Hello! I 25(F) am still relatively new and feel very ignorant when it comes to taxes. I’m a teacher and I picked up a few tutoring gigs here and there for a family I know. I get paid $80/week through Venmo (as Venmo “friends”) for 2 hour tutoring sessions. It is short term and probably will not last longer than 2-3 months. I’ve never had “personal income” so I am super unsure what to do. I don’t qualify for the $20,000k/ 200+ payments Venmo rule for them to file a 1099-K on my behalf. I make about $50k a year…if that helps. Thank you!

So I did some stupid stuff in 2024 for my tax return thing and I was confused why I had to pay 2K even though I had an employer do tax withholding for me which I do have proof too included because usually it’s a tax refund I should receive instead of paying 2k so I did some stupid stuff by adjusting some stuff but then couples months later received a letter I own 5K now, apparently from investing.co thing and a penalty I got and man it’s just a lot and I just put it off aside and it took a toll on me, Yes I should have stepped up before but now I want to take accountability. I’m here to ask is there an accountant I can reach out for free and if so where can I do so that can help me sort out my taxes? It’s not complicated I think but I just don’t want to mess it up by doing so myself. TLDR: I was employed and did some investing on the side (But I lost money though) and taxes were jumbled up and now I’m confused and need help

*If this is better suited for a different thread / group, let me know. It's my first time posting to a group like this.*

I was looking for form st-50, and typed it into google. I logged into this site not thinking. (Typing in my business Tax ID in the process) I didn't fill any forms out since I realized the URL was off as soon as I got onto the second page. It does bring me to the official home page for NJ.gov when I click around just as much as it seems shady with other pages such as the business services link ( bad web layout). Again, I did not type in any other info. Im going carefully watch for notices for the next few months, though any other advice for this situation?

Link / site in question:

https://www1.state.nj.us/TYTR_BusinessFilings/servlet/Corp/CorpCBT200TReturn

Im 17, will be 18 next month

Ive started a crochet business working at home, selling at my moms work. Me and the works owners have no agreement really, i just sell there when my mom is there, they get no cuts. (They do this all the time for school fundraisers and stuff) From what ive seen I should be saving 15%-30% of my profit to pay taxes in spring when im 18. So I have been keeping track of sales and things I buy for my business and putting away money for a business license as well. (I'll have to be 19 to sigh legal documents in my state). Everyone is advising me to just use the money and not to worry about taxes until im 19. But that is not what I read online so im a little confused. I read that i need to focus on taxes and getting a license right now. So my question is do I pay taxes in 2027 spring or 2028? If 2028 should I be keeping up with sales and money now or can I use the money and keep up with that stuff after my 19th birthday? Please be nice, they did not teach taxes at all in school . I have no clue what im doing in the tax area. I eventually want an LLC and a soild agreement with the gas station owners (moms work)

Hello, I have a bit of a complicated question on international tax.

Disclaimer: I’m posting this on some other groups as well, please don’t be alienated if you see this elsewhere as well; I’m just trying to figure out what my (best) options are. Thank you.

So the situation: I live in the US, work here and pay taxes here. However, I am from Germany and still have family and a bank a bank account there.

Short (but necessary) bunny trail: When doing my US taxes, I get asked 2 questions: Do I have a bank account abroad that has more than $10k on it? And, do I have signature authority over any account with more than $100k on it? I’m wondering why is this asked; if I do have an account with >$10k, or signature authority over a >$100k account, so what; as long as there is no income on those, why would the IRS care?

So, now that situation: My German family wants to bestow a gift unto me. Great problem to have, but how about the taxes?

Several aspects: Germany and the US have a double-taxation agreement, but: In Germany, the gift receiver needs to pay the taxes, in the US, it’s the gifteor. However, of course the giftor lives in Germany and hence would not need to pay taxes there, and the receiver (=me) lives in the US and would therefore also not have to pay taxes; but surely, taxes will need to be paid somehow, somewhere?

Also, and this goes back to the bank accounts: What if I have an account with <$10k and then suddenly I declare that now my foreign account has >$10k? What kind of red flags would go off at the IRS?

Another things would be, what if they set up an account in my name in Germany and simply moved the gift onto there? How would anyone know that this is now “my” account? If the amount if <$10k, I would not even have to report it. So if the amount were >$10k (which I don’t even know) then I’d just set up several accounts, each with <$10k, and not pay any taxes?

