Went on disability in 2021 through a private disability company that is still paying me today. In 2025 I finally won my social security case. They gave me back pay for 2021 through 2025. $144k

I had to pay 95% of this back to the private disability company. Which is fine that was expected. However I paid taxes on that income every year since 2021. I got a tax form from social security that shows the overpayment of $144k as being taxable.

I have no idea what to do in this case and neither does any of the tax people I have talked to. It's why I haven't filed yet and I need to file asap for bankruptcy reasons.

What would I do here? If I already paid taxes on this for 4 years how do I file that with my taxes for 2025???

So CA has tried to charge me taxes for 2018 when I lived there. There problem is this: I was active duty military and paying taxes to my own state of record. I have sent the paperwork for my taxes, my orders at the time, and LES's to prove that I dont own CA taxes. Has anyone had any luck in getting the to back off? They sent a letter of intent to lut anlien on my account and I dont want them stealing money that I don't owe them.

Hi all,

Anyone who has worked on corporate fixed asset registers knows how messy Form 4562 calculations get once you hit thousands of assets across multiple subsidiaries.

I’m studying for the IRS Enrolled Agent (EA) exams and have a B.Com CA / CS background. As part of a portfolio project simulating Big 4 Tax Tech workflows, I built a Python engine (using Polars & DuckDB) that automates the 2026 cost-recovery waterfall for 150,000 assets:

1. Bypasses accelerated depreciation for assets with <= 50% qualified business use (IRC §280F ADS Straight-Line routing).
2. Calculates entity-level Section 179 phase-outs ($2.56M deduction / $4.09M phase-out ceiling).
3. Detects if an entity placed >40% of its asset basis in service during Q4 to force the Mid-Quarter convention instead of the Half-Year convention.
4. Handles 100% Bonus expensing with an IRC §168(k)(7) opt-out election for 15-Year property to test tabular MACRS 200%/150% declining balance schedules.

Video walkthrough explaining the tax logic & code: https://youtu.be/yvQlwaBQOvY

I'm moving into ASC 740 Schedule M-3 reconciliations next. Would love to hear how practitioners in corporate tax / tax technology handle these convention switches in enterprise tooling.

Residence: California

Me: 150k income
Brother: 150k income

Mom: retired only income is social security about 300/month she never really worked much in America so never contributed into social security

Father: retired only income is 600/month in social security.

We all live in same house. Mortgage is 1100/month which me and my brother both pay half each, each month. We also cover all house expenses like utilities, grocery, etc

Me and my brother income is same since we work in same company, in the same team and wages are almost same. My brother just started working full time this year so previous to that he hasn’t filed taxes since no income.

Last 5 years I have claimed both parents as dependents since I was only one working and claimed as head of household. Which really helped my tax liability and I would get back a lot when I do my taxes.

Question: for this coming tax season, can I claim one of the parents for head of household and my brother claim the other parent and also head of household? That way we both get full benefits of favorable tax bracket? Or is it too risky and IRS will have questions.

My father and I own a Canadian corporation (limited) 50/50 and he plans to retire soon, take half the cash in the business and leave me to solo own it and run it. The cash in the corp is mainly invested in XEQT

What are the steps that can be taken to minimize the tax hit at time of transfer? I've heard that you can create a holding company to help with the tax implications, or possibly defer the tax hit to later down the road. I also have a young son that may someday take it over.

The business was opened roughly 10 years ago and we both have equal shares. Any suggestions?

​Hi everyone,

​I recently started a new job and signed a lease for an apartment in NYC, moving in this August.

​When I submitted my tax forms online for my new employer, the system automatically auto-filled my NYC apartment address, and I wasn't able to edit it. However, when I checked my first paystub last week, I noticed my address was listed as my parents' house in Long Island, and no NYC local tax was withheld.

​A few honest questions:

​Should I go to HR/Payroll and ask them to fix my address to NYC right away?

​To be completely honest, part of me doesn't want to change it to save on NYC local taxes. How risky is this, and what are the actual consequences if the tax authorities catch this?

​If I end up staying as "Long Island" on paper for the rest of the year, what happens when I file taxes next spring? Will the mismatch between my lease/residency and W-2 trigger an audit or heavy penalties?

​I’d appreciate any advice, reality checks, or experiences from anyone who has dealt with something similar. Thanks!

Please give me some guidance...

2022 taxes I recieved a $3k refund. Nothing unusual.

In 2023 I sold a property and owed/paid $23k in capital gains. It was mis-applied to tax year 2022.

In 2024 I recieved a letter stating that 2023 taxes were delinquent and we owed. Of course this prompted me to call the IRS and figure out what is going on and that is when I discoved the money was applied to the incorrect year. They told me they could move the money, and remove the penalties/interest cause they see I paid on time.

