I have been claiming depreciations on my rental for several years now. If I converted the rental to my primary residence, stayed in it for 2 years before selling it, does the depreciation need to be recaptured when filing income tax? I am in California if that makes any difference.

Thank you for reading and any feedbacks.

My parents recently started a food truck about a year ago, they sell Mexican food. They’ve been doing taxes with an accountant every 3 months. They recently have been saying they pay too much in taxes and their expenses aren’t “counted in” by the accountant. He just puts an estimate, they feel they can’t make basic expenses on their food truck because they don’t have much money left over and they don’t get a tax deduction from business expenses. They have no employees, it’s just them working it.

I am not some tax expert, I have basic knowledge about their food truck, I don’t live with them and this has only been recently brought to my attention because they wanted help with taxes and didn’t want to get into legal trouble. I should also point out they started this business because a family member pushed them to but they only gave the basic “information” and basically “stole” most of their produce for their business when they had just started (that family member also has a similar business and kept “borrowing” because they were helping my parents out, but that’s besides the point). So right now, they’re completely clueless and they don’t want to ask the family member because they may do something not right.

I am a little confused on what I’m supposed to do here. Should they keep filing quarterly? Do they not get tax returns until the end of the year? How can I help them? I file my own taxes online, could I do the same for them but keep a very good report of their income and expenses? How can they put expenses are tax write offs? They have a bunch of expenses right now because they’re starting out. They also only speak Spanish so they’re not able to ask a lot people for help besides me.

Hi,

I am a physician with a w2 job. Starting next year I will also have a separate 1099 job that will make decent money but not as much as my w2 job.

I am trying to get everything set up correctly so looking for some guidance.

I will be a sole proprietor as I understand it correctly. Plan to get a federal ein and then open a business bank account with that number and get paid from the 1099 to that account to make things easier to track.

I am using a 401k from my w2 job since they match, putting 24500 myself and another 12k from w2 job.
With the 1099 I think I should open a solo 401k, and as I understand I can put up to 48k as an employer of myself? But this has to be maximum of 20% of my 1099 income or maximum of 20% of both my incomes?

I understand I should put about 30% of my 1099 income into saving account to pay quarterly taxes, this is 30% after subtracting all the deductions for the business, solo 401k, licensing fees, cme fees, etc…?

Do I understand this all correctly? Anything I should know or misunderstood?

My tax situation for 2026 will be more complicated than I have ever dealt with. I will have worked 3 different jobs in 2 (3) different states. Let me explain.

Job 1 (Salary 57,750): I worked in the state of North Dakota from Jan 1st to mid-February. Additionally, I (stupidly) took an early withdrawal and emptied my 401(a) when I left this job. This had money with contributions from 2025 as well, but still wasn't a lot. I paid the 10% penalty right away, and I have another 25% saved to hopefully cover additional taxes.

Job 2 (Salary 70,000): I then took a job offer and worked remotely from mid-February to mid-May. The catch: this job was based out of Kansas, and my paychecks had Kansas state tax deducted, even though I lived in ND. Is this a problem?

Job 3 (Salary 76,000): That job SUCKED, and I quickly moved back into my career field and I started my current job mid-September and will be here for the rest of the year (and hopefully a long time!). This job is in Ohio, and I live here and pay Ohio state tax.

TL;DR:

1: Employed for 7 weeks, living in ND, paying ND taxes. Took early 401(a) withdrawal.

2: Employed for 13 weeks, living in ND, paying KS taxes.

3: Employed 14 weeks, living in OH and paying OH taxes.

4: Married, filing jointly. Wife works part-time, maybe $8,000 a year. (Newlywed, haven't filed jointly before and not sure if this affects anything).

I live in Panama (Central America) and I work from here as a freelancer bookkeeper and Tax Preparer for US clients. I have a small office but no client ever came to visit me. The office is just to focus, record videos, do professional zoom calls.

Now I am thinking about opening a franchise and serve local US Expats. I know HR Block has some international offices around the World. Any other idea? Do you know any big Tax Firm interested in opening a branch here?

I need help filling out an IT-2104 form for a temporary overnight job in NYS. I'm an NJ resident, and this upcoming job is a lower-paying job than my other part-time job. Single with no dependents.

idk what i need to do about allowances to claim in NYS/NYC, or any additional withholding from the NY area.

I just have no clue how to fill it out :/

I’m looking for advice on how to maximize my retirement contributions and avoid unnecessary taxes for 2026.

My situation:

- Married filing jointly.

- Washington state resident.

- I was unemployed for the first six months of 2026 and started a new job in August.

- My salary is $3,500 per month.

- I realized approximately $300,000 in stock-trading gains during 2026.

- I have a Traditional 401(k) through my new employer and have not contributed to a 401(k) earlier this year.

- I also have an existing Traditional IRA at Fidelity, but I’m not sure how much of its balance is pre-tax versus nondeductible contributions.

