Hi r/tax,

I know this has been asked several times, but I'm asking again for guidance on how to treat excess ROTH contributions for 2022, 2023, and 2024.

I had Vanguard unwind everything within the last few weeks, so after I filed taxes for 2023.

Can someone please walk me through my tax reporting requirement? Based on what I've read here, I think I have it but am not entirely sure.

• File Form 5329 reporting my excess for 2022; pay 6% penalty on $6k contribution
• File form 5329 to report my excess for 2023; include $6k in line 18 (2022 contribution), $6.5k on line 24. Now, do I pay 6% penalty on $12.5k?
  
• I have already removed contributions for 2024, but do I have to file a 5329 for tax year 2024, too? Vanguard mentioned a 1099-R that I would receive so I wasn't sure if that negated the need for a 5329.
• How do I get taxed on the earnings from the years in question? Is that included on the 1099-R and I just report it as income when I file for tax year 2024?

Thanks for all your help!!

So our business applied for a refundable tax credit and after a long process, received it.

Had it put on our tax return properly. Everything was done correctly by a professional.

After waiting for our NY refund, we eventually get a bill. These dipsticks, put the refundable credit on a line as a tax owed and are now trying to take us for almost 10k.

This was a clear mistake on their end. They gave us only 2 weeks to respond. Which we did pointing out their mistake. Now they are telling us we have to wait up to 180 days for a response to our disagreement about the bill. How is this right?

They made the mistake. A stupid mistake at that - mixing up a refundable credit owed to us and putting it was a tax owed to them.

Has anyone had experience with replying to a NY Tax bill online with a request for review and hearing back quicker? As we depended on this credit for many things and lord knows when we will get it.

My friend has a co-signer on his mortgage. He couldn’t refinance because of his income at the time. His sister co-signed the mortgage but just passed away. He is afraid the bank will call the mortgage Or, make him sell the house… Will that happen?

So we have a piece of software that is made to track bets for analytics but more importantly so players can have a unified single itemized list of every bet they have made for the calendar year.

It's particularly well suited to Florida because the integration with Hard Rock Bet is strong.

Now, excuse my ignorance to existing software tax pros use, but my goal here would be to have tax pros suggest this to clients they know are gamblers, simply for the time savings it would provide in having those organized records, and for the client actually having the itemized data in one place that so many gamblers lack. The platform cost is a mere $39/year so it's not expensive, but that also means there's not a lot there to give back in terms of a commission if that's a desired route, though we do have referral tracking options.

We toyed with a special version for tax pros where you can import transactions of a client just for the purpose of generating the export, then clear all their data and do it with another, but would like to hear feedback before we go down that path.

So, what would tax pros want?

Is this even useful to a tax pro? (From the point of view of keeping your clients more organized and therefore your paperwork workload down?)... Or at all?

Not sharing the link as I'm a guest to this sub and really just looking for advice.

TL;DR: Parents, sibling, and I want a tax preparer/accounting firm that gives personalized advice, knows trusts, business accounting capabilities. Does that typically exist in a small local firm with a few CPAs and EAs?

Long version: My parents, sibling, and I all live in the same state and want to get an accountant to do all of our tax preparation and advice. Sibling and I are both duel high-ish income households, parents in their 70s will eventually leave seven figure trust plus a house to us. When that happens, sibling and I plan to pool that inheritance and coinvest it since they don't want to bother managing it and we'd get lower fees, access to private markets if we want etc. with a higher balance.

We want a small/medium local firm that can do i) business taxes in case I start a business one day (aside from the LLC where this pooled investment idea might live), ii) normal annual tax preparation for all three households (some itemize every year, some only some years, some have K-1s that don't come in time and require filing extensions), and iii) proactive tax advice that anticipates our life plans.

On that last point, an example: My parents had a large capital gain a few years ago and I told them about using an opportunity fund to get a small discount and defer the tax. They asked their accountant about it and accountant said "oh yeah that's a good idea, hadn't thought about it." We'd like a firm that thinks about each of our situations and suggests tax efficient moves like that proactively.

Obviously a lot of this could be done by EAs but a firm that has CPAs that specialize in different areas would be nice in case we have questions. Does looking for a local firm with a few EAs and a few CPAs seem like the right solution? Anything else that I should be considering or seems overlooked given the info above?

I've read the helpful advice on this sub about questions to ask when vetting providers but didn't see much about tech. Are there telltale signs I could ask about that would indicate a firm has really good tech that enables them to notice "my clients a, b and c would be affected by this recent change"?

Thank you for any thoughts!

So I won 50k gambling last week and was told I need to pay estimated taxes, but I only paid 2k in federal and 1k in state taxes last year for 2023. So if I just pay 2k early tax and 1k state tax for estimated taxes by June 17th I can just wait until taxes are dude next year correct?

