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Questions tagged [irs]

Internal Revenue Service which is the US Federal Tax authority.

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38 votes
3 answers
9k views

In the USA, why is the Free File software only available for people earning less than $62k?

Free File is a software by the American IRS, which allows one to easily fill out their taxes as long as they earn less than $62k per year. Is there a particular reason for such a restriction? I ...
JonathanReez's user avatar
  • 5,862
37 votes
3 answers
10k views

Is one spouse responsible if other failed to file taxes

I have a friend who's in a unique situation. She has not worked since she and her husband were married 7 years ago. He has typically worked contract jobs receiving 1099's at the end of the year. She ...
Anthony Shaw's user avatar
37 votes
3 answers
6k views

Taxes when transferring money

I'm a US taxpayer (non-resident alien) and I'm being pushed by a friend to do the following: He will transfer 40k from a US bank account that he owns to my personal account. I will withdraw this ...
jlhonora's user avatar
  • 483
37 votes
3 answers
10k views

How do I deal with an erroneously large refund?

Alright, it's a weird complaint, I know. But I just checked on the status of my refund on the IRS Refund Status website, and the IRS had corrected upward the refund I filed for by a lot. Based on the ...
NickCHK's user avatar
  • 513
36 votes
5 answers
14k views

IRS sent me a letter...I messed up by unwittingly taking money out of a Roth IRA and reporting it incorrectly

I recently received a letter from the IRS based on my taxes for 2015. I believe I did not understand the proper workings of a Roth IRA. I was under the impression I could pull my money out and only ...
JonH's user avatar
  • 1,395
35 votes
5 answers
5k views

How to handle the Equifax Breach this tax season?

One of the most common forms of fraud is tax return fraud. Generally you don't find out until you go to file and someone has already been kind enough to file your tax return, AND take a payment for it....
user avatar
34 votes
2 answers
3k views

How is the taxable value of a goat determined? [duplicate]

I was reading an answer over on Law.SE, and it made me wonder about how the IRS calculates tax on barter transactions. Lets say that I do a job in January, and get paid for my work with 20 goats and ...
JPhi1618's user avatar
  • 1,212
28 votes
3 answers
9k views

Accountant/ lawyer will not return my call

I have an accountant who is also a lawyer who did my taxes for about 7 years. I received a notice from the IRS for the years that he filed the taxes saying that I owed $5,000. I sent him the notice ...
M. Gio's user avatar
  • 391
28 votes
3 answers
19k views

Robocall claiming to be IRS saying they are about to sue - Is it legit?

We got a recorded call with a message claiming to be from the IRS. It said they were giving final notice and preparing to file a lawsuit against us. In our case, the message went to voicemail so the ...
user avatar
27 votes
5 answers
12k views

How does the government shutdown affect tax returns?

Has a government shutdown in the past affected tax returns? In terms of refunds, is there anything to be expected differently based on historical precedent?
Paul Sweatte's user avatar
26 votes
7 answers
48k views

Can my employer limit my maximum 401k contribution amount (below the IRS limit)?

I contribute about 13% of my income to my company's 401k, which, at my salary, is well below the IRS limit of $17K/year (in 2012). However, with my raise this year, my benefits department told me that ...
SqlRyan's user avatar
  • 363
25 votes
11 answers
15k views

What do I do if my income is just a little too high for "free file"?

I live in North Carolina and I'm using the H&R Block website to file my taxes and finally at the end of everything they informed me that there's a limit to how much I could make last year and ...
Kyle Delaney's user avatar
24 votes
1 answer
10k views

Why would the IRS ask for birth certificates or even audit a small tax return?

My daughter and her boyfriend live together, and he is the sole earner in the home. They each have a kid plus 1 together. H&R Block told them that he didn't make enough to do his return and now ...
Jen's user avatar
  • 257
24 votes
2 answers
6k views

What is the best way to pay large tax amount owed to IRS?

I recently did a preliminary calculation of my taxes for 2018 and discovered that I am going to owe the IRS about $16,000. I do not have this amount of money in reserve. My question pertains to ...
Mark's user avatar
  • 353
24 votes
1 answer
4k views

I am distributing an inheritance based on verbal bequests. Is this considered a gift that must be reported to the IRS?

Before my mother died recently she gave me a verbal list of bequests she wanted to make that were not in her will. Some of these exceed $14k. I will be paying them out of my own bank accounts with ...
D Barrow's user avatar
  • 241
21 votes
4 answers
10k views

Do altcoin trades count as like-kind exchanges? (Deferred capital gains tax)

2018 EDIT: Although this post was inspirational, US Congress addressed this issue in the Tax Reform law of 2017, and any trades after Jan 1st 2018 cannot have this treatment. The few years of ...
CQM's user avatar
  • 20.2k
21 votes
1 answer
3k views

I haven't filed a return to the IRS in 10 years

My employers have always withheld taxes and for the most part I've assumed they've done it right. I have probably owed a bit some years and been owed a refund some years. Anyhow, I want to get ...
BackTaxes's user avatar
  • 345
19 votes
1 answer
8k views

Do I pay gift taxes in US, if I send money (>$15000) to my father in India?

