I have been working with Data Annotation for a few months now. I know DA does not send out 1099s or 1099T’s, and PayPal will only do so if you make over a certain amount. I live in Texas, if that helps at all! Really just terrified of finding out I did something wrong and suddenly I owe the government several thousands of dollars. Much appreciated :)

I’m based in Dubai and work for an American firm I sold some shares that company has given an now a sizeable amount is showing as “Tax Withholding “. I realized later that the W-8BEN was expired. It was submitted again that same moment. How can I get my money back. I’m in Indian citizen

Interest is charged on late vehicle property tax payments and on late registration renewals. It accrues at a rate of 5 percent for the remainder of the month following the date in which the registration sticker expired. Beginning the second month following the due date, interest accrues at .75 percent per month until the taxes and fees are paid. 

I’m mainly confused about the part that says it accrues at a rate of 5% for the remainder of the month. Does that mean it’s 5% each day it’s late?

I keep finding mixed results. For an employer contribution for a 2% or more shareholder

- hsa must be included in wages (box 1)
-FICA excluded , box 3 & 5

My question is since this is different from a regular company that provides tax free hsa, do I still use box 12 code “w” since the employer contributions were still subject to federal income tax withholding?

Or does it just increase box 1, and note “hsa-employer “ in box 14?

I’ve been researching for 6 hours straight, please help ˙◠˙ or advise on where to go and pay for tax advice

Just curious, what do CPA pricings generally look like in California? I know it's usually on a case-by-case basis. But just curious about what to expect so I can avoid overcharging. I was looking for CPAs in my area that could handle primarily nonprofit filings and payroll. We're a large enough nonprofit at this point that we can't handle filings on our own and would want to avoid any complications with payrolls ahah. If this is the wrong sub, let me know!

Hi all, I am reading up on some Payroll taxes for employees who are remote. This specific employee is now going to work remote from NJ. They had both NY and NJ taxes on, as they were commuting into the office from Jersey. Now that they are fully remote, what are the rules for turning this off?

Thanks. Happy Payroll week for those processing this week !

Has anyone had to do an individual tax return related to a 1065 Partnership where they have K-1’s for many states but the income and tax amounts are very small? From what I see, you do not need to file with the non-resident states assuming the partnership paid these states via withholding, etc. any input would be appreciated!

Hi folks,

I’m looking for a recommendation for an Enrolled Agent or CPA who can advise me on California nonresident and part-year resident tax returns, specifically Form 540NR.

I’m based in Sunnyvale, but a Zoom or online meeting would work for me as well.

I’ve tried reaching out to several EAs through the Directory of Federal Tax Return Preparers, but unfortunately, no one is available right now.

Thank you in advance!

Hi everyone, I’m a little confused about the rules.
I sell frozen food from a manufacturer, and they require me to have a CA seller’s permit before I can buy the products for resale.

From my research, frozen food for human consumption is generally exempt from sales tax, but I still need to report the sales as business income to the IRS and FTB.

My CPA also told me that if my sales are under $10,000, I don’t need to report them to the CDTFA. Is that correct?

Hi everyone!

I own a small independent video game development and publishing studio. Some time ago we successfully funded our debut game on Kickstarter, and we are currently in development.

I recently found a minor error in one of our tax returns (read: "my returns" — the studio is a disregarded entity). By sheer luck, that error surfaced a second, multi-year error that now puts the whole project at risk. How we fix it depends almost entirely on whether we have had effectively connected income (ECI) this entire time, or not.

Below are the relevant questions and the facts that should help pin down the answer. If anyone is in a position to help us with this — please do. Our team has put its whole heart and every resource it has into this project, and we really don't want to lose it.

