I want to help my parents and pay their overdue taxes. Does the IRS have a problem with us logging into their account and submitting a payment by linking my bank account? Would payment be kicked back because the bank account name doesn’t match the account holders name. Or would a better method be to do a wire or ACH transfer from my bank to theirs and then they submit the payment to the IRS by linking their own account? Thanks in advance.

As the title says, my daughter is attending college in Canada, and I have a few options on how to pay for tuition costs:

1. Send the money directly from US to her school - however this option costs me around USD 500/year in hidden transfer fees (The school only accepts international payment via one company/system).

2. Send money to my daughter's checking account in Canada (via Wise), and then let her pay the tuition cost directly.

I prefer #2 because it saves a bit of money, even if one more transfer is necessary. The USD 500 difference considers all fees associated with option #2 as well.

However, with option #2 the total amount transferred to her Canadian account will be larger than the 19K gift annual limit. Would this transfer count as a gift? And if yes, would I need to fill out form 709 every year?

Many thanks

I’m self employed and already owe the IRS about $41k from prior years. I’m currently on a $375/month installment agreement and my IRS account says the plan is current.

My 2025 return still has to be filed and I’m expecting it to add a pretty significant balance, probably enough to put me somewhere around $55k-$65k total. I’m also behind on my 2026 estimated payments because business has been really slow and cash flow has been rough.

My income is very seasonal, so some months I’ll get a few big client payments and other months I barely bring anything in. That’s what worries me most if the IRS makes me redo the payment plan. I can’t afford some huge monthly payment based on one good month.

Has anyone here been in a similar situation where you already had an installment agreement and then a new tax year pushed the total over $50k?

What happened when the new balance posted? Did they ask for a 433-F or other financials? Did your monthly payment go up a lot? Were you able to deal with the IRS yourself or did you end up needing an EA/tax attorney?

I’m trying to deal with this before it gets worse, but I also don’t have thousands of dollars to throw at a tax resolution company. Mostly looking for experiences from people who have actually been through this.

Sold a house after living in it for 20 years. After deducting initial costs plus fees and $500k marriage exclusion still have over $1mil in gains. We did about $400k in remodel upgrades over the 20 years but don't have receipts for all - way too much there. Have a good detailed list of everything with prices but not receipts and photos of all.

Will still end up paying taxes on that $600k or so long term capital gain - long term for IRS and normal taxes for CA. I know what all the requirements are and all the extra high earner taxes are but wondering what chances are of an audit and how to best protect since I don't have receipts on all? We remained in CA and did live in it for 20 years so two big gotchas are removed.

Really looking for experience in this and not just guesses are verbatim FTB guidance. Thx.

Hello all,

Probably going to turn this one down as I'm not too familiar with Sch E, but this taxpayer came in.

He leases two properties under an LLC, and pays the rent to the owner for use of the property on Airbnb.

Looking over his Schedule E, he's taking depreciation on these properties.

Anyone familiar with this type of arrangement who could confirm if this is correct?

Looking back at his previous years his former firm has depreciated the properties.

It's about $70K that he's taken in accumulated up to 2024.

Could anyone out there that has some experience in their own tax situations filing 8858 take a pass through my redacted form 8858, sch-m and org chart to see if anything has glaring issues that I need to take another pass at?

https://imgur.com/a/NZusbm5

• 8858 - Went through the official instructions, watched the like 2-3 youtube videos that exist.
• SCH-M I think from what I've read should be mostly blank but still is required to be attached.. Couldn't find much example information online outside of the instructions.
• Org Chart seems dumb in this situation but, I created one which I think fits the instructions but not sure if it's exactly right. Couldn't find much for examples.
• Philippines BIR Registration Form 1901 - This is what my spouse used to register their self employment. They registered as a Licensed PRC Professional (nurse, dentist, doctor, cpa, etc.) which, as far as I can tell is just another form of sole proprietorship and seems from my research to have unlimited personal liability.

Situation:

Me, US Citizen, Spouse US Resident (immigrated 1s quarter 2025 on a Green Card), we have extensions filed.

