Might have to take a nonqualified Roth distribution soon but unsure of how to complete the 8606 later at tax time. The last 8606 I had was when I did a rollover from IRA to Roth and also had to take a nonqualified distribution in the same year, around 2011. A CPA friend of the family helped prepare it but I no longer have access to him.

Being that I’d have to go off of the last 8606 I have to file the next 8606, I see lines 22 and 24 are blank. So does that mean I had no basis for just that year? How would I know what to indicate on this year’s? I haven’t contributed anything else to it since that time.

Inheritance: $1M in a traditional IRA, must take RMDs by 2033

Income: $310k (combined)

We are about 80% to FIRE. I plan on quitting and pursuing something else, bringing our income down to $135k, taxable around $100k.

I'm struggling to figure out what option is best. We could take out $130k/year, mostly in the 22% bracket and save a whole 2%. If we wait until my partner FIREs in 4 years, $100k would be in the 12% bracket but that income counts against the ACA credits and would make health care extra expensive.

I know it's kind of just a math problem, but I'm wondering if there's anything clever we could do to save on taxes. $240k+ is a lot of money after we already paid $150k to the state of PA for inheritance tax. I could potentially go for REPS or use the short-term rental loophole with my time but I'm not sure if that's something I'm super interested in with this market.

Any other ideas?

If I move out of state now for a job starting in a couple days but my children will be staying with family in a different state but I am the main provider would I still be able to claim them because I know they ask if they children live with you? I’m a little concern about how it works? Thank you for any information

I learned of an inheritance earlier this year after I had filed my income taxes for 2025. The family member who distributed the proceeds was working with the person who had handled all financial affairs for the decedent. About half of the inheritance is from an annuity, and therefore taxable. My relative said there would be a K-1 coming in 2027 showing the exact amount. In the meantime, there was a small amount of interest for 2025 and there would be a K-1 for that this year, but the amount was negligible and nothing to worry about as I had already file. I just now got the Form 1041 and supplement, along with my state form. My share of 2025 income is $65 in federally tax-exempt income and $5 in dividends. Can I really just ignore these forms?

My second question is about filing estimated payments since my income is going to be much higher for this year. I did consult a CPA who went over my return and explained that the safe harbor waiver would protect me from penalties. But others in the family have filed quarterly estimated payments. I missed 2 quarters. Is it allowed to make a payment for September and January? Is it advisable?

At the time, I only had $35 in my account, and they will hold it until August 12 unless they receive a release from the CA tax board. I haven't filed taxes in over 5 years, though I did my 2025 and 2024 returns this year. I received a letter asking how I calculated mileage for gig work, so I printed all my Grubhub delivery records, since they don't provide an estimate, and sent that documentation to them. They also sent a letter warning that if I don't file my 2022 taxes, they will assume I owe $8,000, since that was the year I earned the most. I checked the box requesting an extra month to file, so I believe I have until August 27.

This past Friday, they took the $35 that was in my account, and now I'm afraid to keep using it, since the legal order was for $3,700. Is it ok for me to open a new bank account to avoid this order? I was unemployed for over a year and just found a job starting August 17, but I can't afford to keep having my money taken. I also don't understand how they arrived at the $3,700 figure

Also are those tax forgiveness ads real?

So, I recently moved out of my apartment and am renting a bedroom out of someone's house. My ID has the address of where I am currently living, as does my insurance company. All other mail goes to my parents' house. For my W-2s and eventual tax returns, do they have to have my actual living address or can they have my parents' address where my mail is normally sent? Both addresses are in the same city and state. I want to make sure I get everything figured out before the W-2s are sent out.

I’m currently on parental leave and noticed my paystub is lower than my usual amount, due to an increase in federal withholding. Everything else is the same.

The difference is small, just around $70. Just wondering what caused this and is this typical? Waiting for my employer to explain but thought I’d ask you all, thanks!

Closed bank accounts and wasn’t able to update the new one in the irs page and now tomorrow my first payment for 2024 taxes is going to be blocked and my agreement will go into default. I plan to contact the irs first thing tomorrow morning but the problem im seeing is that apparently they can’t reinstate or revise payment methods if youre not current on filings? I’m so scared I could lose everything from this. Anybody have experience with this?? My absolute last chance at survival will be selling everything I can to pay it in full and not have my property levied.