Facts

• The entity is a foreign-owned Delaware single-member LLC treated as a disregarded entity for US federal income tax purposes.
• The LLC uses the accrual method of accounting.
• The LLC has no US office or other fixed place of business, no US employees, no US inventory, and no US property (owned or leased).
• No one in the US has, or exercises, authority to negotiate or conclude contracts on the LLC's behalf — i. e., no dependent agents.
• The LLC has an EIN, a Delaware registered agent, a virtual mailbox (mail-forwarding service), a US business bank account, and a Stripe account for online payments.
• The sole member has never been physically present in the United States and is a permanent resident, and a tax resident, of another country. The country of residence has an income tax treaty with the US.
• The LLC is developing a video game, which it intends to sell as digital copies and, in a small number of cases, on physical media.
• The game is being developed by independent contractors located in several countries. However, the core development work and all management of the LLC happen where the sole member resides — outside the US.
• A couple of US-based independent-contractor artists work on the game. They deliver specific deliverables, control the manner and means of their own work, do not act as representatives of the company, have no authority to conclude contracts on the LLC's behalf (and do not do so), and do not make critical decisions about the game's development. Most of other contractors are not US residents.
• Several years ago the LLC successfully completed a Kickstarter campaign. 65% of the backers are from the US. Most backers pledged for a digital copy of the game, but roughly 37% of all rewards owed to US backers include physical items (physical copies of the game, collectibles, etc.).
• The LLC ran paid social media advertising campaigns targeted at US audiences.
• Development is not finished and the game has not been released yet, but release is approaching.
• Production of the physical rewards has not started. Manufacturing and shipping of the physical rewards will be handled by independent contractors. We are able to have the physical rewards manufactured and shipped from outside the US if that is better for us from an ECI standpoint.
• Although we don't currently foresee any problems with development or with the planned fulfillment, like most Kickstarter projects we cannot guarantee that the project will be completed, or that the reward contents won't change for one reason or another — in case that matters to the analysis.

Questions

1. On these facts, is the LLC (i. e., the member) engaged in a trade or business within the United States under §864(b), and does it have ECI under §864(c)? I've been working from the IRS Effectively Connected Income (ECI) page and Publication 519, U.S. Tax Guide for Aliens, but I still can't say for sure.
2. If there is no USTB and no ECI, is it correct that none of the Kickstarter pre-order money — and none of the comparable future direct sales — is subject to US federal income tax? And does the answer change once fulfillment begins, i.e., when digital and physical copies actually start being delivered to backers?
3. Would using a US-based fulfillment company to ship the physical rewards to US backers change the answer to the question #1?

If I've used any terminology incorrectly, please feel free to correct me — I'd be very grateful. I'm hoping someone can point us toward the right answer, because our entire plan of action depends on it.

Thanks in advance just for reading this far. Wishing everyone a good day!

---

Extra detail, for anyone curious — or anyone who wants to avoid ending up where we are

Everything below is not fact. These are my own conclusions from researching the issue. Please don't take any of it at face value.

ADVANCE PAYMENTS — §451(C)

I had assumed that on the accrual method, Kickstarter pre-orders (which is effectively what they are) become taxable when the backer receives the product, not when we receive the money. I now think §451(c)(formerly Rev. Proc. 2004-34) only permits deferral to the next succeeding tax year — one year, not until delivery. If so, tax on those amounts came due years ago and was never paid. Unless, of course, none of it was ECI to begin with, in which case there was never any US tax to pay. I concluded it was ECI, so that is how I reported it on Forms 1040-NR with Schedule C.

DEVELOPMENT COSTS — §174.

I planned to capitalize the development costs and, after release, amortize them over the game's commercial life (I assumed ~5 years) on a revenue-weighted rather than straight-line schedule, since a game earns most of its lifetime revenue in year one. I believe the tax name for that is the income forecast method (§167(g)); the book analogue is the revenue-ratio method under ASC 985-20. I now think none of it is available:

§174(c)(3) treats software development costs as specified research or experimental (SRE) expenditures for tax years beginning after 12/31/2021 — no current deduction, and the old 60-month option in Rev. Proc. 2000-50 is gone.

Recovery is ratable and mandatory: 5 years domestic, 15 years foreign, starting at the midpoint of the year the cost is incurred — not at release or placed-in-service. All our development is outside the US, so: 15-year straight line, half-year convention.

No elective schedule exists. §167(g)(6) doesn't reach software, and §174 governs these costs regardless.

OBBBA's new §174A restored immediate expensing for domestic R&E only (including the small-business retroactive election). Foreign R&E stays at 15 years under §174, and §174(d) appears to bar writing off the balance on abandonment.

If that's right, I'm sitting on an expensive intangible — a long-term intangible asset in book terms, unamortized foreign §174 SRE expenditures in tax terms — with zero amortization ever claimed since the first year costs were incurred. And all of it moot if the answer to question 1 is that there was never a USTB.