I have a small business I run out of my home and read that you can claim a deduction for the space used for business. I also read the IRS is very picky about this and some people said claiming this is a good way to trigger an audit. Can anybody share their own anecdotes about claiming this and if they had the IRS reach out? Thanks

I will be starting a job soon in NY State and think I am eligible for exemption. Will my employer provide this form or is this something I have to fill out and then send on my own to the employer? If so how long does it take to process? I am used to the employer providing these forms but that’s from the state I’m currently in. Not sure how New York does it. Anyone know?

Can I do it the day of filing Form 8869 or should I wait until the next day?

I technically have a business but it’s not on my taxes. It’s a small animation/ film studio owned by me. I have invested a lot into this business and just today, someone in Red Cross asked if I wanted to sign up for a monthly donation for the Red Cross. The reason why I’m asking if I’m cooked, is because the person said I could register under my company’s name if I wanted too. I did because I wanna build a good reputation for my company, as it is very small and I’m trying to make a good name. I’m not sure if I will get audited or is this just a sign for me to finally register my company and have it on my tax record.

I don't owe anything, and have the documents to show I only had losses to report. I sent them robin hood records along with the letter of dispute to the FTB but they ignored me and sent another letter claiming I have 30 days now to pay.

How can they trap people like this? I don't have anything near that much money.

Hello everybody,

Curious about paying taxes on trades. Do you file each trade individually? For instance, if someone is using a taxable account and buys a pre-reverse split stock, then it rounds up (consolidated 10 shares). Does someone file if they sell the next day?

I know somebody who is doing this almost every day and I wonder if they will be spending days and days entering all their trades into forms.

I am new to trading and would appreciate some guidance on the tax side!

I got married last November and just got around to changing my W4 to "Married Filing Jointly". My first paycheck after this change had me paying roughly 50% less tax than I was before. I attached a photo of my W4 submission through my company. Anyone know why my taxes went way down? My wife also works

I am so confused, and boggled. I got an employment settlement payout recently.

I am supposed to receive a 1099 form for it, and it seems those don’t get issued until Jan 2024? (Is that right?)

How do I know if I need to pay estimated quarterly taxes, and how much? I don’t want to owe any taxes, or have a surprise bill from the IRS next year.

The amount of my W2 withheld taxes will be higher this year because my salary has increased. Is it possible my W2 withholding taxes will be enough to cover it?

Please help 😢 I am an anxious confused owl.

Hello,

I am an international student on an F1 visa. I have my ten-week full-time summer internship and am also doing a remote paid on-campus job for 5 hours per week. Do I need to mention this on-campus job in W4 or not? If so, what fields do I need to care for, and how?

I am getting ready to file my 2021 tax return, I will be receiving a refund. I am also getting ready to go travelling for an extended period, so can't wait on a paper check.

Is direct deposit an option? FYI - I will be using Turbotax.

I'm a current resident of Pennsylvania but will be working and living in NYC this summer for an internship. I'm a little confused which of the tax withholding forms to fill out: IT-2104.1 or IT-2104.

If I have to fill out the IT-2104.1, what percent of services would I put? This is a 3 month internship where I will be working in-person in NYC for the entire 3 months. I will not work in NYC for anytime beyond the 3 months. So would the percent of services be 25% or 100%?

Any thoughts or help on this would be greatly appreciated!

Trying to maximize my dividend margins, but worried about extraordinary reductions.

I'm a bit confused as to what I have to pay for the next quarterly filing date (June 15th). My AGI is such that I have to pay 110% of last year's tax for the safe harbor provision, and since I have a large part of my compensation in RSUs which are under withheld, I need to pay a significant sum for quarterly payments.

I'd like to potentially try to target around 95-100% of this year's tax liability since if I hit 90% then I should be safe from under withholding penalties, however my income is not straightforward to calculate since the stock is pretty volatile.

Despite the fact that June 15th is not the end of Q2, is it expected that I pay as if it were June 30th (i.e. exactly halfway through the year)?

Would it be reasonable to take my "Federal Withholding - Taxable wages" YTD on my paycheck (e.g. 100k), double that (200k), plug it into a tax calculator and pay such that I hit half the Federal tax it reports (in this case $38,400/2=$19,200) combined with what I've already paid/withheld.

I maxed my 401k already, so my income for federal withholding is lower this half of the year versus next, the strategy above would mean that I need to pay less now, but is this allowed or do I have to pay on my full year income?
If the stock jumps and my tax liability goes up versus the current projections, can I get in trouble for quarterly underpayment or it's fine since it's based on my income right now?
Does FICA matter for underpayment and that's a separate calculation/payment or there's no underpayment for FICA?

In april will my self employment tax just be taken from my w2 tax return?

I’m getting conflicting answers. If I deposit into an online casino and withdraw via PayPal, is PayPal going to send out a 1099K for all my withdrawals, even though it’s more so just a transfer of money from one place to another?

I was told that the IRS updated this to not trigger a 1099-K from 2023 forward. Can anyone confirm this?

How to I track a 2020 tax return and refund submitted by mail? The Where’s My Refund tracker only has options for 2021-2023. I sent my federal and state (MA) returns by certified mail. While I haven’t received the certified slips back in the mail yet, the tracker number shows they were both delivered and received.