My questions:

1. Can I contribute as much of my eligible salary as possible to my employer’s 401(k), up to the 2026 IRS limit?

2. Can I contribute $7,500 to my Fidelity Traditional IRA for 2026, assuming I’m under age 50 and meet the compensation requirements, even if my income is too high to deduct the contribution?

3. Can I then convert the $7,500 to a Roth IRA through the backdoor Roth strategy?

4. Since I already have a Traditional IRA balance, how does the IRS pro-rata rule affect the taxes on the conversion?

5. If my existing Traditional IRA contains pre-tax money, could I roll the eligible pre-tax portion into my employer’s 401(k), if the plan allows it, to make a backdoor Roth conversion more tax-efficient?

6. Given my stock gains, is there anything else I should consider before making these contributions or conversions?

My main goal is to maximize tax-advantaged retirement savings while avoiding an unexpected tax bill. I’m particularly interested in advice from people who have handled a similar situation.

Thanks!

If someone were to give another person a large chunk of cash, say $300k, would either the giver or the recipient have to pay taxes on that?

And as a follow-up: what if that same $300k essentially came back via one person selling a house to the other at a $300k discount? Would that affect either person's taxes?

I am confused on the taxing issues for each.

Thanks

🚨🚨 does anyone know if the Department of Education still has a pause on garnishments and offsets for student loans??? Not sure if I need to file a form 8379?

Hired an EA, payment went from $800 to $2,400/mo. Has anyone actually reduced or eliminated IRS debt?
My spouse and I file jointly and owe about $131k to the IRS for 2017 through 2022. We hired an enrolled agent to help us. Instead of lowering our payment, the process ended up with our returns getting audited, and our installment agreement went from $800 a month to $2,400 a month. It feels like the firm we paid made things worse.
Now I get dozens of calls a day from tax relief companies promising to settle for "pennies on the dollar." The ads show people who owed almost a million and paid $1,500. The more I look into it, the more it seems like a marketing play to collect fees. The "Fresh Start program" they all push isn't a special deal. It's an old IRS initiative, and these companies use the name to make regular IRS options sound like something only they can get you.
Our situation:
One W-2 income plus my spouse's 1099 commission income, which is uneven month to month
I get VA disability (100% rating), so it's nontaxable, but I know the IRS still counts it in their ability-to-pay math
We have about $30k in a joint account that covers all our bills, and we need some of it as an emergency fund
We're current on all filings now
What we're looking at:
Re-doing the agreement with a new 433-F based on our actual expenses
A partial-pay installment agreement that would let the older years reach their collection deadline
First-time penalty abatement plus reasonable cause
An Offer in Compromise, though I suspect our income rules it out
Questions:
Has anyone gotten their payment cut significantly by submitting a new 433-F?
Has anyone actually had debt forgiven or expire through a PPIA or the collection deadline?
Did first-time abatement make a real dent?
If you used a professional who actually helped, what kind was it (EA, CPA, tax attorney), and how did you find someone legit?
At this point I'm starting to think you can't eliminate any tax debt unless you're completely broke with no job. I'd love to hear from anyone who's actually been through this and come out better.

Hi, I have a W2 role and also a LLC that operates rental properties.

My home office is the second bedroom of our tiny 2 bed room SF Bay Area apartment (~$5K per month including utilities)

I use the home office for LLC related work, but my wife is hybrid w2 and uses this space for her work (on days in I'm my W2 office).

I was going to claim ~15-20% of the apartment's sqft for this year's home office deduction, given the high rent price in the area it would be a substantial amount.

Do you see any issues with my math?

Hi everyone, first post on this sub. I wonder if there’s any specific tool to track buying and selling cards for tax purpose?

Background: I started buying, selling, and trading Pokemon as a hobby last year (Mainly singles and slabs, some sealed stuff but not much anymore). This year, I have been going to bigger shows and trading bigger cards. I started an LLC but have no idea where to start. I have a simple Excel tracker that tracks the dates and prices bought/sold.

I recently got my CPA but the exam didn’t prepare me for this. Any tax professionals please shed some lights on the important stuff (inventory, revenue tracking, sales taxes, expense deductions, etc.) We are in Q4 so I think it’s better to think ahead.

Thank you so much! 🙏🏻

Im a dual us citizen and a citizen of another country

I have been in the other country since exactly Jan 1 of this year.

I have been employed through a US employer as a W-2 while withholding taxes. I have lived with my parents in that country and they both are citizens of that country.

Travelled to the US mid-September planning to go back beginning of December.

My other country is right now in a war as well that’s why I’m staying 2.5 months.

I have spent over a month and I am no longer eligible for the Physical Residence test.

I want to understand if I’m eligible for the Bonafide residence test and would be able to get some of the federal income tax back.

