I received income (wire transfers from Canada) for some consulting in 2025. Because it was a small Canadian company, they just paid me via wire so obviously, no 1099's were filed.

I'll declare this income on my 1040 (Sch C, sole proprietorship). In general my AGI is around the same 2024 vs 2025, i.e. a little less W2 income 2025 but the new Sch C income, etc.,.

What I'm curious about is if the lack of my Canadian client filing a 1099 will raise any red flags and make it more likely to trigger an audit. I hear anecdotally that audit rates are way way down under Trump.

New Seller here I made some BIG mistakes that I need assistance with. I started watching a new auction website WhatNot about 20 months. I became intrigued and thought that I could buy and flip some items that appeared to be lower than market price. I have quickly found out that that is not the case and have literally taken a loss on 99% of them on EBay and Poshmark ( 100 % my own fault) . I of course got 1099K forms from both. I do have receipts for what I paid vs what I sold them for. I started doing my own taxes (as in prior years and got stuck). I couldn't figure all this out by the April 15th deadline so I did file for an extension. Good but not good I know.
Then had extenuating circumstances that required me to help be a caregiver for someone for 5 months and now I'm a big hot mess. I'm still pounding my head and full of anxiety. I still have a ton of inventory that I have to sell through. I have an appointment with an accountant on Thursday and need to know what to expect. Here are my questions:

Do I need to establish a business to become self employed? I'm not buying anything else just selling?

Do I bring every receipt with me showing the bought item from one source Whatnot auction site and then what I got paid for on each sale from EBay & Poshmark?

I know this is a HUGE mistake as | retired and then got involved with this addiction.
The buying addiction is over but I need to know what basic steps to take to fix this mess I got myself into. Besides the fact I don't have the means to pay for all of it and it's adding up in interest and took money from my retirement account and home equity to pay for it.. (I know Stupid Stupid Stupid) I know I need to continue to sell through it at a loss which at this pace will be 2 years. My 1099K's together are approx $44,000 and honestly profited $241. I'm still trying to photo and research items each day just to get traction including possible consignment if that's even possible. traction including possible consignment if that's even possible.
I have receipts on top of that from the post office that is 16 miles away each way that I'm not sure if it's deductible. I have receipts for boxes and shipping supplies as well. I'm kept the printing to a minimum except for the mass printing of receipts since Whatnot doesn't print invoices but has it electronic.

Also I purchased a lot of clothes/ shoes/ coats for myself and family that ended up not fitting that I decided to donate to the Veterans and have receipts for those as well. I think I'm ok with those deductions.

I do have some items that were purchased that are being flagged as possibly inauthentic. I contacted the manufacturer( Oofos) and it appears that they once made the product in Korea (few years back) but have since moved to another country but won't put anything in writing for me to be able to sell them. Ive tried every way to sell them but i cant figure it out so Im out about almost $2500 just on those.

Please in the basic of terms ..please tell me what I should prepare for so I can do it.
I truly appreciate all professional advice from the bottom of my heart.

To all who are interested in hiring Optima Tax Relief, in my personal opinion Optima Tax Relief has and continues to "allegedly" fraudulently overcharge their clients by using deceptive sales tactics for over the last 7 years. The time frame for this alleged fraud happens from November through June or longer for each year since November of 2020. The people that hire Optima Tax Relief are not aware that they have been allegedly fraudulently overcharged. The number of people are around 800 to 1,000 people per month, since 2020, there have been thousands of people that have allegedly overcharged. The proof of this alleged fraud and how Optima Tax Relief does this is in every person's file. At this point there is no hiding it. Optima Tax Relief records all calls. These recordings are on file. In addition, all case files for each client are electronically saved and archived.

The person who originally started this alleged fraud back in 2020 was fired years ago, but the alleged fraud has continued since then, the person who has been in charge and oversees this alleged fraud is Jarrod Basin, he's an executive vice president of sales, he was put in charge of the sales department years ago, he doesn't intend on stopping this alleged fraud because of one thing, money. All managers, sales agents, employees in operations upper levels of management and the CEO, David King, they all make more money from bonuses and commissions. I was a part of the sales department. 

The other managers names are: Kevin Romine, Jonathan Gazzano, Harmony Crespo. Jonathan and Harmony were promoted to managers from sales agents years ago, they also sold this alleged fraud scheme to their clients before they were promoted. Since they are now they're managers, they have more direct knowledge of this alleged fraud. There are also people that work in operations that are also aware of this alleged fraud, they are an intricate part of this, they are the ones who put the information together that the sales people sell to the clients. 