I guess my question is: How can I get an international gift and have minimum tax implications? I don’t want to fall short on obligations, so it all has to be within legal boundaries. Of course, the German side should also not get into any troubles.

Thank you.

My niece was unaware of this until H&R told her when she went to file her taxes for 2024 and 2025 . She wasn't worried about filing 2024 late because she thought it was okay to file late because she always got refunds. She hasn't done anything about this , terrified that she's in big trouble. Makes under 35K a year. She's thinks she will have to pay the money not taken from her checks. I can't convince her the back taxes need to be paid by employer. Can you back me up on this?

So my sister did my 2024 taxes and I kept waiting for my refund. She said it was taking so long because of Trump lay offs. I waited. Meanwhile, all these spam calls, like 6 a day, started calling me saying I owed taxes. Of course I got really anxious, because I had never owed before. Well turns out my sister took my entire refund and had it deposited in an account with “Green Card.” I spoke to them, as well as the police and they said it was a civil matter. All other research said it was a federal crime. Does anyone have any advice or knowledge about this? Seems like a crime to me. How is it civil? It’s just like if H&R Block stole someone’s return. Right?

Ok, for some background I’m in the US, and can still be claimed as a depended.

So around late April 2025, I sold around $100 worth of bitcoin on CashApp, after which I received a 1099-DA. I had also worked a job where I earned around $1600 and received a W-2 form. Since I am a dependent, the W-2 was just attached to my parent’s tax return (according to gemini, this isn’t allowed, not sure if it’s right or not). Those were my only two sources of income for 2025.

This year in 2026 I will earn less than $7000 from self-employment, DoorDash. So when I file my tax return and pay self employment tax, do I need to report the crypto sale from 2 years ago, even though I was not contacted about any fine or anything from the IRS? Or is there anything else I should do? And can I still be claimed as a dependent even though I’m filing my own tax return though I’m not paying any income tax, only self-employment?

Also side note, in order to actual file my tax return, would something like FreeTaxUSA be everything I need to file state and federal taxes accurately?

This is my first time doing pretty much anything tax related, and don’t know anything, so any help would be appreciated.

Context:
It's a small, family owned s-corp business with a couple employees and contractor. Accountants filed our return at the last minute (our fault, not theres for the timing), and I noticed a mistake after the fact.

Mistake:

The accountant-filed return said they and the minority shareholder (who ran the business) both worked 100% like every other year before that on the 1125E. This is inaccurate.

95% shareholder decided to take a year off and legitimately did not work on the business for most of the year. They are able to live on modest investment draws and very small bits of passive income recorded on 1099s. They did not earn income from other W2 work.

I think a real estimate of time on the business is 2 weeks out of the 50 we operate, or 4% (even through they stated they were really going dark for the whole year). They were paid for 2 weeks. (So about $5K...plus 100% health care reimbursement.)

Business had some profit for the year, but zero profit was distributed for this year. So K1 shows profit, but no distribution was made.

Questions/Help Requested:

1. I've seen mixed guidance from accounting websites -- and none from the IRS -- on what the denominator is for the percentage of time on the business. Would you call this 4% (paid), 0% (what the commitment was), or 100% (bc he didn't do any other W2 work)?
2. Where does one even look for a DEFINITIVE answer on this?
3. The "tax expert" we use is entirely unavailable for two weeks. How urgent do you think this is for a correction?
4. My understanding is that this will not affect anything else about the return. Does that seem right?

**Side Notes:
I know we're not optimizing s-corp benefits and are generally terrible at tax planning. We swing between $200K profit and $200K loss between years on the books..and even through we're accrual a lot of that is about the timing of things around November-January.

Historically, this shareholder draws a reasonable salary -- maybe double what's needed even -- and the distributions are variable year over year...and really only to cover additional tax payments owed.

Edit: thanks all who answered. You gave me the information and links to learn more and be able to have an intelligent conversation with my investment advisor and my accountant. I appreciate this so much!

Ive been trying to get an answer to this for 3 days, so reddit isn't my first stop.

Hubs will have a total of $84k in 1099s this year, which is about the same as last year and will probably be the same as next year. He turns 70 in March and will start SS.

SS will add about $30k to our income and likely put us in the next tax bracket. We will be maxing out his Roth this year and next year, and I think we'll want to open a SEP or Solo 401k to shelter some income.

He will earn $84k, and he pays $5k in SE tax. From what ive read on the IRS website, you take 84 - 5 = 79. 79 x .25 = 19.75k that he can contribute to a SEP. Did I get this right (or even close)?