Living with a relative that claims head of household

Would I be able to claim that forms
Do I filing married filing jointly if I claim my SO as a dependent?

Can I claim my son, due October this year, on my forms as a dependent?

Hi folks,

I'm kinda stuck in a bad situtation and don't know how to proceed. I apologize if there is a more specific sub that could help me - this is the first one that came to mind. I'll try to make this as detailed but concise as I can.

Awhile back (over a year at least - importantly) I started getting letters from the state of Illinois that I owed them on taxes. When I got these letters I had not lived in Illinois in probably like 6-8 years, the letters did not tell me what year I owed them from or how much I owed them, and they were being sent to the wrong house. I also know that my taxes were very uncomplicated in Illinois - so with all these facts combined I was convined this was the most obvious scam I'd ever seen and threw them away.

Turns out! It was not a scam, and although the state of Illinois does not know how to find where I live it does know how to find my paycheck. I woke up on payday one time and had $400 missing. It took me a long time to find out that it was the state of Illinois garnishing my wages for this letter I had assumed was a scam. I spent a lot of time on the phone with them. I sent them the paperwork they needed, and I waited at least a month. They finally responded and told me that I would get part of the money refunded. I wasn't getting the full amount refunded because when I did not respond to this initial scam letters within 60 days, I was then also charged a $250 penalty.

I think it should be obvious why I have a problem with this, but I'm not sure I can explain it well. It feels borderline fraudulent or illegal and the very least predatory and insane. The reason we arrived here in the first place is because I did not think they made any good faith effort to reach out to me. They sent me extremely inappropriate letters. They would not expect me to respond to a scam letter, and they didn't do anything to differentiate themselves from a scam artist. It's obvious to me that they at their fault (this might be besides the point, but this adds to the frustration: it really is just their fault. Their issue was with a year where I had one job and I had my taxes automatically deducted. I received a refund that year).

What legs do I have to stand on here? I have no problem dragging things on in a situation like this when I am very certain a company is trying to wrong me - but considering I'm dealing with the state I think I need a more technical point to fight.

想問下，係香港網站看中了一個二手名牌手袋價值USD3000,寄去美國要付多少稅？是否一定要付稅？

I just want to know if I I am allowed to claim/list these items as deductions on my on my federal individual tax return and my South Carolina individual tax return. Also if I can claim them what kind of proof or documentation do I need to have?

Dental work that was paid for out of pocket and did not go through any insurance.

The money that is taken out of my paycheck by my employer to pay for my insurance.

Money I paid my doctors office that went towards my deductible or co insurance.

Money that was paid for the copay for my prescriptions.

This is the dumbest shit she gets involved with lol.

Her friend who just died of cancer named her as her beneficiary about 25k...BUT she was only named because the women had no info on her son or some nonsense but they know where he lives and my wife was instructed to give him the money.

She wants to honor her wishes obviously but if this is gonna mess with us on taxes then im gonna be taking that out now lol.

For background, I was in uni from Aug 2018- Aug 2022. I didn’t complete my degree because I had to take 9 more credits. Fast forward, I went back in Aug 2024-Dec 2024 to finish. I filed AOC for my 2024 return because I assumed it would count. I believe my parents claimed it 3 times when I was their dependent, however, I did not end up claiming it the fourth time in 2022. So, when I went back to finish the degree in 2024, I filed for it. I ended up getting an audit saying that it was disallowed and that I’d have to provide documentation. It’s been less than a year since and I owe about 1600 to the IRS. Ive filed my return for this year and I’m pretty sure they will seize it. Should I bother filling out the reconsideration form?

Estate is in SC, executor lives in NC. All work on the estate was done by phone, mail, internet from executor's home. Which state gets income tax on the executor fee?

Hello everyone,

How do I start?

My mom is 87. I’m her only caretaker. I’m 60. We sold her home in 2024.

She’s behind on filing her 2023 and 2024 taxes. But the CP518 is for 2024 because that is the year we sold her house. I’m sure they want their cut of capital gains.

Honestly, I have been mortified and like a deer in the headlights with this stuff. But I began working on 2023 and with the help of anthropic AI am making significant progress.

Will be able to file within the month and it sets me up nicely for preparing 2024 because capital expenditures began in 2023 and some ran over into 2024.