I am in the US on F1 visa - OPT, I need to send money to pay off my student loan in India. I have already sent about $25000 to my dad, who has paid it to the bank for my student loan and I am planning ...
user63762453's user avatar
18 votes
4 answers
25k views

Will depositing $10k+ checks each month raise red flags with the IRS?

I am a freelancer that runs a small design business (LLC) and I have one client in particular that I regularly do more than $10k per month worth of business with. Sometimes I'll deposit a check for $...
Kevin's user avatar
  • 189
18 votes
3 answers
4k views

Why would a previous year's tax deductions affect the current year's taxes?

For the first time in several years, I'm preparing the income tax filing for my family. Since a professional did the preparations last year, we had no electronic records to directly load into the ...
GreenMatt's user avatar
  • 434
18 votes
2 answers
26k views

Get a human when calling the IRS hotline 800-829-1040 with a question about your taxes?

How do I get to a human when calling the IRS? I keep hitting automated robots.
Patoshi パトシ's user avatar
16 votes
3 answers
5k views

What is the meaning about the IRS saying that "copy A" is scannable but the online version printed is not scannable?

The IRS (Internal Revenue Service) 1099 form says "The official printed version of Copy A of this IRS form is scannable, but the online version of it, printed from this website, is not. Do not ...
user avatar
16 votes
3 answers
3k views

How does IRS know if my dependent is an actual relative for Head of Household?

Long story short. Found out I had a half brother and he's been staying with me for the past year while going to a nearby community College. Was doing my taxes and discovered he technically qualifies ...
deek's user avatar
  • 337
16 votes
2 answers
4k views

I e-filed my taxes ONE SECOND after the deadline - am I in trouble?

I am a US resident and last night I e-filed my 2019 federal income tax return with TurboTax and I owed money. (I know you should NEVER wait for the last day but it's been a couple of crazy weeks so I ...
Gabe's user avatar
  • 283
15 votes
3 answers
4k views

What does an IRS interview request entail when called in to verify expenses for a sole proprietor small business?

I received an IRS audit for the following: I had to call them within 10 days to confirm receiving the letter. And I've scheduled an appointment 2 weeks later. They basically said I just need to ...
Patoshi パトシ's user avatar
15 votes
2 answers
31k views

ITIN Application - IRS requesting original passport

I have filed joint tax return for 2012 tax year. My wife is not eligible for SSN (she's on H4 visa) so we included the W7 form (application for ITIN) into the package. This year the rules became more ...
Mikhail's user avatar
  • 293
14 votes
4 answers
9k views

What could account for me owing exactly $6000 in taxes?

In preparing my taxes, my on-line tax software says I owe exactly $6000. My wife and I make a combined income of around $140,000. We work for the same employer. On her W4, we didn't adjust taxes for ...
Village's user avatar
  • 2,813
13 votes
5 answers
5k views

Does the IRS reprieve those who have to commute for work?

Consider someone who for either family or affordability reasons is unable to live in San Francisco, where they make their living. Their daily commute is long. The cost of the commute is nontrivial, ...
Sebastian's user avatar
  • 161
13 votes
3 answers
2k views

Is it a gift or not?

IRS rules are not always black or white, and something that I find myself struggling with is what is considered a gift. Hypothetically, suppose I am moving soon and have a broken leg so I cannot do ...
TTT's user avatar
  • 47.2k
13 votes
3 answers
7k views

When do dual citizens (Canadian & American citizenship) need to file U.S. income taxes?

I'm a Canadian-US dual citizen (born in the US to Canadian parents) but I've lived in Canada my whole life (aside from the first 3 weeks). I've never had an American passport or a SSN. I've never ...
Eclipse's user avatar
  • 1,281
12 votes
2 answers
58k views

Does the IRS track every check deposited by me?

Is there a maximum amount limit on exceeding which the tracking starts? Or does each and every check deposited by me gets tracked by IRS for reconciliatory purposes?
Maximus's user avatar
  • 273
12 votes
2 answers
23k views

How can I avoid being fined or penalized because my accountant might have failed to file my taxes on time?

I decided to use a CPA because my tax situation got complicated this year. I have attempted to contact my accountant several times and cannot get a response from him at all. It is now after the ...
user14549's user avatar
  • 145
12 votes
3 answers
3k views

Does IRS Direct Pay use Bank of America or is this a scam?