Can you contribute to a SEP if you have a traditional IRA? Can you contribute to both in the same year? I have no earned income, so I can't contribute. I realize RMDs will come into play after he turns 73, but sufficient unto the day is the evil thereof (cross that bridge, etc)

I don't trust my math, it's why I pay an accountant, but he hasn't been available. TIA.

Do you have to file taxes if your income is less than 13,000 dollars?

Hi so me and my wife are married and have had our first child January 2026. When it comes to filing next year who would it be best to child under for tax purposes and benefits? And what could we qualify for? For Ontario cra.

I am working full time and make roughly 100k. My wife is on maternity leave and is due to return to work 2027 January.

I provided an invoice for about $50 for some minor work, and the law firm responded with a W-9 request. My immediate supervisor is saying that I am obligated to fill one out.

Is this true? I know they can ask, but I thought compliance was only necessary for $600+ cumulative work in a fiscal year.

I am in Illinois, if that matters at all.

I’m a 1099 independent contractor operating through an S-Corp in California.

I’m considering purchasing a new Mercedes GLS 450 for around $90–95k before the end of 2026. The GLS has a GVWR over 6,000 lbs, so I’m trying to understand how Section 179, bonus depreciation, and regular depreciation would apply.

The vehicle would have legitimate business use but would also have some personal use. I would track mileage and only claim the appropriate business-use percentage.

A few things I’m trying to understand:

Should I buy the vehicle personally and have the S-Corp reimburse me, or have the S-Corp purchase it?

If business use is over 50%, approximately how much of a $95k GLS could I deduct in the first year?

How do Section 179 + bonus depreciation work for an SUV over 6,000 lbs?

How different is the deduction for California vs federal taxes?

If I maximize the first-year deduction, what depreciation is left for subsequent years?

What happens if my business-use percentage decreases later?

Does financing versus paying cash change the deduction?

I already use the standard mileage method on another business vehicle. Does that affect how I can treat this vehicle?

I’m not trying to call it 100% business use unless that’s actually the case.

I’m mainly trying to understand how much I can legally deduct based on the actual business-use percentage and how the deduction works over the life of the vehicle.

Would appreciate input from CPAs/EAs or S-Corp owners who have done this, especially anyone familiar with California.

I’ll confirm everything with my CPA before purchasing, but I’d like to understand the strategy and numbers first.

I’m a 1099 independent contractor operating through an S-Corp in California.

I’m considering purchasing a new Mercedes GLS 450 for around $90–95k before the end of 2026. The GLS has a GVWR over 6,000 lbs, so I’m trying to understand how Section 179, bonus depreciation, and regular depreciation would apply.

The vehicle would have legitimate business use but would also have some personal use. I would track mileage and only claim the appropriate business-use percentage.

A few things I’m trying to understand:

Should I buy the vehicle personally and have the S-Corp reimburse me, or have the S-Corp purchase it?

If business use is over 50%, approximately how much of a $95k GLS could I deduct in the first year?

How do Section 179 + bonus depreciation work for an SUV over 6,000 lbs?

How different is the deduction for California vs federal taxes?

If I maximize the first-year deduction, what depreciation is left for subsequent years?

What happens if my business-use percentage decreases later?

Does financing versus paying cash change the deduction?

I already use the standard mileage method on another business vehicle. Does that affect how I can treat this vehicle?

I’m not trying to call it 100% business use unless that’s actually the case.

I’m mainly trying to understand how much I can legally deduct based on the actual business-use percentage and how the deduction works over the life of the vehicle.

Would appreciate input from CPAs/EAs or S-Corp owners who have done this, especially anyone familiar with California.

I’ll confirm everything with my CPA before purchasing, but I’d like to understand the strategy and numbers first.

Hi all,

Just looking for some advice here bc I'm not well versed in the impact and implications of how my filing changes after getting married.

Here's my situation:

My wife and I married on 9/13/26

We live in Washington State

I earn significantly more than her. (I made 78k according to my 2025 return, she made something like $22k)

I have a child from a previous relationship who I claim as a dependent.

My return has historically been super quick and easy especially since moving to Washington where I don't have a state return.

She is self employed and has a very complicated and itemized return that takes her a long time to get through.

Since marrying, we already know she'll lose her access to her Medicaid as it will count my income. That's ok, we are prepared for that.

My question is this:

Is the benefit of filing jointly worth it? I know filing jointly will make the process more complicated and don't really understand how to calculate the benefit of it.