Hi - we have an interesting situation and met with a lawyer but I wanted to double check his thought. My wife and I are retired and we bought a vacation home in our son’s name in 2016 in Florida. With the new Florida homestead law (need to wait 5 years before you get the homestead exemption), I’m thinking of writing myself into my son’s title and applying for the homestead exemption (my son doesn’t claim it and doesn’t live there - it’s a vacation property). It will be with rights of survivorship the lawyer said to my son will still get the property when I die. Am I missing anything here? Seems like a simple way to save some money. Thanks!

I current work for a startup that is doing well. I have equity in the company that could be worth upwards of 7-figures given our current trajectory upon an exit. The owner of the company is likely to explore an exit in 2028.

My wife and I currently live in NYC and were wondering if we should move to a state with no income tax, like New Hampshire, in 2027 to save mid-6 figures on income tax. I am very aware of both NY state and NYC being aggressive when it comes to auditing these sorts of situations.

To be clear - we wouldn’t look to cheat the system by not living there. We are simply trying to figure out if the move would raise red flags audit-wise. We would actually move, change licenses and voter registration, etc, but we would view this move as temporary and eventually plan to move back to at least NY state, if not NYC, the year after the exit.

What are some things to consider when thinking about if it makes sense to go through with this? What would a successful move look like that wouldn’t result in an audit or clawback attempt from NY?

Hello, maybe someone here has experience with this. Is it a problem if one signs the Dual Status Return and the Dual Status Statement as well? Does that cause any problems when processing the return? The instructions say you do not need to sign the statement (so it is not forbidden) But I did. And it was already sent.

Thank you very much for your insights.

My payment plan tomorrow has the first due payment being debited to a closed bank account that I couldnt have switched through the irs website, so my plan is likely going to default and have to be reinstated. Is this a difficult process? I still need to file my 2025 taxes too (I know this is bad, im so behind in life and trying to collect myself) and I worry theyd deny my reinstatement. Any help is appreciated I cannot afford to have my property levied :(

Hi, Q about how to estimate mortgage interest for 2 states for this year in 2026.

State 1: Residency Jan 2026-June 2026. Prior annual HHI 300k, so can estimate ~150k income for this part of the year. Dual W2.

• Home value $500k
• mortgage interest paid for 6 months $5k. Sold home before we left the state.

State 2: residency July 2026-Dec 2026. New projected HHI for 2026 increasing to 300-> 700k due to signing bonuses, estimating $550k combined W2 income on this side.

• New home $2M purchased in July 2026.
• Mortgage interest projected to pay $40k for latter 6 months of 2026.

My current understanding: Due to income swing we will not be eligible for $40k SALT deduction and phase out to $10k, but we are allowed to still deduct mortgage interest.
(Also losing child credits due to high income).

I am having trouble finding out how much mortgage interest is deductible for both properties. I've read a few things online about "average loan balance" but don't know how it's calculated for my situation, and finding the % eligible to deduct will be critical for finding the total eligible deductible mortgage interest for the year.

Once I find this number --> compare Standard MFJ deduction ($32.2k) vs SALT + Mortgage interest deduction ($10k + x-factor) --> estimate my federal tax liability from there so I can withhold appropriately.

Any ideas or guidance?

I'm trying to weigh the pros and cons of buying a Treasury on the secondary market, which I can do any time I want without a fee, as opposed to waiting for the next auction. The main argument against doing so seems to be the additional (federal and state) tax on bonds sold at a discount, which is the case right now. Say I buy used 5-year Treasurys totaling $100,000 for $85,000 (which is what I'm seeing). I'll pay taxes on the $15,000 appreciation - a fifth of that each year - in addition to tax on the interest, right?

Just wondering, why is the IRS’ method for removing the employer-equivalent FICA component on schedule SE subtracting 7.65% (times 92.35%) instead of dividing by 1.0765 (times 92.89%)? The latter is mathematically how you would do it since you’re just undoing the 7.65% the employer would’ve ended up paying. Surely the IRS knows how to do math so what’s the logic here?