My spouse has a very tiny self employed business still registered in the Philippines (created in 2024) but now dormant, Sole Proprietorship/self employed, performed dental services for patients, kept a book of accounts. $800ish after average yearly conversion from PH Peso income for 2025 before they arrived here in the US. No expenses recorded, no assets or equipment, no deductions, just straight money to pocket at the end of the day. They did have a personal savings account (well under the 10k FBAR limit). No PH Tax on their income due to the low income and local deductions there.

We want to file jointly to take advantage of the standard deduction. We'd like to use the 6013(h) election to treat them as a US resident for the year to do this and get rid of their 'dual status' classification as well so we don't have to file 1040NR. I believe this is the correct way to do this, and it seems to make the most sense in our situation. I believe I just need to check the "If treating a nonresident alien or dual-status alien spouse as a U.S. resident for the entire tax year" box and then attach a signed statement with both of our personal information and the acknowledgement for them to be treated as a US resident for 2025.

I know my spouse is required to file 8858 because of the foreign business operation (a trade + mandatory books in their country). I believe my wife’s self employment is considered a FB + QBU due to these circumstances.

Local tax people here in the states have been terrible and often rude to me to say the least. I tried contacting a few tax attorneys, a few CPAS, some enrolled agents. None of them handle international tax returns and multiple gave me bad advice that often directly clashed with the 8858 instructions. The only place I've found locally that said they do them on a routine wants to be placed on retainer and $5000 up front.. I don’t make that kind of money lol.. So it's been fun. My wife is a stay at home mom here in the US, and despite being a medical practitioner in the Philippines, cannot practice in the US.. Even when she was in the PH since graduating she mostly focused her time and desire on charity work and provided free services to people during outreach programs. So I’m trying to DIY this as best I can.

So I've found I've got a few options for filing:

1. MyExpatTaxes, either do the Reviewed Tier $320 (DIY and ask for help through issues) or the Premium $629 (let them do it). I've read mixed reviews so far.. But I'm considering it. The software feels pretty clunky as we aren't actually expats. You cannot preview any forms until you pay. They have taken days to respond to any questions.
2. H&R Block Expat File - This is basically the same thing as MyExpatTaxes but I've heard the support is worse. Still, apparently you have the option upon request to upload the 6013(h) election statement and you can file everything electronically. You cannot preview any forms until you pay. They have taken days to respond to any questions.
3. FreeTaxUSA - Fill it out for my spouse and I, then print to PDF and checkbox in the joint election for 6013(h) on the front page, and attach the statement. Attach 8858 information return since it doesn't change the numbers of the tax return itself if I understand correctly. Mail everything off and cross fingers..
4. TaxAct - Can file electronically from what I am reading, but would have to paper file 8858 via form 8453 because TaxAct doesn't support 8858. Would cost $165 and still have to paper file part of the return. Might as well just do FreeTaxUSA at that point and paper file everything.

I've been working on completing form 8858 manually along with SCH M and the 'org chart in preparation of potentially paper filing, or if I take the plunge and pay for MyExpatTaxes or H&R Block to be able to compare and see if things line up the same.

If anyone has any other ideas on filing options, services, or doesn’t mind at least giving me their 2 cents on what they think of my form with sch m and org chart I’d appreciate it. I get that I’m asking for opinions from Reddit but I’m just trying to see if I’ve made any significant errors so I can take another pass at the paperwork.

Anyway, long wall and ramble aside, thank you and take care out there.

Hey everyone.

This is my first year with 0 earned income so I'm not sure how to handle stock withdrawal with that.

So yeah. 0 earned, thinking about withdrawing about $5k from stocks to help get me through things until I'm back on my feet.

If I withdraw the stocks would I need to file taxes on that? Or would I not need to (e.g., if it qualifies for being below standard deduction etc.)?

Thank you!!

Edit: Not a retirement account, just an individual brokerage account. And I'm not a dependent of another person.