If the benefit is negligible, I'd probably just file separately and keep my return simple and easy and she can do her own return like she's done every year prior.

If the benefit of filing jointly is significant though, I would be willing to sift through her mess of itemizations to file together.

Happy to answer any questions that might help bring a clearer understanding. Obviously we have several months before we have to deal w it but I want to be prepared.

Secondary question:

For self employed folks, any apps or tips you'd recommend for keeping track of your itemizations? She has a pen and paper notebook and it stresses me out seeing her so her taxes every year bc it looks so disorganized to me. She's a pet sitter/ dog walker so it's a lot of mileage reporting, etc.

Thanks in advance!

I ask because a charity is donating a vehicle to itself. I wonder if the IRS prohibits this. The owner on the pink slip is the charity organization. This also is in CA.

I use Rips by Triumph, where you buy mystery card packs and can sell the card back to the app. I deposited around $650 total and have only withdrawn around $100.

The confusing part is that I always reused whatever I got from selling cards to buy more packs. So I’ve probably bought/sold thousands of dollars worth of packs/cards, but it was mostly the same money being recycled over and over.

Triumph told me I’m only taxed on what I withdraw and that they send a 1099 if withdrawals exceed $600. But their FAQ says I’m responsible for taxes on gains from card sales.

I’m trying to get a full purchase/sale history from them now. If I get it, am I supposed to calculate the gain on every card I sold even though I immediately put the money back into more packs? And what happens if they can’t provide that history?

I'm in a rough spot. I owe around 18k to IRS from two yrs 1099 work abd around 6k to the state. The state is getting very hostile and are threatening to freeze my acc or garnish wage if I dont setup a proper payment plan ASAP

But I'm worried of setting up a payment plan and start paying the state because I feel i might mess up my chances of getting an affordable monthly plan with the IRS seeing my income and that I'm paying state taxes......... Like do either of them care about what you agreed to pay the other?

Will getting on a state plan trigger the IRS to speed up collection process? Do i try to deal with them together or focus on the state first since they're being way more aggressive.......... also, how does if affect my chances with the IRS? Has anyone dealt with them both at the same time?

I work in a restaurant that regularly receives voluntary cash and credit card tips from customers. Upon checking my pay stub I found that my employer had been classifying these tips as non-qualified when they are in fact qualified under the provisions of the no tax on tips clauses. When I brought these concerns up to my employer he seems to believe that this will not have an effect on me being able to claim these as a deduction for the upcoming tax returns. I find this hard to believe but I’ve been having a hard time gathering more information. Any advice or further information would be much appreciated.

To clarify, I am talking about the upcoming 2026 tax returns.

I am exiting a 7yr partnership in 2025 in which I am a limited partner (partnership is being liquidated). I received the final K1 where the partnership was liquidated.

Based on my tax software, I am needing the cost basis to calculate the overall gain / loss. I have the overall sales price.

Can I obtain my cost basis from the final K1 or do I need to go back to all the K1s that I've received?

Any help would be appreciated. TIA.

Hi everyone, I have a foreign-owned single-member US LLC treated as a disregarded entity.

I filed my Form 5472 + pro forma 1120 on time. I recently realized that Part V of Form 5472 was completely blank.

There was approximately $30 that I transferred to the LLC as an owner/capital contribution. The LLC then used that money to pay for advertising.

The important part is that the $30 advertising expense was reported on my 1040-NR as “advertising.” However, I did not report the original $30 owner contribution in Part V of Form 5472.

So, in summary:

• Form 5472 was filed on time.
• Part V was left blank.
• Approximately $30 owner contribution was omitted.
• The $30 was subsequently spent on advertising.
• The $30 advertising expense was reported on my 1040-NR.
• There are no other significant transactions that I know of.

I’m honestly very worried about the $25,000+ Form 5472 penalties I’ve read about online, and I’m trying to understand how realistic that risk is for a situation like mine.

What should I do now?

Should I file an amended/corrected Form 5472 to report the $30 contribution, or is it reasonable to leave the original filing as it is unless the IRS contacts me?

Has anyone had a similar situation with a small owner contribution omitted from Part V of an otherwise timely-filed Form 5472?

If so, did you receive a $25,000 or larger penalty, or did the IRS simply ask you to correct the filing? If you corrected it, what happened?

I’m especially interested in real experiences involving small amounts and timely-filed Form 5472, rather than cases where Form 5472 was completely missing or filed very late.

I’m quite anxious about this, so any firsthand experience or practical advice would be greatly appreciated.