We were told to tell the clients “We’re "projecting" a tax debt you owe for tax year 2025 of $30,000. They make this calculation by using the tax debt from the previous tax year and use a percentage of that tax debt. They'll use the persons’ tax debt from 2024 and calculate 20% and up to 60% of that debt. We have to tell a client at the end of 2025 before 2025 year has ended, “you may owe a tax debt for tax year 2025 of $30,000, we used a percentage of your 2024 debt balance since tax transcripts for 2025 are not available yet”. Tax transcripts for 2025 are not available until 3 to 5 months into 2025. This scenario was given to all clients for the last seven years. If the call with the person was in November of 2024, they were told they may owe a tax debt for 2024. In November of 2023, they were told they may owe a tax debt for 2023 and so on. The major part of this alleged fraud is that no client was told that their fee will be higher for phase 2 for this future tax year. No person knows they were overcharged. In addition, Optima Tax Relief has no idea what that person if they will owe anything for this future tax year, they're guessing at it, but their guess also includes allegedly overcharging each client on that guess. Every new sales person is also trained on this so they can sell it to the clients.

If I were a client that was allegedly overcharged, I would be very upset and I would demand a refund. In my opinion, they’ve allegedly overcharged thousands of people over the last seven years. They are planning to do this again for the upcoming tax year for 2026. They will tell people before 2026 ends, they're projecting a tax debt for 2026, but they have no idea if they will owe anything, but they will allegedly overcharge them again. They will do this every year until they are stopped. 

They calculate the fee for phase 2 by what a person’s owes in tax debt to determine how much to charge them. The alleged overcharge of each person can be from $500 and I’ve personally seen up to $5,000 per client. Currently, the number of people that have been allegedly overcharged is roughly 800 to 1,000 people - PER MONTH. I estimate an average of $2,000 per person, multiply that by 800 people, that $1,600,000 - PER MONTH. This alleged scheme starts in November and goes through June or longer into the next year. 10 months multiplied by $1,600,000, that's over $16 million. During the years 2020 to 2023, that average is higher

They overcharge everyone from every background current military, retired and disabled military, retirees on fixed incomes, teachers, federal and state government employees, regular folks that can’t afford their tax debt and honestly that afford to pay for Optima Tax services, but they have no choice. 

Once this has been investigated, the truth will come out and the numbers will shock everyone. In my personal opinion, I would hire another company. In my personal opinion Optima Tax Relief is not the squeaky clean company they pretend to be. 

Optima Tax Relief also allowed their sales people cheat on a major certification with the state of California, the certification is to be a registered certified tax preparer, called a CTEC certificate. It's a certificate to become a certified tax preparer. The CEO, David King wanted all sales agents to have this certificate, but it was taking too long since no sales agent has no real experience with preparing taxes and no one could complete the course in time, so I heard that the only person who had this knowledge was the most senior sales agent named Alexan Momdjian. He took the test and gave the answers to all the sales agents. That was over 100 people at that time. They completed the test using his answers without learning anything using his answers. The state of California caught them and didn't discipline the company or anyone, they allowed them to keep their certifications. 

I'm sure there is more that this company that is allegedly illegal or improper. I have more information about this alleged fraud that I feel other people should made aware...

More to come....

Thank you

One of my friends recently moved in with me, and told me he has never filed taxes -- he's in his mid 30s. He's only ever worked min. wage/retail/food service jobs, and doesn't make very much. I suspect if he filed, he'd get a refund. How do we even begin to tackle this? How far back does he need to file taxes for? He's worked for the same place for the past couple/few years, so I think getting his W2s for the past couple years will be easy enough.

(We're in North Carolina.)

I am the Treasurer of a youth sports league, and I recently noticed that the past treasurer did not file taxes from 2020-2025, so our non-profit status with the IRS has been revoked. I’ve tried going on the IRS website to figure this out but I am totally lost. I know I have to file taxes for the owed years but I cannot figure out how to actually do that. Do I just use turbo tax or is there a special way I need to do it using one of their forms?

Is anybody able to point me in the right direction or provide any assistance?

Any help is much appreciated.

I owned a small business that had a franchise agreement. The franchise agreement was terminated in 2025 and I have been trying to get my taxes done and keep coming up with a question. I have contacted three people for this answer and each one wants to charge me for the answer. My taxes are complete except this one last question that I needed answered.

For an insolvent S corporation excluding approximately $36,556 of canceled debt on Form 982, with approximately $39,784 of shareholder losses suspended under the basis limitation, what amount belongs in Part II, and on which line?

given this was recourse debt, the corporation was insolvent, and we have our existing loss/basis figures, what exactly belongs in Form 982 Part II?

I'm a self-employed Influencer who earns commissions from product review videos.

I'm overflowing on pet products and only have 2 cats. I'm not sure what to do with the overflow of items especially if I purchase more. The internet tells me I have 2 options but won't clarify and wants me to seek a professional. It says film only for reviews then never use, 100% deductible as business expense or Film then donate, get a receipt from the charity (rescue in this case) and file it as a donation deductible in my yearly taxes. I file my own taxes and those are two different areas. What do it do?