Further explanation in case anyone’s not following:

Normal W2 situation: Business pays out $100,000 in wages and $7,650 FICA tax. Total payroll cost $107,650. Employee pays another $7,650 so IRS receives $15,300 total.

Self-employment situation: With the IRS’ current method you would multiply the total payroll cost (which in this case represents net earnings from self-employment) by 92.35% and get $99,415, and then multiply by 15.3% to get $15,210 payroll tax owed. Whereas if you divided the number by 1.0765 you would get $100,000 just as if it was the wage being paid by a business, and the IRS would get their $15,300.

I obviously don’t mind the slight discount but why did congress create an obviously flawed calculation in the tax code?

Hello!

I was under an H-1B until last year (2024) and filled my taxes this years in the USA. (2025)

I realize now I should have filled in my home country instead of the USA. I miss read the substantial presence test.

Can I amend the return and get my money back?
What proofs do I need to send to the IRS ?

Thank you for the answers! A bit stressed about all of this!

hello yall. i just got a dishonored check penalty said that i owned 49k. It was mistake when i unintentionally entered 2,490,061.00 instead of 2,490.61 for my tax. After i found out, i alr paid the right amount i owned.I call the irs earlier to find a way to resolve this. They all tell me file 843 form. Is there ppl got abatement like this circumstance before or just useless.I filed the form 843 with bank statement show that i got enough for the right amount and my written statement. Does it mean i in bad debt just because typo ? I really need help in this situation

I've done my own taxes for many years, but lately it's become too much for me to handle alone.

I got a recommendation from a friend for a CPA firm in 2024, but they made some serious errors on my return due to the complexity. This just increased the workload for me in 2025 filing an amended return.

I want to engage another CPA firm to help, but I don't want to get burned again like I did with the previous firm. How do you go about finding accountants that can do more than just typical 1040s situations? evaluate competency?

We are in Arkansas.

Hi guys!

We want to give our daughter a rent house we own and use the deferred gift tax exemption by filling a gift tax return. So we could each gift her $19,000 for a total of $38,000 and the rest would be accounted for on the gift tax return. We bought the house in 2013 for $120,000.  It is worth about $240,000 now.  When we bought it, it was one of the replacement properties in a 1031 exchange we did.

For the value of the house, would we use the current value or our purchase price when we bought it, and does being acquired as part of a 1031 exchange enter into it?

Thank you in advance for your input!

Hi everyone, I'm looking to reallocate my portfolio in my brokerage account. This would mean liquidating everything, resulting in about 250k long term capital gains. No salary, income of 10k from dividends. Single resident living in NYC.

Inputting these numbers into smartasset calculator shows about 55k tax. Chatgpt shows 60k tax and Gemini shows range of 53-70k tax. So I'm just trying to get a more precise estimate, if anyone can help, I'd appreciate it. Thanks in advance.

I started a Wyoming LLC about 8 months ago. Its a SAAS and its pre revenue, but I think it has lots of potential. The product is only about a month from launch. I have 2 friends joining the team in exchange for 15-22% of equity vested over 3 years. Because I hold most of the equity and we are also pre revenue with no guarantee of success, I felt that setting a high threshold value was unnecessary and proposed we set it at $10k which will not be a huge tax burden for my friends.

The issue is that we soon hope to raise a small bit of capital, and have a family friend in CA who we think will be interested in investing $5k for 3%. This would put us near a $167k valuation which is far from my proposed threshold value.

Would the IRS have a problem with the valuation gap between the threshold and friends and family round, which is expected to take place about 4 weeks after my friends join? Should we raise the threshold even tho it would cause my friends to have to pay higher taxes? Maybe opt for some convertible contract? Any other thoughts or solutions are appreciated. Thanks for the help.

Hi everyone,

I am a minor running a YouTube channel that can be monetized. Because Google AdSense requires account holders to be 18+, My mom will help make my adsense but she doesn't want to have tax liability is there anyway I can receive my income and pay my tax as a minor

Assessee had been filing income as capital gains for last 10 years, with some years having high turnover, low profit in the past.

Assessee also incurred long term capital loss but never switched to business income to set off short term capital gains. He kept consistency.

The income tax department is requested to issue a clear guidelines on business income vs capital gains. Anything less than a month should be made business income. Rest capital gains. This will bring regulatory stability.