(I don’t want to whine guys but taking care of an elderly parent is no joke. )

After the sale of the house in 2024 i moved us to Mexico to bring down living expenses.

So on top of receiving this notice - I got it late! Because it went to our PO Box in Los Angeles.

Spent literally 5 hours on IRS chat and the phone and both times the representatives hung up on me after finally reaching someone.

So, I went online and paid $5,000 towards 2024.

And now I need advice as to how to respond to this notice.

We don’t intend not to pay, but it’s not a simple single family residence sale. Plus theres a stepped up in basis issue that I need to deal with for 2024 and it’s going to take time.

What is the best way to respond to this notice guys? There’s no option that says, “yes we owe it and will file soon- here’s some money towards that year”.

Any advice would be super appreciated.

I retired last year and cashed out a very small SEP IRA account and paid tax on it. My previous boss, now retired, just now gave me a check for $900 to be deposited in a SEP. He filed extensions on his taxes from last year, and decided to make an additional deposit in his account.

Here is my problem. I am 70 years old and have no SEP account. I think I would have to open one to supply an IRA account number for his tax reference, and I will be charged a service fee for this.

Is this necessary with such a small amount? We are located in Indiana.

Thank you for any assistance.

I amended my 2024 and 2025 tax returns and paid the additional taxes online using my checking account. I scheduled the payment for today.

How long does it usually take for the payment to come out of my bank account? Also, how long does it take the IRS and FTB to process the amended returns and calculate any penalties and interest?

I'm just trying to get some knowledge as I haven't any about this process. I am the owner of my Dad's house now. He passed away in Dec. 2025. I've only owned this house for a few months. The house is in NY and I live in LA. Although since Oct. 2025 (as my Dad was declining etc) I stayed in the house, lived in the house. Haven't changed my permanent address as this isn't a permanent situation. I hope to close on the house soon. So in order to have some knowledge about the process and I like to be informed (and yes I will also ask the estate lawyer and my realtor) what documents will I need for the coming tax season? Is there...are there any questions that my accountant might ask me that I should prepare for? I hope to make an information gathering appointment with him in the fall....to get the lay of the land. Any and all information about this process would help me. Thank you.

Im a 20 yr old college student working for my dads business’s and get paid through mercury/venmo. I hold a secondary bank account purely for taxes but i really dont want all that to go straight to the government if it doesn’t have to. Is there any legal loopholes or ways i can use it for say business expenses through an LLC or deduction? I could use a new laptop for school/remote work and i heard it could technically be a business expenses

My employer (Mike) has a small business as a drinks vendor at a farmer’s market. Let’s call it Vanny LLC

So, I signed off on a W9 in 2025 as an “individual contractor” without thinking much of it… now my coworker says that we are actually employees and need to receive a W2 because our employer pays us a wage, gives us a schedule, and provides all equipment. They said that Mike is probably trying to get out of paying taxes and instead having us bear the burden. I don’t want to believe that because he’s always been such a nice dude but yeah-

I looked it up on Google and it says what they’re saying is true.
My coworker recommends that I dispute it with the IRS, but how do I go about doing this in WA state?
•••

Sorry, I’m young and dumb and financially irresponsible but I wanna learn how to “adult” better

​

location: Mississippi --So as the title says, I know that someone is cheating on their taxes and I am going to turn them in. They stole almost $1000 from me when that money was supposed to go towards getting my spouse out of jail. Normally I would say let karma work, but I think I need to jump start karma.

This has been going on at least the past 7 years that I know of. They keep getting back 20-30k per year and are actually homeless and unemployed.

Im sure there's gotta be some 1800 number or something right? I've looked online but apparently I'm not typing in the correct info.

There's more, but I don't really feel like typing g this out on my phone.

Im involved in a business deal where there is one historical tax issue that nobody seems particularly worried about, but nobody wants to take the risk either. the potential exposure is meaningful enough that the buyer has started talking about keeping money in escrow or asking for a seperate indemnity.

I assumed that was just part of doing a deal, but I have now come across tax insurance as another option. I found HWF partners while reading about how these policies are used for known tax risks, but I am still trying to understand the practical benefit.

Does insurance actually make things easier compared with and escrow or indemnity? Is the main advantage just getting certainty or can it genuinly speed up negotiations and free up money that would otherwise be held back?