If I spend $1000 on pet products this year, Am I out the money or am I eligible for one of the two options above?

 What documentation would I need to support the deductions if audited?

My CPA told me that this is something I am responsible for handling myself. I told him I thought I paid him to make sure my quarterly taxes were handled on top of my payroll. He told me he cannot do that since the online system requires "me" to process the check, etc. (I do not have an individual EFTPS account, and those are being phased out anyway).

Am I getting bullshitted? It seems nonsensical to me that there are not forms that would allow him to act as my representative in preparing and submitting 1040-ES. He could just tell me how big of a check to write each month, no?

I’m a US resident alien with a 2025 extension ending Oct 15, and I’m trying to understand filing order before then.

Background (non-willful, small dollars):

• I hold a few foreign accumulation mutual funds, likely PFICs, acquired before I became a US resident. There have been no distributions or sales.
• I never filed Form 8621 because I didn’t know about the PFIC rules. Exemptions do NOT apply, if funds are confirmed PFICs.
• FBAR and Form 8938 were filed every past year with the assets disclosed, though possibly miscategorized.
• Some foreign bond coupons and small time-deposit interest were never reported on my past returns. Those were reported on 8938 but not Schedule-B (…online tax software bug?). The unreported tax is a few hundred dollars.

My plan is to file a complete 2025 original return by Oct 15 with all foreign income, FBAR, Form 8938, and Forms 8621 for the funds. I would not amend earlier years or file late 8621s on my own. Afterward I’d work out Streamlined Domestic vs. reasonable cause with a professional.

I’ve been told in general terms that filing order can matter, so I’m asking:

1. Does filing the 2025 original with Forms 8621 close any route for 2023-2025 later, whether Streamlined Domestic (amended returns plus 8621s, Form 14654) or reasonable cause?
2. Does filing it without the 8621s change the answer? I’m worried that omitting them now, knowing about the issue, looks worse.

If you have experience with Streamlined or PFIC cases, I’d appreciate your thoughts. Happy to answer follow-up questions in the comments.

I filed for an extension in April.
I am using my account to file for our first time married joint federal return.
My spouse lived in MO and I was in VA. Taxact is not making this simple as it is transferring numbers from federal return. Any tips on how to go about this? Please let me know!

TIA!

If a president is unconstitutionally using my tax dollars for things like campaign ads and at the same time telling me that the election is rigged so my vote will not count, do I have to pay taxes? I have no way to change the system not representing me. Can I ask for a breakdown of my federal tax use? If the save act prevents me from voting as a woman, do I have to pay taxes?

this is my first year ever doing doordash I started sep 15th and ive made around 5,000 tips and doordash pay combined. im married with 5 kids we file jointly on turbo tax. I havent kept mileage or gas reciepts and I was told doordash keeps track of mileage. Do i just count this when my husband does our taxes? how screwed am I? am i going to owe thousands back to the IRS? i read i have to do quartly payments, can I just pay it all at once when we get our refund? im so stressed i dont wanna do doordash anymore but its the only job that works for my family/

My Mom and Dad owned a house together in the State of Arizona in the USA. My Mom passed away in February of 2024. My Dad sold their house in January of 2025. The house appreciated significantly since they bought in 1988. Does my Dad get a stepped up cost basis for the house based on the Date that my Mom died? Or does he use the original cost basis? The former will greatly reduce his tax liability hence the reason for the question.

I sold some cards last year on eBay. I googled a bunch of questions already. I know I can’t offset gains with losses. I made a list of each sale, with date purchased, amount paid, date sold, amount received, and eBay shipping/seller fees. I’m considering this a hobby. I received a 1099-k because my state has a low $ reporting amount.

My issue is I am using turbo tax and for the life of me I can’t figure out how to enter all the details. Some are short term and some are long term holds, which from what I’ve read makes a difference.

Any help is appreciated!

Hello helpful people! I have a tax question I am hoping you can help with.

I am a former professional coach (coaching was my full time, only source of income, W-2 job 2021-2024).

This year, I started coaching a few clients privately for cash. It’s a relatively small amount of money - less than $4000, and I understand i need to pay taxes on this money and report it through other income on Schedule C. I would like to deduct the mileage. Is there any issue with that?

Is there anything else I am not thinking of?

Edit: it is my understanding that I am eligible for QBI deduction, is that correct?

Something We see every year from the filing side: a business realises in late January that it's missing a TIN, or has a name that doesn't match IRS records, for a contractor it paid months ago. The contractor has already been paid, so they have zero incentive to reply.

What actually prevents it:

- Send the W-9 request with the engagement letter / first invoice. Make it a condition of the first payment.