I went onto the IRS website today to make a payment. In the security part of the address bar it is written Bank of America: My question is this: Is this truly the IRS payment site, or some kind of ...
John Smith's user avatar
11 votes
2 answers
4k views

Figuring out the tax basis of property inherited 15 years ago

In 2008 my father died. 15 years later I just sold the property that I inherited from him. Now I need to pay capital gains on that property, but what do I use as the tax basis? I could just assume the ...
neubert's user avatar
  • 3,832
11 votes
1 answer
980 views

Paid for education in previous year, became a student in this one

Me and my wife moved to the US in the 2016 and she enrolled in the community college in the end of the 2016 for spring term 2017. So I paid the tuition in 2016, but she became a student in 2017. ...
dds's user avatar
  • 213
11 votes
1 answer
2k views

What should I use as the cost basis for stock that was purchased before becoming a US resident?

I held some stock in Australia for 14 years and 4 months that has enjoyed some healthy long term capital gains in that time. Recently I became a US Resident for Tax Purposes under the Substantial ...
William's user avatar
  • 213
11 votes
2 answers
830 views

If I never cash my $1,200 stimulus check, can I claim it as a tax credit on my 2020 return?

The United States IRS does not have my direct deposit information (because I have never given it for a tax refund) or my current mailing address (because I have moved since my last return was filed). ...
Sam's user avatar
  • 212
11 votes
2 answers
1k views

How To Report Cryptocurrency Earnings?

I invested in a decentralized bitcoin business and earned about BTC 0.4 this year in interest from it, but there is no official business - it's purely autonomous (very hard to explain). I also "mined"...
Dred Rigoch's user avatar
10 votes
2 answers
7k views

I overpaid the IRS. Can I ask for a refund or credit next year?

For US federal tax this year, I mistakenly paid more to IRS than the amount I owe. I don't have a way to change the payment. Is it possible to ask for a refund or credit next year? Edit: I am owing ...
Sayan's user avatar
  • 203
10 votes
3 answers
1k views

Can you be penalized for setting an arbitrarily high number of allowances on your W-4?

I withheld too much in taxes this year. I will benefit a good amount from the Lifetime Learning Credit, which I hadn't heard about until today. Even if I don't pay a cent in taxes for the rest of the ...
partyphysics's user avatar
10 votes
1 answer
532 views

How can I self report and undo Roth IRA contributions, due to exceeding the AGI limit?

Contributions for Roth IRAs can be made through April 15 of the following year. Without getting into philosophical arguments about dollar cost averaging, my general principle has been to put the money ...
Anonymous's user avatar
  • 101
10 votes
1 answer
195 views

If the IRS asks for a proof for a medical expenditure, can we provide a scan, or do we have to provide the original receipts?

In the United States, one can deduct part of the expenses a taxpayer paid for medical and dental care for themselves, their spouse, and their dependents. In case the IRS asks for a proof, are scans of ...
Franck Dernoncourt's user avatar
9 votes
3 answers
3k views

If IRS instructions for Form 1040 are not available, should taxpayers wait to file until they are published?

Apparently the IRS has not yet published the instructions for Form 1040 for the tax year 2019 yet (as of January 7, 2020). When I go to the standard form instruction index page it just lists the ...
Five Bagger's user avatar
  • 9,785
9 votes
2 answers
1k views

Can yearly tax free gifts to a person in the U.S. be sent in multiple checks?

I'd like to give someone a monetary gift, well under the current $14,000 Annual Gift Tax Exclusion limit; however, I'd like to send them multiple checks throughout the year. I'd heard about this in my ...
JustinP8's user avatar
  • 651
9 votes
1 answer
1k views

Correct way to get paid from a web design?

I did a website design for another company (Basically, I sold them a completed website) for a flat $500. They're telling me I need to file a W-9, but I don't see why because I'm not a contractor for ...
Justin Beale's user avatar
9 votes
4 answers
2k views

Am I really required to set up an Inherited IRA?

Due to death of a parent, I am beneficiary to a defined contribution employer retirement plan of type 403(b). The assets are pre-tax, a dozen or so mutual funds with names like "Stock Index Fund&...
311411's user avatar
  • 245
9 votes
4 answers
762 views

Are tax deductions voluntary?

If I did something that I know is a deductible expense and did not deduct it, is that a sanctioned tax filing? The result is that I would end up paying MORE tax. This also results in me reporting a ...
CQM's user avatar
  • 20.2k
9 votes
1 answer
15k views

ITIN application rejected, and IRS lost one of our passports. How to get back the lost passport?

I have filed my 2012 tax return jointly with my wife, along with my wife's ITIN application, back in late March. In April, I got a letter for IRS ITIN department saying that we should send my wife's ...
IRS_lost_our_passport's user avatar
9 votes
2 answers
661 views

What increases your chance of being audited?

What increases your chances of being audited? Having a home office? Small business? what decreases your chances? Does hiring an accountant do your taxes makes it look more credible to IRS agents?
Vitalik's user avatar
  • 5,483
9 votes
1 answer
502 views

Does the postponed tax-filing deadline affect Roth IRA contribution deadline?

Since Mnuchin has pushed back the filing deadline to July 15th this year (IRS announcement and Notice 2020-18), does that also push back the deadline to contribute to a Roth IRA? irs.gov says this ...
Jason's user avatar
  • 189

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