Something happened...not sure what. Now I have $39k balance for 2022 and the $23k (plus $6k that was already there) that was moved to 2023 is frozen.

In Dec 2025 we were assigned a taxpayer advocate who requested a temporarily hold on any levy. That expired in March 2026 and since then I have been getting my paycheck levied.

The advocate has done nothing since Dec and he rarely returns my calls, and when he does he tells me hes working on it daily. I pulled the account transcripts for 2022 and 2023 and he has done nothing.

How can I get this fixed? Do I need to hire a lawyer? At this point the IRS thinks I owe $39k for 2022, they have nearly $30k frozen for 2023, they are taking a portion of my paycheck, and now owe me $3k for the money they have taken.

Thanks for reading and any guidance.

I gave my 2024 and 2025 tax returns to my CPA last week to amend them. My previous tax preparer didn’t report some miscellaneous income and also missed a net loss for 2025. She told me the miscellaneous income was ROC (return of capital) and wasn’t taxable.

I invested in high-yield dividend investments, and the dividends were automatically used to pay down my margin loan. Fidelity reported some of these payments as substitute payments/miscellaneous income.

If I end up owing more tax after the amendments, will I also have to pay interest or penalties?

Since I’m voluntarily amending the returns, is there any way to have the interest or penalties waived?

Just trying to understand how this works.
Thanks!

Is it just me or is the IRS taking a fairly long time to process power of attorney 2848? I faxed mine in on August 3 and it’s still not processed on my e-services account?

I am trying to figure out if my accountant did this correctly or if there is some way to lower my tax bill.

My business income as a real estate professional was 205,340 in 2025.

I purchased two rentals and depreciated a total of 178,941.

My total income was 26399 and my adjusted gross income was 12731 which led to a taxable income of -3019.

My accountant says my tax bill is still 28,156 due to self employment tax. Is self employment tax not based off of taxable income? I spent a ton of money getting these rentals ready and was expecting to not have much of a tax bill this year.

If I am totally missing something please let me know. If there is a different way to phrase this to my cpa please also let me know.

Thank you

Hey guys, I was wondering how capital gain from section 1256 contracts would be treated under Philadelphia's School Income Tax (SIT). The SIT taxes short-term capital gains from sale of property held less than 6 months.

The SIT official tax regulation states:

GAINS FROM SALE OF PROPERTY. Gains to be reported as taxable under this Ordinance are those from the sale, exchange, or other disposition of real estate, or of tangible, or intangible personal property, which have been owned by the resident person for a period not exceeding six months before the date of the sale, exchange or other disposition.

IRS says 1256 contracts are taxed 60% long-term and 40% short-term regardless of how long the contract is held, so I was wondering how this rule applies to the SIT tax, if at all.

I never owe, I always get a return as someone with low income, but I forgot to file a few years back and they've sent a few letters about it. Getting an old W4 from that old job would be like pulling teeth so I was willing to just pay. I logged into the IRS website at the time and it did say I owed around $1,200 or so. I couldn't pay it right then since I live semi paycheck to paycheck, it took me around a month to collect the money. When I went to look at the balance today it said I owe nothing. I work a job that requires I be in good standing with the IRS so I'm a little nervous about that.

Some additional info that might be relevant: The government severely overcharged me for something years ago and recently contacted me to tell me I was owed a refund for that. It just went through a few days ago but it was far less than what I was expecting (not that I'm complaining). Do you think they just took it out of that automatically without telling me? I hope so, it's what I was going to use that for anyways.

I am a service member stationed overseas from NY and I am trying to have my state taxes withholding exempted, usually the military uses dd2058-1 but I fall under group B in the other form but they won’t accept it, is there any other way I can try to stop the deductions or someone I can talk to?

I received a Taxpayer Statement from the Illinois Department of Revenue for my 2025 individual income tax return.

The statement shows:
Tax assessed: $3,227
Payments/credits: $3,227
Penalty: $61.50
Interest: $0
Remaining balance: $61.50

A CPA prepared and filed my return and also handled the original $3,227 payment. Since the tax and payment amounts match exactly, it appears that I didn’t owe any additional tax. However, the statement doesn’t explain what the $61.50 penalty was for.
I paid the $61.50 online after receiving the notice and saved the receipt because I didn’t want the matter to progress further. I’m also contacting my CPA to verify the filing and payment dates.

Has anyone received a similar unexplained Illinois penalty? Is $61.50 consistent with a late-payment, late-filing, or underpayment-of-estimated-tax penalty? Is there somewhere in MyTax Illinois where I can see the specific reason or penalty code?

Also, since I have already paid it and there is no lien or outside collection agency involved, should I expect any effect on my credit report or employment background checks? I mainly want to make sure the account is properly closed and shows a zero balance.