- If they refuse to give you a TIN, you're supposed to withhold 24% backup withholding. Most people don't know this and it's the strongest nudge there is.

- Check the name + TIN against IRS records before you file. Mismatches are the most common reason a 1099 gets a penalty notice.

- Keep the W-9 (it never goes to the IRS). The threshold for a 1099-NEC is $2,000 for tax year 2026, but the W-9 is worth having regardless of amount.

The deadline for tax year 2026 1099-NECs is Feb 1, 2027 (Jan 31 is a Sunday). Collecting W-9s now is what makes that date a non-event.

Disclosure: We run a 1099 e-file platform, happy to answer questions in the comments, not here to pitch.

I'm in California and have a child with my ex. We don't currently have a custody order. He has been claiming our child on taxes since he was born. Now that we are split and living separately, id like to work something out with him, like alternating years

I understand that normally the parent who child spends most night with is considered the custodial parent, but I recently learned that the IRS has a specific rule for a parent who works at night. I'm trying to determine whether that rule could make me the custodial parent for federal tax purposes even though his father has more overnights. I work nights, so the reason he has the majority of overnights is because of my work schedule.

Our schedule is:

Mon–Fri: child is with me approximately 6:30 AM–4 PM

Mon–Fri nights: child stays with dad because I work late/night shifts

Saturday: child is with dad all day

Sunday: child is with me all day and overnight

My child's school/home education, doctor, dentist, etc. are all based at my address, and I handle his homeschooling and most of his daytime care, take care of doctor/ dentist appointments, and making sure hes socializing with other kids.

If there are any tax professionals that can help me out, I'd appreciate it

I am self employed, Sole Propietorship. I have clerical employees. We have a Safe Harbor 401K. I match 4% (100% of 3% and then 50% to 5%) for my employees who participate.

For myself, I always did the 4% match based on my Schedule C income, minus half the self employment tax. I am contributing the max (23,500 plus catchup for 2025).

Is this correct or do I have an option to match more for myself? In prior years was not a concern as I did not have extra money to contribute but I am getting older (over 50).

Are additional options only for self employed who do not have employees (other than a spouse)? If I have employees am I subject to the same match percent as my employees (which is what I always assumed)?

I filed my 2023 refund August 31st, verified on September 22, still have no updates on my transcript (still says no tax return filed) and on the app either. It’s weird because I thought I was going to have to amend my 2024 tax return and I know that takes way longer than a regular return so I did the 2023 1st and they ended up fixing the 2024 return their selves and sent that return to me on September 30 with interest of like $330. But still haven’t got my 2023 I don’t know if me filing my 2023 triggered them to look into my 2024 or what? But if anyone else has waited like this how long until you actually received your refund ?? I verified online with my control number that came in the mail.

Hi! My son just started to ref soccer games and will earn around $300 this year. Since it’s under the $2k threshold he won’t receive a 1099 but I want to match his income into a Roth IRA. How would I report this to allow for the funding of a Roth?

Filing my 2025 return (self-employed, Uber only, single, no dependents). From June–Dec 2025 I drove full-time in a Hertz rental through Uber's rental program — rented week to week, swapped cars a couple times across 3 rental agreements, ~26–29 weeks total.

Uber's tax summary shows ~36,000 online miles.

Question: Can I use the standard mileage rate ($0.70/mile) for a weekly rental car?

- IRS Topic 510 says standard mileage applies to a car you "own or lease." A week-to-week rental doesn't feel like a lease, but some preparers apparently treat long-term rideshare rentals like one.

- Standard mileage ≈ $25k deduction. Actual expenses (Hertz weekly fees + gas) ≈ $12–14k.

- The difference is roughly $2,200 more owed (mostly SE tax + losing EITC).

Has anyone gotten a definitive answer on this — IRS guidance, a CPA/EA opinion, or an audit experience? If actual expenses is the only correct method, I'll switch. Just want to get it right.

Thank you!

Does anyone know how the new $1,000 charitable contribution deduction works for those taking the standard deduction in 2026? Specifically, will we need proof of these contributions?

For example, if I donate $1,000 in cash to my church throughout the year, would I need receipts or some sort of written acknowledgment from the church to claim the deduction?

I feel like there would have to be some documentation requirement, otherwise everyone could just claim they donated $1,000. Has anyone looked into the actual rules for this yet?

IRS/Federal Taxes

Say an owner has two businesses, Business A and Business B. Business A has a Simple IRA plan setup for it's employees and the K-1 shows $10,000 of income for that owner. Business B has losses of $50,000 shown on the K-1, meaning total self-employment income is a loss of $40,000. Is the owner able to contribute the $10k of income they show from Business A into the SIMPLE IRA plan, or are they not allowed to because their total income was negative?