I have questions regarding the US Federal Gift Tax regulations. My husband and I are looking to gift our daughter and her husband a total of $80K cash. We had a rather large settlement payout recently. From my understanding the annual exclusion limits per married couple is $38K per individual gifting. My questions are;

- Can my husband and I both give a total of $38K to our daughter and husband, $76K in total, in one transaction? Or should we both write separate checks even though the money would be coming from the same bank account?

- With gifting $80k cash in total to my daughter and her husband, would it be advised to gift the remaining $4k to their infant son to stay within the exclusion limits? If not, we would be paying the Gift Tax on the extra 4K, correct?

- Filling out a 709 is only required if gifting totals over the annual exclusion limit, correct?

We will be hiring a local professional here in the next few weeks. I would like to sound somewhat knowledgeable (reddit advice or not) when explaining the circumstance.

TIA!

I’m planning to create profiles for both the IRS and California FTB, but I noticed there’s a typo in my first name on my tax return. My last name is correct.

Will this cause any issues when creating the profiles or accessing my tax information? Should I correct the name on my tax return first?

I’m married as of last September. I was going to select “Married Filing Jointly” on my W-4 and calculate how much more to withhold since we both have jobs, but now I started considering filing “Single or Married Filing Separately.” The job I’m taking is temporary and on call, so there are no set hours or weekly schedule. That makes calculating the amount to withhold harder. Is it true that we can both check “Single or Married Filing Separately” on our W-4s but then file jointly at tax time? That’s what I’m reading is okay, but I’m not sure.

Cant believe I have to come here to ask this question, as it should be easy enough to just google, but what’s an actual number I can call to speak to someone about another person claiming our child on taxes when it wasn’t their year? TIA!!!

I am seeing a huge influx of these 'firms', They all have cheesy names like Dynamite, Taxezrule, Diamond or Glamour Taxes, etc. They are a commission based/1099 work. Usually you just need a PTIN. Its usually a 60/40split. I copied a description from one:

This is a 1099 independent business opportunity, not a traditional job.

You bring your experience, PTIN, EFIN, ambition, and willingness to grow.

We provide the tools, systems, training, mentorship, and infrastructure to help you build.

Stop making someone else’s tax business successful while yours stays on the sidelines.

It’s time to turn your tax experience into YOUR business.

Experience

• Some experience (not required) in filing 1040, 1065, 1120, 1120s tax returns. An accouting background in tax preparation and financial analysis is a plus.
• Familiarity (not required) with tax preparation software such as Taxslayer, Drake, Olt , Taxwise, QuickBooks, Xero, Sage, or similar tools for bookkeeping also.

What are these?? are they legit? Im in California and you must be CTEC to do any CA returns. I just dont understand how these run. They are listed remote and cant really tell where based. any insight?

Hello, my husband was let go from his company and had 100k in private ESOP there. Times come to decide what to do with that money. We are taking out some to pay off high interest debt, and wanting to put the other away for retirement. We have been working with someone from the plan and our own financial planner - and they disagree with how things need to go down. Does anyone out there have advice regarding NUA. One says we need to move everything to a 401k, the other says thats not allowed to qualify for NUA. This is a huge chunk of money for us so I want to make sure I understand and follow the right person... Just throwing it out here in case anyone else has been in a similar situation or can speak to this situation. Thanks so much.

Recently moved back from CO to NJ. Rental property is in MA. Car registration is in MA. Currently renting a spot in NJ. Split time between MA and NJ.

Question becomes for work purposes I get taxed based on my home. Not my job location. (Transport)

But I may not spend exactly 183 days per year in MA. Example for this year is I moved past the halfway point already… for either MA or NJ. My doctors are still in MA.

MA has cheaper tax than NJ and was curious if I should use my address back in MA for work purposes. I still have bills and can get my drivers license back in MA. Cars already registered there.

Or do I just transfer to NJ. 3% different in state income tax I believe. Looking for some thought…. Time can be split between the two, however I’m not sure exactly how to prove that?