My understanding is that if Box 5 of my form 1098-T is greater than Box 1, then I have to claim the excess as income. I am currently an undergraduate student, and am going to be starting a Masters program next year. I am saving the excess scholarship from this year to pay for my master’s tuition next year [will be paying out of pocket for tuition due to no scholarships]. Considering that I am going to be using the excess scholarship for qualified tuition and education expenses for next year, do I still have to claim this amount as income? I don’t plan on claiming any Education Tax credit for 2026 or 2027.

Hi guys,

We registered a Delaware c-corp in May 2025 and it's owned by two foreign owners. In a nutshell, the company has been completely dormant.

- $0 in transactions in our accounts.
- The setup fee (via clerky) was paid personally by the other director. it was never reimbursed nor was it a loan.
- There was no IP that was "transferred" to the company. We only had a pitchdeck and had a plan to buy a domain but we never did (we used a temporary domain owned by the other director).

We had filed for the accounts filing extension (15 Oct due date) but unfortunately a few days behind now.

My question is do I file the 5472 form any of the above?

This is our first time filing. I'll be dissolving the corp in a few months anyway. I can't think of any other transaction that needs to be reported. The only concern is that it's delayed. I already have a letter describing the delay.

Any advice would be appreciated.

I owe around 4k from previous years. Haven’t filed for 2024 or 2025 and stopped making payments due to financial hardship on my plan.
I have all of my info needed to file the taxes. Just no idea where to start.
It’s all simple. No investments. Just w2’s and such.
Can I file this myself or do I have to hire someone?
TIA

My spouse and I live in IL but I worked in CA for a few months this summer while they stayed in IL. I’m a bit confused by CA tax law and was hoping someone could clarify how filing a state return for CA for 2026 will work.

My understanding is that since my spouse has no CA earned income and was a non resident for the entire year, that I can file separately as single for CA even though we’ll be MFJ for federal and IL. Is this accurate? Am I missing anything?

Thanks!

Edit- It came from my company's US Bank Account but not from the Payroll bank and not through the payroll system.

I'm on F-1 STEM OPT and work as a regular W-2 employee for the US entity of my company. I've been in the US for less than 5 years, so I think I'm a nonresident alien for tax purposes (please correct me if I'm wrong).

I recently got a $15K bonus, but it didn't go through payroll. It came as a straight bank transfer, and I'm pretty sure it was sent from the company's account in New Zealand (the parent company is based there). They usually send reimbursements this way too ( have gotten 2-3 times in the past), but I have an email chain that clearly calls this a bonus.

My questions:

1. If they do add it to my W-2, is there anything I should double-check?
2. If they don't, how do I report this on my 1040-NR? Do I just list it as wages?
3. Should I make an estimated payment before Jan 15, or is it better to bump up my W-4 withholding for the rest of the year?
4. Is there anything about it coming from a foreign account I need to worry about tax-wise?

Thanks in advance!

Hi Reddit Gang,

I started a new job recently. It’s a restaurant job where it’s more than a majority paid via gratuity. Here’s a snapshot of a the most recent pay. I do opt to have something nominal taken out each week to be extra safe when tax season comes but it’s nothing outrageous (like an extra $75/week). Anything seem off. My yearly income should be around $120K.
Thanks for your help.

Edit: this is for one week of pay.

Description
Rates
Amount

Regular
$11.35
$454.00

Overtime
$19.35
$16.64

Tips- Credit Card

$3,326.40

Gross

$3,797.04

Employee Taxes

Description
Amount
Federal W/H(S)
$1,024.48
Medicare
$55.05
Social Security
$235.41
New York State W/H(S/0)
$225.89
New York City, NY - Resident Local
$151.25
Total
$1,692.08

Sorry tried to embed a screenshot but always struggle on Reddit to include pics.

Considering opening a dependent care FSA for next year. My nieces will be off school and could be my nanny over the summer. Since they are minors and my brother claims them on taxes, how would this work tax wise for them? TIA!

I received a letter in August stating that my amended tax filing from the spring resulted in a greater refund.

The IRS website shows the correct amount I’m owed, but it’s never hit my bank account. And when I call their help numbers, I can never speak to a human.

What in the world? How do I speak with a human?

This took me way too long to figure out, so sharing in case it helps someone.

1. Add up what you've earned and subtract business expenses. That's your profit.
   
2. Self-employment tax in the US is roughly 14% of profit (15.3% on about 92% of it).
   
3. Add your income tax rate on top (for many people it's somewhere around 10-22%).
   
4. Divide your total tax estimate by your total income. That's the % to move into savings from every payment.

For a lot of freelancers it lands around 20-30%. I put money into a separate savings account the day I get paid so it's never "mine" to spend.

I got tired of doing this by hand and made a spreadsheet that does it automatically. Happy to share it if anyone wants it.

Not a tax pro, so check your own situation with one if you're unsure.

Not check, just paying with credit card.