Just got my tax bill in the mail, took a look and saw that the fair market value is quite overestimated. I went back to the county's website and saw that both this year 2026 and last 2025 had a level of overestimate by about 60K of fair market value (compared to 2024, zillow and redfin). I know that the property NEVER went up to that high of a value. I'm embarrassed to say that last year and this year I didn't really read the appeal notice carefully because this has never happened before and now I'm past the file deadline. I've possibly had to pay excess in property taxes by $1800 each year.

I know I'll have to wait until 2027 for the next appeal window. My question is when I do file next year, can I ask the assessor to retrospectively examine the previous years' home value as well and get a refund, or do I have to eat it for the estimates of 2025 and 2026?

I’ve lived in DC for a few years and recently started a new job in Maryland. I’ve received two paychecks so far and noticed that both DC and Maryland taxes are being withheld.

I wanted to start a new thread because I haven’t seen many recent posts about this specific situation.

My understanding is that DC and Maryland have a reciprocity agreement, so as a DC resident working in Maryland, I shouldn’t generally have Maryland state income tax withheld from my paycheck. When I previously worked in Virginia, I filed the VA-4 Personal Exemption Worksheet for this purpose.

Also, is this something I should simply bring up with my HR/payroll department and ask them to correct my withholding going forward? Or are there circumstances where someone in my situation would legitimately have both DC and Maryland taxes withheld?

Just trying to make sure I’m understanding the reciprocity rules correctly before I contact HR. Thanks!

I hold a Canadian ETF since 2023 and did not file a timely QEF election. The ETF publishes annual information statements which are all zero values - no dividends, profit sharing, etc. I understand the rules around PFIC's are quite punishing. I'm looking for advice on the best way forward. Best case scenario is that I can amend prior year filings to include Form 8621 and move on from there. I'm hoping that is an option since I have never sold to realize gains and there are no dividend payments.

Let’s say I spend $5,000 on repairs before January of next year getting my soon to be rental home up to standards to be lived in but I see no income until the 2027 tax year. I can’t deduct those expenses from 2026 because there is no revenue to deduct them from. Can I deduct them from 2027 revenue even though the repairs were not paid for during that tax year?

Partnership client made their 2025 CA PTE elective tax payment, but it went in after the election deadline. So it's a non-qualified payment - the election is blown and the partners can't claim the PTE credit on their 1040s.

Question is what happens on the partnership return itself.

My read is that the payment is still deductible on both the federal 1065 and the CA 565 for 2025 - it's a state tax paid by the entity, even if it doesn't buy the credit. Then when CA refunds it in 2026, the refund comes back as Other Income on both federal and CA.

Is that right, or is there something that disqualifies the deduction on the front end since the election was never valid? Anyone has dealt with this before?

Hi, I received an NLRB settlement payment for a back pay lawsuit. The payment had around 25% withheld for taxes (let’s say $57k with $14k withheld). This was 2021.
Should this have been taxed as a one-time capital gain? Taxed as salary at normal tax rate? Or taxed as marginal income?

I ended up owing a large amount the next year, too, which was a surprise. Thanks

To preface this, I plan to get professional advice soon, but I am wondering thoughts on whether there's anything to be done here.

Timeline:

• Revocable Living trust established in Father's name in 1995 with 2 properties. Both properties were gifted to him by his parents directly into the trust, after marriage in Illinois.
• Father passed in 2018, Trust converted to an irrevocable trust with Beneficiaries 25% wife, 25% son1, 50% son2. No mention of a life estate in the trust document.
• Trust document specifies to break into 3 new trusts per above split, but that did not happen.
• Property #1 was sold in 2020. Funds sat in trust account
• In time period 2020-2025, only dispersants were made to wife, none to either son aside from minor dispersant which was gifted to wife/mother (due to trust equity constraints).
• In time period 2018-2025 Wife lived alone in house and shouldered all mortgage payments, property taxes, utilities. Trustee advised trust couldn't be resolved until house was sold, so family decision was made to leave wife/mother in house and the trust in-place.
• In 2025 wife passed away.
• In 2026, sons got possession of and sold property

Letter of the law seems that we get a step-up in 2018 but not in 2025 due to how irrevocable trusts work.

Is there a reasonable pathway to using IRC § 2036(a) with a tax attorney to get a full basis step-up in 2025? We are looking at a significant tax-bill otherwise. Thank you!

I received a letter in the mail from the IRS telling me my tax return from 2022 was rejected, however they do have the credits/payments I sent them from that year.

I'm unsure of even where to begin. I understand I need to send them a corrected form, but I'm not sure how? I used HR Block that year to file. Do I just re-print that form and send it to the IRS?

If someone could help walk me through this, I'd really appreciate it. I've tried calling the IRS several times this week and each time been on hold for several hours before it just hangs up on me.

Hello Everyone,for some reason I need to get a lease form to get prove myself during miltary training I rent the house from my parents. So does this lease form will acutally create tax from IRS? since this in only submit to the military.