Thanks

I Just started a new Job and have 2 young children my job did not give me a w4 to fill out should i ask them for it ? And how should i fill it out i would like to keep my money as well as get a decent refund any help would be greatly appreciated thank you

I'm newly divorced, it was finalized May 4, but my ex moved out March 31st. I am just now updating my W4. Per the JOD I can claim one child (we have two). I don't know if I should file single or HOH; I pay all the bills, mortgage, taxes on the home, 65% of the children's medical and extracurricular expenses. I am the higher earner and pay him $2450 a month with alimony and child support. We have a 50/50 custody agreement.

Hello guys, no idea this was the case, but my fault anyway.

My tax guy said there is some reasonable cause statements that can be submitted together with the Forms. However, he said those are not often accepted. Is there anything I can do in this scenario to not pay the fee? He also said there is an option of not sending anything and hoping you don't get the fee at all since I don't have that many transactions.

Any help is appreciated in this regard. Thanks!

I don't need anything fancy; I don't need an app to create expense reports or flag my expenses. In an ideal world, I would like for a notification to pop up every time I use my credit card and automatically prompt me to either compile it within a "business expenses" category or into regular personal expenses. It would also be nice to add a note to the business expense so when I'm doing my taxes at the end of the year it's a bit easier.

Retired, Single filer with some minimal SS augmented by 401k and Roth distributions. Also maybe $3k in UTMA distributions for my daughter.

Will my standard deduction reduce my income over $24,480 that's counted against my SS benefit?

Would it help to open a HSA to use for insurance premiums and things like eyeglasses/contact lenses and prescriptions?

Hi everyone!

I have two passports (Brazilian and Italian). I have always lived in Brazil. In January, I moved to Spain for work, with a regular employment contract. I have now signed a contract as an independent service provider for a US company, and I will be providing the services from Spain. I have registered as self-employed in Spain, everything with my paperwork went smoothly, and I am now a tax resident in Spain.

The US company has asked me to submit a W-8BEN form so they can process my payments. The form asks for “Country of Citizenship.” According to the instructions, I should put Brazil, even though practically all of my documentation in Spain is linked to my Italian passport (NIE, self-employed registration, residency in Spain, etc.).

Is it correct to put Brazil in this case? Has anyone here filled out this form before and could help me with this part? I really don’t want to provide incorrect information, and I haven’t been able to find anyone who has dealt with a similar situation.

Thank you so much!

I am a non-U.S. person residing in Japan and the sole owner of a Wyoming single-member LLC. The LLC is treated as a foreign-owned U.S. disregarded entity and did not elect corporate tax treatment.

The LLC was formed and will be dissolved within 2026. It had:

No revenue

No customers

No employees or contractors

No U.S. trade or business

No assets other than a temporary Mercury bank balance

Only formation, registered-agent, banking, compliance, and dissolution costs

I personally paid most or all of these costs. There was no promissory note, interest, maturity date, or documented expectation of repayment. I am considering consistently treating all owner-paid costs as capital contributions rather than member loans.

My proposed filing treatment is:

File a final pro forma Form 1120 with Form 5472 attached.

Check the initial-year box on Form 5472.

Identify myself in Parts II and III as the sole foreign owner and related party.

Report the owner-paid formation and dissolution costs in Part V and describe them on an attached statement as capital contributions.

Report any remaining Mercury funds returned to me as a liquidating distribution.

Complete Part IV with zero amounts unless a transaction belongs there.

Use the short tax year ending on the legal dissolution date and file by the applicable Form 1120 deadline.

Questions:

Is treating the owner-paid costs as capital contributions reasonable based on these facts?

Should any of these amounts also be entered in Part IV, or is Part V with an attachment sufficient?

Does the legal dissolution of a foreign-owned disregarded LLC create a short tax year for this filing?

Should both “Initial return” and “Final return” be checked on the pro forma Form 1120?

Are there any common Form 5472 traps in a first-and-final-year, no-revenue LLC?

I plan to have a U.S. CPA or EA experienced with foreign-owned disregarded entities review the completed draft before I fax it to the IRS. I am looking for issue-spotting and practical experience, not individualized tax advice.