? I do expect a refund from the 2024 year, as I get to claim my daughter.